Toledo, OH · Member since 2018 · 28 posts · 16 votes
Hello BP,
I am on my way to closing my first real estate deal (out-of-state)!
I plan on opening a new bank account for ease of tracking P&L. Does anyone have recommend a specific bank that I should use and if there are any benefits choosing one over another?
@Matthew Gardner I suggest you find a bank that you can build a relationship with in the future. At some point you may want to open lines of credit and ask for a loan. Perhaps a credit union or a community bank. I would make appointments and find out how if they are friendly to real estate investors and if they do their own loans. This will help you when you are looking to grow your RE business.
@Matthew Gardner I use Chase for all of my various personal and business accounts. Never had an issue. Their app is easy to use, they have mobile deposit for rent checks, and I can move money instantly from one account to the other.
Additionally, they sync transactions to quickbooks for ease of bookkeeping.
That being said, I don't think what they offer is vastly different than any other major bank.
@Matthew Gardner As a newbie investor, I used a small local bank for 2 main reasons, it charges very little to no fees and no minimum balance required for a business checking account. It is also 5 minutes away from where I live, in case I need to be there physically. The negative side, their online banking system is not as good as other banks but I found out only after I opened the account. Credit unions also offer lower fees. Major banks charge you for everything but I know they waive some of their fees after you established a good relationship with them. But for starter, I would say a local bank or credit union with good online banking system is a good choice. Congratulations on your first deal!
@Matthew Gardner I suggest you find a bank that you can build a relationship with in the future. At some point you may want to open lines of credit and ask for a loan. Perhaps a credit union or a community bank. I would make appointments and find out how if they are friendly to real estate investors and if they do their own loans. This will help you when you are looking to grow your RE business.