All Forum Posts by: Account Closed

Thanks all for your answers!

I created a test file and tried both Brian Burke and Scott Williams methods. Both work. However, I should add that I use QB invoicing in the customer center so I can see what is owed each month and what is late. I can’t see how the General Journal Entries method would work with invoicing. Using the loan servicing account as an intermediary account would probably work with invoicing.

Ann Bellamy: I have John Hyre’s KISS book, it’s great. Not coming from an accounting background I had to read it ten times before I really got it, but it’s coming together. I used his (monster) General Journal Entry a couple times now to close out the sale of a flip and rental property.

Now that the flipper market has slowed, in my area at least, I have time to go back and do these unpleasant administrative tasks like tightening up my QB.

As a note holder, when I receive a note payment from my loan servicing company it is net the borrowers loan payment minus the loan servicing fee. How do I record this in Quickbooks?

Example, the loan payment is $100/mo, the servicing company keeps $10, I get $90. Currently, I have an invoice with a $100 interest income item and a $10 loan servicing expense item, I show the $10 as a negative number so it adds up to $90, but this doesn’t seem to work right.

Thanks,
David

PPL VFR many years ago. Cessna 150, 172, 182, Cardinal. 200 hours total before flying took second place to other priorities.

I bet you never thought there was a nexus between flying and RE, but i have one. Anybody seen that guy on TV that repossess airplanes for banks? That looks so cool. Well, with our re foreclosure experience and flying experience, anybody interested in starting a aviation foreclosure business?

Lupe,

You might give the DOC a call as well. If all you want to do is lend your own money, and not resell to other than another CFL, the CFL would work and is easier to get...not that the Real Estate Broker's license is all that much more difficult.

As you mentioned, you don't need the NMLS endorsement on the REB license if only doing business purpose loans, but (i think) you do need the endorsement with the CFL license regardless of loan purpose.

Good luck.

David

You don't need a license if you stay under the usury limit AND you make less than 8 loans in a calendar year. Section 10131.1(b)(1)(C) of the CA business and professions code says you need a license when:"
"The making of eight or more loans
in a calendar year from the person's own
funds to the public when those loans are
held or resold and are secured directly or
collaterally by a lien on residential real
property consisting of a single dwelling
unit in a condominium or cooperative or
on any parcel containing only residential
buildings if the total number of units on
the parcel is four or less. ..."

David

Point well taken. You are a little unusual however, most can't turn that fast. K. Marie was willing to guarantee 4 months, in one of her earlier posts. I'm sure for somebody with her experience it could be done for, let's stay, 2 pts, so, that's 18% (2pts*3/yr+12%). Done by a CA broker thus exempt from state usury.

K. Marie,

You can pretty easily find hard money in CA for one year at 12%, 3 pts. Over a one year period that is a total cost of 15%, 2% less than the 17% you are willing to pay to avoid points. Are points so objectionable that you are willing to pay more to avoid them?

Are there any lenders that even do 70% of ARV? Most are now down to 60% of ARV max and they want to see some down payment, like 10% - 20% down. The points and fees you mention, @K. Marie Poe, are pretty accurate for my area as well.

Although, I did have an borrower inquiry tell me that he already had a lender that would do 70% and not hold back any rehab funds, not sure I believe him but anything is possible with Hard/Private money lenders.

I can see getting above 70% with some kind of profit share arrangement between lender and borrower. Once you get above 70% ARV any hiccup at all and the lender will lose money. It can work but things have to go extremely smooth, which we all know rarely do.

Jon: I don’t see the deception in calling a hard money lender a private lender, private lender would actually be more accurate thus less deceptive, in my view, because it IS private money. I know private lenders that do everything legally, they market privately etc, then do the loan through a broker, the broker gets a relatively small fee, and their terms are the same or even harder that the traditional hard money lender. The terms are morphing together, why not use the one with the best marketing appeal.