All Forum Posts by: Leah Clayton Sutton

@Atwan Kwan

I handle the bookkeeping end for properties with Quickbooks, which is not recommended for property management. QB gives you the ability to create your own class tracking categories and assign every transaction to one.

However I always urge my clients to keep their management company, since they are taking care of the property's needs.

Specifically Quickbooks does not provide an appreciation account feature for land/buildings, It is not common practice to have that on the books. Think about it - when you sell the property what is your profit? What is on the settlement sheet the purchase price, sale price and/or the appreciation if you put this into your software.

However I have clients that request to see this factor for personal use.

There are two ways to go about it.

1.  Add details about the appreciation of your assets in the footnotes of financial statements.
2. You need to create a fixed asset account in your chart of accounts for your property. You can than make entries into their registers directly.

Quickbooks is going to be your best bet, you will want class tracking. If you hire a ProAdvisor they can normally give you a discounted rate on the software as well.

I personally find it best to setup each property with it's own individual checking register (these are mock checking accounts), as well as use the class tracking system. At the end of every month after expenses against the rent are collected, I zero out the profits by transferring it to the company checking account and match the transfers to the deposit.

As a real estate accountant I personally advise anyone new to bookkeeping to do this as it is a great way to become acquainted with the bookkeeping end in a controlled setting. However once you have accrued 5 or more properties or feel more confident in your scope of bookkeeping, then I would advise structuring this in a much more efficient way with less accounts.

Thank you both for the help!

Advice needed, I found a motivated seller and their property is in Lawton, OK (one of the owners resides in TX the other in OK). Is it possible to have a title company in Texas do an out of state wholesale deal or do I need to find a title company in Oklahoma? 

Quickbooks is a safe bet, very user friendly if you are maintaining the books yourself.

I have an agent at this time, however I am looking to broaden my wholesaler contacts.

I am needing referrals for wholesale agents in Dallas, TX, someone that does more than surf the MLS.

Thanks :)

I would give Clayton Contracting a call, they do quality work and are no strangers to flips. I recommend asking to speak with Robert Clayton II (son) he is very knowledgeable when it comes to all the construction aspects of flips and is a licensed Realtor. 

Clayton Contracting (972) 442-6836 -they service all of the metroplex

Robert Clayton II (972) 533-1818