Building RV park and now have a refi/construction loan

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.

Thanks Jess,

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

V/R

Jim

Correct, I didn't receive any money from loan 2 it paid off loan 1, the amount paid to loan 1 is my starting balance on loan 2. Now when I receive invoices from my subs I send them to the bank and bank cuts a check that will increase the balance on loan 2.

It makes much more sense now with your help.

Hi again, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Keep safe and have a great rest of the day.