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Details of the REI Extended FAM program
1 business entity
$1,475 / mo
2 business entities
$1,875 / mo
3 business entities
$2,275 / mo
4+ business entities
call for custom quote
A minimum 6-month commitment is required
Business entity means an LLC, partnership, or corporation, up to 10 investment properties, with up to four owners. Investment properties include:
Higher number of properties or entity owners may increase the monthly fees. Please call us for clarifications on pricing.
There's cheap frozen no-brand pizza, and there's made-from-scratch pizza in a family-owned Italian restaurant. The only thing they have in common is the name.
Tax rules for REI businesses are too unique and complicated to trust your taxes to chain tax offices - unless you don't mind overpaying the IRS and getting audited. You need a firm specializing in real estate taxation! We work exclusively with real estate businesses, since 1996.
We will prepare your personal AND business Federal (IRS) and state tax returns, including Texas Franchise tax report.
Missing, incomplete or incorrect bookkeeping leads to much more serious problems: losing money on real estate deals, cash flow issues, loss of financial control, and overpaying the IRS, among others.
We will help you stop this vicious cycle by reviewing your books monthly, throughout the year, and not just at tax time. Our clients experience tremendous improvements in cash flow, regaining control of their businesses and reducing stress - in addition to saving thousands of dollars!
We will help you set up your books properly, but day-to-day bookkeeping remains your responsibility. We can suggest technological solutions that will minimize your burden and cost. We can also refer you to professional bookkeepers experienced in REI business - if you would rather hire someone.
Once the books are straightened out, we will prepare your financial statements:
Why do you need these statements? There are many reasons, including:
There is a major catch, creating constant confusion real estate investors. The financial statements that your accounting software produces automatically (if it does) are NOT the statements you need for the purposes listed above. You can NOT take these statements to your lender!
We will explain to you why this is the case and, far more importantly, will fix this problem - so you can get accurate and useful financial statements. This benefit alone is worth the price of the entire program, by the way!
There is much more to tax planning than the infamous "what is the best business entity for REI"?
First, this question does not have an answer. The correct question should be - what is the best business entity for my specific circumstances and at this specific time?
And the right business entity is only the beginning. If you spend time with us planning ahead - we can save you tens of thousands of dollars! How?
Prior to the FAM programs, our clients often "missed the boat" - because you cannot rewrite history when dealing with taxes. No longer the case. We are now available to you throughout the year - to guide you to much higher and faster success!
When you run your business, tax and accounting questions pop up all the time.
You're trying something new and not sure how to record it correctly. You want to sign up for a new service but are not sure if it will be tax-deductible. You watched a new webinar, and wondering if the strategy they taught is legit and applicable to you. Your partner insists that you need to give a special IRS form that you have never used before. And so on.
The FAM programs allow you to get correct and timely answers to all your accounting and tax questions. You have an option to discuss them with our staff on the phone or even in person.
Compare this to having to pay for each question you want to ask. No need to worry about extra charges once you sign up for the FAM program.
How important is it for you to have ongoing access to top-of-the-line tax and real estate expertise of our team?
During any year, an average business receives three IRS letters. Some businesses receive as many as 10 and even more. Usually, these letters are routine inquiries or acknowledgements. They may not require a response from you, but how do you know for sure?
Other letters require that you respond by a certain deadline. If you have received IRS letters in the past, you know that their letters are notoriously long and confusing. It's not easy to figure out what exactly they want from you and how you can comply with the requests. And mistakes can be costly.
Forward us all IRS letters that you receive - and we will take care of them if any response is necessary. Let us spare you these hassles, so you can focus on your real estate business.
IRS audits are no fun. Nobody is safe from an IRS audit. No, you do not have to "do something wrong" to get audited. There are various reasons why the IRS may decide to audit you, and some of them are totally out of your control.
Defending against an IRS audit is an art more than a science. It's not unlike defending yourself in court. Very few people would risk going to court without an attorney. So why would you want to risk going to the IRS on your own?
The answer is usually cost. Quality professional help is expensive: Michael Plaks charges for IRS audit defense start from $4,000. When you're a member of an Extended FAM program - your cost is $0.
Michael has been Federally licensed as an Enrolled Agent (EA) since 1996. This license is the highest designation awarded by the IRS to tax professionals. Michael has represented dozens of clients in dealings with the IRS, and he has accumulated a stellar record of success in fighting the IRS. Your money is important - get the best help there is! For Free!
Does it sound familiar? Stop the pain of this uncertainty, once and forever!
We will calculate your estimated tax liability every quarter, based on your books that we will be reviewing for you. No more nasty surprises at tax time! You will know and stay in control of your money.
News flash: writing yourself a check from the company account is NOT payroll. Proper payroll involves calculating and withholding various taxes (Federal income tax, state income tax, Social Security tax, Medicare tax), creating forms W2, and more.
The employer must also make regular deposits to the IRS and states, including unemployment taxes. and send regular reports to the IRS and state tax departments.
Do you want to deal with all these hassles? We handle it for our Extended FAM clients.
We will also help you file IRS forms 1099-MISC which you must create for every person or business if you paid them at least $600 for labor or services (including commissions) during a calendar year.
Also, we help private lenders to file IRS forms 1098 for their borrowers.
Having worked with hundreds of REI business owners for more than 20 years, we identified the Magic Five factors that are essential for success in REI business. One of them is having a solid business plan.
