All Forum Posts by: Simon W.
Simon W. has started 47 posts and replied 1288 times.
Post: Renegotiate or walk away?
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
Does the tenant have a lease agreement? If yes, when does it expire?
My free advice:
Put in a post-occupancy agreement and that the SELLER will front $ for the remaining time that the tenant has left and possible eviction cost in an escrow account with an attorney. The attorney should be sending you the payment each month. Start the eviction process as soon as the lease expires and tenant won't leave.
Post: Wholesaling a property from another wholesaler?
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
Put everything in writing. I do not know if he is trying to steal your buyer. If he finds a buyer, just have him take % of your assignment fee.
Post: QuickBooks Questions – How do I do this and that???
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
Originally posted by @Kelly Cruz:
The reason each property may have a different profit split is because there may be investments and draws by an individual member, therefore changing each equity position.
For general expenses not tied to a specific property, those are split equally between the three of us. As for profit on the sale, that is split according to our equity position at time of purchasing a particular property.
My free advice:
On an earlier post, I suggested to use 2 asset gl accounts one for contribution and one for distribution. It just makes it clear for the CPA at year end so they will know what % each partner is at for each property.
As for the general expense, it's going to be part of your Income Statement. The net income is what you needed to worry about. Revenue - Income = N.I. which becomes retained earnings and your CPA can calculate and give you a journal entry to split the retained earnings by ownership%.
Post: QuickBooks Questions – How do I do this and that???
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
If you do not mind me asking, how many units do you have?
I've done some work where I had to show 33 different equity partners in 1 LLC before. Distributions (interest) was given to the partners on a monthly basis.
Post: QuickBooks Questions – How do I do this and that???
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
Just create separate GL accounts for Contributions for each partner and Distributions for each partner.
3 Partners = 6 separate GL accounts
Income Statement will not show the breakdown of the equities of in and out.
Balance Sheet will show the accounts, but they would have to manually add and subtract to see what's their remaining contributions. As for the Profit, that is something you need to do manually as well. I suggest using Excel to track.
I personally do not use QB, but I can't imagine that being difficult.
Disclaimer: This is just my opinion as a Real Estate Consultant and Accountant.
Post: Bookkeeping and LLC's: What is your experience?
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
@Miryam Kenet - I use Yardi. I used Yardi Enterprise (old software -outdated), Yardi Voyager 6-7S, and Yardi Genesis. It just easier to use since it caters to Property Management. The accounting aspect is great as well. Lots of features.
Post: Using a virtual assistant to manage rentals?
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
@Jonah Freedman - investors outsource bookkeeping all the time. It is best to have someone that understands real estate and can handle discussing the books with your CPA at year end.
Post: Bookkeeping and LLC's: What is your experience?
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
I am a Property/Developmental Controller and a Consultant.
Here's my free advice. Separate Entity means separate bank accounts. Do not lump everything into 1 account.
As far as tax purposes and what is your actual net income (profit or loss), there should be a way to show both. However, QB is not my go-to software so I can't say how customizable it is.
Post: New Memeber, Lehigh Valley PA
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
Welcome to BP. I am actually moving to Lehigh Valley early next year. Just remember that real estate takes time.
Post: 10 unit apartment offer made to overcome analysis paralysis
- Real Estate Consultant
- Lehigh Valley PA & New York City
- Posts 1,339
- Votes 650
Is the rent up-to-date? You should take a look at their tenant ledgers. The discrepancy is probably due to non-paying tenants or super late payments.