2 Properties, 1 Loan

Posted by Rick Hess on August 20, 2009, 3:17 pm

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I mortgaged 2 rental properties. Is there any way to set up a loan to get
Quicken to automatically spread the principal, interest and escrow account
payment to two different tags/accounts? Using Q2008 H&B.

--

Rick Hess
New Orleans
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Posted by John Pollard on August 22, 2009, 12:14 pm

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Rick Hess wrote:

> I mortgaged 2 rental properties. Is there any way to set up a loan to

> get Quicken to automatically spread the principal, interest and

> escrow account payment to two different tags/accounts? Using Q2008

> H&B.

I have been unable to think of any way to do this as you have posed the
question.

The only way I can think that Quicken could handle this would be as two
loans. But I'm guessing that there is no way to create two loans such
that the total of their principal amounts for each payment and the total
of their interest amounts for each payment would equal the total principal
and interest of each of your real-world single payments.

If two such loans could be created in Quicken, I think there would be a
way to accomplish your goal.

--

John Pollard

Posted by Rick Hess on August 24, 2009, 6:19 pm

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> Rick Hess wrote:

>> I mortgaged 2 rental properties. Is there any way to set up a loan to

>> get Quicken to automatically spread the principal, interest and

>> escrow account payment to two different tags/accounts? Using Q2008

>> H&B.

> I have been unable to think of any way to do this as you have posed the

> question.

> The only way I can think that Quicken could handle this would be as two

> loans. But I'm guessing that there is no way to create two loans such

> that the total of their principal amounts for each payment and the total

> of their interest amounts for each payment would equal the total principal

> and interest of each of your real-world single payments.

> If two such loans could be created in Quicken, I think there would be a

> way to accomplish your goal.

Hi John,

I considered doing this, but didn't like the idea because then the check
amount & reconcilliation with my bank statement wouldn't match.

I don't think there's any way to do what I wish in Quicken.

I posed the question because I didn't want to create a loan with just one of
the properties. If I did that then I would show low profit -- or most
probably a loss -- on that property on a P&L statement. Even though the
other property would show profit, I don't want any negatives when I present
my statements to a Creditor.

I considered creating a tag that represents BOTH properties, but dislike
that idea for various reasons. So, I'm considering that, or just manually
splitting the loan.

--

Rick Hess
New Orleans
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Posted by John Pollard on August 24, 2009, 9:52 pm

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Rick Hess wrote:

>> Rick Hess wrote:

>>> I mortgaged 2 rental properties. Is there any way to set up a loan

>>> to get Quicken to automatically spread the principal, interest and

>>> escrow account payment to two different tags/accounts? Using Q2008

>>> H&B.

>> I have been unable to think of any way to do this as you have posed

>> the question.

>> The only way I can think that Quicken could handle this would be as

>> two loans. But I'm guessing that there is no way to create two

>> loans such that the total of their principal amounts for each

>> payment and the total of their interest amounts for each payment

>> would equal the total principal and interest of each of your

>> real-world single payments. If two such loans could be created in

>> Quicken, I think there would

>> be a way to accomplish your goal.

> Hi John,

> I considered doing this, but didn't like the idea because then the

> check amount & reconcilliation with my bank statement wouldn't match.

What I had in mind was to have the two loan transactions take their funds
from an intermediate account; the funds would get into that intermediate
account from the checking account transaction that paid the lendor and was
coded as a transfer into the intermediate account. One transaction in
your Quicken checking account, just like the real-world; zero balance in
the intermediate account.

The only problem I was anticipating was finding a way to create two loans
whose loan payments combined to exactly what the single real-world payment
does.

> I don't think there's any way to do what I wish in Quicken.

> I posed the question because I didn't want to create a loan with just

> one of the properties. If I did that then I would show low profit

> -- or most probably a loss -- on that property on a P&L statement. Even

> though the other property would show profit, I don't want any

> negatives when I present my statements to a Creditor.

> I considered creating a tag that represents BOTH properties, but

> dislike that idea for various reasons. So, I'm considering that, or

> just manually splitting the loan.

--

John Pollard

Posted by Rick Hess on August 24, 2009, 10:08 pm

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> What I had in mind was to have the two loan transactions take their funds

> from an intermediate account; the funds would get into that intermediate

> account from the checking account transaction that paid the lendor and was

> coded as a transfer into the intermediate account. One transaction in

> your Quicken checking account, just like the real-world; zero balance in

> the intermediate account.

> The only problem I was anticipating was finding a way to create two loans

> whose loan payments combined to exactly what the single real-world payment

> does.

Actually, that's the best idea so far! Tomorrow I'll play with some
amortization programs & see if that'll work. Thanks!

--

Rick Hess
New Orleans
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