All Forum Posts by: Christina Castro

Much appreciated Claude, thank you! 

My client purchased a property via a loan, one of the line items on the settlement statement was for a construction interest reserve amount, $54,800.00. How do I record the journal entry for the interest reserve account upon purchase? Once it money is used, does the interest reserve amount get added to the cost basis of the property? 

Is it typical for a commercial property manager to collect their revenue based on 5% of rent and CAM expenses collected or just 5% of rent?