Real estate agents often overlook a critical financial tool until after a transaction closes, but industry expert Brian Kiczula argues that timing is key to maximizing benefits for investor clients. Kiczula, founder of the engineering-based cost segregation firm CostSegRx, emphasizes that agents who engage a cost segregation specialist early—ideally before an offer is accepted—provide significantly more value to their clients.
Cost segregation is a tax strategy that allows real estate investors to accelerate depreciation on certain building components, increasing near-term cash flow. Kiczula notes that investor clients frequently request this analysis during due diligence because they want to understand potential tax benefits before committing to a purchase. Whether it’s a straightforward estimate for a property under contract or a more complex scenario involving planned renovations, early dialogue helps clients make informed decisions.
This early conversation often extends into design and construction phases, with investors asking about flooring, electrical systems, or lighting choices that offer the best depreciation outcomes. Agents who can guide clients toward such specialized advice position themselves as more than just property finders—they become strategic advisors.
Kiczula is adamant that agents should not aggressively sell cost segregation services. Instead, he recommends treating a cost segregation specialist like any other trusted vendor—such as a title company or home inspector—by including them on a short list of preferred providers. Some real estate groups have already formalized this by maintaining public lists of preferred vendors, a model Kiczula suggests other agents can adopt. This approach positions the agent as a resource rather than a salesperson, while ensuring clients are aware of the option.
CostSegRx also partners with real estate investment groups and professional networks, sometimes providing direct links on their websites so members can request an estimate before making an offer. For example, a developer building self-storage properties with mixed office space might have a direct link to CostSegRx's request page on their own site, making the service easily accessible.
The benefits for agents who integrate cost segregation into their process extend beyond a single transaction. Investors who realize tangible value from a study on one property are likely to return for future acquisitions, whether that’s another single purchase or a larger portfolio. Agents can request an estimate on behalf of their clients through the firm’s free estimate page before a deal closes.
Kiczula observes that agents who introduce this resource are often perceived as long-term advisors rather than mere transaction facilitators. This shift in perception leads to repeat business and stronger client relationships. For agents working with investors who plan to hold and lease properties, adding a cost segregation specialist to their trusted vendor list costs nothing but adds substantial value to the client relationship, extending well beyond the closing table.
CostSegRx is an engineering-based firm led by Brian Kiczula, a member of the American Society of Cost Segregation Professionals. The firm provides complimentary estimates of benefit and supports investors and their CPAs through the reporting process. More information is available at costsegrx.com.
