Real Estate Accounting Made Easy.

Cover -- Title Page -- Copyright -- Contents -- About the Author -- Preface -- Chapter 1 Introduction to Real Estate -- Types of Real Estate Assets -- Improved Non‐built Land -- Residential Properties -- Commercial Office Properties -- Industrial Properties -- Retail Properties -- Hotels -- Mixed Use Properties -- Common Industry Terms -- Chapter 2 Basic Real Estate Accounting -- History of Double‐Entry Bookkeeping -- Types of Accounts -- Asset Accounts -- Liabilities Accounts -- Equity Accounts -- Revenue Accounts -- Expenses Accounts -- Gain Accounts -- Loss Accounts -- Extraordinary Items -- Accounting Methods -- Cash Basis -- Accrual Basis Accounting -- Recording of Business Transactions in the Accounting System -- Journal Entries -- Basic Accounting Reports -- Income Statement -- Balance Sheet -- Statement of Changes in Shareholders' Equity -- Statement of Cash Flows -- Chapter 3 Forms of Real Estate Organizations -- Sole Ownership -- Common and Joint Ownership -- Partnerships -- Reason for Partnerships -- Legal Characteristics of a Partnership -- Types of Partnerships -- Joint Ventures -- Corporations -- C Corporations -- S Corporations -- Characteristics of a Corporation -- Limited Liability Companies -- Real Estate Investment Trusts -- Ownership Composition -- REIT Assets -- Income Source -- Distribution of Income -- Chapter 4 Accounting for Operating Property Revenues -- Contracts with Multiple Components -- Lease Classification -- Lessor Accounting of Operating Leases -- Types of Operating Leases -- Gross Lease -- Net Lease -- Fixed Base Lease -- Base‐Year Lease -- Additional Cost Recoveries -- Operating Expenses Gross‐Up -- Contingent Rents -- Rent Straight‐Lining -- Lease Termination -- Modification of an Operating Lease -- Sublease of Operating Lease -- Accounting by the Original Lessor -- Accounting by the Original Lessee.

Chapter 5 Accounting for Operating Property Expenses -- Lessee Measurement and Recording of Operating and Finance Leases -- Contracts with Multiple Components -- Lease Liabilities and Right‐of‐Use Assets -- Initial Direct Costs -- Lessee Journal Entries of Operating and Finance Leases -- Lessee Accounting of Operating Lease -- Lessee Accounting of Finance Lease -- Lessor Operating Property Expenses -- Operating Costs -- Property Taxes -- Cleaning -- Security -- Water, Electricity, HVAC -- Payroll -- Insurance -- Repairs and Maintenance -- Leasing Costs -- Loan Closing Costs -- Management Fee -- Sales and Use Taxes -- Additional Services Bill‐backs -- Chapter 6 Operating Expense Reconciliation and Recoveries -- Most Common Recoverable Operating Expenses -- Most Common Nonrecoverable Operating Expenses -- Calculating Tenant Pro Rata Share of Expenses -- Chapter 7 Lease Incentives and Tenant Improvements -- Lease Incentives -- Lessee Journal Entry -- Tenant Improvements -- Tenant Improvement Journal Entries -- Further Comparison of Lease Incentives and Tenant Improvements -- Differences in Cash Flow Statement Presentation -- Demolition of Building Improvement -- Chapter 8 Budgeting for Operating Properties -- What Is a Budget? -- Components of a Budget -- Revenues -- Operating Expenses -- Capital Expenditures -- Debt Servicing -- Ownership Distributions and Contributions -- Chapter 9 Variance Analysis -- Sample Operating Property Variance Analysis -- Salient Points on a Variance Analysis -- Chapter 10 Market Research and Analysis -- Market Research Defined -- Market Analysis Defined -- Market Research: Practical Process -- Population and Demographic Trends -- Income -- Education Level -- Transportation -- Availability of Public Facilities -- Crime Rate -- Government Regulations and Restrictions -- Competing Projects.

Availability of Sites and Existing Properties -- Homeownership Culture -- Employment -- Chapter 11 Real Estate Valuation and Investment Analysis -- What Is Real Estate Valuation? -- Approaches to Real Estate Valuation -- Income Approach -- Sales Comparison Approach -- Cost Approach -- Chapter 12 Financing of Real Estate -- Equity -- Debt Financing -- Commercial Banks -- Investment Banks -- Mortgage Banks -- Credit Unions -- Life Insurance Firms -- Savings and Loan Associations -- Mortgage Real Estate Investment Trusts -- Other Financing Sources -- Mezzanine Debt -- Preferred Equity Financing -- Collateralized Mortgage Obligations -- Types of Loans -- Conventional Loans -- Guaranteed Loans -- Debt Agreements -- Loan Amount -- Interest Rate -- Down Payment -- Loan Service Payment -- Loan Maturity Date -- Early Repayment Option -- Loan Default -- Recourse -- Nonrecourse -- Renewal Option -- Closing Costs -- Loan Assignment -- Guaranty -- Financing Costs -- Application Fee -- Origination Fee -- Broker's Commission -- Loan Points -- Transfer Taxes -- Legal Fees -- Relationship Between a Note and a Mortgage -- Accounting for Financing Costs -- Chapter 13 Accounting for Real Estate Investments and Acquisition Costs -- Methods of Accounting for Real Estate Investments -- Cost Method -- Equity Method -- Fair Market Value Method -- Consolidation Method -- Purchase Price Allocation of Acquisition Costs of an Operating Property -- Land Value -- Building Value as if Vacant -- Value of Tenant Relationships -- Value of In‐place Leases -- Value of Above‐ and Below‐market Leases -- Allocation of the Asset's Values -- Chapter 14 Accounting for Project Development Costs on GAAP Basis -- Stages of Real Estate Development Projects -- Pre‐development Stage -- Development Stage -- Post‐development Stage -- Chapter 15 Real Estate Development Revenue Recognitions.

Requirements for Revenue Recognition -- Revenue Recognition Journal Entries -- Revenue Recognition When Performance Obligation Is Satisfied Over Time -- Chapter 16 Real Estate Brokerage Accounting -- Real Estate Brokerage Revenues -- Sales Commission Revenue -- Leasing Commission Revenue -- Brokerage Commissions in Real Estate Development Projects -- Real Estate Brokerage Costs -- Incremental Costs of Obtaining a Contract -- Costs to Fulfill a Contract -- Chapter 17 Audits -- Audit Overview -- Users of Audit Reports -- Audit Procedures -- Major Account Balances and Specific Audit Procedures -- Types of Audits -- Financial Statement Audit -- Internal Control Audit -- Sales and Use Tax Audit -- Tenant Audits -- Index -- EULA.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.