Relay bank for investing?

Question

Hello,I am setting up my LLCs this week to start my real estate investing journey and shortly thereafter plan on setting up bank accounts for those LLCs. Was looking into Relay bank after hearing Pace Morby talk it up. I see that they don't currently have physical checks (though will send one on your behalf) and it takes 6-7 business days for a check to show up in your account after depositing via their app. Should this be a deterrent? I intend to invest long-distance in small to medium size multifamily properties and hire property managers, not sure how often physical checks will be needed.Appreciate any feedback or other bank recommendations, also looking into NBKC and LendingClub.

Jane Hankins · Answer

This is an older post, but wanted to add in case anyone does a search of Relay Bank (relayfi.com) in the future. Short response: I would avoid this bank.Long response:My experience with this bank has been absolutely disappointing & frustrating. Their platform is great and is designed to have multiple llcs connected to one login account so you can see everything on the dashboard. It is perfect for real estate investors. HOWEVER, Relay is only the front end/ tech piece. They partner with Thread bank (a small bank in Tennessee) now. I believe this change happened the beginning of 2023. Prior, they partnered with Evolve/ Synapsisfi. Thread does offers higher FDIC protection than the previous partner. However, Thread doesn’t seem equipped to serve the RE investor customer base. I did not know of the change and I chose Relay based on the positive review from nerdwallet and on Trust Pilot. My guess is a filter of Trust Pilot reviews after this change would reveal a different and negative aggregate opinion similar to mine. It’s been an absolute time waste and incredibly frustrating experience to deal with this bank.

Jane Hankins · Answer

@Evan Hirsch Sure. No problem. I opened a business checking account, transferred money from my own credit union account and then was told the new business account was being closed and that the bank was holding my money for 60 days. The only explanation I received was that my account was out of compliance. I called, emailed, requested more info and received zero information. A non-involved banker friend told me that the noncompliance was overly conservative if it was based on the relatively small amount of money I transferred. (Maybe because their banking partner is a small regional bank and doesn’t have enough business account experience? idk) He also said that any question should have triggered due diligence on the bank’s part. However, they did not request information from me. They simply froze the account. I invested way too many hours trying to resolve. Meanwhile I couldn’t access my money. I asked for help from their partner bank (thread), drafted complaints to the FDIC and the state banking regulators. I finally received a response and help from Relay after leaving a negative review on Trustpilot. Within 24 hrs of the negative review, Relay reached out to me and requested recent bank statements from my source account to verify. I provided and they reversed the cancellation and unfroze the account immediately. I was happy to gain access to my funds, but it did not make up for my wasted time (about 3 wks) and their unacceptable treatment initially. If they had simply made the request when they first froze (then cancelled) the account, I would have stuck with them. I have no way to convey my credentials - I’ll just say that I have a very solid banking presence and there is nothing about me or my LLCs that would make another potential customer think that this same thing won’t happen to them. If I could identify something unusual about my setup I would say. I moved to Grasshopper bank and so far it’s fine. They are slow to makes funds available for new accounts, but are very transparent about the timing. For a different llc, I use Bluevine and good experience so far too. Both Grasshopper and Bluevine also offer regular checkbooks if you want. For Relay, customers must order a check from them and have it directly sent. None of the 3 offer zelle. I was hoping Relay would be a good bank because I would love to have all my LLC accounts under one login so I could see them all on 1 dashboard. I’m hopeful another option will emerge that offers this setup. Hope the details help! Ugh my blood pressure rises just thinking about my wasted time. Good luck!

Marquita Shines · Answer

So glad I saw this post! I was about to sign up with Relay!

Jane Hankins · Answer

@Carrie Zhang Interesting you found additional experiences on that reddit thread - thx for sharing! (I've wondered too after hearing the BP endorsements that don't align with the experience I had.) I'm still in search of a good bank that better integrates having multiple llc's. If you find one (or anyone has found a Relay alternative), I'd love to hear. The banks I'm using get the job done and are hassle-free, but I'd still love to use just one bank and have an interface where I can see all llc activity on one dashboard.

Carrie Zhang · Answer

Was about to sign up with Relay because so many BP big names have publicly endorsed them...but after researching I've been seeing similar issues raised by other customers, like those on this reddit post. I know this is an old thread, but hopefully it helps anyone else searching for reviews in the forums. Thanks for sharing!!

Evan Hirsch · Answer

Thank you! Very helpful! I appreciate you taking the time to respond.

Evan Hirsch · Answer

Thanks Jane. Can you say a bit more about what the challenges were? And what bank did you move to? Thanks!

Jeff Honnold · Answer

Thanks Charles!

Charles Carillo · Answer

@Jeff HonnoldMaybe also open an account at a local bank or credit union near where your properties are located. One preferably that lends on your target property type. This way you have a local physical bank for checks and other bank services, while you start building a relationship with a potential lender.