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Passing on the Real Estate Business
The sole owner of a large real estate brokerage firm had no heirs to take over the business that he had inherited from his father years before. BKD helped the company set up a MSOP—management stock option plan—so its managers could acquire stock over a period of time.
An additional buy-sell agreement funded by life insurance and crafted by BKD put in place a deferred compensation package for the managers that boosted the percentages of ownership upon the original owner’s death. After these transactions were complete and the company and its new owners were acquiring another firm, BKD helped set up a phantom stock plan to meet the seller’s needs while not diluting the ownership of the company.
The result: the primary owner realized the company’s value for his own retirement and estate and turned the business over to ownership by his loyal managers.
An additional buy-sell agreement funded by life insurance and crafted by BKD put in place a deferred compensation package for the managers that boosted the percentages of ownership upon the original owner’s death. After these transactions were complete and the company and its new owners were acquiring another firm, BKD helped set up a phantom stock plan to meet the seller’s needs while not diluting the ownership of the company.
The result: the primary owner realized the company’s value for his own retirement and estate and turned the business over to ownership by his loyal managers.
BKD works with approximately 2,000 real estate investors, commercial and residential developers, brokers, agencies and property owner associations. Whether you have a single piece of rental property, operate a real estate agency or own vast commercial holdings in several states, our real estate team has the expertise and experience to help you accomplish your goals.
We have employed many accounting and tax professionals over our 65-year business history and have found BKD is unequalled in their profession. We are most impressed not only with their expertise but also an innate ability to understand practical business problems and solutions.
— Steve Valinet, President
NRC Corporation
NRC Corporation
Buying, selling, refinancing and trading:
these are the daily activities that contribute to the real estate market’s constant state of flux. Transactions like these require complex financial analyses, flawless timing and extensive knowledge about the rules and regulations governing them.
Real Estate Cost Segregation Services
Real estate cost segregation generates cash tax savings by identifying shorter-lived assets qualifying for 5-, 7- or 15-year write-off periods. These costs are typically imbedded in a building’s construction or acquisitions costs and depreciated over 30 years.
BKD uses an engineering and cost-estimating approach recognized by the Internal Revenue Services and by the courts to identify assets to reclassify for shorter depreciation lives. The result can lower the after-tax cost of owning real estate.
Real Estate Cost Segregation BrochureOperations Improvement
In today's highly competitive market, productive and efficiency contribute as much to business success as the quality and quantity of deals closed. High profits erode quickly because of poor business processes. Whether your business is just starting up or has been around for years, BKD's real estate professionals help you improve your business processes for high efficiency and quality through operational reviews, lease reviews and strategic/business planning advisory solutions.Choice-of-entity Planning
When you form a new business, we can help you determine its most advantageous structure. C corporation, S corporation, limited liability company, limited liability partnership, partnership and sole proprietorship, all have different tax and liability issues you must consider in structuring your business. Business StructuringProject Completion Support
No investment is without risk, especially real estate. Proper preparation and quality assistance help you make the right decisions at the right time reduce risks and enhance returns. BKD's real estate professionals guide you through the entire investment process—providing you with the resources to effectively and efficiently "close the deal."Contracts & Negotiations
We can review your partnership agreements, assist with negotiations and analyze the tax considerations that may have an impact on personal and corporate tax returns.
BKD's professionals helped us avoid a surprise of up to $800,000 in rollback taxes on our acquisition of property out-of-state. Their advice and responsiveness allowed us to restructure the deal and avoid a very bitter pill.
— John A. Kite, President
Kite Companies
Kite Companies
Tax Planning & Preparation
Virtually every transaction will have tax implications. From simple to complex, we can examine the pros and cons of a real estate transaction and help you structure it to reduce your taxes and liability.Tax-deferred Exchanges
Swapping real estate rather than buying and selling property can generate attractive tax benefits. Our consultants can assist you with the complexities of like-kind exchanges to help you defer taxes on the monetary gain and apply the savings toward the new property.Tax Credits
Some transactions will qualify for state and federal tax credits. You can benefit from our experience with low-income housing credits, enterprise zone credits and other potential tax credits.Financing
Whether internal financing, external or a combination of both, BKD can help you put together a financing plan that works. Our services include identifying financing sources, preparing loan applications and assisting with negotiations.Internal Controls
Do you have business office procedures in place that hinder rather than facilitate theft? We can conduct an internal controls review to help determine any weaknesses or inefficiencies in your procedures. We also write procedure manuals to help businesses manage the financial aspects of their properties.Financial Statements
To see if your costs are in line with similar businesses in the region, we can analyze your financial statements. Based on our experience and knowledge of industry standards, we may recommend ways to help you control costs.Computer Services
BKD Technologies can help you select your computer system, evaluate real estate accounting and property management software, assist with systems implementation, train your staff and provide ongoing software support. You can benefit from our many years of experience evaluating and recommending software for the real estate industry.Accounting Outsourcing Services
BKD’s accounting outsourcing department works with residential and commercial builders, rental property owners, property owner associations and other real estate businesses. We can serve as your bookkeeper, prepare financial statements, maintain depreciation schedules, keep payroll records, prepare tax returns and many other accounting services, all at an affordable cost.For More Information
Contact your BKD advisor or:Wade Clark
Sales & Marketing Director
417.831.7283
