New to real estate investing, do I need a business bank account?

[Mark Sandoval]

Hello, I am new to real estate investing and currently have my first investment property under contract. I read in the book on Rental Property Investing that I should get a business checking account for income and expenses and a business savings account for security deposits. When I inquired with a few banks about a business account, they told me I need an LLC or some type of way to prove I'm running a business. However, in the same book, Brandon advises that an LLC isn't necessary especially when you're first starting out in investing. Should I just open a new checking and savings account with a different bank than what I use for my personal accounts? Also, I plan on using a property management company, so I don't know if that makes a difference. Would they handle all that and just give me the cash flow? Thanks for the advice

[Susan Thelen]

Hi Mark, you can open up another personal account and just use that. You don't have to use a different bank, you can use your current bank. It would probably be easier to use your current bank initially.