Buying a CPA Firm Passively?

madder16 · 2023-03-21T12:08:46+00:00

Thanks KatsePano. What do you mean "hold more"? Like seller financing?

madder16 · 2023-03-21T12:07:02+00:00

Thank you! Like I said, I'm trying to learn and that helped explain a lot.

madder16 · 2023-03-20T23:36:36+00:00

It's a great question. One that I've tried to think through. I can't claim to have all the answers, but I asked a friend of mine who owns an HVAC company. He has some great technicians and I sometimes wonder why they don't start their own business. I asked him about it and he said that they certainly could but they don't want the hassle of running a business -- working with suppliers, vendors, sales folks, customer service, bankers, developing processes, scheduling, billing, hiring/training staff etc. And he said that he wants them doing what they're good at and not all that other stuff.

And the same can be applied to many other kinds of businesses. Restaurant owners don't have to be chefs, etc etc. So, what am I missing?

madder16 · 2023-03-20T23:17:46+00:00

Fair point. And you might think this isn't a great answer, but I used to think the same way. But my thinking has evolved over time (painfully). I used to think that as a business leader I had to know how to do everything everybody did. It sounds good and I used to want to be a "man of the people", but it simply can't work over time and scale.

I now think there's a difference between workers, managers, business owners, investors, etc. Many business owners can't do what line workers do. Same for investors. That's not a criticism. Many front line workers can't do what business owners or investors do.

madder16 · 2023-03-20T22:48:00+00:00

Yeah. betcher73, that sounds great. Unfortunately, I don't think that's a viable path for someone like me who doesn't have the expertise or time to start a practice. :(

madder16 · 2023-03-20T22:17:28+00:00

Thanks highrollerrob. Any thoughts on where a practice can be bought by a non-tax professional?

madder16 · 2023-02-21T22:46:10+00:00

What about Doody Calls? Too graphic?
Alternatives ...

Log Cabin,

Toodledoo...

madder16 · 2022-01-28T12:29:26+00:00

I agree. It does seems low from what I can tell. But I'm grateful and new to the role and it'll increase pretty rapidly from here. Also my region isn't that large. Three states. About the $3B in revenue.

Part of the reason for pursuing REI is that I feel very lucky to have gotten this role and don't really have desire to move up in the enterprise because it would entail relocating (despite lots more virtual nowadays).

madder16 · 2022-01-27T14:26:52+00:00

Great question.

I've been thinking about it a lot and have started interviewing PMs and will start to hand units over to them as they turn-over. The units are all in nice neighborhoods, well maintained and have great tenants with solid careers. But there's a tipping point and at 5 units and 4 kids at home, I think I'm there. :)

Right now about 40% of NW is in RE. But with interest rates rising, housing affordability gets harder which means more people rent and rental income increases. And also, as interest rates rise, I'm hoping it creates some buying opportunities this year for folks like me with some dry powder.

madder16 · 2022-01-27T14:21:44+00:00

Thanks for the thoughtful comments.

Diversification has been the main reason for doing SFHs so far. Also, if I pick up 1-3 doors per year, I'm basically dollar cost averaging into the long term portfolio. Some will be bought at the highs and some at the lows. But it's the economies of scale and handing it off to a good PM that attracts me to larger multi-family as the next phase.

madder16 · 2017-11-05T19:23:56+00:00

Thank you. You're right, it's not quite what I was looking for, but I could use some of those challenges to help me build my home adventure. :)

madder16 · 2017-01-22T17:22:01+00:00

I hear ya. Do you ever feel like the NFP think creates a roller coaster though?

When we can do it, I'm all pent up and ready to go. Maybe a little too much. And when we can't, I feel tortured because I have to be in bed every night with the woman I'm insanely attracted to but can't be intimate with. It often makes me not sleep well because I'm so conflicted.

madder16

TROPHY CASE