In this coaching session, Chris Prefontaine leads a Q&A with participants Nick, Sean, Judy, Rick, and others about structuring creative real‑estate financing deals and the accounting/tax support needed. The discussion clarifies that owner‑financing, land contracts, installment contracts, and contracts‑for‑deed are functionally equivalent—the deed remains in escrow until the buyer fulfills obligations, regardless of the entity (LLC, land trust, or personal name) used to hold the contract. Chris emphasizes that the choice of entity is dictated by the buyer’s attorney, not by the financing type. He then shifts to accounting, stressing the importance of using a CPA familiar with the “3‑payday” model common in their deals. He recommends Paul Dion (and his team) as the go‑to CPA, noting that their chart of accounts in QuickBooks is pre‑configured for these transactions. Timing advice is given: engage the CPA or EA as soon as a buyer is secured, ideally before the third payday, to avoid out‑of‑pocket expenses and ensure tax readiness. Chris also mentions bookkeeping services (Pawz) that can handle day‑to‑day entries and year‑end reporting. Throughout, participants ask for clarification on deal documentation, CPA suitability, and when to set up accounting systems.
Chapters
Payday 1, which was— his were all big, but I said, when you get your third one, we got to get an EA. That's your next step. I'm always going to tell you what's next, trying not to have you come out of pocket until you're ready.
For our purposes, once I'm involved, I'd like to see the particular deal in a particular format, like comps, rental comps, sold comps, what do you think it would sell for, that kind of thing. All laid out. Um, that's within the, within the process too.
Yep, they have that too. We post that in the High Stakes channel, and also we send that to the student once they get it taken as well.
Did you get that from me, Nick?
I did not, but I think it's, but I think it's very early on, so don't beat yourself up, Sean.
I did send it, so I was just wondering. In Slack.
John just wants to sell this tomorrow, Nick. I want him to too. Be a new man. All right, you guys.
Yeah, what are? I'm sorry, Sean. What?
You can look later, Nick.
I'm not. I'm not seeing a message from you, Sean. Oh, S D S M D Property Solutions.
Yeah. Yeah.
All right, I'll get you. I'll get you.
Okay. Awesome.
Thank you. Get that baby sold. Quick tidbit. Then we're gonna Steve. We're gonna talk about your deal structure stuff. I think that's good timing actually. This is more definition/understandings because it came from Rick, and some of you guys that are shadowing may have been on Rick with this or asking him about this. And that is, Rick asked, oh, I thought instead of owner financing, if we don't want to transfer deed, which I think is what Sean's doing, Steve, they're going to do a land contract. I thought just by putting it in a trust, that dictates that whole land contract thing. So what I said to Rick was, and if this sparks any questions at all, please ask today. And that is, it doesn't matter whether you're buying it owner financing and you're taking title right on the closing table, or if you're doing a land contract, or they also are called installment contracts. There's different names for them. They all mean the same. The deed sits in escrow with your attorney. It doesn't matter what entity or name you put it in. That doesn't dictate whether it's a land contract or not. You could put the land contract in XYZ LLC. You can put it in a land trust, which we do. You can put it in your own name, which we do not suggest you do. But point is, it doesn't matter. Whatever entity you're using at the suggestion of your attorney is what the land contract or the owner financing ownership will go into. That makes sense. You putting into a trust doesn't dictate that all of a sudden it's a land contract. Did I confuse everyone or did that help? Looks like it's clear. I am definitely getting the cow just watching the train. Like, so did I— are there any questions on this?
I mean, I just don't really understand that much stuff right now, but I'm working on it, and Steve usually does kind of help explain things as needed.
Let me, let me say this, Sean, and it's good. It's okay. That's why I'm glad you spoke up, um, because I think everybody's thinking the same thing. So What Rick— Rick's a coach and we talk daily, if not 3 times a day, right? So the fact that he was confused, like, told me that I need to bring it up. And that is, I said what I just said to you guys and I thought I was clear. And he hit me at night and said, okay, good. So I put it in my land trust and therefore that means everybody knows it's a land contract. No. Owner financing is when you purchase it and you take title right away and the seller gets a mortgage like a bank. And title goes in your name. A land contract, installment contract, contract for deed, they're all the same. Means you're— that's what Sean's doing. Your deed does not get recorded. It goes in escrow, i.e., the attorney's draw, and does not get recorded until such time you fulfill your obligation. What name you put that in, either one of those transactions, is up to you and your attorney. We use LLCs or land trust. Do you still get the benefits of owning even if it doesn't transfer, the title doesn't transfer?
Meaning—
This is your CPA. Good question, Rusty. This is your CPA's decision. Paul Dion, who we use, treats it 100% just like regular ownership. It doesn't matter if it's a land contract. And I hope you guys— I think I was— whoever just got— it was maybe Sean or someone else. I said the second you sell that house, make sure you contract with Paul. Because I'm going to pick on Rick because he's not here. Colleen told the story the other day in one of our team meetings. He came for an office visit a while ago and said to Colleen, I think I got my CPA, I'm all set. And she said, okay, but the 3 paydays are pretty— it can be pretty confusing for a regular CPA. Make sure you do that the right way. Rick did 3 or 4 deals and went, oh shit, tail between my legs, I need some help. So don't try to go to a CPA that has no clue about the 3 paydays. Most don't. But worse, never does real estate or doesn't specialize in real estate. Please use Paul Dion or someone similar that understands 3 paydays. His whole team has read our book. Like, they get it. The chart of accounts in QuickBooks, you'll have what we've been using for 10 years. So everything's already set up for you.
When should we set that up, Chris? Um, because I've been working— last year I started using Anderson, and honestly, like, I don't feel like they have a good handle on it.
Innocence, like, 10,000-foot view accounting planning. Like, the partner, what's his name, Toby, has helped me just on calls and things. But Pawz is more in the trenches. They actually do your bookkeeping and things like that for you. So at the end of the year, they push a button. You're not paying for all that. Yeah, I would have them handle your stuff.
Okay.
When the answer is the question is when? I mean, it's second you get a buyer, right? So, uh, because then you have time, right? You have this whole year until the rest of this year before taxes next April. So you're okay as soon as you get a buyer. I just don't want you seeing you, Judy, or anyone doing another membership for something until you have payday 1 come in. That's why I said second you get a buyer, make your next move.
Okay, thank you.
Rick, I said, Rick, when you get your third payday 1, which was— his were all big, but I said, when you get your third one, we're gonna— we gotta get an EA. Like, that's your next step. I'm always going to tell you what's next, trying not to have you come out of pocket until you're ready.
What's Paul's name and contact?
Paul Dion. paul@pauldioncpa.com. But it's also on the resource section, guys. Ricky, it's on the resource section of the website. With few exceptions, everything we use is on there. There's a couple updates to be had on there right now, but not many.
