Rental Property Investor · Virginia Beach, VA · Member since 2019 · 24 posts · 5 votes
Hi BP members!
I've recently been introduced to the Profit First for Real Estate Investing methodology and I'm excited to implement it! HOWEVER...I've always been told that I need to have separate checking/saving accounts for each rental property LLC to keep from commingling the accounts.. PF recommends if I have several LLCs that are similar businesses (i.e. buy and hold rentals) I can use the same accounts (Income, Profit, Owner's Comp, Owner's Tax, OpEx, etc.) for the LLCs in order to see the overall health of my rentals. Great!!! That's what I need, butttt here are my questions:
Would this become an issue if a tenant decides to sue?
Do I just need to make sure I have a solid system to accurately track income and expenses for each LLC now that they are financially lumped together?
I'm also leaning toward utilizing Relay Financial in setting up the PF accounts. Any pros/cons with this online bank?
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
4y
I'm not familiar with PF or Relay but there are plenty of companies out there that prey on people's fears of being sued. These companies sound like they have stoked those fears in you.
Reality is the best line of defense is a good product that is well managed. Second line of defense is good insurance. Third line is really entities, but it only makes sense if you are worth the trouble suing.