Business Checking Accounts for Real Estate Investing

Business Checking Accounts for Real Estate Investing

Comments (88)

  1. Hey Clayton and Nathalie! You guys are awsome! Found your YouTube channel a few days ago, I've been ''diving'' in all of your videos! Great work! Keep it up!

    I had a quick question: ''is it worth opening your business entity and open a business bank account just to get it done even if you don't hold any real estate investment in it for the moment? I was thinking about setting up everything so that when I do purchase my first real estate rentals, all the paperwork will already be done. Also, if there is no activity on your business account, are you still obliged to do a tax declaration for your business entity at the end of the year even if there is 0 activity?

  2. Uh oh Clayton better brush up on your boot terminology. 😂

  3. Be careful with wording. Several times you said its "illegal" to use your personal acct for business and vice versa. Is that really true? I know CPAs recommend you don't in the case of audit.. but is it ILLEGAL? Strong word.
    Most rental property owners are sole proprietorships without any LLCs or Corporations (not required to form to get real estate's tax benefits)

  4. Also had no idea we could print our own checks. That's interesting

  5. LOL if u watch claytons face he always look stressed or bored when his wifey talks lol

  6. Great info…thanks

  7. Hi, please respond. I really need some help. Found this 1960 house that have lead base paint on it, but it has already been cover with new paint. The house have a lot of updates for it's price at $43k and I think it's worth 50k. Buy and hold, but scare of the renter might get affect from the lead paint. It will have ROI 27% from day one. Do you buy house that have lead on it? Any advice?

  8. Clayton and Natalie this is Tyrone Duckett I have an question for y'all. I have an rental property that I got an Line of Credit on and it's in my personal name but when I withdraw money from the LOC for business or personal I send it thru my business account. So what's y'all opinion on that?

  9. Do you have a video on how to use your rental income for your lifestyle. Everybody has videos on purchasing rental property but nobody really gets into how do you use your rental income to support your lifestyle. I never knew you couldn't take it from the LLC until I started listening to you guys. Do you have an absolute step by step clear video on how to do this?

  10. Can't thank you enough. Many thanks!

  11. This info is so useful!

  12. Do I need to wait until I receive my first check from my business to establish a business checking account or can I use my personal money to open the business checking account or borrow from my personal account? Thanks in advance

  13. .How do you avoid the personal guarantee on business credit cards? A lot of business credit cards require a personal guarantee

  14. Great video. I am interested in learning if you have any further details yet regarding the proper use of credit card points – whether one must credit their business account or if one can use it personally. Thank you.

  15. Ok so if I want to buy an investment property and put it under my business name, how do I use funds from another business account to invest?

  16. stick with what you know. stay in your area of expertise.

  17. 8:00 I have a very simple way to not make the mistake of using the wrong card to pay for something: I get a paper RFID sleeve for each card and write its purpose on the front of it ("Capital One BUSINESS", "Capital One PERSONAL"). So when I pull the card (in its sleeve) out of my wallet, I can tell at a glance whether or not it's the right one to use.

  18. How does a new investor, buying their first property, determine how much to pay themselves as the employee or owner of their new company?

  19. MAN DEAD !…… his demeanor as this accounting Rubric Cubic crap kicks in……..women love this ULTRA LEGAL sht… biz would get done if everyone thought this way…….NOBODY GETS OUT ALIVE..! !….solder on……..

  20. Do you have a video on why you have multiple business accounts. Why can you not have one account for all of your properties? Thanks for all the videos. Very useful!

  21. So Im currently about to buy a bundle of 10 properties that I plan on using to start my rental portfolio .

    I opened 1 business checking account and 2 business savings account through capital one.

    My question is (iv seen many if not all of your videos and havent seen this addressed) how do you keep track of all your expenses and operating cost for each and every home so that its easy for you to keep track of cost associated with each property?

    Iv heard from some other videos to have each property have its own savings accounts that is used to gather rents and pay mortgage and operating expense. But when needing to pay someone or buy materials, to use just 1 main checking account for the entire business and then have the separate individual property accounts repay the main business checking account.

    Was just wondering if you could share some light as to how you organize your accounts and with which accounts you pay what. It would be great to see how all the money flows through each account so that its easy to keep track of for taxes and such.

  22. That clears it up for me. So the ROI needs to be deposited into our personal account.

  23. If you cant use the money in your business account for personal use, then what is the purpose of owning a business?

  24. Great video. You can get free checks if you get the basic one with just the name on it. I haven't paid for checks in years from my credit union.

  25. Hi Clayton and Natali. What about injecting capital as an owner into an account (short term loan) and then taking it back out?

  26. Did you guys ever get more research into the "points" issue? Can points be used for personal exposures?

  27. I have an LLC in Wyoming but I reside in California. When opening a business acct with my local bank , do I use my own personal address for all the checks to be send including statement or do I use my registered agent address in Wyoming

  28. OMG!!! I'm just addicted to your channel.

  29. Thank you Thank you!!! I really appreciate all your videos! I have learn so much and have been moved to action. Please keep them coming!

