All Forum Posts by: Bill Bockwoldt

I can make that date. Looking forward to it!

Thanks for the info. Elizabeth!

Do you need to have a "business" (e.g. separate tax id) to set that up at Wells Fargo? I don't have LLC's for my properties so all of my accounts are personal vs. business.

Based on what I learned today, I think I might go forward with Chase because I can use their QuickPay service for tenants to pay me online for free, and I will have a separate account for each property so they can also go to the local branch and make a direct deposit if desired. The amounts in these accounts are then transferred to my main Chase account. And I will only keep the minimum in that account to avoid fees, and everything will be kept at Everbank where I can earn 30-60X the amount of interest on the money (0.61% vs. 0.01%). I love Everbank and have used them for years for both business and personal accounts. The Everbank account will be the operations/reserve/investment account. I guess the only other piece is the deposit trust account, and that will probably be another Everbank account where I set aside the deposit on each property (which will also earn interest).

Thanks for the replies!

After reading about this more in other forum threads, I think I may go with Chase since I already have an account I can use there, and they are national with branches everywhere. I agree that if all properties are being professionally managed this is essentially a non-issue. However, when dealing with this yourself, the tradeoffs are tracking at the front end (who sent/deposited what/when, method of payment) or the back-end (accounting/reconciliation under one account).

I like the idea of sub-accounts for a cleaner audit trail and if the costs are basically 0, and I can make the payment process easier than just dropping in the mail, then I will go that route until the properties are eventually professionally managed and I can consolidate. I also liked the concept of 4 accounts, splitting by tenant deposits, operating, reserve, and investment accounts. I haven't started using quickbooks yet for my properties so when I do this may override the "separation by account" strategy but conceptually I like it because that's how I tend to think about these things.

BP and all of you continue to be a fantastic resource! I wish I had found this site before I bought my first 5 properties! :-)

Hi,

I currently have 5 properties in one city (out of state) and am looking at investing in 2-3 other states. I am curious what other out-of-state investors have done in terms of setting up bank accounts to receive tenant payments? Do you set up local bank accounts? One master account where are all payments are mailed? Only use property managers and have them pay you?

Any inputs would be appreciated. I am currently thinking about setting up a local account for each property to keep everything separate and easy to track but I am hoping there might be a simpler way!

Thanks in advance for any feedback!

Sarah I would be interested in the meetup as well. I live in Petaluma but work in San Rafael so I can get to the city for a meetup.

Looking forward to it!

Thank you all for the warm welcome!

I probably should have clarified that the rules I mentioned are the guidelines I am starting with, and not necessarily that my expectation is to capture them each and every time. My properties in South Dakota do not meet the 2% rule, and I agree with Ali that finding those is very challenging and does have trade-offs (although the podcast with Dawn was inspiring!).

Ali I have started reading your site and do enjoy your content. I have a lot more to learn before pulling the trigger on turn-key but I will continue to investigate it. I still face the regular challenges of remote ownership as well (finding good contractors, reliable property management, etc.) so that also consumes time and effort. However, I can say that so far things are working out well and I would like to continue to improve the performance!

I will be lurking around the forums offering insight based on my experience where applicable and continuing through my stack of RE investment books. Thanks to all of your for the welcome, feedback, and insight you provide to all of us here!

I spoke with NREI and while I did like the flexibility I didn't find their pricing to be very competitive. Although this could be due in part to my lack of insurance understanding and possibly not comparing apples-to-apples. Since I am currently going through a claim with my current insurer due to a storm that damaged several properties, I can tell you that individual policies are no fun at all in that case...I talked to 5 different insurance companies and find a huge range in coverage vs. pricing, including looking at commercial coverage (all properties under one policy) and individual policies.

Hi,

I am new to BP and found it during my research on buy&hold RE investing. I live in the Bay Area (CA) but own properties in South Dakota (grew up there). I am currently trying to learn a LOT more about real estate investing and deciding where to invest next - out of state seems the most viable. My goal is to acquire SFRs or multi-families using the 50% and 2% rules of thumb so I am trying to determine where that takes me geographically. I am also interested in turn-key properties, and have started looking at Memphis Invest and a few others. If any of you have experience with turn-key investments, I would appreciate any feedback on that approach.

I'm looking forward to all of the content on this site, and the great threads I have started reading on all the areas of investing!