All Forum Posts by: Brett Mach

@Todd Lennig

This makes sense and is helpful--thanks! If we scale much more in the next couple years, will definitely reevaluate and look at Quickbooks Plus--great to know there are pros like you who can help w REI. Thanks!

I've been doing our bookkeeping in excel and tried Quickbooks for two months last year. At least w the entry-level QuickBooks, there's no way to parse out property performance for individual doors. I talked with my CPA, and she helped me renovate our old excel sheets. Now they're more helpful for her come tax-time, and we're glad to get back to google sheets (7 doors total). Quickbooks was a waste in our case, so we cut bait. 

I agree with all the others that basic software doesn't cut it. I love RentRedi for many reasons, but their new accounting features, for example, are confusing and don't cut it (maybe I just can't navigate them, but am I the only one?). 

There are definitely business opportunities for bookkeepers who can help landlords, because to create especially useful bookkeeping data, you need to analyze the performance of each individual property rather than your portfolio as a lumped-together business (though of course, for taxes you need that too...and for each entity if you've got more than sole-proprietorships like the original poster. Just try going back and creating a separate P&L statement, for example, for each property to make larger long-term decisions to sell or hold. What a task!

It's extra work, but we're continuing to use our own excel sheets...

Seems like the Encode is the way to go, but just reporting that after a year with the Kwikset Halo on our STR, we've had no problems. It's already cheaper, and I got it at a discount. They upgraded their app a few months ago and it's more navigable than it was, but has always been dependable. Can store a hundred or so codes and I easily set schedules for guests, using the last 4 digits of their phone number. Replaced batteries twice in 12-mo, about when they hit 30%. Doesn't have some bells and whistles that Encode has, but perfectly serviceable for STR.

Still have a hidden lockbox, which we've used. Also, tip I learned the hard way: when you install the digital keypad on the deadbolt above, consider replacing the doorknob below with a closet/passage knob--I kept the normal keyed knob at first, and twice guests locked it from inside and exited--keypad will work the deadbolt above fine, but doesn't do much good if the doorknob is locked! 

Thanks for the thoughts! Never heard of zimple, but may check it out. I had to call my bank and the seller had to give them acct/routing number independently (surely there’s a better, electronic way these days), but they set me up for auto bill pay. Pretty easy.

@Account Closed : Hey, how did this end up? I was just searching for the same question, as I close next week on a seller finance deal. Was it as easy as just talking to your bank about setting up automatic bill pay? Wouldn't you need some info/setup from the seller in order to receive your auto payments? I know you're years away from this, but thought I'd try following up. Thanks!

Good luck w everything! If it helps get others and their strengths involved, and makes the deal possible, any type of partnership is worth it!

Agreed--with a helpful title co, you don't need a lawyer to quit-claim. Could hire a lawyer to save time on MO LLC, but pretty easy to DIY. Still, if you want local lawyer, I've been working with Kevin Corlew with PathGuide law firm in Gladstone. He has lots of experience and does all sorts of small business stuff in addition to real estate. Congrats on Blue Springs!

It may depend on how you structure your LLC together (this would likely be a multi-member partnership...way more complex than a single member, sole-proprietorship LLC, and more taxing headaches, for the record). Is this with one or two family members, or larger group? The more owner-investors, the more headache, which seems like the consensus at the syndicate level too.

Intend for the LLC to be for the single property, then you guys decide ownership percentages and capital contributions to establish and fund the LLC. You can make contributions any time after formation too, but decide ownership percentages as you form articles of org. Maybe be careful about one family member disproportionately funding the LLC, as the IRS may look at it as a de-facto gift and subject it to gift tax (limit $16k per recipient is not taxable, I think, per year...just something to ask CPA if worried).

If you're not ready to LLC-partnership w all contributors, which is complex and long-term, you could treat the "money" partners just as hard money lenders, but they'd get no equity. Maybe they'd give you great terms as a family member, but be careful it's not subject to gift tax. A hybrid to give some equity plus interest on a loan would be to make them LLC partners with ownership percentage, but have them make a loan to the LLC that they are a part of...then your LLC is on the hook for that loan, plus any financing on the property bought. If you're buying cash, then it'd be less moving parts.

Maybe someone w JV experience can tell you about a joint venture...a single contract to share a deal, and you could put both names on the mortgage (or both names on the loan, but probably one person brings money, so they would be the one on the loan). These are usually for short-term deals (flips), but would be good if you don't want to go for the complex, long-term relationship of LLC partnership yet.

Yes--way to go. I second: what area?

Is your property in Northmoor itself, or KCMO? Northmoor is an extremely small "island" surrounded by KCMO. I used to drive through it every day on my way to work--took maaaybe 30 seconds. Way to go on securing a multifamily there! 

I am getting a duplex and a single family inspected next week--an inspector I've worked with in the past is not available, so I'm trying someone new. Not sure what your timeline is, but message me, and I'll tell you how it goes.