Best practices for setting up REI bank accounts?

1 Reply

Hello,

I am planning on purchasing my first out of state turnkey in the near future and utilize a property management firm and realized that I have quite a few questions regarding best practices.  

Does the tenant write their monthly rent checks to the property manager, or do they write them to me?

What method do property managers typically bill you?  Is it a monthly invoice, or do they deduct from deposits that they collected?

Assuming that I will be unable to finance the purchase with an LLC, is there a benefit to having the checks deposited into a bank account in the name of an LLC? (I plan to keep all deposits, and operating funds separate from my personal accounts and in their own respective accounts.)

When setting up new bank accounts, is there a benefit to using a bank local to the market you're investing in?  Is it better to open an account local to you, or does it even make a difference?

Thanks in advance!

PM just deposits the money in your account each month. You pick the account. They may keep a few hundred in your name for small repairs. Your PM is the best person to ask about this.

If you already have the loan it doesn’t make a difference where you get the checking account, and even then it really doesnt matter that much. 

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