All Forum Posts by: Miguelito Fernandez

If anyone wants to help publicly, you're more than welcome to do so lol

 I recently bought a multifamily building and have to account for all the items in the closing documents on my accounting software.

Loan Origination Fee =

Appraisal Fee =

Suits, lean, judgment search =

Loan doc prep fee =

Flood certification fee =

Environmental Review Fee =

Wire Transfer Fee =

Title search =

Title examination =

Attorney’s Fees =

Title Insurance = 

Recording Fees =

Another recording fee =

Electronic recording fee=

delivery fee =

I know how to categorize some of them. I also received rents up until closing day which I know will be under “Rental Income” but I’ve been having a hard time thinking how I should categorize Security deposits. I received the total security deposit amount for all the units in the closing documents which deducted the final amount that I had to pay in the end but I don’t have it in my bank account because the property management company has it. I ended up sending a check out to the property management company for the total amount of the security deposits after closing. That's where I'm stuck right now.

Oh, I also have spent thousands on giving each unit its own water meter so they can pay the water bill. I don't think that would be an expense... right? On the same subject, I still have to pay the plumbers for the work to complete this process. Should I categorize it the same?

Awesome! I just make a separate account for each one because not all my properties are renting at the same rate but now that I'm thinking about it more, I might just follow you. Thanks for the reply!

@Jonathan Carter I looked in a lot of places and I realized that many laws and rules can be interpreted in different ways. What I ultimately decided on after speaking with many people in the business and bank customer representatives was to make a savings account for each deposit. Then, give each account a name that can identify who it belongs to. For example, the owner's name or the property's name (I picked this one). Having a separate savings account for each deposit is a better-organized way. You can make checking accounts for the deposits but I prefer Savings accounts because it produces more interest that the landlord can keep here in NC ;)

@Brent Hill No problem! I'm not familiar with the areas you mentioned but in regards to the foreclosures, the owner can prevent and/or delay (sometimes by months) the auction of their home. Anytime before the auction which is what you're looking for would have to be a negotiation between the owner and yourself. So if you catch one beforehand, the owner can get extra time for you guys to make a deal. I once waited two months for the auction of a specific home because either the judge felt like the home deserved extra time and/or the owner asked the court for some extra time. From my only route experience, the foreclosure papers on the front door give the owners at least a month to prepare. Then, they can request for more time. 

As I was searching the web to try and help out more, I ran into this article that covers most of what we have already spoken about lol: https://www.zillow.com/foreclosures/buyer/buying-a...

So far, I think the best route is to call or visit the courthouse of your chosen county. If you do find a better solution then please post it here. I will be following this thread :) 

Good luck! :) 

It's normal for property managers to handle the deposits. Any interests they receive will won't amount to much and since they're the ones responsible for that money (one less thing you have to worry about) then it sounds fair for them to receive it. To give you an example, I've only received around 15 cents in the last 2 months from a $700 deposit.

@Ryan Battista My local courthouse doesn't have this type of information out on the internet but I can access all of it on their computers at the courthouse. That said, as much as I would love to simply hire a virtual assistant, "my" best option in your shoes would be to hire someone to go to the courthouse or go there personally. I'm in Cameron, NC, Harnett County which is just north of Fort Bragg. 

@Brent Hill To be honest, I've never read the local newspapers. I think, eventually, the courthouses will have this info at least on their own website. I really didn't know much when I first started out. All I knew was that I wanted to own my neighbor's house that was going through foreclosure and was told to go to the courthouse at a certain date. The people at my local courthouse were really friendly and helped me out. They explained the process to me and since then I've attended 7 auctions with success in each one. 

This isn't searchable online but is still convenient: If you receive info on a house (the address is needed) about being a possible foreclosure, and want to know its status, you can either search online or call the county tax department to get the owner's name(s) which is needed for when you call the foreclosure department (press "0" to speak with someone in that department). They are the ones in charge of the bulletin board. That's the best way I can think of to save a trip to the courthouse but to get the juicy list of foreclosed addresses, the bulletin board is the spot. 

@Jody Schnurrenberger Thank you! :) I miss the comradery for the most part but I'm a happy guy with his DD214 lol. I think you'll do just fine in the Raleigh market. Like, I really love the state of North Carolina (I grew up in NYC) and I would love to invest in different areas within the state. On the meetup, just shoot me a message! I love going to the base :) 

Good luck in your endeavors as well! :) 

I've never been to a meet up before but would love to come! Unfortunately, I'm not currently in the area but as long as those keywords keep getting mentioned, I will eventually see the meetup post when I am home. I will show up.. eventually.