CPA ... Sooner is Better

Qualifying for a loan is much harder than it was before the subprime crisis. That's not news.

When you seek a loan, whether from a conventional, hard money, or private lender, you should expect that the lender will be more careful than in recent years. Now, lenders are demanding more and better information as part of their increased level of due-diligence. When you have to provide your tax returns in support of your loan application, you will be better off when you are able to provide tax returns prepared by a CPA, and have a CPA who can provide other requested information.

What this means to you as an investor is that you have should have an accountant on your team. Successful investors have accountants who are experienced in real estate. When you start your real estate business you should pattern it after the business model of a successful investor. It just makes sense.

If there is any doubt in your mind, any temptation to wait, you should try to visualize how you how you will be perceived and your loan application will be evaluated by the loan committee. If you don't like what you see, then find the kind of CPA you need to prepare your tax returns. The sooner, the better.

You want this from your advisor, right?

First, we seek to understand our client's situation. Then, we strive to apply the right tools, in the right way, and at the right time to that situation. This puts our clients in a position to make informed decisions.

Even when a businessperson is very knowledgeable, s/he may not remember, or maybe never fully understood a concept, or may not recognize when something applies. The advisor brings expertise to the matter, isn't distracted by emotional involvement, has a fresh set of eyes, and possesses objectivity. Being equipped with these skills provides an opinion that helps the client to evaluate the situation again, and make a decision that is likely to be better than acting alone.

Everyone would agree that a professional golfer knows how to use all the clubs in the bag. Yet, the professional golfer still considers the advice of the caddie in deciding which club to use and how to play the ball. Why should it be any different for anyone else regardless of their pursuits?