Credit for your business: Keep Books Clean

Loral Langmeier taught us that to co-mingle is like committing suicide. I have made it my personal job to keep our money, our bank accounts, our tax information and our spending as separate as possible.

When I asked her if my vacation to Puerto Rico could be a business trip because we would go look at properties, her answer was no if..
NO if you didn't pay with a business bank card or business credit card.
NO if you aren't set up as an entity and can't spend four hours a day on your business and put that in your minutes book of your company.

Well. we didn't like that because honestly, we do look at properties and meet with realtors where ever we travel. That was the last straw. We then finally incorporated.
I urge you to incorporate and reap the tax benefits.
Go to Your entity solution to have your entities set up effectively.

This is the last step to buying investment real estate. Once you set up an LLC for your properties, be sure to transfer the deeds and you are protected:)

You own the house!

Hopefully you have now bought your first investment property. So you may be asking what next. Set up 2 spread sheets. One will be your tenant info. spread sheet and the other will be a cash flow sheet.

As you acquire tenants, fill the sheet with names, contact phone numbers, job information and be sure to have a column indicating if they pay on their own, if they have welfare assistance, social security or another government assistance program.

The cash flow sheet should begin with gross rents minus the property management fees. Then you should subtract out monthly expenses such as water, electric or fluke maintenance calls. Take the remaining number and subtract your mortgage. Your final column should indicate the left over cash after all expenses. This equals your cash flow.

Loral Langmeier always says, "Do your paperwork, or be poor."