I'm so busy these days, I almost need to hire an assistant to keep track of everything I need to do. I've thought off-n-on about meeting my CPA now for months. It's one of those things I keep procrastinating about. Last night, I realized we are already heading into the throws of December, and I haven't even talked with my CPA since earlier this year! So, I sent her an email asking her when we could meet, but haven't gotten a response yet. I actaully met a real good CPA on one of the REI sites I frequent. From his posts, he seems to know his stuff when it comes to entity creation, applicable laws, and other CPA stuff as it pertains to real estate investing, because he is a seasoned investor himself. The only problem is he lives in Dallas. I've talked to him before, and he said he is willing to take me on as a client, but we'd have to do a lot of emailing and/or faxing of documents, long distance calling, etc. With time running out this year, I think I'll just go with my current CPA for this year's stuff, and maybe use the other CPA for next year's stuff. We'll see.
BTW, I think I'll do what Shaun did and post my thoughts of what I did and didn't accomplish this year, along with what I want to do next year.
10 comments:
Hi Steve, I couldnt find your email so I thought Id contact you on here.
Can you change the link to my blog on your page to:
www.livelearninvest.com
I've completely removed it from the afterreadingrichdadpoordad URL.
Thanks.
Hmmmm......
Let's see the bigger picture:
LOT'S of inventory on the market with financing available for almost anyone who can draw a breath and sign their name, but your "guy" is in such bad financial shape he has to do the "rent to own" dance.
That's a good sign.
Then, he doesn't have the cash to pay the upfront deposits.
That's another good sign.
He's saying all the right things and wants to purchase in a few months when he can "fix" his credit and get a loan.
Forget the signs.....you've been "conned" by a loser who's going to stick it to you; BIG TIME.
Fast forward to after the first of the year and he'll have another place lined up, a better story, and you'll have a trashed house that STILL will not sell.
Add in all the carrying costs and every month the cash drain grows.
Getting a good CPA is the best thing you could possibly do at this point as he might be able to put, in black and white, your TRUE financial situation.
Kenric -
Done. Thanks for telling me.
Anon -
LOT'S of inventory on the market with financing available for almost anyone who can draw a breath and sign their name, but your "guy" is in such bad financial shape he has to do the "rent to own" dance.
Actually, he did inquire about doing a rent-2-own formally, but I told him I don;t do R2O due to Texas' recent legislation that makes it cumbersome.
Then, he doesn't have the cash to pay the upfront deposits.
Actually, he paid me prorated rent for December (74.2%), half the secutiry deposit (which is one month's rent), and half the pet deposit, so he gave me a pretty sizeable cashier's check. He still owes me the remaining half of both deposits with the January rent, so we'll see what happens.
Forget the signs.....you've been "conned" by a loser who's going to stick it to you; BIG TIME.
What the ... ??? Where do you get this? The guy just gave me a cashier's check (i.e., NOT a personal check) for almost $2k. I verified his employment and previous landlord. Please explain yourself further.
Fast forward to after the first of the year and he'll have another place lined up, a better story, and you'll have a trashed house that STILL will not sell.
Please don't tell me your one of these doom-n-gloom people who only see the negatives in landlording.
Getting a good CPA is the best thing you could possibly do at this point as he might be able to put, in black and white, your TRUE financial situation.
Uhm. I actually HAVE a CPA and aside from some tax laws and accounting priciples that I'd rather not dive into, I pretty much know my financial position. Actually, if I had to liquidate my assets today, even if I took a hit, I'd still make out like a bandit, financially. I just passed the half million mark and I don't plan on stopping anytime soon.
Not a "bubble boy" or "doom & gloom" at all. It's just I've been around the block more times than you can imagine and your "profits" are paper, if they even exist.
Question for you:
Is your $500k Gross or Net Assets. There's a big difference.
I'll take a look at your posts and see if the numbers for your investments are on your blog and do some math. At first blush, it's a house of cards ready to fall.
JMHO
Anon -
I can respect your opinion, but I can tell you I am sitting okay financially. I have some pockets I can put my hand into if the proverbial house of cards fall. I have insurance and protection in place in case of lawsuits/damage, so I'm not too worried about that.
Yes, the $500k is gross assets, "net" assets would basically be my networth, which is hovering near the $200k point right now.
Believe me, if you can draw a financial picture of my life from just what I've put on my blog, then I'll hire you on the spot as a financial advisor. There are many, Many, MANY things I wish to keep private in my life.
