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Entering Real Estate/Business accounts

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Contributor

Entering Real Estate/Business accounts

Hey guys, I’m not sure this is in the right place so please move if appropriate.

I’m considering going into real estate while maintaining a more conventional form of employment (paid twice a month, guaranteed income). This has lead me to a lot of questions and I was hoping for your brilliant guidance!

1) Is it advisable to open business accounts, if I’m even eligible, from the very beginning to keep things separated? I’m thinking checking (everyday stuff), savings (taxes), and a CC or two to benefit from the desk/membership fees, marketing, etc etc.

2) Would reported income be my main employment since it’s a personal guarantee?

3) Is it wise to keep personal and business accounts, again if eligible, at separate banks?

TIA
In my wallet• US Bank Altitude Reserve ($9k), Chase Sapphire Preferred ($17.2k), Amex Bonvoy Brilliant ($8k)
Utilities• US Bank Cash+ ($4.5k)
Others• Amex | Gold (NPSL $30k POT), EDP ($12k), Hilton Honors ($1k), Delta Gold ($1k), BCE ($1k) • BBVA Clear Points ($6k) • Capital One | QS ($850), QS1 ($750), Venture ($15k) • Chase Hyatt ($8.6k) • Citi | AA Plat Select ($5.8k), Premier ($3.6k) • Discover ($10.8k) | PenFed PCR ($1k)
F8 —-Current EQ•697 TU•711 EX•684
All scores have increased approx 100 points in last year | $100k+ Unsecure TCL
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Established Contributor

Re: Entering Real Estate/Business accounts

Bueller...Bueller...
Anyone?
In my wallet• US Bank Altitude Reserve ($9k), Chase Sapphire Preferred ($17.2k), Amex Bonvoy Brilliant ($8k)
Utilities• US Bank Cash+ ($4.5k)
Others• Amex | Gold (NPSL $30k POT), EDP ($12k), Hilton Honors ($1k), Delta Gold ($1k), BCE ($1k) • BBVA Clear Points ($6k) • Capital One | QS ($850), QS1 ($750), Venture ($15k) • Chase Hyatt ($8.6k) • Citi | AA Plat Select ($5.8k), Premier ($3.6k) • Discover ($10.8k) | PenFed PCR ($1k)
F8 —-Current EQ•697 TU•711 EX•684
All scores have increased approx 100 points in last year | $100k+ Unsecure TCL
Message 2 of 5
Established Member

Re: Entering Real Estate/Business accounts

Keep business and personal accounts separate.

Consult an attorney and a CPA about business entity structure and tax issues.

Business apps will ask for business income (which can be zero if you are just starting) and household income.

Same bank or different banks is a personal decision. If you are looking at a particular bank for a biz CC, you might consider a business account with that bank (Chase bank for Ink CC, etc.).
Message 3 of 5
Highlighted
Established Contributor

Re: Entering Real Estate/Business accounts

Thank you!

There really isn't much entity or structure. Work for a broker (10-99 income).

Understood

I was thinking Amex BBP since I have a personal relationship with them. Chase is a definite want as well, I have CSP (turning CSR) and Hyatt with two personal deposit accts.

Thanks again for the wisdom!
In my wallet• US Bank Altitude Reserve ($9k), Chase Sapphire Preferred ($17.2k), Amex Bonvoy Brilliant ($8k)
Utilities• US Bank Cash+ ($4.5k)
Others• Amex | Gold (NPSL $30k POT), EDP ($12k), Hilton Honors ($1k), Delta Gold ($1k), BCE ($1k) • BBVA Clear Points ($6k) • Capital One | QS ($850), QS1 ($750), Venture ($15k) • Chase Hyatt ($8.6k) • Citi | AA Plat Select ($5.8k), Premier ($3.6k) • Discover ($10.8k) | PenFed PCR ($1k)
F8 —-Current EQ•697 TU•711 EX•684
All scores have increased approx 100 points in last year | $100k+ Unsecure TCL
Message 4 of 5
Member

Re: Entering Real Estate/Business accounts

Which ever bank you decide on, watch out for mothly service fees. When we started looking most wanted to charge a monthly service fee on our checking account unless we kept a pretty high minimum monthly balance. We went with Wells Fargo because they wave the fee if we have an automatic monthly transer to an associated savings account and a minimum of 10 transactions per month on the debit card. Since our "business" is owning a few rental properties, it's easy to get the 10 transactions. About a year after opening the accounts they started sending us pre-approved offers for a business credit card with no annual fee and a little cash back on purchases. Will probably apply as soon as I get my FICO up a little.

Keeping your business and personal accounts separate is a great idea, but they don't need to be in different banks IMO.

Starting Score (4/1/19 TU FICO 8): 600
Current Score (4/20/19): 600
Goal Score: 780


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