All Forum Posts by: Simon W.

Quote from @Jennifer Figueroa:

How structured is this method?  for example, who pays closing costs, seller or buyer? I've been researching how to put a deal together for a potential seller.  this is what i have so far: the sell price is around 300,000 (under), I'll be proposing 10,000 down, 30 year loan with a ballon payment of 7 years, 4% interest, $800/monthly payment to seller.  seller is really looking for a cash sell, so i think it's a stretch.  I haven't call him back cause i don't think he will go for it.  Anyone has any advice? 

seller financing means seller has all the advantages and incentives. They aren't going to pay for closing costs, they are going to want something around 8-10% interest, HML is around 13% right now and if they doing 7 years, they would want a lot more down payment than $10K. probably $30K

I have clients that uses different types of platforms.

I made Buildium as an accounting platform for one of my clients. 

I am not sure why people are saying Buildium is expensive when it is cheaper than QBO Plus.

My client went from QBO Advanced to Buildium with my suggestion and I helped him it setup. He was paying $200+ a month for QBO Advanced and now with Buildium he is saving thousands. 

I have another client that uses Buildium as his PM platform and he is using it for corporate books.

Quote from @Yoav Schatzberg:

Hi all,

I'm reviewing a P&L for a 7 unit building, and I've got a couple of (basic) questions:

1. What am I looking for in here? Other than actual NOI and Expenses, what should I be considering?

2. Are there any other documents I should ask for?

 If you are asking what you are looking for, you either need to learn some accounting 101 or hire someone to layout for you. There are too many variables here.

I look at P&L and balance sheet and the total package of the deal. I analyze these for my clients to see if make sense to even buy or what to offer for it.

P&L is just that, profit and loss. not much else to look for but more like question the line items.

What is the period of the P&L? Is it accrual basis or cash basis? 

Another big player is Yardi Voyager. Majority of the NYC real estate companies uses it.

Quote from @Jason Malabute:

Hey BP Community,

I’m curious about how much other real estate investors are paying for their tax preparation services and accounting. Specifically:

1. Tax Prep Costs: What are you typically paying for tax prep services for your real estate business? I am interested from hearing from everyone that has a single-member LLC (SMLLC) that is a disregarded entity is generally reported on the owner's Form 1040, Airbnb, flipping, wholesaling, to complex 1065 filers under subchapter K.

2. Accounting Costs: How much are you paying for ongoing accounting services? I’m especially interested in hearing what the average cost per door per month is for property accounting.

 I'll chime in a here a bit. You will get different amounts from all types of accountant/bookkeepers. I charge all my clients differently due to their structure, the amount of work that is needed. I also cater to how they do things if they already have existing books. If it is a brand new entity with 1 to 2 bank accounts with no credit cards, it might be cheaper. 

I typically charge a minimum of $400. The only exception I do is if you are looking to scale, I am willing to scale with you because at that point I look at you as a partner rather than a client. I will then charge a bit less. 

One thing a lot of investors do not realize that accountants/bookkeepers if they find 1 mistake, it can take up to 15-20 minutes trying to figure it out. Certain people will charge more because they can't afford to figure things out for a mere $100 a month when expecting to probably spend 30-60 minutes on the books, especially if they have other clients to attend to.

Since you are close to PA, you should look into it. NYC and NJ deals do not make sense unless you have plenty of income to spare and just keep working until you build enough equity. Not much cash flow to expand portfolio.

@Adam Pervez I am in the Easton area. I am always around Allentown as well. I moved from NYC 5 years ago.

Quote from @Zachary Reiff:

Anyone have tips on the best all in one self management software? I am starting out with a 4 unit apartment building, lower commercial space and duplex. The plan is to get that under my belt then continue to build aggressively. I'd like to stick to one software and familiarize myself with it prior to the aggressive build. All in one and optimization is key for me. Any tips? 

If you plan to grow your portfolio, use a PM software that allows for corporate accounting so you don't need to get an additional Quickbooks subscription. 

The most affordable one right now is Buildium, but you have to be careful to see if it can take your bank feeds. Not all banks work with Buildium. I have a client that uses a local bank account and it won't pull so I would have to manually enter them.
But you can use it as a corporate level accounting.

I have another client that uses Buildium to manage his own and other properties and he has his corporate accounting in there so he didn't have to get another accounting platform. 

You probably won't qualify for AppFolio but they started to allow corporate accounting now.

Quote from @Adam Pervez:

Hi BP Community, 

I am writing this post because I feel like I have been stuck in expanding my current portfolio. I am 27 years old and earn around 150-160k in gross income from my W2 which is remote. I have a duplex in Lehigh Valley Pennsylvania which currently cash flows 800-900 a month. I work a side job for a friend and make 3-4k gross income. I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.

I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.

I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down. I am fine for long term growth and don't mind working for the next 20-30 years to build a sustainable portfolio with no mortages on them as the end game plan.

What would you do? Happy to clarify any more information on this since I know this is very open ended...

 Where in Lehigh Valley? I am in the area there are good amount of properties here that definitely can be added value. 

I wouldn't suggest investing further than 2 states away from where you live.

I did forget to mention that I also help do the accounting and consulting for clients using Buildium as well.

My favorite is actually Yardi Voyager but that's a different game lol