Real estate investing can be a lucrative venture, but many investors overlook a critical aspect that can make or break their success: bookkeeping. Grace Wills, a CPA and homeschooling mom, joined the Real Estate Rookie Podcast to share her insights on how proper financial management can transform your real estate investments.
Grace’s journey into real estate began in when her husband convinced her to buy their first investment property. Despite her initial skepticism, that first property started generating substantial cash flowchanging her perspective on real estate investing. Today, Grace owns a thriving real estate portfolio, despite experiencing losses on three house flips. Her story highlights the importance of having a mentorthe value of bookkeepingand the tools that can help new investors succeed.
From Skepticism to Success: Grace Wills’ Real Estate Journey
Grace’s entry into real estate was not without hesitation. As a CPA and a risk-averse investor, she initially saw real estate as a deviation from her planned path of being a stay-at-home mom to homeschool her kids. However, her husband’s persistence and the financial safety net they had in place allowed her to take the leap. Their first property, financed with a 30-year, 3% fixed interest loan from her grandmother, proved to be a cash-flowing success.
Grace’s journey took an unexpected turn when she started networking with other real estate investors in the Oklahoma City metro area. She began hearing the same strategies repeatedly—reading Rich Dad Poor Dadlistening to the BiggerPockets podcast—and these messages resonated with her. This newfound knowledge sparked her interest in real estate investing, leading her to dive deeper into the industry.
The Importance of Bookkeeping in Real Estate
Grace emphasizes that bookkeeping is one of the most underrated skills in real estate investing. Many new investors either ignore it or outsource it to inexperienced bookkeepers, leading to financial mismanagement. Grace shares that outsourcing bookkeeping can cost a minimum of $500 a monthwhich may not be feasible for investors with fewer than five properties. She advises new investors to learn bookkeeping themselves first, using software like QuickBooksand then outsource it when their portfolio grows.
Grace also highlights the importance of having a mentor who can guide you through the ups and downs of real estate investing. Her mentor has been instrumental in helping her navigate challenges and make strategic decisions. Grace’s mentor encouraged her to talk to multiple lenders, which led her to find a lender that offered more favorable terms for her investments.
Tools and Strategies for Successful Real Estate Investing
Grace shares her favorite tools and strategies for managing her real estate investments. She recommends using separate software for property management and bookkeepingas most software that claims to do both often falls short in one area or the other. For bookkeeping, she prefers QuickBooksdespite its complexity, because of its comprehensive features and compatibility with tax accountants.
For property management, Grace currently uses for rent collection and tenant communication. She plans to switch to a more robust property management software as her portfolio grows. Grace also advises investors to have a tax accountant and a real estate attorney on their team to ensure they are making informed decisions and complying with legal requirements.
Grace’s story is a testament to the power of proper bookkeeping and strategic planning in real estate investing. Her journey from skepticism to success serves as an inspiration for new investors looking to make their mark in the industry. By learning from her experiences and implementing her strategies, investors can avoid common pitfalls and build a thriving real estate portfolio.
