Flip Tip Summary
So, there’s not a single real estate investor on the planet that enjoys bookkeeping. But, keeping your books clean is critical to your success. Check out this FlipNerd.com Tip with John Hyre on the importance of good bookkeeping, and how to outsource it. Great advice, check it out!
Flip Tip Transcript:
Mike Hambright: Hey it’s Mike Hambright from FlipNerd.com, and we have a quick VIP tip to share with you from John Hyre who’s going to share a tip on bookkeeping for real estate investors.
John Hyre: Well first we recommend you actually do book keeping, a lot of you don’t do that we recommend you get organized with it. I know you don’t want to do it, you don’t have to tell me I’ve heard every entrepreneur “We don’t want to do it, we’d rather be out making deals.” You got to do it. So here’s my recommendation. Get someone to teach you how to do it, there are plenty of options out there. Do it for six months, just six months. Put your nose to the grind, just do enough so you know how it works.
As soon as six months has gone by, you get somebody local that you can pay 20 to 25 bucks an hour to do it. You get a basic bookkeeper preferably, maybe someone working out their basement part time whose flexible and likes the flexibility and is willing to take 20 to 25 an hour, and you get whoever your tax person is who presumably understands books to help train that person. Just review their books once a month in the beginning, then once a quarter and then maybe only twice a year to stay on top of them. You’ll be glad you did it.
If you don’t do it you’re going to have a hard time planning, you’re going to have a hard time planning not just for taxes but for your business, you’re going to have a hard time getting returns done correctly, quickly, cheaply, and efficiently. You’re going to have a hard time maintaining your entities. So please do the books for six months, farm it out to somebody whose comparatively cheap who knows what they’re doing look over your shoulder.
Mike Hambright: Thank you for joining us for another FlipNerd Flip Tip
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.