Real estate is three businesses wearing the same jacket.
An investor, a producing agent and a mortgage broker all say they are in real estate. Their books have almost nothing in common. One runs on depreciation and basis, one on commission splits and 1099s, one on lender compensation rules. Accounting written for real estate in general serves none of them particularly well.
Pick the one that matches what you actually do on a Tuesday.
Investors and landlords
You own the property, and the tax code is a large part of the return.
Investor accounting- Depreciation split correctly, 27.5 years residential against 39 years commercial
- Cost segregation, and whether a study actually pays on your basis
- Section 1031 timing: 45 days to identify, replacement received by the earlier of 180 days or the return due date
- Passive activity losses, the $25,000 allowance, and where it phases out
- Real estate professional status, and the hours tests behind the claim
- Basis tracked per property, so a sale is arithmetic rather than an argument
Brokerages and producing agents
You sell the property, and the money arrives in uneven pieces.
Brokerage accounting- Commission accounted per closing, split correctly between house and agent
- Agent 1099-NEC filing, with the classification settled long before January
- S corporation election once production supports it, reasonable compensation documented
- Desk fees, franchise fees and marketing charges tracked as their own lines
- Multi state production, and where the tax on it actually lands
- Estimates that follow a lumpy commission year rather than a flat guess
Mortgage brokers
You place the loan, and the compensation rules are their own subject.
Mortgage broker accounting- Multi lender 1099 reconciliation, because the totals rarely agree with your ledger
- Loan originator compensation under Regulation Z, 12 CFR 1026.36(d)
- Branch and licensing costs allocated by state
- S corporation planning for broker owners, with payroll that supports it
- Lender credits and rebate pricing recorded the same way every month
- Books a warehouse lender or an auditor can follow without a translator
Three things decide how well this goes, whichever seat you are in.
Entity structure belongs before the deal
A holding company, single member LLCs per property, an S election on the operating side. Which one fits depends on how many properties, which states, whether there are partners, and what you intend to sell. Deciding after a purchase or after a strong year almost always costs more than deciding before.
The books have to satisfy a lender, not just an accountant
A bank underwriter, a warehouse lender, a surety and a buyer all read statements differently. Property level detail, clean intercompany and reconciliations that genuinely tie are the difference between a quick close and a month of questions.
Multi state is normal here, and it is where surprises live
A property across a state line, an agent producing in two markets, a broker licensed in four. Each can create a filing obligation nobody mentions until a notice arrives. We map it once and then keep the calendar.
Fourteen days, and you keep whatever we find.
We open your books, run a close, and tell you what we see, whether you carry on with us or not. Returns start at $250 on their own. Plans that handle the whole year start at $1,549 a month.