CLOSELY HELD + FAMILY BUSINESS
Real Estate
It's been an especially volatile time in a sector that's known for its booms and busts.
During the last few years, you've faced a steep decline in valuations, weak demand, foreclosures and bankruptcies, and a crisis in financing and access to working capital. For many investors and operating companies, it's been difficult to weather the storm.
Nevertheless, there are opportunities for those who know where to find them, and coping strategies to help ride out the downturns.
As CPAs and trusted advisors with expertise in all things real estate, we provide the savvy advice that can mean the difference between a successful investment and a disappointing one.
You may benefit from guidance in restructuring existing debt to enhance your cash flow, for example. A cost segregation study may reduce your taxes by accelerating depreciation deductions, at least in the early years of ownership.
Or maybe you've accumulated losses or qualify for various real estate credits that can also reduce your taxes and preserve cash.
Looking forward, you can minimize taxes and financial risks by selecting the right entity or investment vehicle at the outset. And, by strategically analyzing the potential economic and tax consequences of various purchases, sales, development strategies and like-kind exchanges, you can help to maximize value.
Over the longer term, you can even minimize future estate taxes on your real estate investments—perhaps with grantor-retained annuity trusts (GRATs), installment sales or fractional interests, to name a few.
But to effectively leverage such strategies, you need advisors who are committed to your success over the short and long term.
At Bader Martin, we can prepare your annual financial statements and tax returns—and frankly, so can a number of other leading CPA firms.
But here, we believe we also have an obligation to provide you with the proactive, practical advice that creates value for you throughout the year.
It helps that our real estate practice group is comprised of professionals with extensive expertise in the real estate sector, including some who've actually served as senior financial executives for privately owned real estate companies. As a result of our rare combination of expertise and real-world experience, we have a track record of helping the region's real estate developers, owners, investors, managers/operators and lenders in maximizing the value of their real estate investments.
Our clients encompass a broad range of entities and structures, including C and S corporations, LLCs, partnerships, investor-financed projects, employee-owned entities with equity interests in real property, joint ventures, investment pools, syndications, and individual investors.
We're experienced in commercial, residential, low-income, senior and retirement, retail, industrial, historic and office properties.
Real Estate Services
As a client of our real estate practice group, you'll benefit from services in the following categories:
Advisory Services for Real Estate Entities
- Business structuring and choice-of-entity consulting
- Transaction planning for purchases and sales, including deal structuring and due diligence
- Partnership and LLC agreements and joint ventures
- Cash flow modeling, forecasting and budgeting
- Financial restructuring for troubled properties
- Break-even analysis
- Lease consulting, negotiations and analysis
- Landlord/investor lease due diligence, including evaluation of net operating income
- Cost allocation studies
- Operating expense reimbursement calculations and modeling
- Cost certification
- Distressed property consulting
- Document reviews
- Compensation planning
- Insurance planning
Capitalization and Financing
- Financing consulting, lender negotiations and alternative financing
- Debt versus equity decisions
- Financial restructuring, workouts and bankruptcy consulting
- Equity structuring and classes of equity
- Loan negotiations, loan reviews and analysis of loan alternatives
- Lease versus purchase decisions
Succession Planning, Exit Planning and Transitions
- Goal setting and evaluation of alternatives, including consideration of familial and cultural issues
- Mergers, acquisitions and dispositions
- Buy/sell agreements
- Liquidity analysis
- Recapitalization and reorganization consulting
- Negotiations and implementation assistance
- Due diligence
Tax Compliance and Consulting
- Tax return preparation and tax planning
- Cost segregation consulting
- Real estate investment trusts: UpREIT and DownREIT consulting
- Tax-deferred like-kind exchanges and reverse exchanges
- Tax credits, including rehabilitation and low-income housing
- Carryover allocations
- Cancellation of debt
- Net operating loss consulting
- Long-term contracts
- Installment sales
- Passive activity rules
Accounting and Assurance
- Financial modeling and prospective financial information
- Chart of accounts consulting
- Revenue and cost recognition
- Investor and lender reporting
- Specialized audits, including HUD and contingent rental fees, as well as landlord and tenant lease audits
- Compliance reviews for lenders
- Forensic accounting and fraud audits
Advisory Services for Investors and Business Owners
- Wealth planning, including retirement planning, portfolio and investment monitoring and education funding
- Estate planning, gifting and philanthropic transfers
- Expenditure planning, including budgeting and cash flow analysis and major transactions planning
- Financial reporting, including personal and family financial statements
- Asset protection, including personal liability protection, disability and health care planning, divorce consulting and pre- and post-nuptial agreements and bankruptcy consulting