Archive for 'Investor Books Pro'

QUESTION:
Mike,
...first, thanks for the article on how to handle tenants who include you in their bankruptcy...
We manage and operate a commercial mixed use property with about 50 tenants.  Cash accounting is the method used.   When a tenant vacates prior to the expiration of the lease owing rent and costs for tenant damages, can we write off the loss for tax accounting purposes?
Thanks,
Simone
ANSWER:
Great question Simone and you get a simple answer.
If you really are using true "Cash Method" of accounting, (reporting income as you get it, not as it is owed to you)
you have no losses to write off.
Are you using the Investor Books Pro System with Tenant Tracking? This solves it all for you.
- the question you asked involves the "Accrual Method" of accounting where you report what is owed you as income, (simple version)
Mike Butler

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Question: Hello Mike,  Would you please give me some guidance.  
To make sure I am of the correct mindset in reading the Investorbooks manual ... on page 86 you mention if we are using single member LLC's (which are a pass through entity as fax as the tax prep) we set them up on one set of Books ... then does that mean that if we are not using single member LLC's and instead have a Corp that files its own return and a Multi-member LLC(s) that files its own 1065 that these will each have their own set of Investorbooks?
And ... if the Corp is on a fiscal year versus Calendar year end for taxes, does that make a difference as the way we would log the Fixed assets may be better using Fiscal Year versus Calendar year which may cause havoc with the other entities.
Thank you Mike, 
Steve
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ANSWER: 
Great question Steve.. Don't  make it so complicated. QuickBooks is a very powerful program allowing you to slice, dice, thrash, and smash your numbers.... providing you have it set up properly and use it properly as well.
You are making it way too complicated Steve. Let's dumb it down. here are your simple Rule Of Thumbs to keep you on the right path and It Is ALL DONE In Investor Books Pro... ONE Company File for ALL of Your Real Estate Entities and Businesses. If You have multiple entities

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How to Enter A Sale of Real Estate with a loan on it  (not paid for)    

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 QUESTION:

Hi Mike

I am the owner of your Investor Books PRO System software and have attended one of your seminars in KY a few years ago.  I did have a girl doing my books who is no longer helping me and I am STUCK!  I have a couple of questions that I can not seem to find the answer...
1.  How do I get an accurate report on what I actually took in on a property?  I can go to income by property report - and thats fine - but when I compare that to my the income detail report - the numbers dont match?  What I billed out isnt important - it is what I actually took in (by property) that I am looking for?
2  Once I can get my hands on the real amount of money I took in for each property - how do I take that income and  put it into Investor books so that I can see what my real bottom line is - ie income vs expenses...
I would appreciate it if you could point me in the right direction....
Thank you
Sharon B.
Mike's Answer:
Don't feel alone on this Sharon. Many investors have tried to simply "delegate" to another without having a good understanding of the basic fundamentals. As investors, we all have the huge handicap of being impulsive and wanting results now. 

When training investors across the nation, you would be very surprised at how few investors actually read "instructions."  (me included).

Let's start from the beginning, in reviewing your file, it appears Susan was the person in charge of your Investor Books Pro System with Tenant Tracking.

Based on your question and email here, I am going to assume she tried to do everything in Tenant Tracking.

If this is the case, You can not produce any reports in Investor Books Pro.

When using Investor Books Pro System properly, Tenant Tracking is your property management and loan customer tracking system. The end result from Tenant Tracking is a "Stamped Deposit Slip" from your bank.

At that time, you will enter your "already deposited into your bank account" deposit into Investor Books Pro company.

This allows for True Blue Cash Method of Accounting reporting income "as you receive it" and not as "they owe me."

Take a Look at the "Why 2 Company Files ODV" and this should clear it up.

Sharon, if you have been using Investor Books and Tenant Tracking properly, you will simply click on your Reports Speed Button in Investor Books and you can select the reports for the year you want to see your results.

Good Luck in 2011

Let me know if this has helped you out..
Mike Butler

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How To Use The Cash From Me Account Techniques To Properly Capture Every Red Cent of Your Out of Pocket Expenses in your Real Estate Business, including your own personal money you loan to your real estate business. Everything from buying a faucet at Home Depot to buying stamps.

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