Real Estate Consultant · Houston, TX · Member since 2020 · 4 posts · 3 votes
Hello all-
I tried opening a business checking account a few months ago and when asked what type of business we are, I said the forbidden "real estate investing" and was denied the opportunity to open the account. I do not want this happen going again.
For those who have opened business checking accounts in recent years how do I describe what I do without using "REDFLAG WORDS" even though I am a REI ?
I appreciate any helpful feedback you guys can provide. I already know to avoid using investor, investing etc.... I understand why this is considered risky, I would like to know WHAT TO SAY in order to get my accounts opened.
We have a LLC registered in Texas, we have an EIN and a DUNS trying to get going to establish a business lines of credit etc...
That's crazy that they care. I use Prosperity Bank and they've never given me any trouble. Every bank I've ever delt with has been happy to open an account and take my money. I think you need to find a new bank. Yeah, next time just try telling them "real estate holding company" or "home renovation company" or "property management company" or any of the many types of work we real estate investors find ourselves doing.
@Torey Henderson. I would think you are talking to the wrong Banker. Why would a Banker not want your account regardless of what it's called? It's still green money the bank can use to lend out to other borrowers.
Now if you were asking to borrow money from the bank - I could see they might be reluctant to lend you money until you have a track record.
Shop around - look for Houston based banks or Credit Unions if you belong to one.
I think I always say we property managers of property we own. Never had an issue opening multiple accounts. Mostly at Chase. They have to check the box.
I recently just created 2 LLC's of my own and opened a business checking account with Bank of America and was approved. I don't know why they would not accept you when it would be your money in their bank but maybe you can try to use the term Real Estate Holdings which is the type of account I opened? Not sure but I hope it helps.
That's crazy that they care. I use Prosperity Bank and they've never given me any trouble. Every bank I've ever delt with has been happy to open an account and take my money. I think you need to find a new bank. Yeah, next time just try telling them "real estate holding company" or "home renovation company" or "property management company" or any of the many types of work we real estate investors find ourselves doing.
@Willie Bradley We do mostly property management and renovation / remodels. I'd put property management in the business name if I was starting from scratch, but I've been doing this for about 16 years and grew into 3rd party property management when other fellow investors wanted me to help manage their properties.