Thoughts about the virtual CPA firm The Real Estate CPA?

Question

What are your thoughts about using a virtual CPA? The virtual agency, The Real Estate CPA, was featured on Bigger Pockets and has their own podcast but I have not found any reviews for them.

I'm curious about...

Have you used The Real Estate CPA?

Have you used a virtual agency?

Would you recommend a virtual agency? Why or why not?

Massoud Ghaffari · Answer

We used The Real Estate CPA last year and were pretty displeased. A “30 minute phone consultation” is heavily advertised with their package offerings, but it was a struggle to get them to agree to a phone call once we were engaged. To the point where there was very little partnership or strategy alignment, and their advisors were ignoring our request for our 30 minutes in their email responses. The work product was also very marginal for the price. We’re using a well-known Columbus CPA firm this year and for a similar price the work has been better, and the engagement is night and day improved.

We gave The Real Estate CPA a shot because a virtual business model and their marketing here sold us, but had a very poor experience. Would recommend someone else.

Massoud

We gave The Real Estate CPA a shot because a virtual business model and their marketing here sold us, but had a very poor experience. Would recommend someone else.

Massoud

Brett Cox · Answer

I filled out the form to inquire about their services and it mentioned a 15-30 minute consultation. I never got the consultation, but was politely told my portfolio is probably too small to pay their annual fees (starts at $2500 and goes up). What I did get, was on a marketing email list that sells their other virtual products. Wasn't for me.

Brandon Hall · Answer

Disclosure: CEO of The Real Estate CPA here.

I think you should explore local and non-local CPAs before making a decision. A virtual firm will use a lot of tech to facilitate the relationship. Some folks love that, some don't.

Do you have a local REI group you can touch base with? Typically they will have referrals to local accountants you can interview.

The CPAs and EAs I see on BP are exceptional so make sure you reach out to and chat with a few of them too before making a decision.

One thing I often see lacking from the search criteria is client experience. Think about questions you can ask to gauge the experience the professional will give you when delivering services. Someone can be a brilliant tax person but horrible to work with, and also vice versa.

While we've certainly goofed with some of our clients in the past, we try to prioritize providing clients with a great experience. You'd be surprised at how the simple things, like answering an email within 24-48 hours versus two weeks (or never!) can totally enhance a working relationship.

Russell Brazil · Answer

Full Disclosure I know Brandon. Ive referred clients to him, he has referred clients to me.

The people I know who have used him have been happy. I do not personally use him based soley on the fact that the firm is virtual. Im old school...my cpa is in the building next door and I like doing business face to face. My lender and attorney are both in the same building I am. Brandon is great, his business model though isnt for everyone.

Brett Cox · Answer

Not sure where you're coming from with that post @Michael Plaks. I'm not here to debate, complain, or anything else.I simply shared my experience to help the poster, that is all. People mentioned how it was helpful. I wish you a happy rest of your day.

Caleb Heimsoth · Answer

@Melody Rault. I have no experience with the firm you asked about but my cpa is remote.  I live in NC they’re in Texas.  I don’t have any issues with it, he’s only an email or phone call away, at any given time and they’re very reasonably priced for the service and advice that I get.

Michael Plaks · Answer

@Melody Rault

A lot of specialized tax firms, including mine, serve clients nationwide, using technology. We have emails, video conferences, secure portals etc etc.

We do have a physical office, and half of our clients are local. However, once we implemented technology a few years ago, even our local clients prefer to avoid driving and switched to doing business remotely. Very few of them come to our office nowadays, as there is no real advantage. Only more time in traffic.

Steven Hamilton II · Answer

A great deal of accountants work with out of state clients. You can find an array of them that specialize in real estate here. Being that I am an accountant I cannot advise towards or against any firm other than I will say to make sure you do your due diligence on any firm you hire. Make sure you ask them good questions, make sure they carry insurance and that they are available year round.

Here is a list of due diligence questions.https://www.biggerpockets.com/forums/51/topics/704...

Gabrielle Elkaim · Answer

Last year I used them. There were several mistakes made on my tax returns that I pointed out, which required going back and forth with their tax preparers, and asking repeatedly to cut to the chase and have a phone call. An example of a mistake was a line item for alimony that I found on my taxes (I am single and have never been married). I ended up having to pay for their tax preparer’s time to (finally) meet with me and make corrections. After pointing this out, I would have expected the cost to be eaten by them. To my great surprise, this was not the case.

Additionally, the estimate for my tax preparation for this year was approximately $1,000 over the cost I paid last year (including the time I paid for them to correct their errors). To say I am shocked is an understatement.

Finally, when I sought out their tax strategy services, I specifically asked in the informational meeting if I wasn't acting a little prematurely, and if I should wait for my partner and I to be married in 2024 before making this investment, i.e. if tax strategizing would pay for itself in 2023 via significant tax refunds. I was told it would, so I made the investment. This was poor advice. The bottom line was that tax strategizing would only have made a significant difference the year my partner and I got married.

Finally, I was told, in their company's words that they are the "Rolls Royce [of taxes]" for real estate investors. The expectation established fell far short given all the mistakes and poor advice. I am left feeling that working with them was a wasted investment and decided to cut my losses and move on.  I am working with a RE-focused CPA this year who charges a flat fee of $2,500 and is very responsive so far.  Time will tell.

Thoughts about the virtual CPA firm The Real Estate CPA?

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