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You can earn a lot of money during your career in real estate in part because of the decisions that you make. Building a retirement nest egg, future educational expenses or just positive cash flow all take great financial decisions. There are professionals that specialize in helping to direct your earned income in ways you did not know existed. Learning what financial advisors can do for your investment property to grow your real estate business is a big help. It is these smart decisions that will contribute to your long-term wealth building goals. Whether you consider yourself financially educated or not, you can learn a lot from a financial advisor when you own real estate.
What Financial Advisors Can Do for Your Investment Property 1. Give You Tax Planning Advice
Accountants are excellent for explaining how you can take advantage of tax breaks on your earned income. These experts, however, cannot give you advice on "how" to earn the income that you earn. You could have multiple assets spread out in several areas that you are paying more taxes on compared to condensing your investment actions. Each investment that you make to contribute to your financial wealth comes with a certain tax risk. Having a financial advisor review your current and past tax returns regularly can pinpoint patters of higher taxation that could help you keep more of your annual earnings.
2. Specialized Retirement Planning Advice
You could be earning twice what you earn now when you retire but at a cost. Planning pre-retirement investments before you retire is a critical step that smart real estate invesors make today. The risk of inflation is very high for reitrees and the same dollars earned today will be less in the future without retirement planning. Financial advisors often specialize in key areas of financial planning. While one planner might give you excellent investment advice, he or she might not specialize in retirement planning. Hiring a financial advisor with a track record of retirement planning success can make sure your retirement funds are actually there when you retire and you won't run out of money.
3. Analyze Rental Market Trends
How do you know you're getting top dollar for your rental property? Do you know if your rent is high enough? Non-financial experts are quick to offer a range of ideas that have no financial merit. The amount of years that someone has experience in investing means nothing without accurately analyzed data. Financial advisors can evaluate the price you paid for your property, include annual appreciation factors and determine if your property can be successful from year-to-year. A quick survey of the national, state and local stastics can bring to light rent that is too high, too low or right on par with your investment strategy plans. Squeezing as much profit as you can get out of your property is a little easier when an expert is guiding you with accurate and financial advice.
Selecting a Certified Financial Advisor or Planner Never go by what someone tells you. Back up all claims by ensuring that a financial advisor or planner that you hire is certified by a national organization for financial professionals. Certifications like the Certified Financial Planner administered by the CFP Board and the Certified Financial Analyst by the CFA Institute are two of the most trusted certifications and organizations in the U.S. Ensuring that any professional that assists you with your investment property goals is certified will help you get the most accurate and up-to-date advice.