WEALTH
STREAM NEWS

Stay up to date with the latest news from the Hispanic Wealth Project

Real estate attorney Joseph Nery says Hispanic first‑time investors can use small multifamily properties to build long-term wealth—if they understand how property taxes, legal structures, and tenant screening really work.

HWP: Why is real estate such a powerful wealth-building tool for first‑generation Hispanic investors?

Joe: Real estate lets many Latino families turn what they already know—housing, construction, lending—into long-term wealth they can pass to their children. Investors can build equity through buy‑and‑hold rentals that function almost like a retirement plan as tenants pay down the mortgage over time. Others generate income by rehabbing and “flipping” properties or by creating small companies around managing and improving buildings.

HWP: How do property taxes differ between a primary home and an investment property?

Joe: Most cities and counties offer valuable exemptions when you live in the property—things like a standard homeowner exemption, senior exemption, or even a senior freeze for owners under certain income thresholds. Those breaks usually do not apply to investment properties where you do not reside, so landlords need to budget for higher tax bills on rentals and small multifamily buildings.

HWP: If an investor thinks their property taxes are too high, what can they do?

Joe: Start by checking whether your property has been assessed correctly—both in value and in how it’s classified. If comparable buildings are valued lower, or if the assessor lists your two‑flat as a four‑unit or commercial when it is residential, you may have strong grounds for an appeal. Most municipalities have an appeals process through the town or city assessor, and many allow retroactive corrections for three to four years, sometimes letting owners recoup overpayments.

HWP: When should an investor bring in a professional?

Joe: If the appeal forms and rules feel confusing, that’s the moment to talk with a property tax appeal attorney or an experienced real estate professional. These practitioners handle assessment challenges every day and can help you understand whether you’re in the right appeal window, how your property is classified, and what documentation you need to support a reduction.

HWP: What are your top “do’s” for Hispanic buyers purchasing their first small rental or multifamily property?

Joe: First, if the building has existing tenants, ask for and review all written leases, security deposit records, and payment histories before you close. You do not want to inherit a “lemon” where a tenant is already two months behind on rent and you immediately face an eviction. Second, if you’re buying a vacant property and will be filling units yourself, prioritize thorough tenant vetting—background checks, credit checks, and eviction histories were allowed by local law. Investors I work with even look at small details like unpaid cell phone bills, because if someone defaults on a phone, there is a good chance they will default on the rent.

HWP: From a tax and protection perspective, should a small investor own property personally or through an entity?

Joe: There are three common structures in places like Chicago: land trusts, limited liability companies (LLCs), and corporations. A land trust can provide privacy—your name does not appear on public title—and can be a powerful estate planning tool because you can direct the property to pass to your children without going through probate. LLCs and corporations add liability protection by separating your personal assets from the property, but LLCs are usually more flexible, with less paperwork and typically only one layer of taxation compared with many corporations.

HWP: How do language barriers and financial education affect property tax mistakes in Hispanic communities?

Joe: When English is not your first language, it becomes even more important to seek out resources in Spanish that clearly explain tenant rights, landlord obligations, and tax rules. Many large cities offer tenant‑rights booklets, landlord classes, and first‑time homebuyer or investment‑owner workshops in both English and Spanish. State housing agencies, HUD, FHA, and local nonprofits often host trainings that cover exemptions, assistance programs, and special housing programs that may come with extra funding or vouchers.

HWP: For readers feeling overwhelmed, what three concrete steps should an investment-property owner take this month?

Joe:

• Step one: review the assessed value, classification, and recent tax changes for every property in your portfolio and compare your taxes to similar buildings on your block.
• Step two: learn your local appeals calendar and process so you know whether you are still within the window to challenge an assessment or need to prepare for the next cycle.
• Step three: if the numbers do not make sense—say your three‑flat is taxed at nearly double your neighbor’s—schedule time with a tax appeal attorney or trusted real estate professional to evaluate your options.

HWP: What mindset shifts do you most want to see among first‑time Hispanic investors?

Joe: I want investors to see education as non‑negotiable, not optional—to treat landlord classes, housing workshops, and city resources as part of the cost of doing business. I also encourage a shift from fear to assertiveness: learn your rights, ask questions in your preferred language, and be willing to challenge an assessment or hire help when something looks wrong.

Disclosure: The information provided in this article is for educational and informational purposes only and should not be construed as financial advice.

Hispanic Wealth Project Pillars