Advice needed on real estate LLC business banking & Organization

[Tiffany Da Silva]

Hello All,

I have been investing for the last 4 years in real estate and am on the way to purchasing my 3rd property (a flip :)

I am having a hard time knowing how I should organize my incomes, expenses, taxes, ect for easy bookeeping, to help keep everything separate legally, & to produce income on the money sitting in the accounts.

I can only explain my ideal thoughts in a graphic design so i will include that here:

Does this make sense in order to maximize profits & keep things organized? 

Few notes: I will not touch the money in these accounts unless the income is being used to buy a flip or another property, which is about 10 months for me so that money will be sitting there.

I am considering a HYSA from Capital one as i saw as of today their APY is 4+% with a minimum deposit of $10K

I will be using baselane to organize and manage these transactions.

Any criticism / advice is welcome :)

[Kevin Sobilo]

@Tiffany Da Silva, I use quickbooks online for bookkeeping and I use a "Profit First" approach to managing cash.

Profit First allows be to manage money without having to do all the daily math when money is lumped into one account.

You can customize the approach to your own needs. For example, when I take on a rehab I typically deposit the budget into a separate checking account solely for that rehab and pay all the rehab expenses from there making it easy to identify in my bookkeeping.

Read the book. Its super simple. So simply it almost seems silly when you read it but when you realize its addressing the things you're talking about here. It ends up being great that the solution really is very simple. 

https://a.co/d/2rjbtMJ