Episode 6: Building Your Investment Team - Who You Need and Why

Welcome to Building Passive Income, the podcast for professionals, entrepreneurs and investors who want to build wealth, diversify beyond Wall street and create true financial freedom through passive commercial real estate investing. I'm Wayne Courageous III, founding and managing principal of Crei Partners, a leading commercial real estate company, I created CreiColin, an AI powered resource to serve as your investor education guide. Built on the insights and experience we've developed at Crei Partners, CreiCollen is here to educate you through passive invest tax strategy topics to help your journey in passive investing. Just a quick disclaimer. This podcast and CRA Colin is for educational purposes only and is not legal tax or investment advice. Always consult with your attorney, CPA and financial advisor before making any investment decisions. I've spent nearly two decades helping investors understand the power of commercial real estate. From multifamily to storage to retail. Each episode is under 15 minutes, simple to follow and and packed with insights to help you grow your income and protect your capital without becoming a landlord. If you're ready to learn quickly and invest smarter, you're in the right place. Welcome to Building Passive Income. Let's build wealth together. Here's creicollen.

Here's a hard truth most new passive investors don't want to hear. You can't do this alone and you shouldn't try. I'm Crei Colin, your AI powered guide to building passive income through commercial real estate syndications. And today we're talking about the one thing that separates successful passive investors from those who struggle. Your investment team. Now I know what you're thinking, Collin. I thought passive investing was supposed to be passive. It is. But passive doesn't mean uninformed and it definitely doesn't mean going solo. Whether you're deploying your first hundred thousand dollars or building a multimillion dollar portfolio, you need a team of experts in your corner. And today I brought one of those experts with me. Before we dive in, a quick reminder. Nothing you hear today is tax, legal or investment advice. My guest is here to educate you on concepts and strategies, but you must work with your own licensed CPA or tax advisor for your specific situation. Alright, let's bring her on. Meet TaxPro Tina, real estate Tax strategist Tina welcome to Building Passive Income.

Thanks for having me Colin. I'm excited to be here. Hi everyone. I'm taxpro Tina and my mission is simple. To help high income earners understand the tax strategies available in real estate investing. I'm not here to give you advice. That's what your CPA is for. But I am here to make sure you know the right questions to ask and the strategies to discuss with your tax professional. Because here's the thing. Most CPAs are great at filing taxes, but not all of them understand real estate syndications, cost segregation or passive loss carryforwards. And if your CPA doesn't get it, you could be leaving tens of thousands of dollars on the table every single year.

That's exactly why I wanted you on the show, Tina. So let's dive right in. When someone is building their passive income investment team, where should they start?

Great question. Start with a real estate CPA or tax strategist who specializes in syndications and passive investments. This person is going to be your quarterback. They'll help you understand how depreciation works, how to track your passive losses, and how to structure your investments for maximum tax efficiency. But here's the key. You want someone who does proactive tax planning, not just reactive tax filing. There's a huge difference between a CPA who calls you in March and says bring me your documents versus one who calls you in October and says let's plan your year end moves.

I love that distinction. Proactive versus Reactive so when someone is looking for a real estate cpa, what are some key indicators they should look for? What separates a good fit from someone who might not specialize in this area?

Great question. Here are three key indicators to look for when you're interviewing a CPA for real estate investing. Indicator number one comfort with K1s and syndications a CPA who specializes in real estate should be very familiar with K1s and how syndications work. During your initial consultation, ask them, how many clients do you work with who invest in syndications? Or can you walk me through how passive losses work? If they hesitate or seem uncertain, that's a sign they may not have deep experience in this area. And that's okay. But it means you might want to keep looking for someone who does. Indicator number two Proactive tax planning conversations Ask them how often do you meet with your clients throughout the year? A CPA who specializes in real estate tax strategy will typically check in quarterly or at minimum twice a year, once mid year and once before year end. If they only connect with clients in March or April, that's a sign they focus more on tax preparation than tax planning. Both are important, but for real estate investors, planning is where the real value is. Indicator number three Familiarity with advanced strategies. During your consultation, bring up concepts like cost segregation, bonus depreciation or passive loss carryforwards. You don't need to be an expert, you're just testing their familiarity. A real estate CPA should light up when you mention these topics and be able to explain them in simple terms. If they're not familiar or if they say, we don't really deal with that, it's a sign their practice may not be focused on real estate investors. The key here is this. You're not looking for perfection. You're looking for specialization. A general CPA can be great for W2 employees or small business owners, but real estate investing has unique tax benefits that require a specialist. So when you're interviewing CPAs, ask these questions and trust your gut.

