HUD

Statements

P R E S E N T A T I O N
Recap...
Hud Statement: Also known as
closing/settlement statement is a
document that list all charges and
credits to the buyer and to the seller in
a real estate settlement, or all the
charges in a mortgage refinance.
Types of Hud Statements:
a. Purchase Hud Statement
b. Sales Hud Statement or
Closing Statement
Fix & Flip: Purchasing a distress property,
renovating it, then selling it at a profit.
(Other current asset)
a. Rehab - The process of “fixing” a
property to increase its value.
Buy & Hold: Buying a property with the
intention of keeping it as a rental
property. (Fixed asset)
Wholesale/Wholesaling: Finding
discounted and/or distress properties and
selling the contract to a cash buyer for the
purpose of receiving an “assignment fee”.
01 Fix and Flip: Purchase HUD example 1

02 Fix and Flip: Sales HUD example 1

03 Fix and Flip: Close the "Closing Costs"

in Balance Sheet
04 Fix and Flip: Purchase HUD example 2

Contents
Fix and Flip: Purchase HUD
Example no. 1
Page 1 Page 2
Purchase Journal Entry
Please note:

Always attach the pdf

file of HUD statements
Match the amount
Match the amount
Fix and Flip: Sales HUD
Example no. 1
Page 1 Page 2
Sales Journal Entry
 Fix and Flip:
Close the "Closing Costs" in BS

Close the "Closing Costs" in Balance Sheet

Pattern:
PURCHASE:
ORIGINAL COST (OTHER CURRENT ASSET)
CLOSING COST (OTHER CURRENT ASSET)
BANK (NEED TO MATCH ON QUICKBOOKS' BANK FEED)

SALES:
PROCEEDS (INCOME)
COGS (COGS - P&L)
BANK (NEED TO MATCH ON QUICKBOOKS' BANK FEED)

CLOSE THE "CLOSING COST" IN BS:

ORIGINAL COST (OTHER CURRENT ASSET)
REHAB COST (OTHER CURRENT ASSET) (IF FIX & FLIP ONLY)
COGS:ORIG COST (COGS - P&L)
COGS:REHAB COST (COGS - P&L)

CLOSING COSTS (OTHER CURRENT ASSET)

COGS:TITLE FEES (COGS - P&L)
COGS: .... (HOA FEES, RECORDING FEES, ETC.)
Fix & Flip: Purchase HUD
Example no. 2
Page 1 Page 2
Purchase Journal Entry
 Page 11

THANK YOU!!!