Updated almost 5 years ago on . Most recent reply
Note Investing - End of Year Tasks
Few notes and bolts for note investors as we approach the end of the year. Here are some of the mistakes I have done or seen and things you should make sure are on your radar Others should also add there two cents in on this:
1. Make sure you have W9's from anyone you have paid money too
2. Make sure if you made money you did not reinvest all of it, as you will need to pay uncle sam.
3. Start reviewing all your financial reports now so corrections are made prior to year end when whoever does your books is much busier (including yourself if you do them)
4. Make sure you do property inspections on all your assets right now as we approach winter to make sure they are occupied, if not get them preserved.
5. Audit any agreements you have that go off of a calendar year? Cancel subscriptions/services you no longer use.
6. Create a budget and business plan for 2021 - If you are scaling, do you need to sell some assets to acquire more?
7. Make sure payments you received from borrower (servicer) you broke them out by principal and interest. Be a real pain in the *** to do this later on.
Feel free to add more
- Chris Seveney
Most Popular Reply
I love your list! Way to be proactive and get ahead of the curve!
I heartily endorse #1. Such a pain in the butt if you have to track down this info in January. Especially for cash for keys, you should get the signed W9 upfront before you hand over that check. Once former occupants get paid, good luck trying to get SSNs after the fact. Same holds true for some contractors or subs.
My understanding is that anything ending in "Inc" is exempted from this requirement. Just individuals, LLCs, LLPs, sole proprietors.
Some vendors will help you out by providing their EINs on their invoices to make it easier.
I'd also add goal setting for the next year as setting aside some time to review the ending year's goals. You should also dedicate some time to "sharpening the saw" during the slower time at the end of the year to contemplate business strategies and how to do the business better.