» How to Assemble a Real Estate Investor’s Financial Filing Cabinet » Posted by Realestator      

Yesterday we discussed the importance of a Real Estate Investor having an organized Financial Filing Cabniet. Today, we’ll demonstrate how to assemble one.

First, go to your favorite office supply store and buy:

  1. A box of manila file folders
  2. Pendaflex folders
  3. Some two or four drawer filing cabinet
  4. One or two filing storage boxes
  5. A fire proof safe

Now prepare to dive in and organize your financial records. In your new filing cabinets you will label your file folders with the following categories:

**One for each property you own

Put the file folders in the pendaflex folders and put the pendaflex folders in the filing cabinet. Take the file storage boxes and label them TAXES, and write what years you are putting into that box (I can usually get many years in one box). Put this box in your fire proof safe, along with your living trust, birth certificates, social security cards, and passports, etc.

Which leads me to a good point - clean out your financial filing cabinet once in a while. You do not need to keep some of these financial records forever. You’ll run out of room if you try. Ask your CPA which ones you need to keep and for how long, and the rest shred after the appropriate amount of time has passed. Being organized is pointless if you’re cluttered.

In no time, your financial records will be organized, you’ll feel like a huge weight has been lifted off your shoulders, and you’ll be ready to tackle the all important business of investing in real estate - which is what you really want to be doing, right?

For more real estate investing information, visit the realestator’s website at www.real-estate-investing-support.com

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» Posted in R.E. Business Procedures on May 31, 2008.

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