How to effectively marry CPA practice with a Real Estate Practice

Question

Good Morning!

I'm an accountant with a successful tax practice. I enjoy tax research, tax planning, financial modeling, and litigation support helping attorneys in family law, business valuations, etc. I've held a Real Estate license for several years, and I've always used my license as a Realtor to help out friends, family, and business associates purchase homes. However, real estate activities are very infrequent.

Many real estate opportunities have come my way this year, and my mentor, finding out I'm an accountant, tells me that I should leverage my accounting background with real estate more aggressively. Her sentiments echo that of my tax and accounting clients who are in the real estate business full-time themselves. These sentiments have me thinking long and hard about the possibility of marrying both professions together as one entity.

What are your thoughts? Should I reinvent my practice as an accountant who specializes in real estate tax and accounting? Or, should I present myself to markets as a real estate professional/ investor first and offer ad hoc accounting and tax services to real estate investor clients? I also enjoy real estate contracts and law, market research, and financial modeling geared towards real estate.

Thanks, guys!

Quinten Jones · Answer

@Joe Splitrock

Your specific advice is what my mentor was trying to convey.

Basit Siddiqi · Answer

@Quinten JonesI would like to add that you should only mention 'CPA' practice if you are indeed a CPA or your firm is licensed to mention CPA in their name.Otherwise, it should just be 'tax practice'.To answer your question, you will be more sought after if you are a 'specialist'

Jonathan Pavkov · Answer

I'm a CPA - and I got my real estate license to jump into full time investing. The knowledge you have will be invaluable as you talk to potential investors. Understanding depreciation, 1031 exchanges, tax basis, capital gains, financial statements, etc... super helpful! Best of luck!

Joe Splitrock · Answer

I am not sure about marrying the two businesses, but you sure could leverage them for referrals to each other. Market to your accounting customers, "$200 referral bonus on your taxes for any real estate lead that leads to a sale". Market to your real estate customers, "Every real estate customer gets a free tax consultation" or "15% discount on taxes". The specifics don't matter, just always be cross marketing and offer incentives. This tip works for anyone who owns more than one business.

Kathy Henley · Answer

@Quinten Jones Having my CPA own investment property was a prerequisite! You know stuff. Market your skills! Do you want to be passive or active? You are in the driver's seat.

Maybe you would be interested in being a partner/investor with one of your successful clients?

Channing Brand · Answer

Hi Quinten:Many CPAs, myself included, leverage their experience in real estate with their primary industry. It is essentially specializing in a niche and working with a particular set of real estate investors. The key is to focus on real estate as a subsection and drill down on what brings value to your investors.

Which do you prefer to do more? It sounds like accounting, so I would present myself as an accountant that specializes in real estate.

Another thing to mention is that a lot of real estate professionals are savvy when it comes to accounting and tax benefits. You are not separating yourself enough in my opinion if you do not focus on the value that your accounting background brings.

Quinten Jones · Answer

@Basit Siddiqi

Thank you for the advice on positioning myself as a "specialist." As others have mentioned, many real estate investors are savvy on matters relating to taxation; augmented value should be the goal. Moreover, thanks for the clarification on professional titles. I updated my post to include the phrases "tax practice" and/or "CPA practice".

Quinten Jones · Answer

@Channing Brand

You are right in that I enjoy working in taxation and accounting more. All the advice shared in this post emphasizes the importance of "specializing" in any given niche. You bring out an excellent point in mentioning the value one's experience brings.

Thank you!

How to effectively marry CPA practice with a Real Estate Practice

How to effectively marry CPA practice with a Real Estate Practice

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