I give credit where credit is due. One reason, after accidently finding your blog, I lurked and read is because you have a lot more sense than the usual RE Dufus. In fact, I believe you have done MORE things right than 90% of beginning investors. The problem is, with any new venture, is you have very little "wiggle room" for mistakes when you can least afford them.
Getting into the RE Investment business at THIS particular time is risky, risky, risky. What looked GREAT a year ago is a DOG now.
I had a feeling the $500k was gross, not net. Gross assets mean very, very little; other than "mine is bigger than yours" talk. Remember Enron? Net is what truly counts; always has, always will.
If you don't mind, I'll do some more reading of your blog and hang around a little longer.
As far as info and privacy; I HOPE you do protect yourself! However, it's not too difficult to piece together a lot more data on you by just what you write than you realize. I'll put some "guesses" together and post in another comment to prove my point.
BTW, I'm no genius; just a very observant reader who's been kinda lucky with investments over the years.
Anon -
Getting into the RE Investment business at THIS particular time is risky, risky, risky. What looked GREAT a year ago is a DOG now.
I agree. Although RE is a local market, it can also be affected by regional, national, and even international forces. In my particular area, we are still experiencing mild growth. The area went through a short-term boom during and immediately after the dot-com "boom". Likewise, we went into a major correction after the dot-com bust. Since then, the market has been stagnant to slightly growing. My honest belief is that even though most areas of the country will see major corrections, I don't see that happening here as we have already been in "correction mode" for several years. I believe most reports still show our region anywhere from 5-15% UNDER market value. Add to that buying 15%, 20%, or more UNDER market, and the RE market would have to crash significantly to be really hurt. I think if it dips 25% or more, RE will be the least of our worries as the country as a whole will probably implode. Again, just my opionion - I am not an economist.
I had a feeling the $500k was gross, not net. Gross assets mean very, very little; other than "mine is bigger than yours" talk.
I both agree and disagree. In pure form, gross assets is just another number. Unless liquid, it means very little in regards to a short term financial position. However, being that most is real estate, you have to factor in other attributes, such as equity, cashflow, longterm growth, needful, etc. I admit the vast majority of my gross assets are in the form of RE, although, I do have some funds set up for ready cash if need be that add to the figure.
BTW, I appreciate the critique, and I look forward to your "guesses". :-)
First, not critique; just observations and opinion...LOL
Guesses:
Early to mid 30's
Works for Dell
In Engineering or Software
Some level of Mgt.
Eager to "forge your future"
How'd I do?
BTW, I REALLY don't want to know your particulars. I only make these assumptions so, if I am correct or close, you be a little more careful about showing your hand on the net. Never, never, never show your cards when the "pot" is still in play. I believe you stated your POSSIBLE profit for both houses would be in the neighborhood of $30k. That was then, now I would say you might be closer to $20k....if you could find buyers. Way too many people are counting their paper profits only to see them vanish when it comes time to convert to cash. "Next Spring" has been touted as the time buyers will be back at the table. Personally, I don't see it happening.
Lastly, I am not an agent, a seller, or an investor. Full disclosure for the sake of discussion. :o) Forgot; not a blogger either. I have no "dog in the fight".
Anon -
Early to mid 30's
Nope. Hint: replace the "3" with a "4".
Works for Dell
Nope. Although I pass by their HQ's every day going to work at another hi-tech company. ;-)
In Engineering or Software
Yes!
Some level of Mgt.
Nope. Although I thought about it for more job security.
Eager to "forge your future"
Somewhat. While I admit I'd like to enjoy the results of my hard work, my main reason for wealth-building is more for my children than for me. I guess it's the old "trying to do better for your kids than what you had" thing.
I was raised poor (mobile home, boonies of West Virginia) and savored every glimmer of things a lot of kids my age took for granted, so I'm quite humble. For example, I give to the local Children's Shelter via a payroll deduction every month. One of the things I DON'T want to do is spoil my kids. It's hard to do, though, since my wife was brought up spoiled, to a degree.
I salute you.....
You know what it means to be "raised hard"; not many people have a clue what it means to be truly "without" and appreciate the blessings in their life.
I know what you mean; better than you realize. My two boys were able to get an education and are pursuing their dreams......something I never got to do. Not complaining as I've done pretty well in business but do regret not getting a college education.
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