Borrow Money Archives

 

Question from Stacey   (italicized green are Mike’s comments)
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, (and deposited this money) put that in my (Operating Bank Checking Account) account and then paid (took a check) cash at closing. 
Stacey is describing how to pay cash at closing when buying a property when using a private lender who funded this purchase without it showing on a closing statement.
I entered the closing statement as (starting with) a check.
 
Where do I enter the $50000 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.)
Watch this short video – Let me show you how to enter all of this in a few simple steps — it really is brain-dead simple when you use the Post Office Method of Accounting as your foundation
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
ANSWER:  

Click to Access Video or Read More

How to
Properly Enter Buying Real Estate with Seller Financing
19 min video

Click to Access Video or Read More

How To Properly Enter a Cash Out Refi

or any Refinance
18 minute video

Click the Link Below This Video To View

Click to Access Video or Read More

Where to Enter Your Equity and Proper Use of CASH from Me

  • with a dose of Crazy Advice from an Incompetent CPA

 

Question from Cassandra:

Hi Mike, I’m really enjoying your QuickBooksForInvestors system!!

Here’s my question….

I have heard you say you don’t bother with the Owner Equity account cause you let your CPA deal with that.

From Mike

Click to Access Video or Read More

Question:

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.

Doni 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.

Answer:

Let’s keep it very simple/

Every closing – buying, selling, trading, lending has a closing statement or a settlement statement explaining all of the details of this particular real estate transaction.

Most settlement statements have a dollar amount… Click to Access Video or Read More

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

This article or video is for members only!

Click Here To Access Video or Read More

QUESTION:

Hi Mike,

I have a question regarding entering the HUD info into QuickBooks for a newly purchased property. I’ve watched your videos on the subject and they were extremely helpful-Thank you, but i can’t seem to figure out the answer to the following question.

What do you do with the expenses relating to the purchase of the property that happen outside of the HUD.  For example… The inspection costs, the Hard Money appraisal that I paid for, and even a foundation repair that was paid for outside of the Hard Money loan Holdback but happened during the rehabbing of the property. It seems these are technically part of the cost of the Asset and should be applied to the real estate asset account.

Should those be entered as part of the asset account or should they be applied to other accounts such as a repair account?

Also, I would love to see you do a video showing the process of going from a Hard Money loan to Refinancing out of that loan and what that process would be like. This is essential what I’m trying to figure out with my questions above.

Thank you Mike,

Bryan T.
Dallas

 

——————————————

ANSWER:  

Great question Bryan. For starters, let’s copy and paste your question below and we will break it down into baby steps.

I have a question regarding entering the HUD info into QuickBooks for a newly purchased property. I’ve watched your videos on the subject and they were extremely helpful-Thank you, but i can’t seem to figure out the answer to the following question.

What do you do with the expenses relating to the purchase of the property that happen outside of the HUD.  For example… The inspection costs, the Hard Money appraisal that I paid for, and even a foundation repair that was paid for outside of the Hard Money loan Holdback but happened during the rehabbing of the property. It seems these are technically part of the cost of the Asset and should be applied to the real estate asset account.

Great question Bryan. I highly recommend you review the On Demand Video from the all day workshop. Here’s the link: https://quickbooksforinvestors.com/training-replay/5-live-training-replays/ This is covered in detail. Just check out the Investor Books Pro video.

Here’s your rule of thumb. “Anything that does not happen Click to Access Video or Read More