All Forum Posts by: Malinda Gibbons
Malinda Gibbons has started 1 posts and replied 3 times.
Post: Bank account setup seems too complicated
- Posts 3
- Votes 1
So interesting. Thanks everyone. I am going to start consolidating my accounts and simplify my life.
Post: Bank account setup seems too complicated
- Posts 3
- Votes 1
Quote from @Clinton McGilvray:
You have to do what makes sense for you. Tony from the BP Rookie podcast has said before that he uses 20+ bank accounts to handle his and his wife's personal monthly budgeting. Works for him, no way in the world would it work for myself. I have two personal bank accounts, emergency fund and everything else. If you are going to have an LLC or getting serious about REI then you should treat it like a separate entity. My rentals(6 doors across 2 properties) have a bank account for Sec deposits and then an operating account. I use credit cards to manage which expenses go where but they are all paid in full, every month by the corresponding bank account (personal or business operating accounts). I don't have to shuffle money back and forth that way yet I can easily find the transactions I am looking for. Your system is only as good as its implementation so it has to be easy for you. Good luck!
This makes more sense to me. When you say you use credit cards to manage expenses, does that mean you have a separate card for the properties, or that it's just easier to allocate expenses? Thanks.
Post: Bank account setup seems too complicated
- Posts 3
- Votes 1
Hello. I have read some advice on this forum, but I'm still curious how you set up bank accounts in the most simplified way. Right now, based on some advice from the BP landlording book, we have a bank account for each property, but it doesn't always cash flow enough to pay the mortgage from that account...so I end up transferring money to a different account to pay the mortgage. Same for big expenses. It just seems overly complicated and confusing. We have 6 doors which are basically duplexes on 3 different properties. Thank you!