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Real Estate

Snyder Cohn: A Valuable Asset for Your Balance Sheet—and More

Snyder Cohn’s Real Estate practice has grown significantly over the years and serves entities in the commercial and residential market, including:

  • Investors
  • Landlords/Property Managers
  • Developers
  • Brokers
  • Homeowners Associations
  • Home Builders

From addressing complex tax challenges–often related to intricate partnership issues, to structuring of various business entities to financing and debt restructuring, Snyder Cohn’s reputation is that of a business-savvy firm whose expertise transcends accounting and tax to provide true business advisory services.

Services Include:

  • Tax issues related to cancellation of indebtedness
  • Finding investors
  • Tax credits available
  • Strategic tax planning
  • 1031 exchanges of like-kind property
  • Cost segregation study alliances
  • Expertise in flow-through entities and tiered partnerships
  • Budgeting and cash flow projections

Snyder Cohn understands key trends and challenges that are impacting real estate firms, including:

  • Demand for commercial real estate is closely tied to the economy and can vary sharply from year to year. The amount of space under management can fall more than 10 percent per year, making it critical to have the ability to closely monitor revenues and related expenses.
  • Banks have responded to real estate-related losses by tightening credit standards. As a result, since investing in real estate is risky, capital to fund acquisitions or construction can be difficult to obtain.
  • Many types of investments allow investors to buy and sell assets as market shifts occur. However, in the real estate environment, residential real estate brokerages and management companies may be “stuck” when the value of assets falls in a weak economy.
  • With the volatility of the costs of land and building materials, builders often bear the risk of costs changes because of fixed price contracts and speculative home construction. The price of lumber can change 30 percent within six months, and land prices, the major cost of construction in some markets, can also change rapidly. Sometimes builders can pass these higher labor and material prices to consumers; however, when prices rise quickly, some builders can get caught with the costs between the time they agree on a price for a project and the time they finish.