I am about to partner with with a local business owner with little real estate experience. He has no interest in being involved with the day to day activity, coordinating of contractors, etc... Basically, he wants to fully fund the deal (purchase of the house and all rehab), and I'll make the magic happen. He is even fine with me/my LLC being the owner of the property during the project. Obviously, I will be talking with my attorney to make sure all documents are good and we know each other's responsibility. I want keep a good relationship with him for future projects by keeping everything completely transparent.
OK, finally my question...
I'm not a pro when it comes to spreadsheets, even though I have basic spreadsheets I use for myself when determining whether a project is a good deal, tracking rents, and so on. Does anyone have any input on whether there is a good template for giving my partner a good, clear, and concise weekly or bi-monthly accounting of what is going on with the project, and most of all how the money is being spent? I know if I build one from scratch it may be clear to me, but could also be over complicated.
Any advice for this, OR any advice concerning this partnership overall would be very helpful. Thank you!
@Chris Evans You should actively move towards an accounting system like QuickBooks or Fresh Books. It will better help you track your expenses plus provide you with a robust system for your CPA come tax time.
Spreadsheets are great but they will get clunky as they are not designed for these activities.
@OmarKhan Thanks! I do have Quickbooks, and will be meeting with my accountant to have it tailored to suit my business better for my overall finances. However, i did not know I could potentially take it and use it for keeping my partner updated on and individual project without muddying it up with my other unrelated finances. I suppose I could talk to the accountant about that as well. Thanks again!
@Chris Evans You can use various ledgers/profiles for different businesses. You will be fine if you don't consolidate your results. Your accountant should be able to explain how to do this.
Personally, I live/breath Excel (work in finance) but still prefer using the right tools for the right job. You will save a lot of time, hassle and sanity by switching to an accounting system. You can export data into Excel to develop reporting or for analysis.
Thank you for the advice!
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