Tuesday, June 30, 2009
Sunday, June 28, 2009
Saturday, June 27, 2009
Wednesday, June 24, 2009
QuickBooks Investor Books Question
---------------------------------------
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.
Monday, June 22, 2009
567 real estate sites to take YEARS off your learning curve
http://www.teamworkleadsystem.com/cmd.php?Clk=3084182
This guy from Hawaii, Andy Proper, just
made it available to real estate investors.
It only takes 45 seconds to install, it
gives you instant access to the TOP websites
for investors, and (BEST of all) it doesn't
cost you a penny.
Not one red cent.
Awesome. Download it now..
http://www.teamworkleadsystem.com/cmd.php?Clk=3084182
To your success,
Mike Butler
Sunday, June 21, 2009
Wednesday, June 17, 2009
Tuesday, June 16, 2009
Sunday, June 14, 2009
5mWAP Tenant Tracking QuickBooks Helps Investor!
Dear Mike,
My name is Logan Skidmore. I live in San Antonio, TX where you did a presentation at the SAREIA. That was my one and only time going to one of those meetings. My intention in writing is ... to inform you of the success I am having in managing my rentals.
I truly believe there must have been some divine intervention that was the one meeting I would attend. I had been a loan officer for 4 years and had been plagued by the fact I only owned 2 properties. I bought your 5mWAP systems that night. My wife and I at the time owned 2 properties. One was an investment we owned for apx. 3 years and the other was our primary. Since acquiring your 5mWAP systems, books, tapes, paperwork, etc. we gained the confidence to buy 8 more investment properties...most of which since becoming familiar with your systems and info. Your system gave me the confidence to move forward with more investing. It gave my wife the peace of mind I wasn't shooting from the hip anymore.
I love to tell everyone about to move into one of my houses I give a 1.5 to 2 hour "rent talk" before they move in so as to set them up for success. I love treating them like employees and not customers. I have read a lot of books and heard a lot of pitches about investing and I honestly pattern my investing after your book. Also, having the systems in place has increased my time efficiency. I have more confidence in the knowledge I've gained.
I'm guessing I used to collect about 90% of the rents on our 1st rental property.
Now I collect 108% on that property
and 106% on my other rentals.
That is a lot of info but I wanted to thank you for your guidance in my investing venture.
Logan Skidmore, REALTOR
RE/MAX North-San Antonio
210-298-7600 (office)
LoganSkidmore@remax.net (email)
http://www.5mWap.com
Thursday, June 11, 2009
Land Trust Question
Keith Asked Mike This Question:
Land trust is it possible to make Family Limited Partnership the trustee. How do you make the trust without the mortgage company calling your note due if you make a land trust.
Does the land trust have a checking account if it dose not have a tax ide # and if not who pays the property tax.
Land trust is it possible to make Family Limited Partnership the trustee. How do you make the trust without the mortgage company calling your note due if you make a land trust. Does the land trust have a checking account if it dose not have a tax ide # and if not who pays the property tax.
Land trust is it possible to make Family Limited Partnership the trustee. How do you make the trust without the mortgage company calling your note due if you make a land trust. Does the land trust have a checking account if it dose not have a tax ide # and if not who pays the property tax.,
providing there is no transfer of ownership or beneficial interest... (think of it this way.... if it is an investment property...is it still showing up on your Tax Return?... if so, there is no transfer of ownership.... remember the land trust is a "privacy instrument"... it is used to simply hide the beneficial interest (true owner in our language) and keep their name off of public record...
to make it simple...
if Keith Youngs owns it today.... you could have your attorney prepare a deed with the new "owner of record" to be your "123 Land Trust" with ____ as Trustee..... this would go on your deed...Also have your attorney cite the proper language in your state noting this is not a TAXABLE event and no transfer tax is due.
Land trust are allow for estate planning purpose with garn st. garmaine act(i might be spelling it wrong)...
Your Land Trust Agreement STAYS in your filing cabinet. It does NOT go to your attorney or title company... it does NOT get recorded... this would defeat the whole purpose of using it.
NO Checking Account needed for the land trust... it is NOT an Entity... just a privacy instrument.
Most of the time, the Trustee is an individual.. i would NOT recommend your family limited partnership as trustee because it will be become public record...the Owner of Record is the name of the trust and the Trustee.
your local government does not care where the property tax money comes from...
I appreciate your questions... most investors just make it too complicated and many real estate attorneys have never been taught anything about land trusts...(they get them mixed up with those cumbersome, complicated trusts such as revocable and irrevocable with tax id numbers and tax returns...) this is so much more simple.
this might help... imagine a Re/Max or Century 21 property management company... they collect rents and pay bills for all of the owners and give them a report monthly or annually.... why can't you do the same for your own properties?
Great Question Keith...
Now You Can Get All Those Questions You Forgot to Ask About Using Land Trusts at www.5mLandTrust.com
Posts
