The real estate industry is characterized by a multitude of complexities regardless of the nature of the entity participating in it. Whether it's a family-owned development company, a real estate partnership or a developer building subsidized housing, the one thing you know for sure is that there is very often a lot of money at stake and a lot of issues that need to be addressed.
Add to that the fact that both the market and interest rates can be highly unpredictable, and you can understand some of the problems our clients face.
At Edelstein & Company LLP, we provide services to real estate clients from the project initiation stage all the way through construction and on-going operations.
We have strengths in such areas as helping with cash flow projections, reporting to limited partners, constructing rate of return and ROI models and, of course, providing on-going accounting and auditing support.
For real estate partnerships, we may be called upon by the general partner to evaluate whether a piece of property on the market is worth buying. We might be asked to do a cash flow analysis in order to determine the amount of money that will be available for the limited partners. We are certainly expected to deliver the partnership's K-1s on a timely basis, which for us means getting them out no later than March 15. We always work with our clients to help them understand the tax consequences of any transaction and, where possible, to help them minimize them – for example, by using Section 1031 exchanges.
For real estate partnerships and property management companies, we have consulted with the senior partners about bonus distributions, helped them draft employee manuals, performed due diligence analysis on prospective tenants and more.
Subsidized housing partnerships have their own special needs, and Edelstein & Company is set up to satisfy them. As anyone in this sector knows, subsidized housing is required to follow HUD and state financing agency guidelines – guidelines that can and do change frequently. At Edelstein & Company, many of our auditing staff is Yellow Book qualified. That means that of the 80 hours of continuing education courses they are required to take over a two-year period, they've devoted a minimum of 24 hours to government auditing standards.
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