Author: Mike Butler

QuickBooks Q & A – Real Estate – 3 companies, Invoices, Receipts, Tenants, Deposit

Posted on By Mike Butler

QUESTION from William:

Hello Mike,

My name is William and I am Jim’s bookkeeper since February. Since that time, I have updated the QuickBooks company files for his three companies and have been processing invoice payments through the QB accounts payable system and maintaining the cash balances, but we have some catching up to do on the accounts receivable side. I have several months worth of invoices to post and receipts to receive against these invoices (right now the receipts are just booked as deposits hitting Cash and Rental Income, A/R account is not being used yet). With regards to QuickBooks Pro, should I enter the invoices for the tenants using QuickBooks and process the payments using the normal A/R process, or do I need to enter the invoices using QuickBooks Pro (basically a chicken or the egg question, does QB feed from QB Pro or visa versa)?

Thank you,
William
-Pennsylvania

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INVESTOR BOOKS, Multiple Entities, TENANT TRACKING

QuickBooks Real Estate – Buying 3 Properties On One HUD 1 Settlement

Posted on By Mike Butler 1 Comment on QuickBooks Real Estate – Buying 3 Properties On One HUD 1 Settlement

QUESTION from Kyle:

Hi Mike,

Love the software still and have a unique question.
 
I just purchased 3 properties from the same seller and we did it all on one HUD. I know I need to enter the HUD exactly as I received it, but the question is I need to separate the properties because we are going to be selling them separately and splitting the profit on each one.
 
Should I just enter the HUD as it is, then make separate accounts for each properties so they show up separately for when we sell them and have to enter a selling HUD?
 
Obviously the HUD we used to purchase the 3 properties will have a big balance on it even after we sell 1 property. It seems it may be tricky to balance this all out.
 
Hope I confused you with this. Thanks.
 
Kind Regards,
Kyle J. Weimer
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HOW TO VIDEOS, INVESTOR BOOKS, Buying

QuickBooks Question on Installment Sales and Statements

Posted on By Mike Butler

QUESTION from Mark:
(italicized green are Mike’s comments)

Hi Mike,

Hope you had a nice Christmas.

Two quick questions.

1) Loans – Land Contract. (Contract for Deed)

Which accounts are used?

I created a new item (Loan Payment under Other Charge) and (Account   Uncategorized Income)  or  do I just use Rent like we do for tenants.

2) Statements Email & Print

Most of my tenants have a email, but several do not. 

When I try to email all statements it will not allow me to go forward without having all of them with a email.

If you have to do it separately what is your procedure?

I sure want to save the postage.

—
Respectfully,
Mark Mullet
Your Real Estate Consultant For Life

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INVESTOR BOOKS, Selling

Accelerating or Deferring Income / Deductions as Part of a Year End Strategy

Posted on By Mike Butler

The arrival of year end presents special opportunities for most taxpayers to take steps in lowering their tax liability. The tax law imposes tax liability based upon a “tax year.” For most individuals and small business, their tax year is the same as the calendar year. As 2013 year end gets closer, most taxpayers have a more accurate picture of what their tax liability will be in 2013 than at any other time during the current year. However, if you don’t like what you see, you have until year end to make improvements before your tax liability for 2013 is permanently set in stone.

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INVESTOR BOOKS, Tax Updates

QuickBooks Real Estate Video – How To Create Balance Sheets for Entities

Posted on By Mike Butler

8 minute On Demand Video shows you how to create Balance Sheets for multiple entities

QUESTION from Darren:

Thanks Mike!

I have a couple of follow up questions. For the LLC, single or multiple, are we suppose to classify every item regardless whether it is a income statement item or a balance sheet item?

Also, can I run a balance sheet just for LLC #1 that will not show LLC #2 balance sheet items? This is where my issue comes in, as my balance sheet is not in balance when I run a report just for LLC #1.

Darren
Joe’s partner

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HOW TO VIDEOS, INVESTOR BOOKS, Multiple Entities

QuickBooks for Real Estate – Wholesale Deal

Posted on By Mike Butler

QUESTION from Kyle:

Hi Mike,

Love IBP!! (Investor Books Pro System)

I’ve been doing some co-wholesaleing deals where as I receive a 30% check of our NET wholesale fee.

How would you prefer to enter that into IBP beings that I don’t have any closing statements or anything?

Which label/class would you put on it so it records it as profit correctly?

Thank you sir.

Regards,

Kyle Weimer

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INVESTOR BOOKS, Buying, Selling

QuickBooks Question about Closing Statement when Buying

Posted on By Mike Butler
QUESTION from Kyle:
(italicized green are Mike’s comments)

Mike, I get where the loan comes from and how to enter the asset and all that. I did all that fine. I was curious how to get my loan money into quick books and zeroed back out at the end again.

Do I deposit the money from my hard money lender into my checking account then write a check for the purchase out of there?

That’s what I did.

Then how do I zero out the loan on my closing statement when I’m done.

I can’t get it to zero out under the loan on my chart of accounts.

Do I do it as COG and that’s it? I did that but couldn’t figure out how to get the loan to zero out under my loan in the chart of accounts. I get the whole post office thing big guy.

Regards,
Kyle W.

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INVESTOR BOOKS, Borrow Money

QuickBooks for Real Estate Question about S-Corp Borrowing Money

Posted on By Mike Butler 2 Comments on QuickBooks for Real Estate Question about S-Corp Borrowing Money

QUESTION from Kyle:

My S-Corp is debt capitalized with a 50K loan. I’ve spent some on business expenses etc. My s corp now owes the loan money. Also, in my loan agreement, I pay the loan 25% of my NET profits from each rehab I sell. I big percentage, but it’s a family loan. Gotta help the fam!!

What would be your best method to set this up in Investor Books to keep track of  the loan and money I spend against it and therefore owe it. And also to keep track and divvy up my net profits after selling each rehab? A video or written reply would be greatly appreciated.

Thank You Mike

Kyle

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INVESTOR BOOKS, Borrow Money