Starting Out with Real Estate Investing LLC

[Arron Paulino]

I have just established my LLC and want to ensure I am on the right track. I plan to partner with another BP member and do mostly flips and add to my rental portfolio if the numbers work best. I plan to use the money I have saved up as seed funds to get this newly created LLC up and running. I will be reinvesting the funds and keeping a little as my LLC grows.

Do I need to go to my local bank to create a business account and put funds in from my savings to get this started? I live near a Wells Fargo and this is my local bank or should I make one online with another bank? My LLC is just in the starting phase and want to know the best practices to get it on the right foundation to partner with other investors and set myself up for success. I've noticed that lenders I've spoken with here suggest I create an LLC so they can lend to me.

I've already invested on my own and have properties under my name providing me with monthly cash flow as well as finishing my first flip I plan to sell at the beginning of the year.

Planning to start this upcoming year with traction with a new real estate investing venture and move upward in my journey. Appreciate the suggestions. 

[Jake Baker]

@Arron Paulino

From my understanding, you have an LLC created with the state in which you intend to transact real estate.

1. You should get an EIN here if you haven't already. This is the social security number of your business. Be careful of scam websites when searching for the .gov website. You will need an EIN to open business accounts. 

2. Go to your bank and open up business accounts. It is best to separate all your business activity into your business accounts as much as you can. 

3. I recommend the Chase Business Ink unlimited card. 0% APY for the first 12 months. Go into the branch and apply with a banker. You will likely get a higher limit. They will grant you a limit based on your personal credit. Only do this if you feel you can be responsible with a credit card!