Archive for 'private lenders'

 

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

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