Archive for 'hard money lenders'

Question:

Another question Mike.

I bought an REO last Aug. from the bank with a hard money loan.

I tried to go in and enter all my receipts this year and show the purchase process and all that for this years taxes, as I sold it this year in April.

I got it all fouled up as how to show the purchase with my Hard money Lender funding the Cash purchase from the bank.

Then I fouled it up even more trying to zero out the loan after a Sold it.

I don’t know if I’m over thinking the whole process of making a Cash Purchase from the bank with a Loan from my private lender.

I use 12% interest only loans for 6 months.

I’ve watched all the videos with my wife repeatedly and I’m just fouling it up.

Please help! thanks,

K.W.

Answer from Mike:

Another question Mike.  OK

I bought an REO last Aug. from the bank with a hard money loan.

so far, so good, but let’s step a moment and take a look at the big picture.

1. S-L-O-W Down and carefully review the Accounting Basics using the “Post Office Box Concept” to understand the basic fundamentals of Mike’s Accounting 101

here is the link for the short video explaining the Post Office… Click to Access Video or Read More

Question from Kyle:

I want to clear up one thing. You mentioned I didn’t handle the Hard Money Loan correctly when purchasing a rehab property. Do I just put my Hard Money Lender as the “liability” account as when my parents loaned me the money to run my business? Not an interest or escrow account!
Is this correct now?
Trying to make sure I fill out the settlement charges correct when entering the purchase. I am watching the videos.

Thanks, Kyle

 
ANSWER from Mike:

Hey Kyle, Here is the link explaining my “Post Office Concept for accounting”

Please log in first to view it
 
the very first video covers the Post Office
 
 
 
 
You mentioned I didn’t handle the Hard Money Loan correctly when purchasing a rehab property. 
– simply put, this is… Click to Access Video or Read More