HUD Statements

Fix and Flip

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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:
1. Purchase Hud Statement
2. Sales Hud Statement or
Closing Statement
.
Fix & Flip:
Purchasing a distress property,
renovating it, then selling it at a profit.
Other current asset
Rehab - 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
Wholesaling:
Finding discounted and/or distress
properties and selling the contract to
a cash buyer for the purpose
of receiving an “assignment fee”.
Notes:
If the business or industry of the client:
a. Fix & Flip, and Buy & Hold - Required to record the HUD
statement in QuickBooks Online.
b. Wholesale - Not required to record the HUD in QBO

We can't determine whether a HUD statement is either fix

and flip or buy and hold.

No standard format
Notes:
Fix and Flip Insurance:
If in Purchase HUD statement --- Property:Closing cost
If in Sales HUD statement --- COGS:Property Insurance
If not in HUD statement --- Direct expense (COGS:Property Insurance) under property class

Fix and Flip Taxes:

If in Purchase HUD statement --- Property:Closing cost
If in Sales HUD statement --- COGS:Property Taxes
If not in HUD statement --- Direct expense (COGS:Property Taxes) under property class
Notes:
Fix and Flip Interest:
Whether or not it is in the purchase or sales HUD -- Always direct expense

Fix and Flip Utilities:

Property:Rehab expenses (asset)
Should be on 1 account only (depends if the client wants it to be subcat)
When sold, close using COGS:Rehab Expenses (expense)
Rehab expenses (asset) must be ALWAYS zero when property is sold
Fix and Flip:
Purchase HUD
Example no. 1
Fix and Flip COA
Purchase
Purchase Journal Entry

Match this amount to QB's bank feed

Please note:

Always attach
the pdf of HUD
statement.
 Match the amount
(Due from/to buyer, or cash from/to buyer)
 Match the amount
(Due from/to buyer, or cash from/to buyer)
 Match the amount
(Due from/to buyer, or cash from/to buyer)
Fix & Flip Purchase Journal Entry Recorded By: Toni Counts
Fix and Flip:
To move Property Costs from
Balance Sheet to COGS
To move Property Costs from Balance Sheet to COGS
Fix and Flip:
Sales HUD
Example no. 1
Fix and Flip COA
Sales
Sales Journal Entry

Match this amount to QB's bank feed

Fix and Flip:
Purchase and Sales HUD
Example no. 2
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