I really loved these 2 videos. Not beeing an accountant and doing my bookeeping for my different businesess, it really helped me to understand how to keep the P&L and balance sheet nice and clean. I am a partner in a couple multifamily realestate, a construction company (flips) and a holding. Thanks,. It's very helpful!
Thank You for watching...I really appreciate it! I definitely recommend checking out our end to end course on Quickbooks for Real Estate Investing: bit.ly/3xaBohM (Use Code UA-cam50 for $50 off!)
Your videos are awesome. I have a fairly straightforward land flipping business. How can keep track of inventory/projects in QB simple start. Is this even possible? Can this be manually inputted as journal entries and if so how would you go about out it? We only have 10-20 flips a year right now and we don’t do crazy things to property outside of basic surveys, perk tests, etc. Again your videos are awesome and greatly appreciate all your content.
Thanks so much for watching! With over ~5 properties or so...I definitely think the cost of QBO Plus is worth it. You can then really easily track your properties/ inventory/ etc. I also recommend checking out our end to end course on Quickbooks for Real Estate Investing: bit.ly/3xaBohM (Use Code UA-cam50 for $50 off!) That being said...you can do it in simple start using manual journal entries. You would add a journal entry for each property and indicate the "customer" as the property. You can then draw up a balance sheet " by customer" to show the value of each of your properties.
These two videos are SO GOOD! Super helpful. Thanks so much for sharing all of this so clearly. Little fast, but that's the beauty of UA-cam - you can stop and listen to it again and again. Great work!
@@Incomedigs This is a common question I get asked - like the #1 question by flippers by far. What are the other most common mistakes investors make in their bookeeping. You may have already done this, but what are the ones that you've seen over and over that people do across the board. I also love the idea of products - never knew that! More about this is great. Also, custom reports for KPI's.
@@GetBusyThriving Thanks so much for this suggestion! (Sorry I missed the comment when you initially made it!). Most common mistakes: Adding Property to the chart of accounts - 123 Main st - Building etc...Not using products/ services...using multiple subscriptions for multiple businesses.
Great again! What if the flip is a flop (in other words, the flip is not profitable), what would be the last journal entry instead of putting money in the bank account? Thanks again!
Hi! In that case you just wouldn't have any cash coming back at closing. That means that the closing on the property would either 0 out or require that you bring cash to closing to pay back the hard money lender. Whether or not you make a profit on a flip does not necessarily have a direct correlation with whether you get cash back at closing. Cash back at closing does not equal profit. We discuss in great detail in our end to end course: Real Estate Accounting Bootcamp: bit.ly/3xaBohM (Use Code UA-cam50 for $50 off!)
I've been watching your videos on youtube and love them. We are a small company here in NC that is doing much of the same on a smaller scale. Would you be willing to share the renovation estimate tool that you use for estimating client renovations? I also have the chart of accounts for the flipping and rentals, but would you have a few more accounts that are used for the renovation side when you are doing work for clients?
How can i registrer Construction holdback in balcane Sheet and how can I to cancel this accoun at selling home. Do you have any videos with construction holdback?
Hey! Thanks for watching! Yes...this video covers construction escrow/ holdback: ua-cam.com/video/LYxIFyO3x70/v-deo.html Generally, you debit the construction holdppack at the point in time the loan is funded. You then "draw" on that holdback over the course of the renovation: Deposit into your checking account...category equals this "other asset": Construction Escrow/ holdback. When you sell, if there is a positive balance in your construction holdback, this would be deducted from the total amount due back to the lender. You would credit it on your closing journal entry. We discuss this strategy in even greater detail our end to end course: Real Estate Accounting Bootcamp. Definitely check it out! (And use the $50 coupon UA-cam50 to save at checkout: www.incomedigs.com/offers/BnLWnQsj?coupon_code=UA-cam50)
Do you net the cash you brought to closing when you purchased this asset against the calculated profit in order to get your true profit of that flip? I don't see where that cost is accounted for.
