Posted by Merle on October 30, 2000 at 22:09:51:
***Received the following email. My answers are prefaced with ***. All other is part of the email.
Now you really got me thinking. The answers you provided me last night have
gendered more questions…lol… (what else)
My wife was wondering about some things in regard to your business structure.
- How to handle the complexity of the type of system you have devised,
specifically the bookwork involved in it.
***We use Quickbooks for the computer ? but most important ? we have if not the best, at least one of the best bookkeepers you will find. Been with us 4 years. Started full time. Within 2 weeks, she had complete control of our business operations. Our CPA said she was the best he had ever seen. She used to answer the phone and do all the office type work. Today, she works only about 15 hours per week (her choice). She still gets everything done as she did in 40 hours. She no longer answers the phone. She pays the bills, takes care of the real estate insurance, prepares the books for the CPA to do our tax returns, etc. She prints her own check and lays it on my desk for signature ? I never look at the amount ? just sign it. Have total and complete confidence in her ability and integrity.
- What kind of business structure are you doing this under…LLC, Corp???
***Mentioned this in an earlier post. Everything is in our Joint Revocable Trust.
- How do you handle closing costs on your buy, and again on your sell, is
this negotiated as to who pays what?
***Never negotiate anything. When we buy, we explain that the buyer must pay $X of the total amount of closing expense. Typically, on a $70,000 property, they pay $500, leaving us to pay about $200. Again, we operate the business from our business plan ? not that of the seller. We know what we can pay for a property and thaty is what we pay or we don?t buy it.
- Do you use a R.E. lawyer or Title Co. to close, or is this done by you.
***We use a title company (same on every time). They know what we expect and how we do business. Actually, I explain every detail to the seller at the time we write the contract. I tell them about every document they will be signing. I even estimate the costs to be involved. This eliminates surprises at the closing table. We have changed title companies a few times over the 16 years ? but, we use the same one until change becomes necessary.
Hope this helps,
Merle