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QBO for Real Estate - Cash at Closing Does not Equal Profit
In this episode, Nick Baldo deep-dives into the difference between profit and cash at closing in real estate. He discusses factors affecting this equation, how to account for expenses and renovations, and recording property sales in QuickBooks. He also explores the significance of adjusting for financed deals, understanding balance sheets, and the implications of bank draws. Lastly, he emphasizes the importance of separating cash at closing from profit and introduces a Real Estate Accounting Boot Camp.
End to End QBO Training: www.incomedigs.com/reab
Free QBO MiniCamp: https://bit.ly/3uNlesQ
Your cash at closing will almost never equal your profit on a deal. In this video, I break down exactly why this is the case!
(0:00) Introduction and Explanation of Profit versus Cash at Closing
(1:16) Factors Affecting Cash at Closing Equals Profit
(4:06) Accounting for Expenses and Renovations in QuickBooks
(6:29) Recording Property Sale in QuickBooks
(9:52) Adjusting for Financed Deal in QuickBooks
(14:41) Conclusion: Difference between Cash at Closing and Profit
(15:36) Understanding Balance Sheet and Construction Escrow
(16:30) Bank Draws and Their Implications
(17:06) Loan Payoff Calculation
(18:53) Importance of Disconnecting Cash at Closing from Profit
(19:42) Conclusion and Announcement about Real Estate Accounting Boot Camp
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By Nick BaldoIn this episode, Nick Baldo deep-dives into the difference between profit and cash at closing in real estate. He discusses factors affecting this equation, how to account for expenses and renovations, and recording property sales in QuickBooks. He also explores the significance of adjusting for financed deals, understanding balance sheets, and the implications of bank draws. Lastly, he emphasizes the importance of separating cash at closing from profit and introduces a Real Estate Accounting Boot Camp.
End to End QBO Training: www.incomedigs.com/reab
Free QBO MiniCamp: https://bit.ly/3uNlesQ
Your cash at closing will almost never equal your profit on a deal. In this video, I break down exactly why this is the case!
(0:00) Introduction and Explanation of Profit versus Cash at Closing
(1:16) Factors Affecting Cash at Closing Equals Profit
(4:06) Accounting for Expenses and Renovations in QuickBooks
(6:29) Recording Property Sale in QuickBooks
(9:52) Adjusting for Financed Deal in QuickBooks
(14:41) Conclusion: Difference between Cash at Closing and Profit
(15:36) Understanding Balance Sheet and Construction Escrow
(16:30) Bank Draws and Their Implications
(17:06) Loan Payoff Calculation
(18:53) Importance of Disconnecting Cash at Closing from Profit
(19:42) Conclusion and Announcement about Real Estate Accounting Boot Camp