Set Up Company for Real Estate Investor

September 28, 2023

Q: What is the best way to set up company using QuickBooks to track the sales and purchase of real estate? I am trying to determine if I should use a non inventory item to track our cost to purchase and sell a house. If so should I assign the item to a Cost of Goods Sold account or to a fixed asset account /income from sale of assets?

A: Create a QuickBooks new file and choose chart of accounts for Real Estate Brokerage – Developer industry. Then add, edit and delete accounts as needed.

When you purchase the property classify the accounts as:

Rental Properties – as Fixed Asset account

Buy, Rehab and Flip:

@ the time of purchase as Other Current Asset account
@ when the property is sold transfer the amount to Cost of Goods Sold

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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