TurboCASH, the Best Free Accounting Software for Flipping Houses
It is perverse!
Why, when the world economy is deflating at a rate never seen in living memory, (estimates of up to 30% reduction in GDP), do opportunities keep opening up for accountants, who are now almost as popular as ventilators in a European hospital?
The answer is simple- in any business the accountant is the second to join and second last to leave, in somecases the first and last. As one business closes, the last guys they are holding onto are the accountants. As the new businesses open the first guys they need is accountants to join to make it work. In the middle of this financial crisis we are getting pulled between the two, the closings and the openings.
Moonlightling? No thanks. What Coronavirus has taught us is that we actually like working from home and you know what, we are way more productive with TurboCASH on our own than working in the constraint of an office.
Philip, please give me some ideas to ensure I never have to go back to the office?
Fortunately I can help you with that. I have for the last 15 years worked from home, in which time I was able to engineer the downloading of 2 Million copies of TurboCASH. Before caronavirus, the TurboCASH users audited and accounted for about $4 Bn in Turnover. After lockdown, we will have grown considerably. Feel free to take part in that expansion fro you own profit.
I have put together some ideas for businesses that need TurboCASH Accountants. Feel free to use them for your own profit.
House Flipping
Last Mile Delivery
Online Education
Agri Processing
Community Accounting
Ecommerce Management
Software Development
Digital Marketer
House Flipping
What a beautiful business, one that grows using someone else's capital.
It doesn’t matter if you flip houses on the side or pursue real estate investment in a professional capacity. To run a profitable house flipping business, it pays to have reliable accounting software to keep your expenses in check and your financial house in order.
The options open to the TurboCASH Accountant are wideopen. You can help clients by doing the numbers for them, while they do the hard work, help them put together financing while they do the hard work or jump in as the principle and employ people to do the hard work. OK - if you absolutley insist - do the hard work yourself and at least TurboCASH will minimize the accounting and reporting hassles.
Of course you could try to do everything in Microsoft Excel, but in the long run, that will end up wasting huge amounts of time that could be better spent analyzing your next flip or negotiating a better price with a key supplier.
The alternative approach is to use tried and trusted accounting software that will save you time, without making a dent on your bottom line. By all accounts, that seems like the very definition of a win win.
Why Is TurboCASH the Best Accounting Software for Flipping Houses
Apart from the fact that TurboCASH 4 has every accounting function you could possibly need to run a profitable house flipping business, it is also 100% FREE.
To be more precise, with TurboCASH 4 you gain access to the following features:
Invoices
Credit Notes
Purchases
Supplier Returns
Quotes
Orders
Debtors
Creditors
Stock Items
Backup/Restore
Key Expenses To Account For When Flipping A House
As a fix and flip investor, a detailed budget or investing plan is essential for preparing and managing expenses.. While many of the expenses associated with a flip will differ from property to property, there are set guidelines investors should use when setting up their own budgets to ensure their projects will be profitable. These are some of the most important expenses to account for when flipping a house:
Purchase Price
There are various costs associated with flipping a house, starting with the purchase price. The purchase price of a property will make up the biggest portion of the investor’s budget. Fix and flip investors will use the 70% rule when measuring potential investment properties for profitability. The 70% rule dictates that investors should aim to pay 70% of the after repair value (ARV) of a property, subtracting the costs of rehabbing it.
The purchase price will also include some closing costs such as transfer taxes, property insurance and others.
Rehab Costs
The rehab costs of a fix and flip are the culmination of all the renovation costs associated with fixing up the property. These costs will include the cost of materials and labor, and the cost of installing new appliances for some. The rehab costs of a fix and flip project will largely depend on the condition of the property and the extent of repairs needed. When completed, these repairs add value to the property and make it more desirable to buyers or tenants.
For newer investors, it’s suggested to avoid properties needing extensive repairs and to invest in a turnkey home instead. Turnkey homes are properties that are ready to move into and require little extra effort from the investor.
Carrying Costs
Once the fix and flip investor has acquired a property, they will be responsible for the carrying costs. These are ongoing costs paid monthly by the investor while the property is in their possession, including financing repayments, insurance and property taxes to name a few.
Other carrying costs like utilities will be especially important as these will be necessary for contractors to complete renovations. These costs altogether will have a significant impact on the investor’s bottom line. If the flip in question is for a rental property, the investor can also use the carrying costs to narrow down the amount of rent to set per month. The other good news is that many of the taxes investors are responsible for can be deducted.
Sales Costs
The last portion of the investor’s budget should include the marketing and sales costs. Unless the investor is acting as their own real estate agent, this will include real estate agent fees, marketing costs and closing costs. Real estate agent fees are commonly paid by the seller.
The marketing costs for a fix and flip will be any expenses associated with advertising the property listing, whether it be through fliers, online listings or open houses. The closing costs will include final expenses like outstanding property taxes, transfer taxes and any utilities left to settle.
Additional Accounting Tips For Real Estate Investors
Investors who have found potential fix and flip projects should make use of a deal analyzer or an " ARV calculator to compare the numbers and find the most profitable property. Staying within budget is essential to maximizing the investor’s ROI, so it is important to set up a timeline and to stick to it, and to project costs as accurately as possible beforehand.
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