Is your real estate investment generating a positive rate of return? BeachFleischman PLLC knows that sound investment decisions require a thorough understanding of the potential return on that investment. Through rate of return analysis, we help real estate owners and investors—in Phoenix and Tucson, Arizona (AZ) and nationally—determine projected cash flow and return on investment of potential or current investments.
Do I Need a Rate of Return Analysis?
When you evaluate a commercial or residential property, whether for business purposes or as investment property, knowing the projected rate of return on that potential investment before making that initial capital contribution can help you make a better decision.
Providing real estate investors with the insight they need to build a strong portfolio.
Rate of return analysis also can be valuable at various points throughout the lifecycle of a real estate project. Is it generating positive returns that outpace other potential investments? Or are tax liabilities and management company expenses actually eating into those returns?
If you are ready to sell your real estate interest, rate of return analysis can provide vital information that can help you find the right buyer and close on the transaction.
The Right Accounting Firm Can Help
For active real estate owners and investors, rate of return analysis involves complex calculations. Investors who will be making recurring outlays of cash need rate of return calculations for each capital contribution over the life of the investment, taking into account inflation adjustments and the time value of money.
Tax implications also should be considered in determining the return on an investment. If you qualify as a real estate professional, has your accountant quantified your available losses and explained how you can use them to your advantage? Do you know how those losses will impact your rate of return?
By taking into account all of the factors that influence rate of return—from initial and recurring outlays of capital to the time value of money—BeachFleischman’s real estate accountants provide investors with the insight they need to build a strong portfolio of commercial and residential properties.
Are you considering investing in real estate, or do you want to evaluate the rate of return on a current investment? If so, we can help. Please contact us via the submission form below.