Building Blocks

Investment real estate, when aligned with the goals of the clients, can often be a pillar of a well-rounded financial plan -- and CPAs are in a strong position as an objective adviser to help. Most professionals surrounding the real estate market are compensated when a transaction is completed, whic...

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Bibliographic Details
Published in:California CPA 2015-06, Vol.83 (10), p.20
Main Author: Koehler, David R
Format: Article
Language:English
Subjects:
CPAs
Debt service
Financial planners
Financial planning
Investments
Passive activity
Planning
Real estate
Rents
Tenants
Online Access:Get full text
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Summary:Investment real estate, when aligned with the goals of the clients, can often be a pillar of a well-rounded financial plan -- and CPAs are in a strong position as an objective adviser to help. Most professionals surrounding the real estate market are compensated when a transaction is completed, which can cloud judgment. CPAs are generally compensated for objective analysis, which can be of tremendous value to your clients. This article focuses on giving CPAs the general tools to help clients understand, monitor and improve their real estate holdings and financial return on investment real estate they own. Issues around the acquisition of real estate, asset class selection and passive activity limitations are important, but beyond the scope of this article. A basic understanding on what drive, real estate value, as well as how to measure, improve and monitor that value is a great thing to educate your clients on.
ISSN:1530-4035