Hey Nick! Awesome video. Quick question, I matched up the bank transfer out to the JE to record the purchase of a property. Do you not record any equity position for the purchase of the property? I'd think the $54K downpayment would also show up in owner equity for the home. Thanks for the help!
Hey! yes...it absolutely! Sounds like the 54K downpayment came out of your personal funds. Here's what you do: Add a journal entry - Debit "Purchase Closing" (other asset)...Credit "owner's equity". Then, at the closing, you'll Credit "Purchase Closing" 54K against the funds due at closing. We go over this in great detail in our end to end course: Real Estate Accounting Bootcamp bit.ly/3xaBohM ($50 off with code TH-cam50)
Hi Nick, Great content. Exactly what I was looking for. When do you expect to release the next videos in the BRRR series? Looking forward to it. Thanks in advance.
Hey!!! Thanks so much for watching! Its in the queue to record this week! That being said, if you don't want to wait (and want a bit more of a thorough training) we also go through the entire process in our end to end course: bit.ly/3WvOS0j (Enter Code TH-cam50 for $50 off!)
Hello Nick, Thank you for the content you are creating every video is leap of learning. I have a question regarding the finance amount repayment accounting treatment. kindly elobrate little about this and also what if the replayment includes some tax amount how to handle this. thank again
Hi! Thanks for watching...note that we have more videos coming out! The financed amount will go toward a liability. You would then track loan payments against that accounts. We go into this in great detail in our end to end course, Real Estate Accounting Bootcamp bit.ly/3xaBohM
Hi Nick, these videos are great, and I'm considering buying your course. Does the course cover content related to accounting for a property management business? Currently I only operate my own properties, but am planning on taking on others' properties as well. And if your course doesn't cover that, would you be able to tell me if there is any reason I should consider other software besides QBO give my needs?
Hi Robert! It looks like you signed up...which is great!! We definitely focus on bookkeeping for the properties you own. However, we have started adding more content from the property manager perspective. In addition, when I record REAB 4.0 (which you will automatically get for free b/c you bought REAB 3.0) I plan to have a designated bonus module specifically for property managers. QBO is still the best software out there for end to end accounting!
Hi, I want to get into tax lien and deed business as an foreign investor. Actually I have an accounting degree here in Turkey. My plan is to set up an LLC and minimize all cost just for the first year. AFter that I absolutly leave these accounting to some experts like you, maybe to you:)) That is why I want to keep my recordings on my own using Quickbooks. Assuming I will participate in online auctions and buy this parcel, or that parcel etc... what kind of book keeping method must I use? Maybe I only can buy 3 tax liens, how would they be taxed?
Hi! Thanks for watching! You can certainly use the bookkeeping methods I teach in Real Estate Accounting Bootcamp: Quickbooks for Real Estate Investing: bit.ly/3xaBohM (Use Code TH-cam50 for $50 off!) Not an expert on the tax implications of the tax liens. For that you would need to talk to an expert in that area.
Hey Nick. I want know about the Tax that has been paid by seller and now buyer has reimbersed the seller. Now, being the buyer where should I credit that tax amount?
Hi! You would put that to the exact same account that you would use if you were the one incurring the expense...so, in this case, that would be "Property Tax" (COGS). at the time of the purchase, this will lead to a negative balance in your P&L for property tax. However, over the course of the year...as you pay taxes, this will go past 0 to a positive amount. We go over this in great detail in our course...definitely worth checking out! (Real Estate Accounting Bootcamp: bit.ly/3VCqXgo; $50 off with code: TH-cam50)
Hey don't mind, You may be a good learner in real estate management but when teach to others think it will be easiest to all , I think you showing the easiest way line by line, I see you are trying to explain in leaps and bounds
Hey Nick, I have two questions for you. First, you mentioned that any expenses directly relating to the property is categorized under "cost of goods sold" -- I understand why you would do this for fix and flips as the property is the "good" and not a fixed asset. However, when utilizing the BRRRR strategy, I don't see why you would categorize this expense as "cost of goods sold." In this case, the property is a fixed asset and would be held for many years, possibly never sold or rolled into another property using a 1031 exchange in 10, 20, or even 30 years. Wouldn't this leave an outstanding cost of goods sold expense on your books that will not balance out for many years, until the property is eventually sold, or rolled into another? Second, just want to confirm, your accounting bootcamp 3.0 course covers all aspects of real estate investing, correct? As in, will it cover bookkeeping for investors who utilizes several different strategies (BRRRR, fix and flip, land flips, and STRs)? Thanks for the videos by the way, these are very helpful. I have been having some troubles using QuickBooks for my real estate business and these videos definitely help.
Hi Tyler! Thanks so much for watching and for the thoughtful question! You are 100% right: The Long term rental property will be on your books for many many years. That being said, even for a rental property, I still find great value in using COGS. Specifically, I use COGS to categorize transactions that would typically go into IRS form 8825 www.irs.gov/pub/irs-access/f8825_accessible.pdf. This allows QBO to calculate a gross profit on my rental property. Rental Income minus "COGS" equals Gross profit. Per your question...it might make completely sense to refrain from using COGS during the renovation. During this time, the expenses put into this property could be attributed to the basis. That being said, they don't have to be! You would be able to deduct some "operational" expenses in the year they were incurred. For these, I would treat them as COGS. if you want to "keep it clean"...then you would likely want to put 100% of the expenses incurred during construction to the basis. Second question: Yes! WE cover it all....BRRR, Fix and Flips...the whole lot! We would absolutely love to have you.Make sure you take advantage of the $50 off coupon! bit.ly/3L3p467
![[LIVE] : ONE ลุมพินี 89 | คู่เอก "ยอดไอคิว vs คิริลล์"](http://i.ytimg.com/vi/Z3vYkHJ_5Ig/mqdefault.jpg)
Hey Nick! Awesome video. Quick question, I matched up the bank transfer out to the JE to record the purchase of a property. Do you not record any equity position for the purchase of the property? I'd think the $54K downpayment would also show up in owner equity for the home. Thanks for the help!