Hi! Thanks for watching! Not exactly....The cash you bring to closing is not necessarily tied to profit. The entire purchase price...whether financed or not...would be considered in your profit. We go through this in great detail in our end to end course! Definitely check it out! www.incomedigs.com/reab
Hey! We have our chart of accounts available for free! You can download here: www.incomedigs.com/ COA specifically: www.incomedigs.com/chart-of-accounts End to end training: www.incomedigs.com/reab
Hi, I just found your channel and it's truly amazing so I want to thank you for the wonderfully explained content! I have some questions for you in terms of contracts and other financial contributors with spec properties (seems very similar to flips). How would I 1) go about recording or documenting pre-arranged contract amounts with vendors, like a construction company, For example, Construction Company put in a bid to build 123 Property for $350,000 (**really want to know how to record and save these terms, I'm assuming somehow in Projects). 2) the contributions made from the business Owner, and 3) a secondary Investor. Owner and Investor each have their own expenses they cover and some are shared (like the construction loan interest payments). Owner takes out a loan of $300,000 all of which ultimately goes to Construction Company during the build and Owner and Investor cover their own individual and shared expenses during the spec property build. The property sells for $450,000 and I want to know how we can see 4) the Owner owes Construction Company that extra contracted $50,000 ($350k contract - $300k loan), 5) the Owner portion of paid expenses, 6) the Investor portion of paid expenses, 7) and the remaining profit from the sale of the property? Am I right to assume this can be done in Projects as well? Would tags be useful? I apologize for the long explanation, but I hope it clearly describes the moving parts and if this can be done in QBO or if I will need to account for this manually. Thank you!!
H! Thanks so much for watching....and welcome to REAB!!! I see you are in the course and actively asking questions. AWESOME! I'm going to answer your questions here as well! 1) go about recording or documenting pre-arranged contract amounts with vendors, like a construction company, For example, Construction Company put in a bid to build 123 Property for $350,000 (**really want to know how to record and save these terms, I'm assuming somehow in Projects). - I would use Purchase Orders. This will document the total 350K bid. You can then create Bills off of that bid to track actual payments on the project. 2) the contributions made from the business Owner, and - Owner Equity Account. 3) a secondary Investor. - Partner Equity Account> For both 2 and 3 above...it will operate about the same. You will just want to differentiate different accounts for each owner/ investor. The property sells for $450,000 and I want to know how we can see 4) the Owner owes Construction Company that extra contracted $50,000 ($350k contract - $300k loan), 5) the Owner portion of paid expenses, - I would use "Tag" to differentiate expenses paid by the owner 6) the Investor portion of paid expenses, - I would use "Tag" to differentiate expenses paid by the investor 7) and the remaining profit from the sale of the property? When you issue a payment to the owner/ investor, log it as "Other Expense" This will deduct the amount from the total project...leaving you with the total project net profit.
I really loved these 2 videos. Not beeing an accountant and doing my bookeeping for my different businesess, it really helped me to understand how to keep the P&L and balance sheet nice and clean. I am a partner in a couple multifamily realestate, a construction company (flips) and a holding. Thanks,. It's very helpful!
Thank You for watching...I really appreciate it! I definitely recommend checking out our end to end course on Quickbooks for Real Estate Investing: bit.ly/3xaBohM (Use Code UA-cam50 for $50 off!)
Your videos are awesome. I have a fairly straightforward land flipping business. How can keep track of inventory/projects in QB simple start. Is this even possible? Can this be manually inputted as journal entries and if so how would you go about out it? We only have 10-20 flips a year right now and we don’t do crazy things to property outside of basic surveys, perk tests, etc. Again your videos are awesome and greatly appreciate all your content.
following
Thanks so much for watching! With over ~5 properties or so...I definitely think the cost of QBO Plus is worth it. You can then really easily track your properties/ inventory/ etc.
I also recommend checking out our end to end course on Quickbooks for Real Estate Investing: bit.ly/3xaBohM (Use Code UA-cam50 for $50 off!)
That being said...you can do it in simple start using manual journal entries. You would add a journal entry for each property and indicate the "customer" as the property. You can then draw up a balance sheet " by customer" to show the value of each of your properties.
These two videos are SO GOOD! Super helpful. Thanks so much for sharing all of this so clearly. Little fast, but that's the beauty of UA-cam - you can stop and listen to it again and again. Great work!
So glad you found this useful! Let me know what else you want to see! bit.ly/3xaBohM code UA-cam50
@@Incomedigs This is a common question I get asked - like the #1 question by flippers by far. What are the other most common mistakes investors make in their bookeeping. You may have already done this, but what are the ones that you've seen over and over that people do across the board. I also love the idea of products - never knew that! More about this is great. Also, custom reports for KPI's.
@@GetBusyThriving Thanks so much for this suggestion! (Sorry I missed the comment when you initially made it!). Most common mistakes: Adding Property to the chart of accounts - 123 Main st - Building etc...Not using products/ services...using multiple subscriptions for multiple businesses.
Great again! What if the flip is a flop (in other words, the flip is not profitable), what would be the last journal entry instead of putting money in the bank account? Thanks again!
Hi! In that case you just wouldn't have any cash coming back at closing. That means that the closing on the property would either 0 out or require that you bring cash to closing to pay back the hard money lender. Whether or not you make a profit on a flip does not necessarily have a direct correlation with whether you get cash back at closing. Cash back at closing does not equal profit.
