Loan Calculator/Accounting Software

[Bevo 13,596]

I am considering selling a building and financing it personally. So let's say I sell the building at $350,000 at an annual interest rate of 5% over 10 years. Each month, I need to generate an invoice, receive payment and then recalculate principal, balance... Can this all be done in Quickbooks? Is it better to use a bank as an intermediary to handle it? I know it can be done through Excel, but that seems like a bit of a pain for keeping track of it all and keeping it professional.

Also, if I go this route, I'll need to get an attorney, but are there any contracts/loan documents for selling a business or building that any of y'all have done in the past so I can think about the risk management side of things this early in the process? At this point, I'm not sure if it will happen but I'm the type who is very proactive.

[TwiceHorn 31,529]

Haha do it as a contract for deed.  Might not be prohibited in a non-consumer transaction.

More seriously, I'm not sure I'd do that.  "Servicing" a loan, particularly in default, is a non-trivial endeavor.

Edited June 6 by TwiceHorn

[UTPhil2006 3,809]

4 minutes ago, TwiceHorn said:

Haha do it as a contract for deed.  Might not be prohibited in a non-consumer transaction.

More seriously, I'm not sure I'd do that.  "Servicing" a loan, particularly in default, is a non-trivial endeavor.

Also why 5%

[Reagan1k 3,024]

47 minutes ago, TwiceHorn said:

More seriously, I'm not sure I'd do that.  "Servicing" a loan, particularly in default, is a non-trivial endeavor.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^That's a real concern^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Also, if one does take on that additional risk and expense to service a loan, then I'd want a helluva much higher rate of return than commercial rates which goes to UTPhil's question.

Gotta be an extenuating circumstance or the 5% must just be an example rate in the OP and not the real terms.

[baboso 6,057]

[Bevo 13,596]

21 minutes ago, Reagan1k said:

Gotta be an extenuating circumstance or the 5% must just be an example rate in the OP and not the real terms.

Yeah, both actually - extenuating circumstances and just an example. I need to be vague and the details aren't relevant. I'll have to do that with an attorney, anyway.

But, it wouldn't hurt to talk to an attorney now - to get an opinion on whether it makes sense conceptually. And I don't want to speak with friends or family who are knowledgeable because it involves some personal decisions that I don't want out there.

Edited June 6 by Bevo

[sidis 9,832]

3 hours ago, Bevo said:

I am considering selling a building and financing it personally. So let's say I sell the building at $350,000 at an annual interest rate of 5% over 10 years. Each month, I need to generate an invoice, receive payment and then recalculate principal, balance... Can this all be done in Quickbooks? Is it better to use a bank as an intermediary to handle it? I know it can be done through Excel, but that seems like a bit of a pain for keeping track of it all and keeping it professional.

Also, if I go this route, I'll need to get an attorney, but are there any contracts/loan documents for selling a business or building that any of y'all have done in the past so I can think about the risk management side of things this early in the process? At this point, I'm not sure if it will happen but I'm the type who is very proactive.

it would take about 30 seconds in excel.

[NeverMarryAStripper 21,920]

37 minutes ago, sidis said:

it would take about 30 seconds in excel.

This.  A sheet with the amortization table and a sheet with the invoice template that pulls data from the date.  Minimal effort and it would look as professional as anything that quickbooks could generate.

[Bevo 13,596]

35 minutes ago, NeverMarryAStripper said:

This.  A sheet with the amortization table and a sheet with the invoice template that pulls data from the date.  Minimal effort and it would look as professional as anything that quickbooks could generate.

Do banks recalculate daily based on when checks are received or is it just a monthly calculation? I assume it is recalculated daily. Also, statements, late payments, and up to the day inquiries and tax info. would be appropriate. Some of the old school publishing software before Adobe InDesign and Microsoft Publisher would have been pretty good for WYSIWYG calculations and layout stuff. But I am sure there is specialized software.

[Incredulity 11,682]

4 hours ago, Bevo said:

Do banks recalculate daily based on when checks are received or is it just a monthly calculation?

A bank would only recalculate if you wanted a payoff amount.  Dozens of websites will also provide an amortization schedule for free. https://www.amortization-calc.com/mortgage-calculator/.

Have the lease spell out the charges for late payments/fees.  Those costs wouldn't be added to the loan amount, they would be expenses and could be charged the statutory late interest rate if they are not paid.  

[Brew 3,049]

On the things we finance, I just run an amortization schedule and give it to the buyer and they make the payments. I don’t think I’ve ever sent a monthly invoice on a seller financed property. I also don’t adjust for payments made early unless they make excess principal payments, then I just rerun the schedule and send it to them. If they do something like add $100 to every payment, I rerun the schedule at year end each year.