After 3 years of investing and 6 doors, I'm going to start treating my REI as more of a business. This includes doing a much better job at book keeping. I thought I was doing a good job until I went to my CPA last year and he absolutely ripped me apart in terms of keeping organized.
With that said, I have an LLC that I have not placed any properties in yet (would need to Quit Claim or push through a Land Trust into the LLC) and would like to start separating my REI cash flow, expenses, etc from my personal checking. In your experience, which banks have been the most small business friendly *business* accounts? I.E. lower running checking limit, no limit on transactions, etc.
I'd prefer to go with one of the larger banks (ease of use and accessibility), but if you've got a great local bank, for reference I'm in Orlando, FL.
@Josh Calcanis , if you're OK with strictly online banking, check out Capital One Spark Business. They have no monthly transaction limits, monthly fees, or minimum balances.
Also, I believe that Chase is having a $300 promotion right now on small business accounts, but of course they have monthly requirements to avoid the monthly maintenance fee.
Of course, "best" is subjective and depends on what you're looking for in a bank.
Whatever you do, just make sure you run all your business expenses through your business bank / credit card accounts and stick with it.
Thanks @Logan Allec
From you're experience, what's the downside with Capital One?
All I'm looking for is an account/credit card I can run all these expenses/cash flow through. Just to separate personal income/accounts from my REI. I don't need a brick and mortar location at this point.
@Josh Calcanis , the downside is it's an online bank and there aren't really ATMs if you need quick cash. Also, it's not like you can have a go-to guy or gal at Capital One like you can at a local bank or credit union. There's no real personal relationship. But if you're just looking for an account to run business income and expenses through, it's great.
I really like local bank Center State and IBERIA for investors or commercial banking
I am going g to switch from Wells Fargo over to one of them for my PM/Real Estate Company
You should reach out to the bank that you got the mortgage through(if it is financed). There is a good chance that they would wave all minimums on checking accounts.
Wells Fargo did this for me.
Try Ally if you don't care about brick & mortar. I use them and they have good rates too.
I would also check out Ally Bank. They are online as well, but they provide reimbursements for your ATM fees up to a certain point each month.
Also, they have high yield/no penalty accounts where you can park your cash to earn a lot more interest than you can in a typical bank.
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