Real estate investing can be a highly profitable venture, but it also requires a significant amount of capital to get started. This is where business bank accounts for real estate investors come into play. Having the right business bank account can make all the difference when it comes to managing your finances, and can help you to grow your business and maximize your profits. In this article, we will discuss the best business bank accounts for real estate investors, and what you should look for when choosing a bank account.
Relay offers a simple two-tier pricing plan. You can get started with no monthly fees and no account minimums. When you upgrade to the Pro plan, you’ll benefit from additional features such as free domestic and international wire transfers, or the ability to auto-import bills from QuickBooks and Xero.
Bluevine business checking comes with no monthly fees. Plus, the account provides an impressive list of benefits such as integration with online business tools, sub-accounts to help you manage your finances, and two free checkbooks.
Chase Business Complete Checking comes with Chase QuickAccept which allows card payments to be processed on your mobile device, so you receive deposits the same day to help manage cash flow within your business.
What we like
In person customer support (except Alaska & Hawaii)
Axos Bank business interest checking account earns a competitive rate for cash held within the account, and you'll get your $10 monthly fee waived by holding a minimum balance of $5,000. If you keep a decent amount of cash in your account, this could be an ideal account.
Lili’s business checking account comes with features that help users keep their banking costs low, optimize their taxes, and manage their business’s finances.
Novo allows easy integration with third-party accounting software, including Quickbooks and Xero. You can also link your Novo debit card to your Google Pay or Apple Pay Wallet. Novo also syncs with your Stripe processing account and easily integrates with Slack to get automated updates on your bank account.
If you are looking for a business checking account that is easy to use and with almost no fees, you might want to consider Novo. The bank account is also accessible in the app store for both iOS and Android devices.
What we like
Free ACH transfers, mailed checks, and incoming wires
NorthOne helps you manage your finances with its invoicing app, budgeting tool by creating an unlimited number of sub-accounts with the envelope functionality, and integrating with a suite of business tools and software.
What we like
Budgeting tool to help manage your finances
Smart integrations with business tools
Send invoices from the app
Low minimum deposit
No hidden fees
Unlimited transactions with no fee
What we don't
$10 monthly fee
No in persona customer support
Why do real estate investors need a business bank account?
Real estate investors need a business bank account for a number of reasons. First and foremost, it is important to keep personal and business finances separate. This is not only good for tax purposes, but it also helps to protect your personal assets in the event that your business is sued. Additionally, a business bank account can help you to manage your cash flow, and access the financial resources that you need to grow your business.
Types of business bank accounts for real estate investors
When choosing a business bank account for your real estate investing activities, there are several types to consider. The most common types include:
Checking Accounts: These are the most basic type of business bank account and are used for everyday transactions like paying bills, making deposits, and withdrawing cash.
Savings Accounts: These accounts are designed to help you save money and earn interest on your deposits. They are often used to save for long-term goals like buying a property or building an emergency fund.
Money Market Accounts: These accounts are similar to savings accounts but often have higher interest rates and stricter withdrawal limits. They are often used as a short-term investment option.
Certificates of Deposit (CDs): These accounts are similar to savings accounts but require you to keep your money in the account for a set period of time (often several months to a few years) in order to earn a higher interest rate.
Benefits of different types of business bank accounts
There are a few different types of business bank accounts available for real estate investors, each with its own set of benefits. These include:
Checking account: A checking account is a basic type of business bank account that allows you to write checks and use a debit card. This type of account is great for real estate investors who need to make a lot of transactions.
Savings account: A savings account is a great way to earn interest on your deposits. This type of account is ideal for real estate investors who are looking to save money for future investments.
Money market account: A money market account is a type of savings account that offers a higher interest rate. This type of account is ideal for real estate investors who have a lot of cash on hand.
CD account: A CD account is a type of savings account that allows you to earn a fixed interest rate for a set period of time. This type of account is ideal for realestate investors who are looking to save money for a specific purpose.
Credit card account: A credit card account can be a great way to build credit and earn rewards. This type of account is ideal for real estate investors who are looking to take advantage of credit card benefits.
Features to Look for in a business bank account for real estate investors
When choosing a business bank account for your real estate investing activities, there are several features to look for. Some of the most important include:
Low or No Fees: Look for a business bank account with low or no monthly fees, as this can save you money in the long run.
High Interest Rates: Look for a business bank account with high interest rates, as this can help you earn more on your deposits.
Online and Mobile Banking: Look for a business bank account that offers online and mobile banking, as this can make it easier to manage your account and track your transactions.
ATM Access: Look for a business bank account that offers free or low-cost ATM access, as this can save you money on withdrawal fees.
Check Writing: Look for a business bank account that allows you to write checks, as this can be useful for paying bills and making other transactions.
What to look for in a business bank account for real estate investors
When choosing a business bank account for real estate investors, there are a number of things to consider. Here are some of the most important factors to keep in mind:
Fees: Business bank accounts can come with a variety of fees, such as monthly maintenance fees, ATM fees, and check-writing fees. Be sure to compare the fees of different accounts to find the one that is most cost-effective for you.
Interest rates: Some business bank accounts offer interest on your deposits, while others do not. If you are looking to earn interest on your money, be sure to find an account that offers a competitive interest rate.
Credit card processing: If you plan to accept credit card payments, be sure to find a business bank account that offers credit card processing services.
Online banking: Many business bank accounts offer online banking services, which can be extremely convenient for real estate investors. Look for an account that offers online banking services, so that you can manage your finances from anywhere.
Customer service: The customer service offered by your business bank account is also an important consideration. Be sure to find an account with a bank that has a good reputation for customer service, so that you can get the help and support that you need.
How to choose the best business bank account for real estate investors
Choosing the best business bank account for real estate investing can seem like a daunting task, but with a little research and consideration, you can find the right account for your needs. Here are a few tips for choosing the best business bank account for your real estate investing business:
Consider your specific needs: Before you start looking for a business bank account, take some time to consider your specific needs as a real estate investor. Are you looking for an account with low fees? Do you need a checking account or a savings account? Knowing what you need in a bank account will make it easier to find the right one.
Compare fees: Different business bank accounts come with different fees, so it’s important to compare the fees of different accounts before making a decision. Look for accounts with low monthly maintenance fees, low ATM fees, and low fees for transactions.
Check the interest rate: As a real estate investor, you may have a lot of cash on hand, so it’s important to find an account that offers a competitive interest rate. Compare the interest rates of different accounts to see which one will give you the best return on your money.
Look for online and mobile capabilities: As a real estate investor, you may be on the go a lot, so it’s important to find an account that offers online banking and mobile app capabilities. This will make it easier for you to access your finances on the go.
Read the fine print: Before you sign up for a business bank account, make sure to read the fine print and understand all the terms and conditions. This will help you avoid any surprises down the road.
By considering your specific needs, comparing fees, checking the interest rate, looking for online and mobile capabilities, and reading the fine print, you can find the best business bank account for your real estate investing business.