Hey! yes...it absolutely! Sounds like the 54K downpayment came out of your personal funds. Here's what you do: Add a journal entry - Debit "Purchase Closing" (other asset)...Credit "owner's equity". Then, at the closing, you'll Credit "Purchase Closing" 54K against the funds due at closing. We go over this in great detail in our end to end course: Real Estate Accounting Bootcamp bit.ly/3xaBohM ($50 off with code TH-cam50)
Hi Nick, Great content. Exactly what I was looking for. When do you expect to release the next videos in the BRRR series? Looking forward to it. Thanks in advance.
Hey!!! Thanks so much for watching! Its in the queue to record this week!
That being said, if you don't want to wait (and want a bit more of a thorough training) we also go through the entire process in our end to end course: bit.ly/3WvOS0j
(Enter Code TH-cam50 for $50 off!)
Hello Nick, Thank you for the content you are creating every video is leap of learning. I have a question regarding the finance amount repayment accounting treatment. kindly elobrate little about this and also what if the replayment includes some tax amount how to handle this. thank again
Hi! Thanks for watching...note that we have more videos coming out! The financed amount will go toward a liability. You would then track loan payments against that accounts. We go into this in great detail in our end to end course, Real Estate Accounting Bootcamp bit.ly/3xaBohM
Hi Nick, these videos are great, and I'm considering buying your course. Does the course cover content related to accounting for a property management business? Currently I only operate my own properties, but am planning on taking on others' properties as well. And if your course doesn't cover that, would you be able to tell me if there is any reason I should consider other software besides QBO give my needs?
Hi Robert! It looks like you signed up...which is great!!
We definitely focus on bookkeeping for the properties you own. However, we have started adding more content from the property manager perspective. In addition, when I record REAB 4.0 (which you will automatically get for free b/c you bought REAB 3.0) I plan to have a designated bonus module specifically for property managers. QBO is still the best software out there for end to end accounting!
@@Incomedigs Thanks so much!
Hi, I want to get into tax lien and deed business as an foreign investor. Actually I have an accounting degree here in Turkey. My plan is to set up an LLC and minimize all cost just for the first year. AFter that I absolutly leave these accounting to some experts like you, maybe to you:)) That is why I want to keep my recordings on my own using Quickbooks. Assuming I will participate in online auctions and buy this parcel, or that parcel etc... what kind of book keeping method must I use? Maybe I only can buy 3 tax liens, how would they be taxed?
Hi! Thanks for watching! You can certainly use the bookkeeping methods I teach in Real Estate Accounting Bootcamp: Quickbooks for Real Estate Investing: bit.ly/3xaBohM (Use Code TH-cam50 for $50 off!)
Not an expert on the tax implications of the tax liens. For that you would need to talk to an expert in that area.
Hey Nick. I want know about the Tax that has been paid by seller and now buyer has reimbersed the seller. Now, being the buyer where should I credit that tax amount?
Hi! You would put that to the exact same account that you would use if you were the one incurring the expense...so, in this case, that would be "Property Tax" (COGS). at the time of the purchase, this will lead to a negative balance in your P&L for property tax. However, over the course of the year...as you pay taxes, this will go past 0 to a positive amount.
We go over this in great detail in our course...definitely worth checking out! (Real Estate Accounting Bootcamp: bit.ly/3VCqXgo; $50 off with code: TH-cam50)
Hey don't mind, You may be a good learner in real estate management but when teach to others think it will be easiest to all , I think you showing the easiest way line by line, I see you are trying to explain in leaps and bounds
Hey Nick, I have two questions for you. First, you mentioned that any expenses directly relating to the property is categorized under "cost of goods sold" -- I understand why you would do this for fix and flips as the property is the "good" and not a fixed asset. However, when utilizing the BRRRR strategy, I don't see why you would categorize this expense as "cost of goods sold." In this case, the property is a fixed asset and would be held for many years, possibly never sold or rolled into another property using a 1031 exchange in 10, 20, or even 30 years. Wouldn't this leave an outstanding cost of goods sold expense on your books that will not balance out for many years, until the property is eventually sold, or rolled into another? Second, just want to confirm, your accounting bootcamp 3.0 course covers all aspects of real estate investing, correct? As in, will it cover bookkeeping for investors who utilizes several different strategies (BRRRR, fix and flip, land flips, and STRs)? Thanks for the videos by the way, these are very helpful. I have been having some troubles using QuickBooks for my real estate business and these videos definitely help.
Hi Tyler! Thanks so much for watching and for the thoughtful question!
You are 100% right: The Long term rental property will be on your books for many many years. That being said, even for a rental property, I still find great value in using COGS. Specifically, I use COGS to categorize transactions that would typically go into IRS form 8825 www.irs.gov/pub/irs-access/f8825_accessible.pdf.
This allows QBO to calculate a gross profit on my rental property. Rental Income minus "COGS" equals Gross profit.
Per your question...it might make completely sense to refrain from using COGS during the renovation. During this time, the expenses put into this property could be attributed to the basis. That being said, they don't have to be! You would be able to deduct some "operational" expenses in the year they were incurred. For these, I would treat them as COGS.
if you want to "keep it clean"...then you would likely want to put 100% of the expenses incurred during construction to the basis.
Second question: Yes! WE cover it all....BRRR, Fix and Flips...the whole lot! We would absolutely love to have you.Make sure you take advantage of the $50 off coupon! bit.ly/3L3p467