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Turnkey Real Estate Investing

3 min read

The Passive Real Estate Investor's Year-End Checklist

Wed, Dec 7, 2022

investinginrealestate-yearendchecklist-investmentstrategyWith only a few weeks left in the year, it’s time for real estate investors to finish strong. You may be a passive investor, but as you know, passive doesn’t mean disengaged! Think of yourself as the captain of a ship. Your crew ensures you get to where you’re going, but you set the course.

Start the new year off with the clarity and insight to steer your investments in the right direction in the new year!

The Essential Year-End Checklist for Real Estate Investors

✅ Assess portfolio performance

As a passive turnkey real estate investor, you should be receiving regular reports and check-ins on your properties and their performance. When you look at an isolated month, you don’t get full context for your portfolio. Now is the time to look back: how have your properties fared throughout the year?

In a normal year, real estate values don’t increase too much. But in the last few years, appreciation has been significantly higher. You can easily look at comps to get an idea of where your properties stand now in terms of value versus time of purchase. Similarly, look at rental rate comps. You want to know if your rates are due for an increase come time to renew your leases.

And, finally, a solid look at your portfolio throughout the year allows you to see where you need to adjust.

✅ Adjust your goals & benchmarks

Compare your year-end portfolio analysis with your established targets. Did you meet your short-term objectives in the last year? Are you on track to meet your long-term goals? If you exceeded expectations, great! You may want to be more ambitious moving forward. If for any reason things seem off-track, investigate why.

There’s no doubt that plenty of outside forces impacted investors this year, and that needs to be considered.

Regardless, put your portfolio analysis to good use. Pivot where you must and start the year with success in mind.

✅ Develop your plan for the new year

In the coming year, how many properties do you want to acquire? Does your performance review mean you should plan to execute a 1031 Exchange? How much capital will you need to get it all done? Planning for the year involves a bit more than simply setting or adjusting your targets.

Run the numbers and get a specific sense for what needs doing and how you intend to do it.

✅ Gather tax documentation

Real estate investors have more complex taxes than the Average Joe. Trust us, you don’t want to wait until April to get everything together! Start gathering the necessary documents now and sync up with your CPA.

Remember, you want a CPA that has experience working with investors. They’ll be able to ensure that you don’t miss out on any tax breaks or benefits – some of which a run-of-the-mill accountant may not be aware of.

While final tax documents don’t usually come in until January, getting a head start will save you headaches later.

✅ Get on the same page with your advisor

Every passive investor needs a reliable advisor. Advisors shouldn’t be there to tell you what to do because it benefits them – they should help you shape a portfolio and choose strategies based on your best interests. It’s good to get with your advisor even if things haven’t changed. It allows you to reaffirm your goals and select the best strategies for the coming year. An advisor offers clarity and direction.

If your performance review reveals the need for change, discuss those strategy tweaks together. Let your advisor know what you want to see happen in the next year and how that fits into your big-picture plan!

✅ Give to worthy causes

There’s no better time to give back than throughout the holiday season. Not only are these the times when nonprofits and charitable organizations make a push to meet their yearly budget and giving benchmarks, but it’s also your last chance to secure a tax write-off. That’s not our only motivation for giving, but it’s a bonus for sure!

Think about the causes and local charities you care about. If you don’t know where to give, browse Charity Navigator. You can find charities by cause and assess their trustworthiness based on leadership, fiscal responsibility, results, and organizational culture.


Start the new year strong…invest with REI Nation!

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Chris Clothier
Written by Chris Clothier

Entrepreneur, writer, speaker, ultra-endurance athlete, husband & father of five beautiful children. Chris puts these natural talents on display every day. As a partner at REI Nation, Chris addresses small and large audiences of real estate investors and business professionals nationwide several times each year. Chris is also an active writer, weekly publishing real estate, leadership, and endurance training articles.