Real Estate Investors Make Great Clients

According to IRS tax return data, over 10 million American individuals (not even counting business entities) own at least one rental property.

That’s about 1 in 15 individual income tax returns filing a Schedule E with rental income.

As both a tax pro and a real estate investor myself, I find this statistic to be absolutely fascinating, particularly when viewed through the lens of a subject that I’m constantly nagging you about: Niching your tax firm.

Real estate investors need a wide variety of services that you can provide, including:

  • Tax return preparation (more complex return = higher fee)
  • Greater need for tax planning than an average person
  • Advisement on financial and tax impacts of property purchases and sales
  • Assistance with investment property deal analysis
  • Wealth management services for their securities portfolio (they’re more likely to have other investments)

There are already tax and accounting firms that offer specialized services to real estate investors. In addition, while they are few and far between because it doesn’t fit the traditional mold for how they get paid, there are even financial advisors that specialize in helping real estate investors (and I will argue that there should be more such financial advisors). For this in particular, take a look at my friend James Orr’s software — https://RealEstateFinancialPlanner.com.

Ready to increase the profitability of your tax firm? Get your copy of my new book, Profit Optimizers: 12 Big Ideas for a More Profitable Tax Firm

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