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@DevBObs
11 ай бұрын
Hello, I have a subject 2 (seller financing one of my properties) and I need to record the tenant payments on my loan and the interest on that loan.
@Incomedigs
10 ай бұрын
Hi! okay....So on the date of purchase...you assume the loan. That loan should be on your balance sheet. The starting balance is the exact balance of the loan at the time of closing. As your tenant makes payments....you will split the transaction: 1 Line will go toward the balance of the loan (long term liability)...the other will go toward "Interest Income".
@landbaronusainc5667
4 ай бұрын
I am owner financing land. Pretty straight forward. /I purchase for $400, sell on terms for $1350 for 12 months. No interest Is there a simple way to do this on QB online?
@Incomedigs
4 ай бұрын
Hi! Yes! Let's think it through: The initial purchase..... Land 400 Debit Cash 400 Credit The sale + finance Land 400 Credit Realized Gains 950 Credit (950 + 400 = 1,350) Notes Receivable - 1,350 Debit With every interest payment....record a "Deposit" or "Sales Receipt" indicating the amount paid. The category for these transactions will be "Notes Receivable" We discuss examples like this in great detail in our course: Real Estate Accounting Bootcamp. Definitely recommend checking it out! www.incomedigs.com/reab3
@tammybasile2244
6 ай бұрын
When I follow all of these instructions, and put the net selling price in as income, it looks like income on my profit and loss. How can I make it look like a long term asset instead?
@Incomedigs
6 ай бұрын
Hi! Thanks for watching! Instead of allocating the entire sales price to revenue...you would just record the difference between the sale price and your basis as "Realized Gains". We discuss this process in detail in our end to end course: Real Estate Accounting Bootcamp: bit.ly/reabcourse
@candacefuller
10 ай бұрын
Curious how you would log a loan you give as a joint venture funding partner to a land investor. Where the property is not in your name but the REI's name and you just share profit in the deal when it closes and get your funding amount back. I hope that makes sense and thank you.
@Incomedigs
10 ай бұрын
Hi...thanks for watching! I would try to track the loan independent of the partnership. That is, I would log the "Note Receivable" on my assets...record interest earned to that loan. I would deal with any profit distributions separately.
@cynthiahartley7277
2 жыл бұрын
I was really hoping you would show how to make the QBO entry for the seller financing when you receive the principal and interest payment. I can't seem to figure it out and can't find any videos on it.
@Incomedigs
2 жыл бұрын
Hi Cynthia...thanks for watching! For Owner Financing, as you receive your regular payments, you'll record the deposit with at least two lines of a split. One line, the principal, will be allocated to the "Notes Receivable" account. The other line will allocate to revenue item: "Interest Income". You would use an amortization schedule to track the differentiation between Principal and interest.
@ca6308
2 жыл бұрын
@@Incomedigs can you set the amort up inside of QB ? I'm doing something similar but it is lease to own
@Incomedigs
2 жыл бұрын
@@ca6308 Unfortunately, No. You cannot setup an amort schedule in QB. You would need to use excel/ external software to accomplish this.
@braziliansolutions3544
2 жыл бұрын
When the property is held for sale (fliping) the IRS doesn't allowed you to depreciate the property,
@ericzessin8841
Жыл бұрын
I like Cynthia was hoping for a step by step on receiving that first payment. When and where do you create the notes receivable account and how do you tie it to the long term fixed asset account? I am using quick books desktop.
@Incomedigs
Жыл бұрын
Hi Eric! You can create your Notes Receivable account as soon as you make the sale. This would be an "Other Asset". You will not actually "tie it" to a fixed asset. There is no place in QB to note the mortgage/ lien on the property.
@JulietFlowers
3 жыл бұрын
But If you sold the house for $325,00. and received $80,000 as down payment, shouldn't your note(Seller Financing) be $245,000?
@JoJobuysmemphisrealestate
4 жыл бұрын
Thank You, What about when you are selling financing with your own money and you are only receiving a small down payment towards the property. Lets say I financed a property for $50,000 received a a down payment of $5,000 and financed the rest at a 15 year note with a 5% interest , how will that look like on quick books specially when now I am receiving principle and interest I'm assuming that I may have to separate those amounts when the payments come in ?Thank You! I am using Projects now and Im in the process of moving the properties from classes to projects and using the classes for the type of disposition.
@duppykiller79
3 жыл бұрын
When you receive the monthly payments, you would apply the principal amount against the fixed asset loan and credit Interest income.
@ca6308
2 жыл бұрын
@@duppykiller79 loans are NOT fixed assets. They are "other long term assets except for the amount due in the current fiscal cycle.
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