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fparkes704
03-26-2005, 06:51 PM
I am a real estate investor in NYC and Maryland and have purchased several properties. My dilemma is that I not quite sure how to record these purchases in Quickbooks. Below are the details for one of the NY properties. I will use your response as a model for the others:





Contract sale price:

424,000

Credit for closing: (sellers Concession)

(24,000)

Purchase price

400,000





Mortgage

402,800

Closing exp - Points - Chase
(8,056)

Closing exp - Points - Eastern
(2,014)

Interest until 9/1/02

(2,276)

Escrow: taxes and insurance
(878)

Application fee

(250)

PMI

(225)

Chase Underwriting

(350)

Misc. Bank fees

(97)

Bank Attorney: (Drawing Bond and Mtg)
(750)





Property Insurance

(1,689)

Steven Langer #2 Attrny
(925)

Closing exp - Title

(150)

Closing exp - Termite Inspection
(150)





Mortgage tax

(7,049)

Recording mortgage
(225)

Recording deed

(115)

Title Company Fee

(3,363)

Title Survey

(100)

2nd NYC Tax to Title co and fed ex fee
(1,047)






subtotal costs
(29,709)




My partner and I contributed equally to cover all cost of the above cost ($14,814 each)

Investment Amount


Cash at Closing:
(21,200.00)

Down Payments
(6,000)

Addl Closing Out of Pocket
(1,650)

Adjusted Cash Out of Pocket
(28,850)

Refund
1,538

Total Cash Out of Pockect
(27,312)

Security Deposit (4th Flr)
(2,316)


(29,628)




DH
(14,814)

FP
(14,814)




Additionally we contributed $15,000 during a 2-month period to cover various rehab expenses.



Finally, We refinanced the property at $500K pulling out some equity of $85K of will $52K was distributed evenly between the partners for repayment of cash we invested.



May questions are:



1. How do I record the purchase?

2. how do I record the capital from partners?

3. how do I record HUD-1 fees/closing cost?

4. How should I record rehab expenditures?

5. How do I record Refinance and payoff of prior loan? (should the closing cost be entered in the same manner as in Question 3?)

6. How do I record Equity?

7. How do i record distribution of Equity to partners?

8. How do I record the paydown of Principal and Interest related to monthly payment. (my monthly payment also includes escrow amounts--how do i record those?)











Nancy,

Hope all is well and you have resolved your networking issues. Sometimes it can be a daunting task setting up a network. I wanted to tocuh bases to see if you had a chance to look into the QB entries for me. I appreciate your efforts.

Sincerely,

Fred Parkes
Nancy,

Hope all is well. Sorry for being a nuansance but if you could let me know if you are still able to help me with my dilemma I would greatly appreaciate it. I had to file an extension for my corp taxes and would like to complete the entries prior to deadline. If you're not able to assist I still appreciate the effort.

Sincerely,

Fred Parkes

-----------------
Forwarded Message:
Subj: Re: Quickbooks Assistance
Date: 2/28/2005 11:54:12 AM Eastern Standard Time
From: FParkes704
To: ngomez@silcom.com



In a message dated 2/23/2005 10:12:05 AM Eastern Standard Time, nancy@bottomline-sb.com writes:
I haven’t forgotten about you!! New computer & 4-in-1 printer that I have got to get working together on the new wireless network etc. etc. And clients in-between. I’m shooting to get you an email later this morning (well, morning my time!!)



Nancy Gomez

The Bottom Line

805-683-3186



-----Original Message-----
From: FParkes704@aol.com [mailto:FParkes704@aol.com]
Sent: Monday, February 21, 2005 10:26 AM
To: ngomez@silcom.com
Subject: Re: Quickbooks Assistance



As per our conversation earlier today. As mentioned, any assistance and your guidance will be greatly appreciated.



In a message dated 2/17/2005 9:55:27 PM Eastern Standard Time, nancy@bottomline-sb.com writes:

Thank you for your compliments. Sad to say, I generally have the CPA give me this information as I am aware that some of the closing costs are amortized while others are written off as they occur. My suggestion is to contact a knowledgeable CPA.



I would be glad to help you with any other questions…as I’m sure you have surmised, these entries are quite long-winded and complicated.



Nancy Gomez

The Bottom Line

805-683-3186



-----Original Message-----
From: FParkes704@aol.com [mailto:FParkes704@aol.com]
Sent: Thursday, February 17, 2005 11:05 AM
To: nancy@bottomline-sb.com
Subject: Quickbooks Assistance



Nancy Gomez,



Please forgive me for email you without your approval or prior notification but I'm in desperate need of your assistance. I read several of your reply posting on the Quickbook forum and was impressed by not only your knowledge but also in the manner which you simplify the your response of what should be done.



I am a real estate investor in NYC and Maryland and have purchased several properties. My dilemma is that I not quite sure how to record these purchases in Quickbooks. Below are the details for one of the NY properties. I will use your response as a model for the others:





Contract sale price:

424,000

Credit for closing: (sellers Concession)

(24,000)

Purchase price

400,000





Mortgage

402,800

Closing exp - Points - Chase
(8,056)

Closing exp - Points - Eastern
(2,014)

Interest until 9/1/02

(2,276)

Escrow: taxes and insurance
(878)

Application fee

(250)

PMI

(225)

Chase Underwriting

(350)

Misc. Bank fees

(97)

Bank Attorney: (Drawing Bond and Mtg)
(750)





Property Insurance

(1,689)

Steven Langer #2 Attrny
(925)

Closing exp - Title

(150)

Closing exp - Termite Inspection
(150)





Mortgage tax

(7,049)

Recording mortgage
(225)

Recording deed

(115)

Title Company Fee

(3,363)

Title Survey

(100)

2nd NYC Tax to Title co and fed ex fee
(1,047)






subtotal costs
(29,709)




My partner and I contributed equally to cover all cost of the above cost ($14,814 each)

Investment Amount


Cash at Closing:
(21,200.00)

Down Payments
(6,000)

Addl Closing Out of Pocket
(1,650)

Adjusted Cash Out of Pocket
(28,850)

Refund
1,538

Total Cash Out of Pockect
(27,312)

Security Deposit (4th Flr)
(2,316)


(29,628)




DH
(14,814)

FP
(14,814)




Additionally we contributed $15,000 during a 2-month period to cover various rehab expenses.



Finally, We refinanced the property at $500K pulling out some equity of $85K of will $52K was distributed evenly between the partners for repayment of cash we invested.



May questions are:



1. How do I record the purchase?

2. how do I record the capital from partners?

3. how do I record HUD-1 fees/closing cost?

4. How should I record rehab expenditures?

5. How do I record Refinance and payoff of prior loan? (should the closing cost be entered in the same manner as in Question 3?)

6. How do I record Equity?

7. How do i record distribution of Equity to partners?

8. How do I record the paydown of Principal and Interest related to monthly payment. (my monthly payment also includes escrow amounts--how do i record those?)

Joey
03-27-2005, 12:20 PM
Real Estate purchases and sales are very complicated and you shouldn't rely on free information that you get from a user forum to record them properly. Anybody can tell you anything and you have no way of knowing whether they have a clue as to what they're talking about. A lot of the answers I see in here are absolute garbage when it pertains to tax rules. I would advise contacting an Enrolled Agent or CPA to give you the correct entries to make.