What is the best way to learn real estate accounting?
I'm looking to brush up on my accounting skills for real estate interviews. Does anyone have a real estate specific accounting book, or can suggest a comprehensive resource?
[{"id": "d9ewg6j", "text": "I'm a real estate accountant and don't know of any good resources. Are you looking to get into residential or commercial? \n\nI would say some of the main things that they look for are experience with real estate accounting software: MRI and Yardi Voyager are the two big ones. \n\nKnowing how a bad debt reserve works, and how write-offs would impact the GL.\n\nAlso, having a familiarity with what qualifies as a capital expense.\n\nYou should also know where RE-specific things get booked: tenants' security deposits are a liability on the balance sheet, Tenant Improvement projects are an asset, rent charges go to income, etc.\n\nSome of the GAAP things specific to real estate: FAS 13 namely. There is also FASB141 (I think that is the number?) which we work with a lot. Some places call it \"above or below market lease amortization\" or \"gross potential rent adjustment.\" Basically, units leased below market are booked as a loss for the amount below market, while the opposite for units booked above market.  \n\nHow to calculate expense accruals for electric, payroll, etc.\n\nReally, 9/10 people I have worked with do fine with basic accounting knowledge and pick up on the Real estate parts on the job. If you want to PM me, I would love to hear specifics about where you're applying - it is possible I have experience working for the same people.", "replies": [{"id": "d9fnlxf", "text": "To add to this, large office buildings often use Argus to project their financials.", "replies": [], "depth": 2}, {"id": "d9fzcyx", "text": "Hey guys, thanks for the info...\n\nInterview is for an event driven commercial real estate credit hedge fund.. Will be on the finance side as an analyst. I'm coming out of undergrad, and have had significant exposure to corporate valuation and all the intricacies involved in accounting for corporations... My fundamental understanding of accounting is pretty good, but just haven't looked over it all in a while... guess I should just go back through my acct textbooks. I doubt anything will come up unexpectedly in the interview, but I'm just looking for something else to learn after I'm done recruiting tbh.\n\n@ajpos - I'll look through those GAAP specifics... Thank you\n@ cbarrister - taking an argus training course soon.. not a lot of availability to use it in undergrad, but from what I understand it will only make modeling easier\n@goats4chachis - yea that would make sense, thx.", "replies": [], "depth": 2}], "depth": 1}, {"id": "d9f7pjl", "text": "Know that fair value accounting exists for some real estate funds = investment companies \n\nAlso know the basics about REIT tax qualifications ", "replies": [], "depth": 1}]