All Forum Posts by: Jake Baker

As a flipper and BRRRR investor, I often find myself in this situation. I always shop at least three lenders at the same time because they all have access to different loan products. For me, a fixed rate is more important that the 10 year interest only you mentioned. You are bound to sell it or refinance in the next 5 years or so but having that fixed interest rate is key.

Number 1 is so true. Everyone wants to talk about tax loopholes and cost segregation studies. The number 1 tax-saving strategy = having good bookkeeping.

Referring to your example... John invested $100k into your LLC. Your LLC will need to complete it's own tax return. These taxes get "passed through" to the members (John) through K1 forms. John is responsible for paying his portion of the taxes, not the LLC. You are subject to tax based on the sale of the real estate not distributions to the LLC members. This is just from experience with my flipping companies.. I have the exact same structure. I am not a CPA... talk to your about it.

Where are your properties located? I'm trying to gage how much revenue you are getting to see what makes sense on how much to hire out. We have a much smaller portfolio managed by a company and lament the fact that we are losing 15-20% of revenue to that. So I hear you!

For a portfolio this big, I would advise you to keep the bookkeeping separate from the property manager. You could hire a part-time bookkeeper to do the basic bookkeeping and accounts receivable/bill pay. Heck even just hiring out that could free up a lot of time for you just to focus on tenant communication while the bookkeeper collects rents and makes sure certain bills get paid. 

I agree with @Cliff Benner. The bookkeeper should have an engagement letter that they normally use. If they are using QuickBooks Online Accountant version (most bookkeepers do), there is an option in the top right drop-down called "Letters". Here you will find sample contracts/letters for anything bookkeeping/accounting-related. Hope this helps!

HI Chris. As a bookkeeper who specializes in Real Estate, I often find it convoluted to predict the depreciation in Quickbooks monthly. A recurring journal entry works well. The best move is just to have the accountant see a clean Balance Sheet P&L w/o depreciation calculated and for the bookkeeper to add the depreciation once the tax return is finished. Sounds like you got a lot of great stuff going on!

Marshall Reddick is a very reliable lender. I use them for the majority of my flip projects in Jacksonville and San Diego. Aaron is a pleasure to work with. I highly recommend!

@Noah Brinker It is less about the website builder and more about the marketing you do to generate traffic to your site.

@Don Montgomery Leadpropeller is like carrot. It is only $49 a month. 

@Meir Bright is this a widget? or an API?