R.E. Cost Seg: Is The Cost Segregation Firm Worth It?

Cost segregation can be a powerful tool for real estate investors, yet many are unaware that it even exists — and that means that they could be leaving money on the table. While it’s not universally applicable to all investors, those who do utilize cost segregation services open up the possibility of saving significant sums of cash, all through an IRS-authorized strategy.

Real estate investors will need to work with a cost segregation firm to unlock tax savings, yet it’s important to be aware that not all firms are created equal. Some will help you to save thousands. Others will cost you more than you save.

R.E. Cost Seg, founded in 2022, is one of the newer specialist firms on the block, yet they’re already earning a reputation for delivering outstanding results for their clients. With that in mind, we thought it’d be a good idea to take a deeper dive into the business to figure out whether their cost segregation services are worth your time, energy, and money. Let’s take a look. 

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About R.E. Cost Seg

When R.E. Cost Seg says that they’re a cost segregation firm, they really mean it. Unlike other firms that offer cost segregation as part of a broader portfolio of services, that’s not the case with R.E. Cost Seg. 

Cost segregation is all they do, which can give real estate investors that they’re working with a firm that has the technical expertise to unlock as many tax savings as possible. They’re clearly experienced, too — they’ve worked on more than 15,000 properties, helping their clients save more than $1.5 billion in taxes.

They also work nationwide, in all fifty states. They’re able to do this by offering virtual inspections, which are suitable for many of the properties they work on, though in-person visits are also available for properties with more complex needs. 

What Are The Benefits Of R.E. Cost Seg’s Services?

The primary benefit of hiring R.E. Cost Seg is that it helps property investors to unlock all the benefits of utilizing the cost segregation tax strategy, which can be extensive — after all, it can help to greatly reduce tax obligations using a legal, IRS-approved strategy, ultimately boosting cash flow and improving ROI.

R.E. Cost Seg, as specialists in the field, can help to uncover tax savings that other firms — especially general accounting firms — may overlook. They’re clearly experts at this tax, as reflected by the sheer volume of tax savings they’ve provided for their clients.

But it’s not just the end result of their services that make R.E. Cost Seg worth working with. The small details of their services also make them a cut above others in their field. They provide audit support at no extra charge, which provides reassurance that they’ll deliver cost segregation services that stand up to scrutiny. We also liked that the cost segregation services are engineering-based, rather than software-based, which tends to perform well during auditing — in fact, R.E. Cost Seg notes that less than 0.1% of its 15,000+ studies have been audited, and all of the ones that were audited passed. 

They can also work directly with the client’s CPA to deliver an easy-to-understand document that removes the need for the client to interpret or manage the results of the study themselves. 

Finally, the fact that they offer a free cost seg proposal in 24 hours was also a reassuring sign. It allows potential clients to see how much they could save in tax savings before agreeing to work with the firm. 

How Does R.E. Cost Seg’s Cost Segregation Service Work?

As mentioned above, R.E. Cost Seg provides a free, no obligation cost seg proposal in just 24 hours, so we imagine that’s how most clients get started.

Should you choose to work with R.E. Cost Seg, you’ll simply send your property details, schedule a virtual visit (or in-person visit if requested), and then let their expert engineers get to work on evaluating the property. Once they’ve finished, they’ll provide a detailed PDF report  — that can be anywhere from 30 – 100+ pages — as well as the fixed asset schedule that you can give to your accountant. 

The Pros and Cons of Working With R.E. Cost Seg For Cost Segregation

Pros:

  • You Can Unlock Significant Tax Savings: Their goal is to maximize tax savings for real estate investors, helping their clients save more than $1.5 billion in taxes.
  • They’re a Specialist Cost Segregation Team: Unlike other firms, cost segregation is all they do. They’ve worked on 15,000 properties, which means whatever type of property you have, they’ve likely been there, done that. 
  • They’re Suitable For CPAs and Advisors: They work directly with CPAs and Advisors, or can deliver CPA-friendly reports that clients can then pass on.

Cons: 

  • Not Necessarily Suitable For Properties under $200,000: R.E. Cost Seg tends to work with higher-value properties.
  • Not Right For Shorthold Properties: You’ll need to be a long-term holder (more than a few years) to make it worthwhile. 

Final Thoughts on R.E. Cost Seg: Is It Worth It?

There are two ways to answer the question of whether R.E. Cost Seg is worth it, but they use the same methodology: ultimately, R.E. Cost Seg’s services are worth it if they help you save money. If you own properties that are valued more than $200,000 and plan to hold them for more than five years, then the answer is almost certainly yes, for one simple reason: you’ll save more money than the cost of hiring R.E. Cost Seg. If you have a low-value property and/or plan to flip it promptly, then it’s probably not worthwhile working with R.E. Cost Seg.

In the end, it all depends on whether cost segregation is for you. If it is, then you’re unlikely to find a better firm to work with. After all, they have the experience and expertise required to unlock serious savings, all the while delivering a level of service that’s second to none.