All Forum Posts by: Bill B.

Hi Cornelius!

Thanks for the GC suggestion!

Lots happening here. When the VCREI reopens we will catch up!

“Hey!” to Ansley!!

You and yours stay safe and well!

Bill

@Nathan Gesner

Wow!!

Thank you!!

GREAT response!!  Very much appreciated!

Hello,

Can anyone recommend a good property management company in Ventura County, CA? 

We intend to rent a SFR in Camarillo. 3/2 and 1100 sq ft.

I appreciate everyone's time and help.

Bill

Hi,

I'm looking for a top notch Property Manager in Ventura County California. We plan to rent out a SFR in Camarillo soon.

Related, can anyone suggest a contractor in Ventura County to make the house rent ready?

Any and all suggestions are welcome.

Be safe and well.

Bill

@Mike Hartzog

I've dealt with this on my latest NPN.

My first question is, are they still paying?  If so, (I am NOT a lawyer) isn't there language about "successors and assigns" in the mortgage? My layman impression is that if both of those points are true, you get contact info on the heirs, update your files, and continue to deposit checks.

If they are not paying, the key is to find out who the executor is. In my case, they were living rent free in the home when I bought the note. Getting this info can be tricky, especially in NPN. It is a pretty effective road block as you can only speak with the person authorized to represent the deceased. If they don't own up......

I know this is not much, but all I have at this point.  I'd suggest you run this by your servicing company. That is who held my hand me through the process.

I hope it helps.

PS, glad to finally be able to offer something to help you! You've helped me several times in the past. You are very knowledgeable, and helpful.  I truly hope I've been able to, in a small way, repay your efforts.

I'm trying to perform Due Diligence on National Land Realty.

Has anyone worked with the company?

Good/Bad experience?

@Joshua Scott

As stated above, the purchase is an asset.

When you write the check in QB, you establish the asset.

The bookkeeping entry is

debit 123 Anywhere St NPN

          Credit cash

Each payment recd is split. That split can be complex based on several factors. Do you have an investor? (Having an investor can ALSO change the entry above to record the purchase)

To keep this post simple, no investor in this example. To determine the split, you need to create an amortization schedule for the note using: (in this simple example...this also can change for many reasons)

the outstanding balance of the ORIGINAL NOTE,

interest rate OF THE ORIGINAL NOTE, NOT your calculated rate

Number of payments in the ORIGINAL NOTE.

Now, you fast forward through ALL your loss mitigation (completely separate bookkeeping issues and set up issues there) and YOU GET A CHECK from the borrower. 

YAY!!

Run to the bank and deposit it while it is still good!!

When you get back home, find the payment just received on the amortization schedule created. Hint: the "balance" on the amortization schedule should match the UPB purchased (excluding late fees, and any other funds owed outside the actual note) AND be the line item with the correct number of payments remaining.

Using that line on the amortization schedule, complete the deposit in QB with the following entry:

Recognize the reduction in the asset (the account/class/whatever QB calls it noted in the purchase noted previously) by the principal amount shown on the amortization schedule,

recognize the interest income using the same line on the amortization schedule to a new and separate account “123 Anywhere St Interest income”,

the remaining is “gain on payment receipt” of the note and should be recorded in a new and separate account “123 Anywhere St Gain on monthly pmt rec’d”

The bookkeeping entry is

Debit cash

Credit the other accounts noted above.

If debits and credits don’t equal, an error in the entry must be resolved. 

Again, an investor changes things. Receipt of outstanding late fees changes the entry. There are others issues that may change the entry.

To get a full grasp of the bookkeeping  (which is far different than learning QB) I’d suggest a class or two at the local community college. 
If you take a course and it doesn’t “click” don’t be discouraged, because double entry bookkeeping is a different way of thinking.

Disclaimer: 

I’m NOT a CPA. (No Enron, Worldcom, Healthsouth, Bernie Madoffs, etc, etc, etc, etc, in my past.)

Finally, The “best and brightest” in DC mess with simple concepts frequently to maximize taxes on those with insufficient resources to mount an effective lobbying effort...so for reasons they alone can fathom, something above may have been arbitrarily deemed illicit. Proceed with appropriate caution.

I truly hope this is helpful.

If anything above is untoward, please disabuse me of my wayward notions; I beg pardon and penance.

@Basit Siddiqi  Thank you!!  I don't know the fine details.  But I'll pass your information along.  Thank you again for your input.

And I just replied!!

GREAT to hear from you!!

My best to Ainsley and you!!

Be well!!

@Lance Lvovsky, @Amy Kendall  Thank you both for your input.

The issue is that a recently retired grandmother is selling her primary residence.  

The family wants to minimize taxes on that sale.  

The grandmother may invest in another home that is large enough to share with one of her children and two of her grandchildren.  

There may also be a desire to distribute some of the proceeds to two other adult children.  

Unfortunately, our tax system is byzantine and needlessly and ridiculously complicated.  This family needs advice from experienced tax professionals. 

Thanks to all for your time, consideration, and effort.