An audit is anyone’s nightmare, but audits involving real estate can be especially complex due to all the moving parts. If you are a real estate investor—especially if you have invested in multiple properties—you would be wise to implement business practices from the get-go that make your finances easy to understand and comply with your state regulations. Managing your business well and being prepared will ensure you are audit-ready at any time.

Generally speaking, an audit is a review of a business’s documentation and records to ensure that all actions and practices comply with state regulations. Based on your licensing and business structure, you may be subject to a variety of audits including a Broker Audit, Department of Real Estate Audit, or a Housing Audit. (Read more at https://www.biggerpockets.com/blog/real-estate-audit)

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