All Forum Posts by: Jason DeMauro

Thanks @John Warren. I have spoken to a few lenders, not specifically about this strategy but, about the 203(k) and none have been very enthused about them.  I should note that I do have contractors.  My father and I are flipping.  I am just looking for diverse ways to access capital to continue to grow.  

I am not really sure if this is an option but I wanted to reach out to the community help me better understand. 

Scenario - I found a triplex that had BRRRR potential however, I do not have the funds to purchase and rehab. My thought is that I could use FHA 203(K) mortgage. Although, I am unable to satisfy the seasoning period, so I have my brother apply for the mortgage and he lives in one of the apartments. The work gets done per the mortgage. After the mortgage seasoning period, I have the property appraised, buy from my brother, settle the mortgage and use the proceeds to secure the next property.

Am I going to jail?  Can this work? 

@Basit Siddiqi

Basit thanks. I was considering this since the majority of my transaction are out going (mostly materials), with some lump sum incoming. But, the reporting templates are convenient.

@Daniel Dietz

Thanks Daniel. I am still pretty green and learning the lingo. What do you mean by "7 different formats"?

@Dee Dee Huey

Thats great, I will definitely bring this up.

@Bill Hampton

On it. Thank you!!

@Cara Powers

Thanks Cara. My strategy for the first year is to purchase properties through the local land bank, rehab and flip. It is a small operation, just my dad and I. We don't expect to withdraw any funds, except to remove our original investment (down the road). The vast majority of transactions will be materials or contractor fees.

I appreciate the food for thought, that given my lack of experience with accounting, I may still be paying to have my books cleaned up if I decide to manage them myself.

@Greg S.

Thanks for the recommendations, I will check these out. Off hand, do you know if these programs easily draw data from major banking institutions? I noticed with Xero, the data needed to be downloaded from my bank and then read into the software.

@Simon W.

Thanks for the reply. I have considered and the CPA I am working with does offer those services. However, starting out I am trying to remain as liquid as possible and for the relatively small size of my operation the cost seems excessive.

IYO what are the trade offs? I am wondering if the benefit of a dedicated bookkeeper would pay for themselves.

I am just getting going with my real estate business, and I was wondering what people are using to manage their bookkeeping.  I have been suggested Quickbooks and Xero, but was wondering if there are any others I should consider.  Is one better tailored to the real estate business than the other?  Are their others I should be considering? 

What do you use?