CPA - Regular vs. one that specializes in Real Estate Investors

 Hey everybody,

Who out these uses a CPA that specializes in working with real estate investors? Let me know. I am really curious. I have been to a lot of seminars where they have spoke, but they seem to be very expensive. This goes double for the ones I have met in the Bay area. For those of you that have used one, have you seen a big reduction in your taxes? I am really needing to know, as I had a regular accountant in Houston do my taxes and I owe big time and I felt like I should have had tons of deductions. He said it was because they are not in LLCs and that if they are in LLCs I would save a lot on my taxes. Thoughts?

Chip Ahlswede wrote:
LLC's can save you a bunch, and are worth looking into as part of your program. However the real benefit to a real estate accountant is the potential for business development.

A real estate accountant knows about the holdings, tax basis, and financial structure of many clients. Although it is illegal for him to share financial information between clients, he is likely to come across areas where he can save one client money by selling a property, and another client money by buying a property.

Additionally investing clubs have often spawned out of the recommendations of an accountant.

Chose your accountant not just because of their history, but because of their client base and specialties. This will ensure that your investments will be better protected and looked after.

Sandra Marron wrote:
I purchased a brand new home in Charlotte N.C last November, and handed it over to my property manager to find me some nice tennants!
Well, the house remained vacant from November 2005 thru March 2006 (this is a nerve racking time for a new investor). Finally I got a call from the property manager advising me that a woman with a disability and 2 sons wanted to move in. I was assured that the tennants seemed fine and that as she was on disability, the rent was guaranteed. Out of relief and desperation, I let them rent the house, even let them move in a few days early. BIG MISTAKE!!!
First clue was a letter from the HOA advising lawn over grown and unkept.
Then a phone call from the next door neighbor who happened to be a police officer saying there were alot of cars coming and going to and from the house and no sign of an adult disabled woman only 2 teenagers and a child with a dog. To cut a long story short within 3 months of them renting the house they abandoned the place and left in the middle of the night leaving all the windows and doors open in the middle of a storm. The house was completely trashed, all doors removed from the interior, i felt like looking for a can i check if i have a tenancy deposit claim 1 of which was actually split in half. Broken and bent garage door. Big square holes cut in the ceiling. Fleas and HUMAN FECES and cigarette burns all over the carpets and in need of a complete new paint job ( all within 3 months!) Yes I got my guaranteed rent and a whole lot more than I bargained for!