ALBUQUERQUE – The New Mexico Society of CPAs (NMSCPA) has announced the election of Brad Beasley, a Las Cruces certified public accountant, as the chair of the 2012-2013 NMSCPA board of directors. Beasley is a partner at accounting firm Beasley, Mitchell & Co., specializing tax planning and consulting for the construction industry, transportation industry and franchise operations.

A New Mexico native, Beasley earned his Bachelor's degree in Accounting from the University of Nevada - Las Vegas. He has served on the NMSCPA board since 2008 and has participated on several other committees with the Society. Beasley is active in the Doña Ana Chapter of NMSCPA, including serving as chapter president.

Two other Las Cruces CPAs serve on the 2012-2013 board. Dr. William L. Smith, professor at New Mexico State University, is continuing as a director. Christopher Salcido, a staff accountant at Beasley, Mitchell & Co., is a recent addition to the board as the newly elected president of the Doña Ana Chapter.

Established in 1930, the New Mexico Society of CPAs is a not-for-profit membership association promoting and advocating for the CPA profession. The Society acts as a steward for the continued success of certified public accountants in New Mexico. It is the largest accounting association in the state.

0712 Beasley 

Often I am asked by clients to send information to banks and mortgage brokers so they can either purchase or refinance a home. While this can be a fun and exciting process (that was a joke), people should really analyze their financial house and see: one, if they can afford the new
purchase or mortgage adjustment; two, if their credit and income is high enough to obtain the loan.

This process of cleaning your financial house begins with the gathering of information. It is no secret as to what documents the bank is going to need and how they are going to interpret them. SO, if we know what the rules are, why not get the information beforehand so as to avoid a surprise or disappointment (rejection by the bank).

All banks are going to need the following:

  • 2 years, possibly 3 years, of tax returns (federal only);
  • The last 3 to 4 months of bank statements and any other “sources of funds” accounts such as brokerage accounts and savings accounts;
  • A “Personal Financial Statement” (OK, don’t panic or run away!). You don’t need to do much here, except list the balances of all your assets (cash, stocks, IRA’s, 401(K)’s, Real Estate) and then list all your liabilities (loans, credit card balances, mortgages);
  • If you are self employed, or are a partner or shareholder of a closely held business, you are going to need 2 to 3 years of business tax returns and financial statements for these entities as well.

The banks also are going to pull your credit report. I would recommend subscribing to a credit monitoring company like “Lifelock” or “Experian”. Their reports will alert you to any “Skeletons in the Closet” the bank may see. It is better to know now and figure out how to correct any errors, or work on debt reduction to increase your credit score.


After gathering all the information, it is time to think like a banker (scary, I know!). First, if your credit score is under 700, you need to be ready to explain why. Take yourmonthly income (that was reported on your last two tax returns) and subtract any monthly debt payments. Obviously, if you get a negative number, you have an issue. Let’s assume you have a positive number. Next, subtract the estimated new
payment of the mortgage including real estate taxes and insurance. If what you have left is less than half of what you started with, you many have trouble qualifying for the loan.

This is the new way banks are looking at mortgage applications. Also, don’t think you will not have to put money down for a new home purchase--a distant memory, and I don’t see it coming back. Start planning now, this will help you achieve your goal of home ownership and obtaining a mortgage with a favorable rate!

Get your broom out!

LAS CRUCES, NM - The Federal Reserve Bank of Dallas recently announced the addition of Brad Beasley, partner of Las Cruces Accounting firm Beasley, Mitchell and Company, to its Emerging Leaders Council. The group is geared to provide economic insight from various industries in the Southern U.S., and is made up of individuals from Texas, southern New Mexico and northern Louisiana.

“This new council will give [us] the benefit of hearing from people who are emerging leaders in their communities and industries,” said Richard W. Fisher, President and CEO of The Federal Reserve Bank of Dallas. “We very much want their diverse, ground-level views of developments in the economy.”

This exclusive group of Emerging Leaders will generally include 12 to 14 members appointed by the president of the Bank with the consent of its board of directors. Beasley joins an elite group of business executives from recognizable organizations such as BNSF Railroad, Greyhound Lines and Frito-Lay. Each executive’s specialized knowledge and experience is geared to increase economic growth in their own communities and the region as a whole.

Beasley is appreciative of the opportunity to represent the business perspective of southern New Mexico, and welcomes a positive outlook on the economic future of Las Cruces. “I am pleased that my firm and myself have been recognized for our expertise in consulting clients in a cross-section of industries, including construction, real estate, automotive, medical and retail,” Beasley said. “I hope to help advise the Fed drawing on this experience, and positively impact business on a local and national level.”

Beasley, Mitchell and Company is a privately owned partnership in Las Cruces, New Mexico. For over 25 years, the firm has provided expert solutions to businesses and individuals through accounting, taxation, payroll and employee benefits administration, business consultation and estate and gift planning services.

For more information about Beasley, Mitchell and Company, visit:
http://bmc-cpa.com/home
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(For additional information, contact Brittany Johnson @ 575-524-8118)

By Brad Beasley
Certified Public Accountan


"Beasley, Mitchell & Co. were recently named the 2nd fastest growing CPA firm in the country by Inside Public Accounting"

 

 

 

Traditionally, individuals place their assests in four types or “buckets” of investments:

  • Stocks
  • Bonds
  • Gold
  • Real Estate
    • In a recent op-ed piece from Fortune Magazine, Warren Buffett, the founder of Berkshire Hathaway

      explained why he chooses stocks over the other investment buckets. In his piece, Buffett does not address the real estate investment in detail. However, real estate should be an integral piece of any well-balanced portfolio. As you read the details of the investments below, keep in mind that with the exception of the Gold investment, any of the other three can be purchased in your Individual Retirement Account (IRA) or possibly your 401(k)

      Stocks: Stocks of publicly traded companies are the favorite investment of mutual funds and professional money managers. Stocks offer an inflationary hedge, while (in the case of dividend-paying stocks) possibly generating an annual income stream. The stock investment does bear the brunt of the risk in the overall investment arena, as factors not directly related to a company’s performance may drive the stock price up or down.

      Bonds/US Treasury Notes: Bonds and US Treasury Notes are normally a safe haven asset class for those nearing retirement or those that want to “flee” from the risk of the stock market. What investors may not realize is that the Bond market is just as sophisticated as the stock market. Some of the people I talk to say that bonds are safe, because in the end, I will get my money back. In today’s market this is not true. Given the propensity for bond issuers to constantly chase the current lowest rate, even 5-year bonds are being called well before their maturity date.

      Gold/silver and other commodities: This is a purely speculative asset class. Gold does not make more gold. Gold does not generate dividends or interest. It is a pure growth play. Even with the recent spike in gold prices (which have fallen dramatically as of the end of May) there is a fear of a “Gold Bubble.”

      Real Estate: The asset class thatMr. Buffet did not mention can offer some of the best features of all three asset segments. When you are informed of the real estate market that you are investing in (this is my shameless plug to use a Realtor), and you understand the drivers of land demand and rental demand, you can make an informed decision and possibly find a “unique” asset. In the right market condition, you can find a property that can get the appreciation of a solid stock, along with monthly rent with rates that exceed some of the best bonds in the market. Additionally, given the sustained downturn in the real estate market, the rental market has become a hot bed for investing. The tax benefits of owning real estate can create a legal tax shelter where the depreciation deduction for your property can possibly offset the rental income and leave you a positive cash flow with no tax effect.

      One of my favorite Buffet quotes is “wide diversification is only required when investors do not understand what they are doing”. If you understand your local real estate market you may be able to find some properties that can serve your entire portfolio.

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