Professionals in Your Corner

Finding the Best Support Team for Your Investing Journey

Some of your main partners that you need to carefully interview and  consider when you are looking at investing is a CPA, lawyer, and the Sponsor Team, also known as Syndicator or Sponsor Team.

Super CPA

I recommend finding a CPA who not only understands the real estate side of taxes, but has some knowledge of syndications as well. There are a lot of tax benefits to investing in real estate, so you don’t want to leave money on the table or give more to Uncle Sam than he deserves. A good CPA that has experience with syndication can also give you some options for saving even more on taxes outside of the normal passive income and depreciation benefits. One interesting benefit only applies if you are categorized as a real estate professional by the IRS. As a real estate professional, you can carry depreciation or other losses to your regular income. This only applies to real estate professionals! The IRS will not believe a doctor or pilot or other high earner is full time in real estate, even if you actually are. This is a topic to bring up with your CPA long before tax season. There are ways around it—like a spouse can be a real estate professional, then the benefits would carry to the combined income. There is a right way to do this and there’s a dishonest way to do this, but it is pretty lucrative, so consider it. Your CPA is probably the most important person to have in your corner as they can save you thousands in taxes.

Literate Lawyer

The next team member would be a lawyer. Lawyers are needed to look over your legal documents, such as the Private Placement Memorandum and LLC documents.  The Private Placement Memorandum (PPM) is your agreement to be a limited partner in syndication, and all the details about how the investment and returns will be handled. It is a very long document that I recommend you have a lawyer look over on your behalf.

Tremendous Team

Another very important group to a successful syndication is the sponsor/operator team. These are the people that are finding a deal, underwriting the deal, planning the whole project, managing the operations, and carrying out the plan. You must have strong operators who are trustworthy, experienced, knowledgeable, and align with your values. You are going to have a long-term relationship with these folks, so you want to make sure you select this team very carefully.

Are you still looking for the best way to attain to the level of financial freedom? There are quite a number of opportunities out there to choose from. But do you want to get there in the shortest amount of time with the least amount of hassle? If so, there is one in particular that you need to know more about.