Do I need a Trust Account in New Mexico for deposits/rents?

[Lucas Gabaldon]

Hi all we are close to closing for our first investment property in New Mexico which happens to be an 8 plex. I have a separate business account set up for receiving rents and deposits. This account would also be where the mortgage payment and any other related costs come from.

Now, I was just told yesterday by a broker that I would need a trust account for this amount of units. Is this true for New Mexico or can I use my business account I’ve set up?

If it is true, how do I go about setting up a trust account and what other information do I need to know for tax purposes etc?

Thank you!

[Shawn Johnson]

@Lucas Gabaldon

Great question. No you do not need a trust account to hold deposits. I recommend holding them in a second account but it doesn’t need to be a trust. Any account will do.