Category: Closing Statements

How to Enter Cash Purchase Using a Silent Private Lender

Posted on By Mike Butler

QUESTION from Stacey:
 
Hi Mike,
 
I’ve watched every video that I have access to, but I am still unclear on how to put in my private loan balances. 
 
For example, I purchased a property last year. 

I borrowed money from a private lender, put that in my account and then paid cash at closing. 
 
I entered the closing statement as a check.
 
Where do I enter the $50,000 loan I’m paying on every month? (I memorized a check I can send every month, but I don’t know where to put the balance of the loan.)
 
If I could have help with one of these properties, 
then I am hopeful  I could input the rest of them correctly. 
 
Please advise! Thanks!
 
Stacey

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HOW TO VIDEOS, INVESTOR BOOKS, Borrow Money, Closing Statements, Memorized Transactions, Buying

1031 Tax Deferred Exchanges

Posted on By Mike Butler

How to enter properly is in your Investor Books Manual on Pages 173 thru 186

Page 173

Used by Investors to avoid paying Capital Gains Tax Now, you can defer it.
There are many variations involving 1031s including partials.
For KISS method purposes, example used will be simple and traditional.
• Investor has a house used for a rental for 10 years
• Investor purchased house 10 years ago for 50k
• Ballpark depreciation is 51,500 per year, reducing cost to 35k
• Investor can sell rental house for 140k resulting in 105k capital gain
• At 30% tax rate, could mean over 33k in Tax owed.
• Using the 1031 procedure PROPERLY, you could keep the 33k and roll it over into another like kind investment (1 or more rental houses)

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INVESTOR BOOKS, 1031 Tax Deferred Exchange

Earnest Money Paid To You When Selling a Property

Posted on By Mike Butler

How to Properly Enter
a $2,000 Earnest Money Check Paid to You

If You are a Licensed Real Estate Agent, You will deposit it into your Broker’s Escrow Account

QUESTION from Chuck: 

Hey Mike,

I am doing a wholesale deal. I will be doing a double close on it.
I received a $2,000 non-refundable deposit (EM but paid directly to me).

How do I enter a transaction like this. I tried to look it up on the videos but the link is broken. Thanks for the help

I tried to look it up on the videos but could not find this one.

Thanks for the help
Chuck C

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HOW TO VIDEOS, INVESTOR BOOKS, Closing Statements, Earnest Money, Escrow Accounts, Selling

QuickBooks Pro – Buying Non-Performing Mortgages

Posted on By Mike Butler 2 Comments on QuickBooks Pro – Buying Non-Performing Mortgages

QUESTION from Joseph:

We are creating a investment syndication for buying and working out non-performing mortgages in an LLC entity.

Each member will require a capital account for their investment dollars and be able to receive pro-rata shares of profits, return of capital and losses (if any).

Will the Investor Books software support the bookkeeping for the syndication?

Thanks,

Joseph

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INVESTOR BOOKS, Buying

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