All Forum Posts by: Simon W.

STR is a different animal. Buildium wouldn't work so well with that.

You might want to check out Buildium (affordable) and then AppFolio (you have to find out if you qualify with 60 units, I think min might be 100 units though).

You will need multiple bank accounts. You will need 3 accounts.

1. Your own corporate account - this is where management incomes will paid to you.

2. Security Deposit Account

3. PM Operating Account.

I do not understand the foreign account. Why would you be managing that?

@Zach Kirchoff I might be able to help.

I have my own construction business that we do renovations for clients that do flips and buy&hold. We are already completed roughly 20+ jobs since January and have around 15 active jobs. I handle all the accounting stuff.

I also have clients that are developers which I handle the books.

 I think you are overthinking about this. You are better off just finding an accountant (could be nonCPA) that is familiar with Stessa. Most CPAs has their own accounting platform to work with. Most of them only care about Balance Sheets & Income Statement. Anyone can figure out how to pull those reports in any PM software.

@Shawn Tinerino my client ended up using it to just keep track and to get paid. I personally don't think it's that great in terms of a full-on PM software. Accounting function is extra so I don't know how that looks.

If you are just starting, it might worth using it since it already comes with the BP Pro. 

I recommend using Buildium as an entry level.

That term is usually used for when the loan/mortgage is under your personal name and then you transferred the deed to the LLC.

But if you meant just commingling funds, that's usually a no-no but you must make it clear in allocating those funds between contribution and distribution so that you have a paper-trail of what happened to that money and this way it won't be labeled as commingling

@Dean Valadez I'm not understanding the pierce the corporate veil.

If you take the money from the LLC for personal use, you would just mark that as distribution and any money you put back in will be contributions.

you're overthinking of the process. 

Even if you are short by $3k when the time comes, you should be in a position to have $3K in your retained earnings throughout the years. 

Most investors don't actually have that much in reserves, when the time comes they just put their money in the business as a contribution. 

If all investors put all money into the reserves, there's no point of investing because you are waiting for this money to be used up by the property when it might not happened. If you end up maintaining the roof year and year, you are extending it's life. 

 I think it's doable with just a P&L, but it really comes down to what type of returns we are talking about? Simple 1040, 1120S, etc?

I prefer to see the Balance Sheet as well to see what were capitalized and how much should be depreciated/amortized to maximize the deductions.

 You don't need to open another account for the reserves. As long as you do the accounting correctly, you account for it. Don't always look at what the bank account balance is, look at the books to see how much was allocated in the reserve.

3-6 months reserves are usually for regular maintenance or not full-on big ticket items. 

Don't mix the funds with stock market. You can put your funds in a interest bearing account/money market/savings, you just need to account for the dividend incomes when recording the books.