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Quickbooks BRRR Questions
Hello BP Friends!
Last year was my first year doing the BRRR model but our deals weren't refinanced and won't be until 2021.
Our model was to find private money to fund 100% of the purchase, rehab, closing costs, etc...
After closing, I get a large check that covers for my rehab.
It shows on my quickbooks that I have hundreds of thousands in deposits from the closing proceeds as well as contractors expenses.
1) Does my private money proceeds for rehab after closing go into my P&L and Balance Sheet? or Just P&L or just balance sheet?
2) If it goes into my P&L, do I write off the contracting work that was done for these BRRR properties in 2020 even though I do not plan on selling any time soon?
3) What happens with the un-used or haven't used yet proceeds since it's now 2021? How do I begin the books for 2021?
Any guidance would be very much appreciated.