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TXGoldRV
TXGoldRV
February 2, 2023
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Building RV park and now have a refi/construction loan

  • February 2, 2023
  • 1 reply
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Hey all, 1st time posting.

 

I am building an RV park in TX and went out for a loan to finish building the park, this included a refi on my current loan for the property. The total loan is for $600k, the bank has already sent the money to my first loan and paid it off, now I will get invoices from my subs and submit them to the bank, they will cut checks for my subs. What would be the best way to set this up in QB online.

Thanks in advance,

Jim

Best answer by Rainflurry

@TXGoldRV 

 

The advice given by @JessT will not work regarding your bank paying your subs.  Since the bank is paying the subs, this is not impacting your bank account, it is increasing your loan balance, correct?  If that's the case, you will need to create a bank account in QB called 'Clearing Account'.  When you receive the bills from your subs, enter and pay the bills using the Clearing Account.  Then, move that balance to your loan payable account.  To do that, make a journal entry (New > Journal entry), debit Clearing Account and credit Loan Payable.  You will now have the expense booked as well as an increase in your loan balance. 

1 reply

JessT
JessT
February 2, 2023

Hi Jim!

 

It's good to see new faces in the Community! Warm welcome! I'll guide you through entering your loans and the check payments to your subcontractors.

 

I want you to feel at ease when entering transactions because you can always edit or delete them if you miss something. Aside from that, we're here to guide you along the way.

 

Step 1: Create the first loan account

 

  1. Go to Settings ⚙, then select Chart of Accounts.
  2. Select New to create a new account.
  3. From the Account Type ▼ dropdown, select Long Term Liabilities. Note: If you plan to pay off the loan by the end of the current fiscal year, select Other Current Liabilities instead.
  4. From the Detail Type ▼ dropdown, select Notes Payable.
  5. Give the account a relevant name, like "Loan 1". You can edit it later.
  6. Select Save and Close.

 

Step 2: Enter the amount you received.

 

  1. Click +New and choose Bank Deposit.
  2. Choose the receiving account in the Account field.
  3. Enter the transaction date.
  4. Go to the Add funds to this deposit section and enter the following:
    • RECEIVED FROM: your Bank
    • ACCOUNT: the loan account you created
    • AMOUNT: the amount you received
  5. Click Save and close.

 

 

Step 3: Record your repayments to your first loan via check transaction.

 

  1. Click +New and choose Write check.
  2. Choose your bank as the Payee.
  3. Choose your business account as the source of funds.
  4. Go to the Category details section, choose the loan account as the category and enter the amount.
  5. Click Save and close.

 

 

Step 4: Create the second loan account, using the steps in Step 1. We'll name it as "Loan 2" in this case.

 

Step 5. Create a deposit to record the amount you received, but we'll deduct the payment (offset) to repay "Loan 1".

 

 

When you check your Chart of Accounts, Loan 1 should have a zero balance and Loan should have the full balance.

 

About paying subcontractors, you can record the bill in QuickBooks. Then, pay them using your bank account. Just add a note saying it was paid by the bank.

 

Feel free to go back to this thread if you have other questions in mind.

TXGoldRV
TXGoldRVAuthor
February 2, 2023

Thanks Jess,

 

I appreciate your quick response, let me put this in action and see how it works.

 

V/R

Jim

    Rainflurry
    RainflurryAnswer
    February 2, 2023

    @TXGoldRV 

     

    The advice given by @JessT will not work regarding your bank paying your subs.  Since the bank is paying the subs, this is not impacting your bank account, it is increasing your loan balance, correct?  If that's the case, you will need to create a bank account in QB called 'Clearing Account'.  When you receive the bills from your subs, enter and pay the bills using the Clearing Account.  Then, move that balance to your loan payable account.  To do that, make a journal entry (New > Journal entry), debit Clearing Account and credit Loan Payable.  You will now have the expense booked as well as an increase in your loan balance. 

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