Real Estate Accounting

Another Nerd Enterprises, Inc. Property

Ask us about pre-ordering

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Pre-order your Real Estate Accounting E-Workbook and I will include  a free 1 hour live demo to boot.

e-mail for details – classes@nerdenterprises.com

Written by Seth David

March 26, 2010 at 1:50 pm

Posted in E-book Updates

This Week’s Dream Home

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Thinking big and dreaming big is how you get into something like this. Of course you should run the numbers before you buy and make sure it fits your budget. This pad is on the market for a mere $13,500,000.  Your 20% down payment would be $2.7MM. This leaves you with 10.8MM Financed. The monthly Payment at 6.5% on a 30 year principal and interest is only $68,263.35. So based on conventional thinking, your income in order to afford this has to be approx 4X that amount, or $273,053.39/month. This means you need to be comfortable earning $3.3MM annually to think about a home like this and you had better be able to maintain that level of income on a consistent basis because these homes do not sell fast at these prices. The photo links to the website we grabbed it from (www.dreamhomes.us)

DreamHomes.US

Nice huh?

Written by Seth David

March 26, 2010 at 2:16 pm

Posted in Dream Homes

The Outline So Far

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This will likely change, but this is to give you an idea of what we are developing as we develop it. Your comments and suggestions for what you might like to see covered here are very welcome!

 

Table of Contents 

1. 

About Seth David

2. 

Chapter 1 – How to get into a home you can’t afford

3. 

Chapter 2 – Rental Real Estate

Buying Your Rental Property

Setting Up Your Company File In QuickBooks

Recording your purchase in QuickBooks

Setting up and recording Security deposit and 1st month’s rent

Setting up, recording, and memorizing rent going forward

Late Rents

Additional Security Deposits

How to handle a move-out

Calculating, recording, and refunding the security deposit

4.

Chapter 3 – Property Management

Setting Up Your Company File

Setting up your Properties

Keeping track of Payables by property

5.

Chapter 4 – Construction Accounting

6.

Chapter 5 – Selling Your Property

Your Basis

Recording the sale in QuickBooks

   

Written by Seth David

March 18, 2010 at 6:10 pm

The QuickBooks For Real Estate E-workbook project has resumed!

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We have officially resumed this project! There have been many demands for real estate accounting / QuickBooks instruction. You can also get a great deal of information on how to do things in QuickBooks at our sister Blog – http://www.quickbooksnerd.com. We’ll post up the current outline for the E-Workbook shortly.

Written by Seth David

March 18, 2010 at 5:39 pm

Posted in E-book Updates

Chapter 2 – Buying your rental property

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Chapter two goes right into rental real estate. In the previous chapter we talked about buying a home and the “right” approach to determining how much of a home we can afford by starting with the monthly payment we can afford as well as how much of a down-payment we can come up with and then going from there to figure out what price range we should be looking at. Well since the first step in owning rental real estate will of course be to own a place we are going to talk about that a little bit more in the beginning of chapter 2. In this case there will be more dynamics to consider and we will go through how to lay out the financial plan to figure out what we can afford and also to make sure how it works. We will talk about syndicates – many times rental properties are purchase by groups who usually will form an LLC. Generally the membership is made up mostly of people who just put up the money and then there will be one managing member who handles the property management. Otherwise you have a single investor who puts up the money. Finances it with the bank and manages. Finally when the property is substantial enough you hire a property management company, but that’s chapter 3.

By the end of this chapter you will know how to plan your purchase and how to know how to make it work in terms of rents, expenses, debt management and maintenance and once again there will be links in the chapter to video tutorials demonstrating how to use MS Excel to plan everything and how to set up your property in QuickBooks so that you can do your own bookkeeping for your rental property. We will demonstrate how to book the journal for the purchase of the property using a sample Final Settlement Statement just like what you get from the escrow company.

Written by Seth David

December 13, 2009 at 9:53 pm

This Week’s Dream Home

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Written by Seth David

December 12, 2009 at 1:04 am

Posted in Dream Homes

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Chapter 2 – Rental Real Estate

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I’ve begun writing this chapter while I record the video tutorials for Chapter 1. When you have the final product you will get the PDF and you will be able to click links to watch video tutorials which will demonstrate the things we are discussing in QuickBooks and Excel. With my voice as your guide in the video you will see step by step what to do and how to do it.

More on the content of this chapter shortly.

Written by Seth David

December 11, 2009 at 7:05 pm