The earnest money deposits are current assets. You can create a new asset account to track these. When you enter the detailed line by line HUD-1 as a journal entry you will credit each earnest deposit in the deal. If, for some reason, a certain loan is not approved and the earnest money is returned then you would handle that as a refund against the asset account. Rarely,except maybe with 100% financing, does earnest money get returned instead of being applied to amounts due from buyer.
Now is the time, also, to set up your loan accounts. You can do it on the fly in the JE but all you need at this point is the name of the lender and the type of loan - you would NOT enter a beginning balance as that is recorded in the HUD-1 (HUD-1 is the standard form used for property purchase and/or sale and lists both buyer and seller detailed transactions)
As far as the building as an asset, you add total purchase price plus closing costs that are not loan costs (includes appraisal fee) , then remove land from total based on your tax assessed percentages of land versus building. Land cannot be depreciated or expensed in any fashion until sold. Buildings and improvements are depreciated over time based on the intended use. Commercial buildings, 39 years, residential rental 27.5
https://mcguiresponsel.com/cost-segregation/commercial-property-depreciation/
