All Forum Posts by: Cliff Benner

If they don't want to partner and want to just loan you the money, you can have a separate Note Payable with each of them and use Excel to calculate an amortization schedule and interest amounts. 

Those statements are fairly random on what they report to you. They are done on a Cash basis, pay attention to the transactions and balances they show. You should almost always be starting and ending the month with the same Reserve Balance. 

With the Cash Basis, and PMs not being Accountants, some tend to lump all inflows as rents.

I get:

Rent +$6743

Expenses -$1846

Prepaid Rent +$250

Net Income $5147

Owner Payout -$4630

Total $517.00

It seems they counted the Security Deposit twice as an Inflow and Math is not adding up correctly here.

I joined a call with a client and we made the PM walk us through the report and everything they did to see why and it seemed to have helped but things still have to be sorted through.

 I have always dreamed of developing something like this, with about 50-80 and having a Coffee Shop/Bar/Bistro in the middle with a playground on one side and dog park on the other so then everyone could have fun while I make money from either Rent of the tiny homes, sales of the tiny homes, and own the Coffee Shop/Bar/Bistro building to get rent from that too!

As an Accountant, I can answer a few for you.

We only use QBO for all our clients, while this software is not REI focused, it has every tool to allow me to make the financials proper and clean, unlike some industry softwares I have seen. It allows you to connect accounts for less manual labor and can help with 1099s in January.

You will request a signed W9 from Cleaning crews, but the best practice is to request on from every vendor and then at Tax time you have all the information to find out who you need to send one to, rather than scrambling. If you don't request them all, at the minimum, request them from those who preform services for you; contractors, cleaners, managers, etc. 

Hey AJ, I can help with getting financials made to send to a Tax Accountant, but I don't offer Tax Services. 

Feel free to reach out if that works for your client.

 Hi Rene! I actually from here in Denver too and saw one down in Canon City/Westcliffe area. I wish I had the listing because it looked like a great development. But I think it was zoned as a MHP but the developer put only tiny luxury homes in it with a laundry area in the middle. They were selling it as a Commercial property. 

I would run the financials based on what is reported to the IRS not what they say.

This is what I tell all my clients when we look at businesses for sale and why i request both financials and tax returns to compare what they tell you vs what they report.

If they are willing to lie to the IRS they are willing to lie to you.

I would assume that the financials don't look that great currently and they want to say there is "under the table" revenue to make you think it is doing better than it actually is so they can dump it and leave you with it. since it is really hard for you to prove they were lying to you.

It would be great if you think you can get it to double or triple in value with renovations and new management but if it is not currently ran right then you may over pay and have an up hill climb. Also comparing the financials to returns may allow you leverage on giving creative financing options. 
 

Well looks like your math is mathing with the numbers you gave us. 

Maybe bake in more for up front repairs, is it a new asset class? is that what is stopping you?

For my clients and I, we use BOX's free subscription to store everything. 

With the app, we can scan a receipt at lunch and throw it away after that which makes it very convenient!

Sounds like an amazing idea and very similar to what a friend of mine is trying to do.

He bought his business and is saving funds to buy the building so he can sell the business and rent the space out for retirement. 

Fantastic Job!