At Malloy, Montague, Karnowski, Radosevich & Co., P.A., many of our clients often purchase real estate to increase income and net worth. There are numerous ways to invest in real estate without buying anything “big” nor necessarily investing large amounts of cash. Imagine the potential cashflow of owning rental homes, even modest ones. Or perhaps buying a duplex and residing in one portion while renting out the other. Or owning a modest office condominium to rent to a solid business tenant or two.
MMKR provide a full range of business consulting and tax services to help clients succeed in their business ventures – including real estate ventures.
How can MMKR assist you in a potential real estate venture?
1.) We can do cash flow analyses concerning properties to determine potential profitability.
2.) We can prepare your personal/business financial statements to help you obtain financing to purchase the property.
3.) To protect you from personal liability, you will typically want to own the property in a limited liability entity. We can help you make informed decisions about the type of entity and obtain you taxpayer identification number from the Internal Revenue Service.
4.) Real estate often offers substantial tax deductions. We can advise about these deductions, how to document them and how to best minimize the probability of audits. And of course, we can prepare the tax returns themselves.
5.) Real estate values often change over time. Good financial record-keeping and cash flow analyses are very helpful in determining the property’s value at various points in time. We provide these services to help you obtain refinancing and lines of credit as well as to aid decision-making concerning sale of the property.
Take-away: Real estate purchases can be a fruitful way to increase income and net worth. We assist in many aspects of the purchase, operation and sale of real estate. Make an appointment at MMKR today if you are thinking about the purchase or sale of real estate or otherwise want to explore ways to increase the profitability of property you already own.
“Tips on Rental Real Estate Income, Deductions and Recordkeeping,” IRS Publication (October 16, 2019).
“Avoid These Eight Common Real Estate Investing Mistakes,” Forbes (Oct 2, 2019).
“10 Fundamentals Beginning Real Estate Investors Should Know,” Forbes (August 28, 2019).