This is a list of various types of transactions that may be relevant to a fund or investment entity.
This article provides a comprehensive list of income, expenses, and other transaction categories that are relevant to funds and investment entities. From loan fees and commissions to marketing expenses, each category includes a brief description and an example of the type of transaction that may fall under it. This list can be a useful reference for tracking and analyzing financial transactions related to a fund or investment entity. The example provided reflects the ideal support Verivest’s Fund Administration team would receive in order to accurately and easily record the entity’s transactions.
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Name |
Description |
Example |
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Amounts Due from/to Borrower |
Amounts to be received from a buyer of an asset to whom the entity has loaned money
Amounts owed to borrower |
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Amounts Due from/to Investor |
Amounts to be received from investors
Amounts owed to investors that are not income distributions |
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Amounts Due from/to Property Manager |
Amounts to be received from a property manager
Amounts owed to property manager for items paid by PM |
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Amounts Due from/to Related Party |
Amounts to be received or paid related to intercompany entities |
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Amounts Due from/to Servicer |
Amounts to be received from a loan servicer
Amounts owed to servicer for items paid by servicer |
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Bank Fees, Bank Credit & Bank Interest |
Fees charged by the bank for normal operations, fees refunded by the bank, and interest received from the bank |
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Broker Fees |
Amount paid to brokers to execute transactions or provide specialized services |
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Capital Raise Fees |
Fees paid for capital raising activities in order to provide additional capital to the fund |
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Capitalized Acquisition Fees |
Acquisition fees related to the purchase or sale of applicable assets |
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Commission Expense |
Commissions paid |
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Conference Fees |
Fees paid to attend a conference |
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Credit Card Credit/ Refund & Payments |
Amounts owed to credit card companies for transactions using the credit card account of the fund and any amounts refunded to the credit card |
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Custodial Fees |
Fee paid to a brokerage firm for the services associated with the investment |
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Due Diligence Fees |
Fees paid for due diligence background checks and independent verifications performed for the fund |
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Dues & Subscriptions |
Payment for different subscriptions |
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Earnest Money Deposit |
Amounts paid to confirm a contract |
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Errors (In and Out) |
Amounts wired in or out of the bank account in error and returned |
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Escrow Fees |
Fees paid to an escrow who holds and transfers funds during sale |
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Fee Income - Lien Release fees |
Fees received upon payoff related to lien release |
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Fee Income - Other fees |
Other service charges earned that do not fall into a more specific category |
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Financing Costs |
Financing costs on notes, loans or other borrowings |
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Gifts |
Gifts to investors, and others which are promotional in nature and in the course of trade and business |
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Inspection Fees |
Inspections fees incurred for inspection required under the loan agreement |
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Insurance Expense |
Property insurance and loan insurances paid |
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Interest Payable - Noteholder |
Periodic interest accrued on investor notes or other notes entered into by the entity |
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Interest Payable - Temporary Notes |
Periodic interest accrued on temporary investor notes |
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Interest Receivable - Noteholder |
Periodic interest income on notes funded by the fund |
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Interest Reserves |
Interest funded by borrower in advance - either as collateral or to allow periodic interest payment advances |
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Internal bank transfers (non-deployment related) |
Movements between the fund’s bank accounts that do not relate to the deployment of investor subscription cash |
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Investment Distribution |
Distribution amounts received from an underlying investment owned by the fund |
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Investment Foreclosure - Real Estate Owned |
Foreclosure on a property for which the fund had a secured interest in a loan |
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Investment Purchase - Funds, Equity, Direct Real Estate |
Investment corresponding to an ownership interest in a fund
Investment corresponding to purchase of stocks of an entity
Investment corresponding to an ownership interest in a specific property |
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Investment Purchase- Real estate |
Direct purchase of real estate by the fund |
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Investment Purchase - Loans |
Loans originated by the fund |
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Investment Sale - Loans |
Sale of loans originated by the fund |
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Investment Sale - Loans sold to Third Party / Loan Assignments |
Assignment of loans originated by the fund to a third party |
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Investment Sale - Real Estate Owned |
Sale of an REO property |
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Investments - Loan Draws and Draw Fees |
Draws on existing loans and fees paid by borrowers for loan draws |
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Investments - Loan Paydown/ Payoff |
Paydowns and/or payoffs on loans that the fund has originated |
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Investor Contributions (new and additional funds) |
