Bank account used for Real Estate investing

[Jacob James]

Hello everyone, newbie investor here still learning and wanting to start my journey soon. My best friend and I have decided to take our investing journey together and look at it as a business ran by the both of us. A thought I had was to open up a joint account that we both have control of and can fund together. Any recommendations on what banks to go through? I am also curious to if a business account could be a good option for this. Any advice would be appreciated!

[Peter Mckernan]

@Jacob James the best option would be to get a small agreement together via partnership prior to opening that account. You can open it with any big bank or small bank locally. The best option would be to get the partnership together first then open the account so that you know your roles and can move forward with less stress. Many times I have had people ask to invest and six months later they called and wanted to get out of the agreement since they were nervous every night due to the investments and their anxiety ran very high knowing their money could be lost. The agreement made it easy for us to get them out of the whole investment. 

The agreement can be in the form of an operating agreement in a corporation or LLC. Then once you have that open the account at any bank, big banks have the process to open a business account easier, smaller banks do not have the process as streamlined.