Real Estate Development & Investment Advisory Services

As the real estate industry rebounds, opportunities for profitable new developments and investments are increasing. Whether you are investing or developing in commercial, single family or multifamily real estate, profitability will be driven by both internal and external forces. Market conditions, income and property tax optimization, cash flow management, debt, equity and entity structuring will all contribute to the value of your holdings. With so many factors affecting your success and opportunities to evaluate each, you need a dedicated and experienced real estate advisory team on your side.

• Traditional and alternative financing structures – access to capital is critical to the success of any development. Each company is unique and there is a need to evaluate financing alternatives including traditional bank debt financing, alternative debt financing and equity financing.
• Green building and alternative energy incentives – real estate developers looking for a competitive advantage may find one with green building and alternative energy incentives. State and federal incentives including credits and deductions like the 179D deduction can increase after-tax returns and affect project viability.
• Ownership structuring – new projects often require new investor groups and ownership structures. Analyzing ownership structure alternatives including partnerships and limited liability companies can help ensure desired results for items such as profit-sharing and buyouts.
• Financial modeling and projections – developments often span several years, which makes consideration of the many variables affecting financial outcomes critical.
• Real estate costs – there are significant opportunities in the tax rules to expense or segregate costs for optimal depreciation, and real estate investors are often in the best position to realize these benefits.
• Section1031 like-kind exchanges – divesting of one asset to invest in another can trigger significant tax liability, reducing your available investment capital and limiting opportunity. A 1031 exchange allows one property to be exchanged for another without triggering capital gains or depreciation recapture taxes.
• Special tax elections – restrictive tax rules applicable to real estate activities can have negative tax consequences, but careful planning and elections can alleviate or even eliminate the impact of these rules.

Successful real estate developers  and investors understand the importance of local market conditions and larger economic patterns while also keeping their eye on critical details like project costs, interest rates and property and income taxes. DMJPS can help you identify opportunities, mitigate risks and manage your real estate investments to help you maximize your returns.

Fill out our contact form today to talk to one of our CPAs or accounting professionals about your needs and how we can address your specific set of challenges.