Mortgage Loan

JT Ison
JT Ison Member ✭✭
edited March 12 in Investing (Windows)
I am making a mortgage investment loan to a home owner. This is not property or debt. How do I set it up as an investment?

Best Answers

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    edited February 8 Answer ✓
    Is this investment subject to normal mortgage amortization, such that you'd want to use the Mortgage Wizard to track it?
    After you've established the loan account (as I previously instructed), Do TOOLS, Account List and click EDIT adjacent to this "Lender Loan" account.  Click "Display Options" and under the Account Intent dialog you can set that it's an Investment.
    Exactly where are you seeing this "Property vs  Debt" false dichotomy?  Because "Property" includes much more than just "Real Estate".  My mortgage escrow account, my "Receivables" account and an annuity from a former employer are also displayed there ... correctly.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • JT Ison
    JT Ison Member ✭✭
    Answer ✓
    Got it. Many thanks. Using the Mortgage Wizard to track interest and principal payments would be handy.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    edited February 8 Answer ✓
    Hi @JT Ison,

    I apologize, I mixed up my loan types and did not include the correct steps #4 - 6.

    Here are the revised instructions:

    1) Go to "tools" > "Add Account..." > click the "+ Other Assets and Liabilities" tab at the bottom:
    2) Click on this description text "Assets - Non-cash assets, any high value property";
    3) In the “Add Account” screen - For account name, insert "Lender Loan > click "Business transactions" > then click "Next";
    4) On the next screen that asks “Is there a loan on this asset – click "No” – and then “Next”;
    5) Click the “Finish” button.

    6) The account register will display > Click on the “Gear” icon in the upper right > in the drop down menu – Select “Convert to a Lending Loan...” > in the pop-up window – Select “Convert”;
    7)  Fill-in the other loan data on the following screen and when completed - click "Next";
    8) Review the information on the following screen and make entries, if required > then click "Next";
    9) Setup a "Loan reminder" if you want > then click "Next";
    10) Review the summary info on the last screen and if OK > click "Done".  Then click "Finish".


    The key step to make the new account an asset (and not a liability) is #2.  You need to click on the text " Non-cash assets, any high value property" (see Snip" below). 


    If you get that right, and then follow the rest of the instructions, you end up with what you are seeking.

    Again - I apologize for the mixup.

    Frankx 

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

Answers

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    Assuming that you're NOT running Starter version, look up "Lender Loans" in Q Help.
    Starter doesn't support loans (as a lender or borrower).
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • JT Ison
    JT Ison Member ✭✭
    This classified the loan under Property or Debt. It is neither, it is an investment.
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    edited February 8 Answer ✓
    Is this investment subject to normal mortgage amortization, such that you'd want to use the Mortgage Wizard to track it?
    After you've established the loan account (as I previously instructed), Do TOOLS, Account List and click EDIT adjacent to this "Lender Loan" account.  Click "Display Options" and under the Account Intent dialog you can set that it's an Investment.
    Exactly where are you seeing this "Property vs  Debt" false dichotomy?  Because "Property" includes much more than just "Real Estate".  My mortgage escrow account, my "Receivables" account and an annuity from a former employer are also displayed there ... correctly.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • JT Ison
    JT Ison Member ✭✭
    Answer ✓
    Got it. Many thanks. Using the Mortgage Wizard to track interest and principal payments would be handy.
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    Please un-reject my prior reply.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    edited February 8
    Hi @JT Ison

    It is what is known as a "Lender Loan".  To set it up in Quicken, take the following steps:

    EDITED TO REMOVE INCORRECT STEPS - SEE REVISION BELOW.

    Hopefully this should complete the loan setup.  Let me know how that goes.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • JT Ison
    JT Ison Member ✭✭
    Where did I 'reject' your reply'? I checked it answered my question and it was 'helpful'.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @JT Ison

     - I don't think you rejected it, but if you did please let me know why.

    Frankx 

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • JT Ison
    JT Ison Member ✭✭
    Your answer was good. Will the mortgage wizard handle mortgage assets as well as mortgage debts?
  • JT Ison
    JT Ison Member ✭✭
    Oops. I think I missed your reply. I will try that set up.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    edited February 8
    Yes - those are the detailed steps for a "lender loan" which is any loan (mortgage, or other type) where you are the lender.  The amortization of the loan is automatic.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • JT Ison
    JT Ison Member ✭✭
    Q is treating this as a liability and as a payment from my bank account each month, not a receipt/deposit.
  • JT Ison
    JT Ison Member ✭✭
    I tried entering the principal amount as negative but Q will not accept negatives.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    @JT Ison

    You can't enter it as a mortgage in Quicken.  Quicken treats mortgages as liabilities - your lending loan is an asset.  You can't use the 'mortgage wizzard" whatever that is.  I suggest that you take the steps that I set out and you'll end up with the correct type of account in Quicken that will track the interest and principal on the loan that you made.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • JT Ison
    JT Ison Member ✭✭
    Mortgage Wizard was the expression you used above. When I follow your 10 steps above I end up with a liability not an asset.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    edited February 8 Answer ✓
    Hi @JT Ison,

    I apologize, I mixed up my loan types and did not include the correct steps #4 - 6.

    Here are the revised instructions:

    1) Go to "tools" > "Add Account..." > click the "+ Other Assets and Liabilities" tab at the bottom:
    2) Click on this description text "Assets - Non-cash assets, any high value property";
    3) In the “Add Account” screen - For account name, insert "Lender Loan > click "Business transactions" > then click "Next";
    4) On the next screen that asks “Is there a loan on this asset – click "No” – and then “Next”;
    5) Click the “Finish” button.

    6) The account register will display > Click on the “Gear” icon in the upper right > in the drop down menu – Select “Convert to a Lending Loan...” > in the pop-up window – Select “Convert”;
    7)  Fill-in the other loan data on the following screen and when completed - click "Next";
    8) Review the information on the following screen and make entries, if required > then click "Next";
    9) Setup a "Loan reminder" if you want > then click "Next";
    10) Review the summary info on the last screen and if OK > click "Done".  Then click "Finish".


    The key step to make the new account an asset (and not a liability) is #2.  You need to click on the text " Non-cash assets, any high value property" (see Snip" below). 


    If you get that right, and then follow the rest of the instructions, you end up with what you are seeking.

    Again - I apologize for the mixup.

    Frankx 

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • JT Ison
    JT Ison Member ✭✭
    “Convert to a Lending Loan...” did the trick. Very helpful.
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