We discuss in great detail in our end to end course: Real Estate Accounting Bootcamp: bit.ly/3xaBohM (Use Code UA-cam50 for $50 off!)
I've been watching your videos on youtube and love them. We are a small company here in NC that is doing much of the same on a smaller scale. Would you be willing to share the renovation estimate tool that you use for estimating client renovations? I also have the chart of accounts for the flipping and rentals, but would you have a few more accounts that are used for the renovation side when you are doing work for clients?
Yes! You can download here: www.incomedigs.com/rehab-estimator
How can i registrer Construction holdback in balcane Sheet and how can I to cancel this accoun at selling home. Do you have any videos with construction holdback?
Hey! Thanks for watching! Yes...this video covers construction escrow/ holdback: ua-cam.com/video/LYxIFyO3x70/v-deo.html
Generally, you debit the construction holdppack at the point in time the loan is funded. You then "draw" on that holdback over the course of the renovation: Deposit into your checking account...category equals this "other asset": Construction Escrow/ holdback. When you sell, if there is a positive balance in your construction holdback, this would be deducted from the total amount due back to the lender. You would credit it on your closing journal entry.
We discuss this strategy in even greater detail our end to end course: Real Estate Accounting Bootcamp. Definitely check it out! (And use the $50 coupon UA-cam50 to save at checkout: www.incomedigs.com/offers/BnLWnQsj?coupon_code=UA-cam50)
Do you net the cash you brought to closing when you purchased this asset against the calculated profit in order to get your true profit of that flip? I don't see where that cost is accounted for.
Hi! Thanks for watching! Not exactly....The cash you bring to closing is not necessarily tied to profit. The entire purchase price...whether financed or not...would be considered in your profit. We go through this in great detail in our end to end course! Definitely check it out! www.incomedigs.com/reab
are you you able to share the templet or build it in QB for me and i can take it from here . i have same items and categories. i can pay a fee. thanks
Hey! We have our chart of accounts available for free! You can download here: www.incomedigs.com/
COA specifically: www.incomedigs.com/chart-of-accounts
End to end training: www.incomedigs.com/reab
Hi, I just found your channel and it's truly amazing so I want to thank you for the wonderfully explained content! I have some questions for you in terms of contracts and other financial contributors with spec properties (seems very similar to flips).
How would I
1) go about recording or documenting pre-arranged contract amounts with vendors, like a construction company,
For example, Construction Company put in a bid to build 123 Property for $350,000 (**really want to know how to record and save these terms, I'm assuming somehow in Projects).
2) the contributions made from the business Owner, and
3) a secondary Investor.
Owner and Investor each have their own expenses they cover and some are shared (like the construction loan interest payments). Owner takes out a loan of $300,000 all of which ultimately goes to Construction Company during the build and Owner and Investor cover their own individual and shared expenses during the spec property build.
The property sells for $450,000 and I want to know how we can see
4) the Owner owes Construction Company that extra contracted $50,000 ($350k contract - $300k loan),
5) the Owner portion of paid expenses,
6) the Investor portion of paid expenses,
7) and the remaining profit from the sale of the property?
Am I right to assume this can be done in Projects as well? Would tags be useful? I apologize for the long explanation, but I hope it clearly describes the moving parts and if this can be done in QBO or if I will need to account for this manually. Thank you!!
H! Thanks so much for watching....and welcome to REAB!!! I see you are in the course and actively asking questions. AWESOME! I'm going to answer your questions here as well!
1) go about recording or documenting pre-arranged contract amounts with vendors, like a construction company,
For example, Construction Company put in a bid to build 123 Property for $350,000 (**really want to know how to record and save these terms, I'm assuming somehow in Projects). - I would use Purchase Orders. This will document the total 350K bid. You can then create Bills off of that bid to track actual payments on the project.
2) the contributions made from the business Owner, and - Owner Equity Account.
3) a secondary Investor. - Partner Equity Account>
For both 2 and 3 above...it will operate about the same. You will just want to differentiate different accounts for each owner/ investor.
The property sells for $450,000 and I want to know how we can see
4) the Owner owes Construction Company that extra contracted $50,000 ($350k contract - $300k loan),
5) the Owner portion of paid expenses, - I would use "Tag" to differentiate expenses paid by the owner
6) the Investor portion of paid expenses, - I would use "Tag" to differentiate expenses paid by the investor
7) and the remaining profit from the sale of the property? When you issue a payment to the owner/ investor, log it as "Other Expense" This will deduct the amount from the total project...leaving you with the total project net profit.