  30. you should bring a CPA on the line for a video about the tax stuff

  31. Great stuff, I'm going to send this to my friends who are into Real Estate and come back to this when I'm able to be a Real Estate investor as well!

  32. New Real Estate Investor here… love your style and content, thanks for this excellent video…

  33. About a list of books that you like and we can learn. So, if I buy rental property on another state do the Articles of Incorporation need to be filed there? I may be better off by talking with a CPA on the state where I buy my rental properties? Could it be a better idea to discuss with my CPA what kind of LLC do we need according to how long do I want to stay in the game as a Realtor.? In paying you first: do you calculate a salary per year and your withdraw your money accordingly? Sorry about all the questions but as you talk, I listen and from my ears it goes to my brain. Very interesting video. Thank you so much.
    So if buying coffee and want to use your business account, do you have to write a check from your business account?
    What are the names of the bank accounts you use for the LLC's. Thank you for admitting your mistakes, that is how we learn. What an awesome video.

  34. Clayton, you and your wife made a great video. But you lost me when creating a business bank account. In a previous video you stated your holding company is in Wyoming and LLC in different states where you own homes. How does this impact your business bank account creation? I look forward for your response.

  35. What would be the base number of LLCs to start with? I hear Natalie throw around the number 5 and that completely blows my mind. What were the determining factors/purposes that lead one LLC after the other to be opened?

  36. You could probably pay your electricity bill out of your LLC account if you lived in one of your LLC's properties. You would still want to write yourself a rental agreement for that occupancy where you paid for the insurance, tax share, any management fees, and any other fees or withholding fees as if you were paying full rent. You would just save in that you wouldn't be getting any profit off the place because paying your company to then pay yourself the profit seems like a silly way to expose yourself to more taxes. I would still want to talk to a lawyer and an accountant before I actually did that though, to make sure that doing so is legal in your area.

  37. so if i bought my first property under my own name i can't open a business account for it?

  38. Hi Clayton & Natalie, so grateful for your channel! Question related to banking: Have you guys ever run into issues/challenges while trying to open up a Business checking with local Credit Unions? Any tips guidance for those that go this route? Should it matter that the Credit Union is local to where I live, but not located in the state where my LLC and investment property is located? Thx!

  39. This is an example of how powerful a significant-other team can be when you are on the same page. Both play to their strengths, biz is 200% on point as a result. Not easy to mix personal and biz, nicely done guys.

  40. great info, i still need to research this to fully understand. thanks guys!!

  41. If I’m not mistaken Capitol One reports on your personal credit report. Correct me if I’m wrong. Thank you

  42. Great topic. But I was waiting to hear why multiple Llc’ sand multiple banks accounts I did not get that part. Thanks fo your show.

  43. Yup….. I think I have no choice but to subscribe. You two are compelling.

  44. Other rental investors have stated that one should have a LLC per house. It’s said it helps if one was sued so someone wouldn’t have access to all your business money. Is this something you guys implement? Also would one need to set up different account per LLC bank accounts too? I would think someone with 10 homes would have 30 bank accounts if they were using the profit first method. Any thoughts would be great.

  45. I have learned so much so far! I am almost ready to jump in!Thanks so much!!!

  46. I think a important buisness relationship to have within a company.. Is a sales team, that has a tech team, that can actually back up, that is linked up to the sales team, so that everything that is sold, is real.

    The customer is not the tech team. Making the customer responsible for the "tech" or I.T. is mis use of intelectual properties<– if you believe in that stuff.

    Misusing or overusing intellectual Property.

    Its how you find yourself in a jam or stressed out, if you become successful, by misusing intellectual properties. ( in a sense your buisness is never yours, it can be stolen, or used against you, it can be taken from you at any point, or worse) TGB the way i mean it.

  47. I love you both, real people telling what they know and don't know. Very informative and entertaining video some of those rubber webblies sound interesting just for a laugh. Don't worry Clayton I didn't hear of them before and proud of it.

  48. Thank you both for be in ng transparent and open to share your journey. It is wonderful to speak to a community that is like-minded. I have received a lot if education from reading the Rich Dad Advisor book series and was excited to hear you quote Tom Wheelright!

    Now I need to take action!

  49. so how do you use big money from your LLC accounts and 1031? C

  50. Young here from SF.
    Another great episode!! Thanks so much!! I get that part make business checking account on each little LLC and umbrella LLC. What about the capital one credit card? Did you make it same, each little and umbrella llc? Thanks so much!

  51. If you leave your wife out of your videos, the videos will be more knowledgeable and easy to understand. She makes simple things very complicated.

