All Forum Posts by: Daniel Smith

REI Guard deals specifically with investors so they understand the needs and have options designed for investors.

It depends on your approach. If you only want to do one house at a time I can see some advantage to fully funding your own flip. You have far fewer holding costs as you are not making interest payments. However, if you want to do more than one, you can multiply your money by getting a loan. In theory you could do 5 houses with the same money.

First, I would suggest that you contact your CPA/tax professional and find out what their preference is on how much detail that you need on your books for these transactions. My CPA really prefers it pretty simple: contract price, adjustments (fees), earnest money, cash downpayment, and loan. Then you need to make sure your line items equal. So your contract price, and fees should equal the EM, downpayment and loan. I also would have normally placed our EM in an asset holding account when we sent it with the contract. In QB I would normally create a fixed asset account for the property. Then 2 sub-accounts for the price and adjustments each. (Just helps sanity to keep them separate) You also need a liability account for the loan. Debit price from asset account Debit fees from asset account Credit earnest money from asset account Credit downpayment from owners contribution Credit loan amount to liability account The totals of both sides should match.