Those are huge. And I think a lot of listeners just realize they need to have a conversation with their CPA or find a new one. So once you've got your real estate CPA locked in, who else needs to be on the team?

You need four key players, and I call them your financial freedom dream team. Number one, a real estate CPA or tax strategist. We just covered that. Number two, a fee only fiduciary financial advisor. Notice I said fee only and fiduciary. You want someone who's legally obligated to act in your best interest, not someone earning commissions on products they sell you. This person helps you integrate your passive income strategy into your overall financial plan. Number three, an estate planning attorney. Once you start building wealth through real estate, you need to protect it. This person helps you set up LLC trusts and asset protection structures. Number four, an independent insurance agent who understands real estate investing. You'll need umbrella policies and in some cases, additional liability coverage as your net worth grows. Now, I won't sugarcoat it. This team isn't free. You're looking at about 10 to $25,000 per year in professional fees. But here's the thing. A good real estate CPA alone can save you multiples of that in taxes. It's an investment in your financial future.

That's a critical point. This team isn't an expense, it's an investment. Tina, before we wrap, can you share a quick example of what happens when someone doesn't have the right team in place?

Absolutely. I'll keep it hypothetical, but this is a common scenario. Let's say an investor, we'll call him Dr. Smith, invests $200,000 into a multifamily syndication. The deal has cost segregation, and in year one, Dr. Smith receives a K1 showing a $75,000 passive loss. Dr. Smith takes that K1 to his general CPA, who's used to working with W2. Employees. The CPA doesn't understand passive losses or how to carry them forward. So Dr. Smith files his taxes, the passive loss sits unused and he misses out on a massive tax benefit. Fast forward three years, Dr. Smith sells another investment and has a $50,000 capital gain. If he had been working with a real estate cpa, they could have used those passive loss carryforwards to offset that gain. Instead, Dr. Smith pays full taxes on it. That's real money left on the table. All because he didn't have the right CPA on his team.

Wow, that's a costly mistake. All right, Tina, this has been incredibly valuable. Any final thoughts for our listeners?

Just this. If you're serious about building passive income, treat your investment team like the asset it is. Interview your cpa. Ask them about syndications, cost segregation and passive losses. Make sure they're proactive, not reactive. And remember, I'm here to educate, not advise. Everything we discuss today should be reviewed with your licensed CPA or tax professional who knows your specific situation. But now you know the right questions to ask. Colin, thanks for having me. I'd love to come back during tax season and talk about reading K1s.

You're on, Tina. We'll definitely bring you back. Thanks for joining us today. Alright, let's recap. If you're serious about building wealth through passive real estate Investing, you need four key people on your team. 1. A real estate CPA or tax strategist who specializes in syndications. 2. A fee only fiduciary financial advisor.

3.

An estate planning attorney.

4.

An independent insurance agent. Yes, this team costs money. 10 to 25,000 per year. But the tax savings, legal protection and financial clarity you get in return? Priceless. Here's your action. If you don't already have a real estate cpa, make that your first hire interview at least three. Ask them about syndications, cost segregation and passive loss carryforwards. If they can't speak fluently about those topics, keep looking and as always, consult with your CPA attorney and financial advisor before making any investment or tax decisions. Now, if you're ready to start building your investment team and your passive income portfolio, let's talk. Check the show notes for a link to schedule a call with us. We'll help you create a clear roadmap to financial freedom. Next time on Building Passive Income. We're talking about understanding your financial starting point because you can't set realistic goals if you don't know where you are today. Until then, remember, financial freedom isn't a dream, it's a decision, and it starts with building the right team. I'm Crei Collin. Let's build wealth together.

Thanks for tuning in to Building Passive Income. Today's episode helped shift your mindset or gave you a new tool to grow your wealth. Do us a favor and like, subscribe and share this podcast with someone you care about. Want to go deeper? Join our free Passive Investor coaching program@ passiveinvestorcoaching.com it's the perfect next step to start building wealth through commercial real estate the right way. Remember, financial freedom isn't a dream, it's a decision. And it starts with building Passive Income. We'll see you in the next episode.

Sam.