All Forum Posts by: Account Closed

@Bob Marr I too would recommend QuickBooks online. However, before QuickBooks or any accounting software is useful, you need separate bank accounts from personal spending.

If you're feeding the software bad data it will be frustrating to sort through.

@Justin Michael Johnson low start-up cost side-hustle. If you can use your skills from current job and moon light. 

@Shawn Coverdell I agree that it sounds like you're doing double work. My opinion is using QuickBooks throughout the year (qtrly or monthly) should avoid sifting through receipts at the end of the year. 

My suggestion would be: Keep receipts in a folder (physical or in the cloud) by month and by property. The receipts will serve as ultimate proof for an audit.

Your data in QuickBooks should be accurate as long as you are reconciling to a bank statement each month and categorizing appropriately. This process can be automated through linking your bank accounts or importing a CSV file. I recommend 1 bank account per property. There's no need to tally up receipts at year end as well if you're using QuickBooks.

Let me know if this needs any clarification.

@Wayne Brooks I would agree and even suggest the net to make an S-Corp worthwhile to be even higher than 50k. You still need to pay a reasonable wage anyways.  

@Kalen Mills I would strongly recommend keeping it simple:

1. Form LLC (your Secretary of State Website)

2. Obtain EIN once your notified LLC is formed (IRS Website)

3. Open Bank Account

@Andy Cav Good question! Partnerships can get messy quickly without a written agreement upfront (detailing procedures when extra capital is needed, distributions for any tax due, exit strategy, etc). 

One item to be aware of if an LLC is formed and all 3 have ownership there are additional tax filing requirements outside of your individual return. You will file an extra return (Return of Partnership Income). 

Generally, the set up order is:

1. Form LLC (State Website)

2. Obtain EIN (IRS Website)

3. Open Bank Account

As other mentioned make sure you're not running afoul of any securities laws.

Strongly recommend getting legal representation and getting a detailed agreement in place. Some will recommend a lawyer per partner to make sure your specific interests are protected. Some may say that's overkill.  

@Randall Cornelison 30 year notes to improve cash flow. 99% of the time I hear of 15 year notes it's for college savings for the children of the investor. 

@Paul Lichtenauer Great question! Partnerships can get messy quickly without a written agreement upfront (detailing procedures when extra capital is needed, distributions for any tax due, etc). One item to be aware of if an LLC is formed and if you both have ownership there are additional tax filing requirements. You will file an extra return (Return of Partnership Income).

I strongly emphasize @Joe Hines advice of separate bank accounts quickly as possible. 

It can be best to structure as a loan and decide later if a true equity partnership makes sense down the road. 

Best to discuss with a lawyer regarding entity formation and partnership agreements as I am not a lawyer:)

@Tony Figurelli 1031 exchanges only apply to buy and hold rentals. Fix and flipping is an active trade or business where the house is treated as inventory.

@Emerson Irias 

@Phillip Overpeck I suggest keeping it simple and pay off the car and then pay cash for all future cars. It's best not to have a loan on a depreciating "asset." You will offer yourself a lot of flexibility without that payment. 

When investing, pessimism is your friend, euphoria the enemy.

- Warren Buffett