One of the most challenging parts of any business is the accounting. After all, accounting is the language of business.
When starting my land investing journey, I struggled with accounting for the more complicated transactions. For example, in a traditional real estate investment transaction, the accounting is very straightforward.
Let's say you purchased a house with the intent to flip it; you buy the house for $100,000 and then sell it for $120,000. The accounting is simple: you made $20,000.
Let's apply a similar example to land, but you sell it with owner financing instead of flipping it. In this case, you buy the land for $5,000 and sell it for $20,000. But because of the owner financing, you receive the funds over time. You might receive $500 down and then $325 monthly over 60 months.
While your profit is $15,000, that profit is spread over the 60-month term of the loan, which makes accounting for this type of transaction more complicated. You see, the last thing you want to do is report that you made $15,000 on your tax return when you sold the land.
Doing that would require you to pay the tax on the profit in year one, even though you won't collect them for years.
Ask most accountants, and they will tell you that's just how it is, but that's incorrect.
Using my Accounting degree, I knew there was a better way. I spent months researching the exact method needed to ensure that we account for these types of transactions (and more) accurately and in compliance with the IRS rules and the Generally Accepted Accounting Principles (GAAP).
This knowledge and research are the cornerstones of accounting for land investors.
And this isn't some untested pipedream. Countless CPAs have reviewed the concepts taught in Accounting for Land Investors, and even Partners at large Big Four Accounting firms have confirmed this approach is correct.
Some CPAs have taken this class and use these concepts in their practice.
What can you expect?
This class combines recorded and live content; here's how it works.
Each Tuesday for four weeks, you will get recorded content for that week's session. In these sessions, we encourage you to set up an accounting system and make test transactions with us.
As you move through the transactions and exercises, I know questions will pop up; write them down for our live calls.
The live calls occur every Monday for four weeks. During the live call, we will discuss that week's module, and I will be there to answer your questions and go deeper into the material.
The live calls aim to answer your questions and help you better understand how the transactions come together.
This class has limited spots!
I don't just say that to create scarcity; the class does have a limited number of seats because I want to ensure an intimate experience. The first time I ran this class, there were over 80 people in attendance, and I was overwhelmed. That was the last time I allowed unlimited slots.
Register today before someone grabs your seat!