All Forum Posts by: Alberto Ramirez

 Depends what the intent of the property is - if you are going to flip it, will go on your balance sheet as inventory and any costs associated with improving or rehabbing the property will be capitalized to the cost basis of the house (roof, walls, bathroom, etc). You could have an account called "House Flip - WIP" and "Rehab costs - WIP". WIP = Work in process a term used in manufacturing. For smaller costs, under a certain threshold provided by your CPA, you are able to deduct those on your P&L right away. Once you sell the property, it will be transfer to your COGS on your P&L.

If you are planning to keep the property as a rental, it will go in your balance sheet as a fixed asset or construction in progress under fixed assets. You will also capitalize all costs that are significant to getting the property ready for its intended use. Once the property is ready to be rented, depreciation can be taken.

Hope this helps. 

Quickbooks online is the easiest way to keep track of your expenses on quickbooks. In fact, if your bookkeeper is smart they can fit all accounting activity into one QB. They must use the "class" function on quickbooks.

Thank you for your input @Basit Siddiqi , if any wholesalers out there though can confirm what forms they receive it would help. 

Thanks,

Alberto Ramirez

Hey BP, 

For those wholesalers out there, what tax forms (ex: 1099-MISC, 1099-INT, etc.) do you receive (if any) from title companies or other parties involved in your transactions?

In a wholesaling transaction at closing, does the end buyer (investor) pay for the closing fees, meaning the escrow fee and charges? If so, are there any other charges the investor covers at closing?

Hey @Jose Flores or @Mark Pedroza does the standard Purchase and sale agreement already contain an assignability clause? or is that something you must customize and include yourself? Furthermore, if the purchase and sale agreement doesn't contain the "assignability clause" does that mean you can draw up an Assignment contract to wholesale the property to another investor?

Hey @Matt Inouye Are you still buying properties in the Santa Ana/Tustin area? 

@Jose Flores and @Mark Pedroza thank you!! I appreciate both of your input, this helped tremendously 

*Where do you find or buy 'Purchase & Sale Agreements

Hello BP friends,

Where can I find or buy a Purchase and Sale Agreement & Assignment Agreement? Are these available to be purchased online, from a store, or a Real Estate Attorney? 

I live in the OC, CA area and most houses are $300K - $800K. 

Hey @Vita Tonga , could I also get some more info on those lists. Thank you!