  52. Thank you SO much for your channel, your book, and for sharing all this incredible knowledge. I am binging on it lol, taking action and incredibly excited where it's going to lead in the very near and distant future, both. My question: I own one home, my residence, with about 70k equity, and am soon to purchase my first rental property. I do plan to purchase more rentals down the road but it might take another year or two due to my demanding day job. This early in the game (only one rental property) is it advantageous to start an LLC or should I wait until I have another property or two in the works? Thanks for ALL you both do. I can't tell you enough how much inspiration and practical knowledge I've gotten from you both and your content. Cheers 🙂

  53. You said merecipts?

  54. OMG, Natali and my wife would get along great.  "$30 fee, no way!"

  55. What about rentals that were your primary residence and now you are renting them out? Do you suggest that we transfer them over to our LLC? I purchased them originally as primary residences, but when the military transferred me I rented them out. I have an LLC and I have my property manager deposit the rent in my business Well Fargo's account. However, the landlord for my NC rental deposit that rent in my personal account and my mortgage is deducted from that same account. How do you transfer for homes that were bought as sole proprietor to my business LLC?

  56. Power couple right here!

  57. Natali/Clayton do you have a recommendation for a business savings account that gives better than 2%? Not many places have business accounts with good interest. I cash out refi’d and want to have liquidity ready for the next deal that comes while earning interest. Thanks.

  58. Because my LLC will only hold rental real estate there is no physical business address. I do pay for a resident agent so what address do I give the bank for my business account? Do I give them my personal residence? Would this be considered not following corporate formalities?

  59. Chase business acct is free and pays you 300 initially. Idk about flight points. Good point, gotta take a look

  60. This was gr8 y'all thank you 🤗🤗😀

  61. cant you pay your rent from business accnt if your office is your home?

  62. do you recommend me incorporating my business to build Business Credit

  63. I need more of this never knew any of this, trying to rent my home which was my first property

  64. Such a great channel for beginners! Thank you!!!!

  65. The Points can be used to pay down the principle on the properties within that business account. Doesn't seem like much, but with our portfolio, we average at the end of the year to $2400 extra payment. Over 5 years, I've increased my ROI by 0.5-1% per year. None of which is considered an out of pocket expense. We used to have the same bank for personal and business but now we separated them and made sure the cards looked different. My favorite is to pay a smidge extra to have a picture on my personal credit card so its easy to differentiate. Thanks for the video, Your work ethic, and videos really do help my wife and I team together on our investments.

  66. Great video thank you! Did you guys find out if you can use your business rewards points for personal use?

  67. 😂😂😂… wellies = Wellingtons

  68. Can I pay my mortgage with the business money?

  69. Great advise that people with little or no legal knowledge can relate to and hopefully take advantage of the free semi-truck loads of FREE INFORMATION from yes.. your I . R . S. for FREE for just downloading or requesting from the government to " do the right thing " the "right way" for everyone involved including the government agencies that actually are your partner with an interest in your success ! As if you fail that will cost the government.. for sure !

  70. Important topic…

  71. I love your show! Im sure your wife is a fantastic person but dont like her presentations.

  72. You guys are so awesome! So informative!

  73. Could I use my personal account pay for business expense and still get tax deductions? Thanks

  74. she's such a wife

  75. This is total BS. I've had numerous LLCs but it's easier from a tax standpoint to just buy in your own name. I wish people would stop all this false information… LLC's are brand new concept and are not recognized by the federal government!

  76. Let's speak on being secured PVT CORPORATION or Private TRUSTS BUSINESS Accountings on the private side……Also, how to protect your business or your personal from IDENTITY theft if your Business Set up or Family business is a TARGET………ie. Preventative Measure of being sured…


  78. How many single family homes in the 80k-120k range you recommend per LLC?

  79. Good info! Thank you for sharing!

  80. So how do you guys get money for yourself?

  81. 5:15 Work clothes and boots are almost never deductible. The rule on deducting clothing and apparel is very strictBasically anything that isn't a uniform with a company logo printed on it is not deductible.

  82. For out of state investing, would you recommend opening a business checking acct for my LLC on the state where the rental is? Thanks.

  83. i dont get it. Most LLCs, LPs are pass-through tax entity (of course unless your entity is elected to be taxed as a corporation). If it is pass-through income, why does is matter? where the money is in shoudnt matter, should it?

  84. What if you own multiple properties? Do we set up a different llc and bank account for each property?

  85. So if I had a Wyoming LLC just for aminity reasons own my Indiana LLC rental property, how many checking accounts do I need?

  86. Points for travel are not reportable. You cannot deduct points expense on business travel. You cant claim use of points for any deduction. Recommend using points, especially for airline and hotel status. Recommend making a travel folio that includes all reciepts including air and hotel and rental vehicle along with all other reciepts (baggage fee, parking, meals, incidentals). The folio should represent all reciepts for the travel.

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