Basic Accounting for Foreclosure Investors

Whether you're flipping, holding rentals, or wholesaling, tracking your numbers is critical. Good accounting protects your profits, helps with taxes, and keeps you investor-ready.

🧾 Why It Matters

• Avoid overpaying taxes
• Maximize deductions (mileage, rehab, interest, etc.)
• Stay ready for audits or partnerships
• Know real profit vs. guesswork
• Easier to raise money or scale up

🛠️ Tools You Can Use

• Google Sheets or Excel
• WaveApps (free software)
• Bench.co (outsourced bookkeeping)
• Your CPA (for tax filing)

🏠 Flippers: What to Track

• Purchase price
• Rehab expenses (labor, materials, permits)
• Holding costs (utilities, lawn, insurance)
• Interest on loans (hard/private money)
• Closing costs & commissions
• Lien/tax redemptions

✅ Track every dollar. Your true profit = resale – (all costs + taxes).

🏘️ Rental Holders: What to Track

• Acquisition costs
• Rehab/turnover expenses
• Monthly rent income
• Property management fees
• Maintenance & repairs
• Property taxes & insurance
• Depreciation (ask your CPA)
• Mortgage interest

📉 Track cash flow monthly. Use Rental Cash Flow Calculator to plan ROI.

🔄 Wholesalers: What to Track

• Marketing & lead gen costs
• Earnest money or deposits
• Assignment fee income
• Admin/legal costs (contracts, mailers)
• Transactional funding (if used)

📂 Keep signed assignment contracts and all wire confirmations for tax season.

🧠 Pro Tips

• Create a folder for every deal (paper or digital)
• Save all receipts (scan them if needed)
• Categorize transactions by property address
• Reconcile bank statements monthly
• Ask your CPA about short-term vs. long-term capital gains

📅 End-of-Year Checklist

• ✅ Print P&L report by property or entity
• ✅ Share categorized expenses with CPA
• ✅ Run depreciation schedule (rentals)
• ✅ Calculate holding period for each deal
• ✅ Save a copy of closing statements

👥 When to Hire Help

• You’re doing 3+ deals/year
• You’re wholesaling with multiple partners
• You formed an LLC or S-Corp
• You have investor capital involved

In those cases, consider working with a real estate-savvy CPA and part-time bookkeeper.

📌 Remember: what you don’t track, you can’t claim.

📋 Example Templates

Use these templates to start tracking today:

• 🏘️ Rentals: rent, taxes, repairs, insurance
• 🛠️ Flippers: rehab, loan interest, purchase/sale
• 🔄 Wholesalers: marketing, assignment fees
• 🧱 Contractors: labor, materials, deposits
• 🏡 Agents: commissions, MLS dues, marketing

📥 View Bookkeeping Templates (CSV & Excel)