National bank or credit union better for out of state investing?

5 Replies

I am working on my first deal, hopefully it will close in December. I'm getting my property management company in place, so I'll ask the ones I'm interviewing this question, but I"m wondering where the best place to bank would be.  I want to keep my real estate expenses/income in a separate account.  I bank at a local to me credit union.  The property I'm purchasing is in Kansas City MO.  National banks charge fees for a lot of things my credit union doesn't, but is it easier for property managers to deposit to those banks or does it matter?  

@Amy Pett it doesn't really matter where we send the money too. Venom is a great option, free for them to send it and then you can deposit it into your account directly for free. If you are going to use a lender for the property, use a local one here in KC if you are buying as an LLC.

@Amy Pett

It really shouldn't matter where the management company sends the checks to. What I would consider is that some local (to the market you are investing in) banks or credit unions may offer more favorable financing options than the national banks. I have yet to see a national bank compete with the local lenders on financing options.  

Totally agree, I just started to invest in Oklahoma city and the local banks are very helpful and competitive!


Originally posted by @Cassi Justiz :

@Amy Pett

It really shouldn't matter where the management company sends the checks to. What I would consider is that some local (to the market you are investing in) banks or credit unions may offer more favorable financing options than the national banks. I have yet to see a national bank compete with the local lenders on financing options.  

 

For the loan whichever one gives you the better deal.  For ongoing operations same thing, but if you pay fees at any bank you should change, there are so many great free banking options out there now.

Local/regional banks, or online banks are ALWAYS the way to go.  Avoid the big 5.  I just switched from BofA last year as they became super greedy charging me $14/mo per account (I have multiple business accounts, so you see how this adds up).  I met with them, giving them the opportunity to be reasonable.  As expected they "couldn't help me" so I took my half dozen accounts elsewhere (some other salesperson will get credit for the new accounts!).  Bad business move for them - oh well.  At my new bank, I am charged $5 for bill pay on ONE account.  Otherwise its fee-free.  

Some of the online banks boast as much as a 3% rate on savings accounts - about 10x the rate I get.

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