All Forum Posts by: Bryan Hylenski

At this point, folks are saying...I don't have enough US income.  My income is paid to me in my South Korean bank account, where my manufacturer is based, then i wire it from there to my home account, each month. It's very simple and this samee deal allowed me to buy my 5th home last year, in the same position, except that I was living in South korea then and my job was there. They say because I'm living here and my job/manufacturer is South Korea. I'm opening US distribution of my products here, since South Korea is doing well on it's own now.  So, while I open us distribution i need a place to live and want to buy something.  But lenders keep saying it would be too hard to do. I ask about a co-signer, because i even have family with money who would co-sign for me, but they say because I have 5 homes, I won't qualify for a co-signer.  That's about all I can say. All I need is someone to check my credit, check my taxes and they will see my businesses make money, I'm honest and I hav great credit...not sure what the problem is. 

If anyone knows someone that could help, I would really appreciate the chance to talk to that person and work something out. My businesses are very transparent, everything is easy and out in the open.  Anyway, hope someoene can help.

Hello,

I am moving home from overseas I have 100k to put a down place on a house. There are homes available in my area in the 200-300 range, that  want to buy.  I also own four homes that net me about $1200 a month in cashflow, in that same area.  But, the catch is I am moving home with my own business.  I have very little monthly income at the moment, because I'm not at home. But, my wife and I have never missed a payment on any of our 5 properties in more then 15 years, our tenants are happy and every place has been vacancy free for nearly three years. My business has income coming in, and I even  have a contract from my manufacturer guaranteeing me a  50,000$ a year salary, as a base price. This is my minimum salary he has guaranteed me, but i can't seem to get a lender to work with me.  My credit score is nearly 800.  Any help would be greatly appreciated. I'm moving back to longmont, Colorado.

I have a couple of mates in Cheonan.  Seoul is a bit far for me, I live in Daegu and I'm not military, so I can't get on the base, unless someone gets me on.  I messaged you offline. Thanks for the invite.

You guys are all fantastic!!!! I have learned more in the last 20 minutes then this entire week of trying to figure this out on my own!  Nancy is not only one of the most knowledgeable people I have ever met in terms of quickbooks, but also one of the most accessible.  As for the others, thank you!  I am taking everyone's advice! 

Just to explain, my situation is setup this way because I live and manage my properties from South Korea. I moved here a few years back, but still buy real estate and manage it from here. but I could only get a checking account from overseas, via the internet. I can get an EIN number, licenses, setup LLC's, get insuracnce, find tenants...everything! But no one would give me a business account without coming into sign some papers. So, I went the single checking account avenue and it has been a mistake, I have need to fix for a while!

But, next month I will be in the US, so we will fix this with the tenant and do as you have all recommended and stop comingling funds, fix the security deposit, and just pay her as general labor.  We will setup a new business account for all of our properties and do this right.  Thank you everyone! You guys make this sometimes lonely world of being a landlord...fun!! One day I plan to drive to Michigan and give Nancy a big hug!! 
Cheers! 

Nancy, I have checked the link and per Colorado law, I am ok to "co-mingle" the funds. I have checked a similar page in the past, but thank you for another good source of info!

In regards, thought, to my original question. The answers above don't solve my problem.

Tenant A-- did not clean the apartment, so she was charged a 75$ penalty for not cleaning the apartment. That is on top of the fee that I have to pay someone to do the cleaning. This is part of her lease and is perfectly legal practice here in Colorado.  So Tenant A's SD was 1200.  But I only repayed them 1125 (1200-75.)  I can handle writing that up in QuickBooks.

But my question is how do I handle writing up Tenant B.

I have a signed Security Deposit agreement from her that includes an addendum that states she will clean the house for a credit of 75$.  So she gave me 1675$. But when she moves out she will expect $1750.

Since my security deposit is co-mingled with my rents in one account.  I can't just add journal entries or credits, because I need the account to reconcile.  So, how do I best handle this? 

Hello All

Two tenants. 

1.  Move out Tenant, left the place a mess.  House needed cleaning, so we billed him 75$ for cleaning penalty fee.

2   Move-in Tenant said she would clean the place herself in exchange for the 75$.  Therefore her security deposit was 1750, but she only gave us $1675 (1750 - 75$). 

So, how do I show this in quickbooks?

All of my security deposits and rents are kept in the same business checking account. So I can't just issue a credit, because my business account will not reconcile.  Currently my Bank account is setup like this:

US Bank Bank Account...................................................$4444

Tenant A security Deposit.........................................$2222

Tenant B security Deposit.........................................$1111

As you can see my security deposits are NOT setup in a separate bank account. They are in the same.  Any ideas on how to bill this in QuickBooks??

Thank you!

This is the exact conversation I had a with a lender yesterday. Thank you for your response, I can confirm the information Chris added, via a local lender here in CO.

@Chris Winterhalter

That's a fantastic response and exactly what I was looking for. I didn't realize you had to combine a 504 loan with a standard loan.  Nice suggestions, I will certainly be in touch with my banks.  Thank you!!

i'm in the midst of it now, thank you frank

Thank you very much Chris for your response, that gives me a ton of information. Joel, my question was framed around us running our dream job, not whether YOU would buy an owner managed property.  In our case, this is what we enjoy doing. I simply need help with the financing part of it.  I have run multiple businesses in multiple countries and enjoy owner operated businesses as startups, because the work is all done and only relies on one person to come in and put systems in place.  This place has a solid reputation, steady revenue and the only issue with the business seems to be the families health and ability of the current owner to operate it in her elderly years. There records are not great and the info Chris you gave me about checking out future expenses is a great option.

They are willing to hold some of the loan, but I'm not sure how that would be structured. Do I do that outside of the loan, or do all three of us work with a bank to do that? 

The numbers run much lower at worse case, but fortunately because they took nearly 4 months vacation last year, there is a much higher potential revenue stream by simply staying open year round. 

If anyone has any other suggestions, regarding our situation, I would love the advice and comments. Thank you!