All Forum Posts by: Simon W.

Yeah, it's no where near where we can trust it. Right now QBO is in beta mode for the AI-powered invoicing but it isn't really used for real estate.

QBO focuses on small businesses and it's more about getting paid quicker than anything else. 

I love the idea that AI can help support accountants but it's not happening anytime soon unless we can prompt it and changes things on the fly without messing up the books.

 This is a bit tricky, but you can do an option-lease contract. All of the other options, I highly recommend talking to an attorney. You can face legal issues because of the existing mortgage/loan.

The other options are Contract for deed and Wraparound mortgage. I am sure some other BPers can chime in on this.

I personally wouldn't go with 1 company doing the books and the taxes. 

There are plenty of horrible stories with that. Better to have a different set of eyes.

A lot of the times the bookkeeping branch of the CPA are overlooked because the CPA wouldn't think anything is really wrong and would just take glances at it.

Find people who are specialized in REI. One of the best way is to find the people here on BP and look through their posts to see if they actually give insights and not just pick someone with 20 posts and 15 of those posts are classifieds lol

Even the ones specialized in REI might know all aspect of real estate. You mentioned Fix & Flip and LTR. Those two are completely different types of real estate bookkeeping.

Fix & Flip can be a Balance Sheet book and the moved into P&L or it can simply be a P&L depending if this will be a Current (1-year) Year project or longer than 1 year.

LTR is pretty straightforward since it will just be income vs expenses type of stuff. It is also best that the person doing your books can communicate effectively with the CPA and know how to also question the CPA. A lot of people are afraid to speak up when the CPA clearly did something wrong or just simply to get clarification. Not all CPAs are good.

Good luck with your search.

This is my last response to this nonsense.  The generated financial reports aren't created by AI. It was already mapped to layout what are assets, liability, equity, income, and expenses. 

With your logic, QB Desktop from 2001 had AI tech. 

I know what AI tech is and I specifically use Linux (Arch) which i had to code to create my OS/Desktop. I was a Computer Programmer and was ranked one of the top hackers in TryHackMe. 

QBO had that feature of recognizing past transactions due to a formula that were coded to see repeats, hardly AI doing the work.

for all members reading this, make what you will about this. I could be wrong but haven't been proven wrong. I am not going to debate with someone that fails to correct the AI generated info and then make it seems as if it was true.

people are using the word AI too loosely.

First, I was addressing the AI won't be taking over to the OP as a general statement because everyone seems to think AI will take over in everything.

Second, your whole first reply/post was AI generated which means you didn't do your due diligence in reading the incorrect information before posting it. I do not knock on AI generated content, but a lot of the times, AI does not give correct information.

Third, you replied back about the rules, the rules are generated by the users, the user categorizes 90% of the transactions, QBO tries to do historical data but fails most of the time, and latestly, AI does not generate the financial reports, the user does.

For anyone reading this thinking that the platforms you mentioned are AI-driven to do everything you just said is simply false.

I will agree with you that they should have someone setup the books accordingly. 

I wouldn't say QBO and Xero utilizes AI to automate data entry. It is just based on historical data and it does a poor job at it.

There are plenty of platforms to track income and expenses but you need to know how to categorize it. 

AI isn't gong to take over accounting because there are too many gray areas when it comes to accounting.

I can tell you why all these all-in-one is usually bad. No real second set of eyes to oversea.

Although, I do offer tax prep and keeping the books. I tell my clients that they are better to get another person to do the tax because if I do the books and the tax, I won't be able to catch my mistakes. 

Even if an accounting firm that has employees doing the books and the tax preparer just do a quick glance because s/he won't think there's any mistakes.

with a 300K budget, i think you are better off with at least 2-unit property. I wouldn't go for single-family house because even if 1 unit is vacant, you are still getting some money in. 

A SFH will be bad if it's vacant which means no money coming in and you have to burn money just keep keep the property.

One of the best way to invest in real estate is to find a group of investors that pool money together to buy. You might be getting a piece of a pie but you are sharing the risk with other investors. If there are 10 investors, you best believe some of them, if not, all of them will be on top of it to make sure that all the money put together is working for everyone.

Once you do that, you will be open up to more opportunities that you might end up buying the properties yourself.

Approach your family member directly and honestly. 

Clearly state your need for a loan and the details of the real estate deal. Discuss the terms, including interest rate, repayment schedule, and collateral. Be transparent about the risks and potential benefits for both parties. Consider legal and financial implications, such as a loan agreement and tax consequences.

Respect their decision and explore other options if necessary.