QuickBooks Investor Books Question

Question i got from Ron
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MIke,

I e-mailed you last week but did not have my nephew's e-mail address. It is Ronn@ronnproperties.com under Ron Harris in Oklahoma City, Oklahoma.

My question is on personal cash brought into the company to pay for a property, ...

does it go into the cash from me or should it be in the investment under a personal draw account?

ANSWER #1: I do not understand "personal DRAW" account... (investors don't understand that language either) HOWEVER, investor do understand "Cash From Me"... let's try to clear this up..... if you take some money from your personal banking account and deposit into your real estate operating account to buy an investment property.... then in this situation, using your Investor Books file, and Make a Bank Deposit into your real estate checking account, and the money will be coming from "Cash from Me" account...

on another note: If you are using your Home Equity Line of Credit to fund a deal.... create a HELOC liability account under the proper lender... then make your bank deposit into your real estate checking account pulling money from the HELOC liability account...


Also if you paid cash for a property and refi it do you do a journal entry to zero out the for hud and enter the refi?

ANSWER: I recommend to investor to never do "journal" entry. ... I am really having a hard time trying to understand your question... If you paid cash for a property.. (GREAT) and then "Refinance" (i assume to get your cash back)....... the next part of your question does not make any sense.... "to zero out the hud?" You NEVER change your HUD 1 settlement statement.... If you change your HUD 1, it defeats the whole purpose of using this system.... you are simply entering the HUD EXACTLY as it appears, line for line, penny for penny.... NEVER alter the hud 1... if your CPA finds out you are changing them... you will have to produce HUDs to your CPA at tax time....

Just enter the closing statement as it appears... use the real numbers and not phantom numbers.