All Forum Posts by: Jarred Sleeth

Sounds like you have good motivation, and already are taking action. Great! Welcome to BP and good luck. If you're ever in the Baltimore area, feel free to reach out.

@Matt Schelberg, was thinking to message you today actually. I will PM you shortly. 

BP,

We are always talking about banks here, whether it be about how to get a loan, or what type of loan/LOC or refinancing, interest rates, etc. I don't see many posts regarding business account setups and accounting strategies, though. I am having some questions and concerns that I thought might be useful to other people if we can get a discussion going.

Firstly, in the buy and hold world, it is widely suggested to setup bank accounts for each individual property to track your numbers. I like this method, however I have some concerns about the scalability. Currently I have 6 business accounts open for my properties. My bank requires a minimum of 1,500 dollars per account to avoid maintenance fees. This starts to tie up funds quickly when scaling. 

Secondly, my bank also wants to charge me a monthly fee per account for having more than 3 accounts with online banking capability. This can be hundreds of dollars per year. 

Have you come across any of these problems? How do you set up your business banking? Are these types of fees and limits normal? How can these issues be avoided while scaling?

Thanks for reading!

I don't buy it, at least not now anyway. Nothing has changed. Student loan debt is sky high, wages are stagnated. All the hurdles that young people face today that keep them renting or living at home are still present. Until some of those things change, I believe a strong rental market will be the norm. Let's not forget that only a few years ago the economy was in the trash with a collapsed housing market, and a lot of that uncertainty is still hanging around causing a continued fear of home buying.  I think it's a great time to buy and hold for the next decade or two. Eventually there will be a reverse in home buyers/renters ratio, and that is going to be a great time for money making if you started buying property early. 

We like to use a nice bright red door on our homes. It really stands out, and we have even got neighbors talking about it. Small things can really change it up.

Is this for real? I'm really questioning the BP marketplace these days. 

This is interesting. I'm just starting to dive into DCF myself, so I can't say for sure, but I do agree with what you're saying. If the unit is ultimately vacant, you're going to be on the hook for that difference so it should come off of the reimbursements.

@Mindy Jensen

I can't speak for @Yasmine Bisumber , but my android app had some issues before the latest update. The back button would always revert straight to the opening menu. This seems to be resolved now, maybe she needs to update.

@Nick L.

These are some great ideas. You're right in that I have a lot of things going for me in this scenario, and that I just need to figure out how to play my options. Once I figure out what all those options are ;)

Thanks for the tips!

@Nick L.

I got it. I thought that's what you were intending to say, so my understanding here is correct.

As for DCF, I am going to read into these links you've provided. Thanks for that.

Final thought. Is this kind of deal something that could be acquired with little or no money? I'm not familiar with commercial terms, but I know they are different. Does an owner financing scenario make any sense?