Hi everyone - For folks with construction/rehab loans where you draw funds to pay for services as they occur, how do you treat the funds draw income in Stessa? I’m not sure how I should handle these. Any thoughts are appreciated! Thanks.
I’m pretty new to the app, but the way I’ve been doing it is using the “Proceeds & Payoffs” (P&P) category.
For example I’ve purchased a property for $60k, and the loan total was $100k, but $40k was withheld to draw at closing. When I put in the purchase transaction, I’ve been putting the entire loan categorized as a positive P&P (+$100k), then another line for loan amount withheld as a negative P&P (-$40k), and a few more for property price and closing costs. Then during construction when I make a draw, I’m adding another positive P&P transaction in the amount of the draw.
Hope this helps
Super helpful, thanks!