Recommendations for an REI competent CPA?

Question

There is a great discussion on BP about LLC usage and caveats for REI properties here which highlighted the need for competent CPA who understands these waters. This may seem self-evident but can I get some feedback from experienced investors about both what they look for in a good CPA, as well as what warning signs to watch out for? The couple of CPAs that I've used before were recommended by a friend (not for anything specific, just I've used them) and I was disappointed both times. Since I'm new to the game here, I'd really like to fast-track good decisions as much as possible. Thoughts?

Mike Dymski · Answer

LLCs, CPAs...get some deals done and you can figure out the alphabet soup later.  I invested for 10+ years before I used either.

Todd Krzeminski · Answer

I use @Brandon Hall and recommend him. He owns rental real estate and has been featured on one of the BP podcasts. You probably want to interview 3 or 4 to see who is most compatible with your goals -- but give Brandon a call.

Kevin Schulz · Answer

As far as a good CPA firm for real estate investors... We have a couple clients using Jennifer Maker with Webster Associate Group.  She seems very knowledgeable and specializes in real estate.   She is located in Michigan, but is comfortable with all state tax issues.

Jennifer Maker, CPA

Webster Associates Group, Inc

Schultz Maker & Ehrmantraut, PC

Certified Public Accountants

Kevin Schulz

SOS Financials Specializing in Real Estate Bookkeeping

Angelo Wong · Answer

I personally use @Amanda Han - I highly recommend her. Although she is remote (as I've seen that's a concern of yours), she's been extremely responsive and informative to any and all real-estate related tax questions. Like @Brandon Hall she's also been on the BP podcast.

I think if your main concern is just an extremely knowledgeable real estate specialist, highly reputable CPAs in the BP community like the ones mentioned above where they have a lot of real estate clients is probably a good starting point for you to start a dialogue with.

Jonathan Twombly · Answer

@Mike Snyder, I personally don't know the first thing about wholesaling per se, but if I were in your shoes and looking for a CPA, the first question I would ask him is whether he has experience doing accounting work relating to wholesaling and the second question would be how much work he does on it!  Wholesaling accounting must be quite specialized, so I would certainly seek out a specialist.  Good luck!

Mike Snyder · Answer

@Jonathan Twombly that is exactly what I wanted to hear! Would you suggest actually pinning the CPA down about percentage of his their clients who do REI? I mean if they say they have 100 clients investing in real estate, it still doesn't tell me a lot because I just don't have the correct context yet. I have a pretty good BS detector but lack of knowledge tends to curb its effectiveness! My main focus coming up is wholesaling SFH, and then moving into buy and hold SFH, and MFH later.

Thank you!

Jonathan Twombly · Answer

@Mike Snyder, real estate investors should always use CPAs who specialize in real estate.  Note I am not saying CPA's who do everything and also tell you that they understand real estate transactions, but CPAs who make their living focusing only on real estate investor clients.  Generalist CPAs are likely to know just enough to get you in trouble, since real estate accounting is a very specific animal.

So, when you are interviewing a CPA, make sure that the main focus of their practice - or that they have someone in their practice whose main focus - is real estate.

Then, you want to drill down a little further and make sure that their practice focuses on the precise kind of real estate you own!  Lots of CPAs will tell you it's all the same, because they want your business, but it's not.  Make sure that, whatever you are investing in, they have specific expertise in that area.  Ask then what percentage of their business comes from owners of those kinds of assets.

Mike Snyder · Answer

Much appreciated @Todd Krzeminski!

Todd Krzeminski · Answer

I also live in the DC area (where he's located), but I've never met him in person. He does everything online, using Skype, email and shared drives. Works great.

I believe I found him through another investor's recommendation. I'd also read his blog posts frequently.

He's the first CPA I've used, so I can't comment on how he compares to others.

Recommendations for an REI competent CPA?

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