The challenge in developing such plan comes from the enormous diversity of real estate: there are so many options, so many strategies, so many opportunities. Which ones are the right ones to pursue? And what is realistic?
The answer is different for every investor. What is your current financial situation? How much time and money do you have available? What are your ultimate and immediate priorities? What are you good at, and what are you averse to?
These and other similar questions is what we will ask you when you enroll in our REI FAM program. We will help you realistically assess your options and your limitations. Based on that, we will jointly select the best fit among many real estate options available to you.
Or you can forego this process and jump on whatever opportunity you happen to encounter first. Then, after you spend your precious resources and time on what is likely to be a wrong choice for you - THEN you can come back to us, and we will show you why it was a mistake. And what would have been the correct business plan if you asked us first. Your choice.
Once your business plan is developed, the next step is to set goals.
Again, this process is unique for every investor. Many factors are important in this process: time, resources, experience, urgency, priorities, personality, and more. We have helped dozens of business owners like you to sort it out.
If you set your goals unrealistically high - you may fail to reach them, resulting in loss of motivation and long-term harm to your real estate business. If you set them too low - you will also harm your business, because your subconscious brain will be sabotaging your success, limiting you to what you thought was possible.
Can we get your goals just right? Probably not. But we can come close - if we work on it together. Our experience confirms this is true.
Once we define the right goals - the next step is absolutely crucial, yet too often ignored. It is called accountability.
It is our human nature to make excuses. Someone has to call you on it. Who is that person, known as accountability partner? Strong enough to not give you an easy pass, yet supportive enough to help and encourage?
As mentioned earlier, we identified the Magic Five: five critical factors of success in real estate business. Accountability happens to be one of the Magic Five!
We have done it for many other investors, and we will do it for you.
Kind of offensive, isn't it?
We will, however, insist that this name is on point. Most new (and some not so new) real estate investors are addicted. They are addicted to the common, familiar, yet inefficient and even harmful ways of doing business. They are addicted to the empty promises of the so-called gurus. They are addicted to the unrealistic dreams that never come closer.
Most importantly - they are addicted to the process and not the results.
Like all other types of addicts, they rationalize their destructive patterns and stay in denial. They keep doing the same things, expecting a different result. Ouch.
Haven't you had enough of this? If you have - let us introduce you to our proprietary 12-step REI Sobriety program. No, we will not be sitting in a circle and sharing our stories. We will, however, help you break your current destructive habits by taking one step at a time, twelve total.
It will take time, but you will start seeing results once you commit to our suggestions:
Enough is enough. Agree?
The four key elements of our REI FAM programs:
are all processes that need periodic checkpoints.
Our framework calls for quarterly one-on-one sessions to address these needs. These meetings that we call Strategy Sessions are mandatory.
We can conduct them either in person or remotely, via phone or video conference technology.
Strange as it sounds, but most real estate investors have no idea how profitable each of their deals is - until it is sold or even until tax time. Isn't it just plain crazy? We think it is.
Don't you need to know right away that you are close to the bottom of your budget, and there is no margin for profit left on the deal? That if you keep going like that, you are standing to lose money on this deal? And the longer it takes, the more money will be lost.
There is a powerful saying we heard from one of the well-known Houston investors: lose fast and lose cheap!
What it means is that you need to know when to cut your losses. But how do you know if you're not tracking it? Which is exactly what we will do for your flips and your rentals.
Your deals never lost money? Great! Don't you still want to know how well your deal is coming along? Think so.
Do you see now why this part of REI FAM program is absolutely indispensable for your REI business?
When you close at a title company, they are going to check all closing documents. There's nothing to worry about here.
WRONG! The job of a title company is to ensure a clean title. It is not their job to verify the numbers and watch for your interests. No, it is not. And even if they assure you otherwise, they do a lousy job of checking your numbers.
And why check the numbers, you ask? Because you can easily lose several thousands dollars at a closing, due to various accounting errors and oversights on closing documents.
We have processed thousands of closing statements over 20+ years. Roughly one in three contains significant errors.
What kind of errors?
Finding and correcting just one such error on just one deal can pay for the entire REI Extended FAM program!
Michael Plaks, the Black Belt in Real Estate taxation, has been teaching real estate taxes, accounting, and business operations for over 20 years.
Many of his classes and webinars are available online, thru our REI Online University.
Combined, these classes represent an over $2,500 value. Members of our REI Extended FAM program get full access for FREE!
Michael continues to teach regularly. Tax laws keep changing, real estate business keeps changing. You need to stay up-to-date!
Most of the new training is conducted thru webinars, with an occasional classroom seminar.
Members of our REI Extended FAM program can attend all Michael's classes and webinars for FREE!
The key word in having an ongoing relationship with your tax adviser is ongoing.
Members of our REI Extended FAM program can schedule face-to-face or phone consultations with Michael Plaks or our senior staff as often as needed!
Consider that normally Michael charges $350 per hour. If you have a one-hour consultation once a month - this is already a $4,200 value!
And the best part - it is truly unlimited. Whatever you need, we will provide.
We are busy, and so are you. But sometimes business matters are urgent.
You're getting a refinance loan, and the lender came up with a last-minute request. Or you're at the closing, and something just happened that you want to check by us, before you sign. The sellers are waiting. The clock is ticking.
How would you like an ability to have access to us the same day, including after-hours and weekends?
If your problem is truly urgent, and you're on our REI Extended FAM program - we will give you the VIP treatment. We cannot do it for everybody, but we will do it for YOU.
Copyright 2018 by REI Tax Firm