New or additional investor contributions into the fund |
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Investor Contributions (Preferred Equity) |
Preferred Equity contributions for REITs |
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Investor Contributions (with Capital Calls) |
Investor contributions for funds that have capital calls |
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Investor Deployments |
The deployment of investor contributions to the fund’s equity |
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Investor Redemptions |
The withdrawal of investor capital from the fund |
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Licenses and Fees |
Licenses and fees necessary for the fund's operations |
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Loan Fees Receivable - Origination, Extension and Modification |
Loan origination and/or extension fees owed to the fund |
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Loan Payments - Interest, Principal, Late fees, servicing and others |
Loan payments received from borrowers |
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Line Of Credit Advance, Paydown and Interest |
Line of Credit borrowings received from the bank (or intercompany entity) based on prior commitment to make loans to the fund up to a specified maximum, usually for one year, and any payments made on the line. |
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Marketing / Advertising expenses |
Cost incurred in promoting the operations of the fund |
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Meals and Entertainment |
Meals and entertainment expenses incurred related to entertaining a client, customer, or employee |
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Miscellaneous Expenses |
Sundry expenses which are non-recurring and incidental expenses |
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Miscellaneous Income |
Includes various sources of income which is not commonly received by the fund |
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Mortgage Loan Payments |
Payments made against a mortgage loan taken out by the fund or entity |
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Notes Payable |
Amount payable either on demand or at a fixed or determinable future date, with interest |
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Notes Receivable |
Amount of promissory note to be received at a future date |
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Office Supplies |
Small purchases that are needed for office employees. |
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Organizational Costs |
The costs of organizing an entity if the firm incurs the costs specifically to create the entity |
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Payroll Expense |
Payments made associated with hiring employees and independent contractors for your business |
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Pending Investments |
Investments not active as of last day of period |
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Permanent Noteholders - Contribution |
Investor contributions into a note issued by the fund |
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Permanent Noteholders - Redemption |
Investor withdrawals/ redemptions from a note issued by the fund |
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Postage & Delivery |
Courier and mailing services expenses |
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Preferred Dividend Income Payments |
Dividend payments to the preferred equity investors of a REIT |
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Prepaid Expenses |
Expenses paid in advance to be recognized within 12 months |
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Processing Fees |
One-time charge for processing documents, requests, transactions |
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Professional fees - Accounting, Tax and Audit |
Costs incurred in employing accounting services including bookkeeping, tax preparation, and auditing |
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Professional fees - Appraisal |
Professional fees paid to independent property appraiser to determine market value of property |
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Professional fees - Legal |
Costs incurred in availing legal services |
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Professional Fees - Notary |
Costs incurred in availing notarial services |
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Professional Fees - Consulting |
Fees paid to management consulting firms for professional services employed |
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Property Management Fees |
Fees paid to the property manager for managing the property |
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Recording Fees |
Fees levied by the government to document real estate transactions in order to make them a matter of public record |
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Referral Fees |
Finder or referral fees incurred |
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Rental Expense |
Rental expenses incurred by the fund |
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Rental Income |
Rental income earned by the fund |
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Repairs and Maintenance |
Repair/maintenance of fixed assets to working order that do not extend the expected useful life of the asset |
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Returned Earnest Money Deposit |
Amounts paid to confirm a contract that have been returned |
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Security Deposits Held |
Deposits paid to the fund for rental services provided which may be refunded or forfeited by the tenant |
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Start-Up Costs |
Costs associated with the implementation of business and incurred before the entity is active, such as research, travel, consulting fees, advertising |
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Taxes - Franchise |
Franchise Taxes paid |
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Taxes - Property |
Taxes levied on real property, primarily upon Land and Buildings |
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Taxes - Refund |
Refund of taxes previously paid |
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Taxes - State, Penalties, Interest |
Taxes due to the local government
Payment due to failure to pay taxes
Interest on delayed payments of taxes |
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Third Party Fees Payable |
Fees payable to a third party related to loans |
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Travel Expense |
Business travel expenses |
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Utilities |
Cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage |