The American Express business checking account lets you open multiple accounts under one account holder, and is free to open, plus it pays you interest. I like it so far.
Why not have a business credit card that will earn you points for every purchase? We earn great points from a business Ink card from Chase. We can use points for travel and other things. Paying vendors through the bank or Zelle earns nothing.
So what account to you pay for your cell phones & home internet, equipment used to maintain the yard? Things that are business expenses but have to be divided between your properties. Sorry to get so detailed but I think we all have these questions. Thank you
This makes a lot of sense and is basically the envelope system. One way to do this same exact system and keep all monies in the same account is to use YNAB, or You Need a Budget. It will be simpler than using different bank accounts, trust me! YNAB is an online budgeting system that uses the envelope method and zero-based accounting, where you have to give every dollar a job, such as op-ex, owner's account, etc. I've been using YNAB for about 4 years now and it's been a huge game changer in terms of managing my finances. It links with my accounts and I reconcile once a week.
Couple questions: First, didn’t I see that you’re only able to setup 30 accounts per LLC? That means you have enough accounts for roughly 12-13 properties (tax, profits, then Opex and researches per prop, etc.) Or was that in reference to other banks? And that goes along nicely with, did you choose to setup an LLC per property to mitigate liability between each property and yourselves/other properties? Second, why didn’t you set all this up, but with business credit cards? It seems to me that if everything were filtered through credit instead of debit, you would be racking up the points in the points and miles game of credit cards. If you’re planning to spend the money anyway with cash (debit), why not put it on a business credit card, pay it off with the cash (debit) you were planning to spend it on anyway, then net the point/miles towards free travel, etc.? I know you’ve thought of this, and you’ve decided against it, so why? Leaving this much free on the table must have a good reason. What is that reason? Thanks guys!!
Agree with you here, seems like a good idea to setup a business credit card and establish credit and only use it for business expenses and pay it off every month. Or I plan to do a balance transfer from personal to business credit card for some remodel expense I could put off for a while with 0% transfer for 18-24 months
Also what do you think about the lost benefit of not using credit cards? For example, points collected or the protections like chargebacks for bad service/products? If a business has $10K/month operational expenses that’s $120K/year which can be worth thousands of dollars per year. Especially with Amazon, when you can get 5% cashback!
Our 3 STR's are on the same property as 2 of our long term rentals. They share a water meter, trash dumpster, property taxes (duplex). I so with we could have a separate account for each property. I spend so much time separating expenses and income. I do keep a profit and loss on each individual property. Thanks for the great information.
On my second one; so far almost 100% each one for this month.. and some of December.. I just a started a month ago, I got a 1b/1b not pretentious place but happy clients :) , the studio.. luxury and comfortable.. thank you a lot I’ve been a little too lenient with spending my money, I have 2 toddlers, and you know how kids be.. can never spoil them too much. But I appreciate this video so so much! The thing with me is, I have a w2 my co host and baby daddy does cleanings as well we do it together and bring our kiddos.. I want no money going to me but to him, as it’s his only 1099 job on paper. And I keep my children’s Medicaid. I saw a video of a tax attorney saying to avoid self employment tax when it comes to Airbnb is claiming we do less work and don’t provide a service. “Rendered service” can I ask your experience of your first year of tax reporting ? How did that look like..
My first thought is, my business will be way more organized with ONE bank account, not 5. After all, i only need one account to receive the payments in.
Hey guys, thank you for your videos, they make a difference! Bookkeeping is one of the most intimidating parts as a newbie with only one STR and this helps!
Thanks so much Tony and Sara this is incredibly helpful! I am SICK of PNC Bank… I have two questions: 1. If you use Relay, are you able to withdraw cash? I’m only used to going to my designated banks atm if I ever need any. 2. What’s the advantage of using the debit as opposed to a credit card? Is the sole benefit because you can immediately start using it’s own virtual card? Thanks so much for all this value. I’m looking forward to getting into short term rentals!
Hi Guys, I would like to know how many towels do you guys leave in your Airbnb? And what color towels are you using? And do you use white sheets and pillowcases only? Thanks
Hello the Robinsons, this will be my first Airbnb, I’m a senior citizen with that said can you please bring down for me the owners pay and the profit account. I can’t wrap my head around how did you do the pay. Thank you
This is one of you guys' best videos! Saving this for sure... Just wish that you split it into two parts - the accounts and how/where to open them. Love what you guys do. Keep up the awesome work. #TrinidadisWatching
Hey great stuff and I learned alot. I just got relay but been reading so many concerning details like they shutdown people's accounts out of nowhere. Is this true?
This was extremely valuable content. Thank you! When you are setting up a property and furnishing it for Airbnb.. are you using a business credit card or paying for it straight out of the operating expense account? What are pros/cons of each? Business credit cards earn you reward points to be redeemed so it’ seems like the obvious choice. Does this make tracking business expenses much more difficult compared to just paying straight out of the operating expense account? If someone could please share some knowledge on this. Is it just as easy to track expenses running it through the business credit card first and then paying it in full from operating expense account? And then also having the benefit of racking up reward points. Or does it make bookkeeping more difficult? Ig im trying to understand why they would not use a business credit card when setting up a property.
Hey you all! It’s Erikan from Etiwanda, we were in Rosenbloom’s English class in 10th grade, back when you all just started dating. Congrats on your success! Super inspiring and UA-cam just sent you to me. Prince and I talked about your Airbnb business almost two years ago and it’s cool to see your milestones now. PS Looooove profit first and also obsessed with bookkeeping
Where would money be coming from if you were to create a new account for a new property? Operating/reserve account from another property, owners pay account, profit account, or would you need to deposit from your personal account since this is a new investment?
Is there still a Relay “bonus” for us if we sign up using your link, because we didn’t see one…. Also, can you make the checking accounts using your LLC name instead of your own name? Because it just says First Name and Last Name when you want to sign up. Thanks.
Great video guys, would love to see a video on the bookkeeping side and how you keep each property separate. What bookkeeping software do you use and how do you set that up for each account if you had say 20 properties Thanks!
Super helpful! Thank you for sharing! I am curious how scalable this approach is. If you had 30 properties, would you have to open 60 accounts in Relay? (30 opex and 30 emergency fund accounts). This also doesn’t seem possible because Relay only allows 30 accounts under one LLC?
This seems like a great option but what if you don’t have a registered business yet? It seems like this is only for people who are already really established. What about for people who are just doing one room in their own home but want to keep accounts separate
Hey guys how do you navigate setting up Relay accounts when you have different STR’s in different states that are in different LLC/Business Account. (Not looking for legal advise on LLC Setup) Just wanted to get some insight into how you guys navigate Bank Accounts setup. For example you have different op ex accounts for each property. If a property is under a different LLC can you manage your accounts with different LLC STR’s from one dashboard or would you need to have a separate login to manage a group of STR’s that you might have held in a different LLC. I hope this question makes sense. Thanks for any thoughts or feedback.
I really hope this becomes one of the most watched videos on your channel. Anyone who wants to start a business like this should understand the nitty gritty too! Thanks guys, I’m like halfway through Profit First and it’s fantastic
So… does like each Airbnb have its own legal entity? Or are y’all using one LLC to operate all these accounts? I’m a commercial property manager so I’m used to seeing each asset have its LLC.
Super helpful. Love the thought behind setting up individual accounts for each property. Question for people looking to scale: which account do you use to save up to buy more properties with? Is that just from your profit accounts? I also prefer to use a business credit card for purchases, but I can understand how the simplicity of those Relay debit cards are helpful!
I was about to ask- why not use credit cards for the points. But I can see how that can get messy opening up a lot of credit cards for each property. I wonder if there’s a bank who would allow us to open multiple credit cards in this similar manner to relay with debit cards. And keep it all in one account
What do you recommend if you have a triplex and two of the units are airbnbs? Would you do separate OPEX accounts per Airbnb or one since it is the same property? How about for the property reserves?
Thanks for an awesome video! I read the book but it’s more general but your video is more Airbnb specific. Super helpful! By the way, I opened an account following your referral link but did not get any of the bonuses you mentioned in the video. Do you know if there is an expiration date on it?
If Airbnb let you split deposits by property, would you still use this system? We split the income by property when exporting from Guesty with their data export feature, so wondering if it’s worth opening separate account for each property.
Thanks for sharing very helpful. I can see doing this as an owner/investor but doesn't seem feasible if you are focusing on scaling as a full vacation rental business with 10+ properties, rental arbitrage and vacation rental management.
@@magalieatilus4152 that what i thought as well but when you are managing other people money, then I believe you have to go through trust accounting and things get to be really messy...
How does your bookkeeper overseas keep up with the latest U.S. Tax Best Practices? Or are they just crunching numbers 🤔 Sounds like you have that part pretty organized yourselves.
Hi Tony. I'm a BP member and found you through the Rookie podcast. Thanks for all you do to help other investors. My question is - When buying a property for a STR do any of these 5 accounts come into play or are you purchasing the property in a different account? TIA
This is the best. I took a lot of notes. Thank you! I need some clarification on the Reserves and Owner's Pay accounts... do I need one account per property or just one for the entire business? I'm assuming reserves would need one account per property?
@@TheRealEstateRobinsons how about if we don't have an LLC for Relay? I tried to sign up for Relay but it needs a website, a business entity and all that. I have one duplex that's a long-term rental and was planning on putting Relay to use but no LLC. Any second best option for a bank?
For clarity and as an example, if i have a Holdings LLC and two properties, do you recommend 3 Relay business accounts? One for the holding LLC, one for Property A and one for Property B? Then would you have the TAX HOLD and PROFIT accounts under the Holdings LLC and the OPEX, Reserve , etc under each of Property A and B? In Relay you can add an account, but you can also add a ‘business’. I just want to be sure I am clear on the way you guys do it and see if that fits my needs. Thanks in advance and great video!!
Question , when you find someone willing to invest on a property for you what is a fair deal? I heard some people make the investor put all the down payment for the property while the one running the show gets 50% stake and some equity. Is that actually a fair deal? Also who pays for renovations and any repair work in that case?
Great video guys as always. Moving money between account in Relay is easy; but you actually need to enter an specific amount to move from an account every month, In your video it is $150. It would be nice if Relay can auto move the money based on the percentage set, every time money is deposited in the “TRANSFER FROM” account.
@@TheRealEstateRobinsons Just send Relay team a feedback to add this in their future updates. In the meantime, I use another software called ASTRA to autopilot the percentage deposit.
FIVE ACCOUNTS???? Doesn't that make things MORE confusing when doing your accounting? I remember when my wife and I bought our first home for us, we had like 3 accounts. My wife had hers, WE had a checking acct together and I had my business account. When applying for a mortgage, they were like, "Why don't you have ONE bank account? It would make your book keeping so much easier." Five Accounts just seems to make it more confusing. Just dealing with ONE STR. If you have more than one STR, then yes, I can understand one account for each house.
This looks great. I'm currently using Novo and I like it, but the extra account possibilities here are very intriguing. My biggest problem with Novo is that they don't support paper checkbooks and it appears that Relay doesn't either. How do you get around the need for writing checks to contractors when doing renovations?
Great stuff as always! Always gotta keep business separate from personal accounts, but I can see it becoming quite problematic having 4 accounts for each unit or house as you start scaling past 10, 20 listings. Unless you can keep track of 80+ business accounts, which I don't think I could, lol!
This was very helpful! Question - why not set up the Property Reserves, Profit Hold and Tax Hold accounts, as savings accounts, rather than checking? If you are only making infrequent withdrawals quarterly, annually and for major emergencies, it would seem they wouldn't need to be checking accounts. Thanks! @therealestaterobinsons
The American Express business checking account lets you open multiple accounts under one account holder, and is free to open, plus it pays you interest. I like it so far.
Why not have a business credit card that will earn you points for every purchase? We earn great points from a business Ink card from Chase. We can use points for travel and other things. Paying vendors through the bank or Zelle earns nothing.
Did they give you a decent credit limit when first opening?
How do you manage everything if you have one chase card and multiple properties?
What’s the rate
word
better off with a straight cash-back card.
So what account to you pay for your cell phones & home internet, equipment used to maintain the yard? Things that are business expenses but have to be divided between your properties. Sorry to get so detailed but I think we all have these questions. Thank you
This makes a lot of sense and is basically the envelope system. One way to do this same exact system and keep all monies in the same account is to use YNAB, or You Need a Budget. It will be simpler than using different bank accounts, trust me! YNAB is an online budgeting system that uses the envelope method and zero-based accounting, where you have to give every dollar a job, such as op-ex, owner's account, etc. I've been using YNAB for about 4 years now and it's been a huge game changer in terms of managing my finances. It links with my accounts and I reconcile once a week.
I'm glad y'all explained this. I read "Profit First" as well as you both not too long ago and have been trying to set my accounts up properly
Your guys channel has made my month. Looking to get into airbnb’s very soon and you guys break down everything so well. Seriously thank you. 🙏
SBA accounting 101. Good advice on the money side of running a STR rental business. Thanks for sharing
Couple questions: First, didn’t I see that you’re only able to setup 30 accounts per LLC? That means you have enough accounts for roughly 12-13 properties (tax, profits, then Opex and researches per prop, etc.) Or was that in reference to other banks? And that goes along nicely with, did you choose to setup an LLC per property to mitigate liability between each property and yourselves/other properties?
Second, why didn’t you set all this up, but with business credit cards? It seems to me that if everything were filtered through credit instead of debit, you would be racking up the points in the points and miles game of credit cards. If you’re planning to spend the money anyway with cash (debit), why not put it on a business credit card, pay it off with the cash (debit) you were planning to spend it on anyway, then net the point/miles towards free travel, etc.? I know you’ve thought of this, and you’ve decided against it, so why? Leaving this much free on the table must have a good reason. What is that reason? Thanks guys!!
Agree with you here, seems like a good idea to setup a business credit card and establish credit and only use it for business expenses and pay it off every month. Or I plan to do a balance transfer from personal to business credit card for some remodel expense I could put off for a while with 0% transfer for 18-24 months
I saved this so I can watch it a few times. I am in the process of setting up our first Airbnb and needed this video. Thank you!!!
Amazing! We definitely want this video to be an ongoing resource for people!
Also what do you think about the lost benefit of not using credit cards? For example, points collected or the protections like chargebacks for bad service/products?
If a business has $10K/month operational expenses that’s $120K/year which can be worth thousands of dollars per year. Especially with Amazon, when you can get 5% cashback!
Wouldn’t it benefit you more using credit cards for cash back or miles rewards instead of setting up a bunch of debit cards for purchases?
We use a CC to for all of our flips, but switch to the debit cards for ongoing OPEX. Whatever works for you though!
You don't sound like a savvy business person using debit cards. That's throwing away money, no real buisness person does that
Our 3 STR's are on the same property as 2 of our long term rentals. They share a water meter, trash dumpster, property taxes (duplex). I so with we could have a separate account for each property. I spend so much time separating expenses and income. I do keep a profit and loss on each individual property. Thanks for the great information.
I need more of this!
On my second one; so far almost 100% each one for this month.. and some of December.. I just a started a month ago, I got a 1b/1b not pretentious place but happy clients :) , the studio.. luxury and comfortable.. thank you a lot I’ve been a little too lenient with spending my money, I have 2 toddlers, and you know how kids be.. can never spoil them too much. But I appreciate this video so so much! The thing with me is, I have a w2 my co host and baby daddy does cleanings as well we do it together and bring our kiddos.. I want no money going to me but to him, as it’s his only 1099 job on paper. And I keep my children’s Medicaid. I saw a video of a tax attorney saying to avoid self employment tax when it comes to Airbnb is claiming we do less work and don’t provide a service. “Rendered service” can I ask your experience of your first year of tax reporting ? How did that look like..
My first thought is, my business will be way more organized with ONE bank account, not 5. After all, i only need one account to receive the payments in.
Brilliant idea about 5 accounts! I followed your advise!
Hey guys, thank you for your videos, they make a difference! Bookkeeping is one of the most intimidating parts as a newbie with only one STR and this helps!
I just started my one str. How's yours going?
Whow! Wow! Verry important information.... im thinking about starting a new air bnb. - abitrage for now till i can scalr to buy a spot
Thanks so much Tony and Sara this is incredibly helpful! I am SICK of PNC Bank… I have two questions:
1. If you use Relay, are you able to withdraw cash? I’m only used to going to my designated banks atm if I ever need any.
2. What’s the advantage of using the debit as opposed to a credit card? Is the sole benefit because you can immediately start using it’s own virtual card?
Thanks so much for all this value. I’m looking forward to getting into short term rentals!
Can I create a Relay acct with an LLC? We have a STR in CA in an LLC and would like to have a business account?
Hi Guys,
I would like to know how many towels do you guys leave in your Airbnb? And what color towels are you using? And do you use white sheets and pillowcases only? Thanks
Thanks for this valuable info regarding Relay! 😊
Of course! We hope this breakdown was helpful!
@@TheRealEstateRobinsons It is! Looking forward to your follow up video you mentioned.
Hello the Robinsons,
this will be my first Airbnb, I’m a senior citizen with that said can you please bring down for me the owners pay and the profit account. I can’t wrap my head around how did you do the pay. Thank you
Do you have a flow chart for these accounts? Would love to see a diagram/flow chart. Thanks! :)
You got it, just subscribed. Thanks for the great info!!
Do you have a current bookkeeper you can recommend? Thank you!
This is the best! I've been waiting for a video like this. Definitely saving this one for future reference as well! Great video Tony and Sarah!
Thanks guys for these precious advices really appreciated!!!
This is one of the most amazing and helpful STR videos out there! Are all of these accounts checking accounts or is any of them savings?
Great video!!!
New subbie. Love your channel!
Not sure if this was already asked but how does this work in Quickbooks? Do you know of a helpful resource?
so helpful thank you!
This is one of you guys' best videos! Saving this for sure... Just wish that you split it into two parts - the accounts and how/where to open them.
Love what you guys do. Keep up the awesome work.
#TrinidadisWatching
Hey great stuff and I learned alot. I just got relay but been reading so many concerning details like they shutdown people's accounts out of nowhere. Is this true?
Great information! Thanks!
How long does the approval process take when setting up an account?
I'm looking forward to more follow up videos on this topic!
This was extremely valuable content. Thank you!
When you are setting up a property and furnishing it for Airbnb.. are you using a business credit card or paying for it straight out of the operating expense account? What are pros/cons of each?
Business credit cards earn you reward points to be redeemed so it’ seems like the obvious choice. Does this make tracking business expenses much more difficult compared to just paying straight out of the operating expense account?
If someone could please share some knowledge on this. Is it just as easy to track expenses running it through the business credit card first and then paying it in full from operating expense account? And then also having the benefit of racking up reward points. Or does it make bookkeeping more difficult?
Ig im trying to understand why they would not use a business credit card when setting up a property.
Excellent video! Thanks for the thorough details 👍🏽
Hey you all! It’s Erikan from Etiwanda, we were in Rosenbloom’s English class in 10th grade, back when you all just started dating. Congrats on your success! Super inspiring and UA-cam just sent you to me. Prince and I talked about your Airbnb business almost two years ago and it’s cool to see your milestones now. PS Looooove profit first and also obsessed with bookkeeping
Literally I’ve watched you all doing all the different things over the years from books/parenting (Tony) to pastries/comedy (Sara) keep going!
This was PHENOMENAL. Been looking into a bunch of different online banks and haven't settled on anything until now. Keep up the amazing content!
Awesome! So glad you found some value! Be sure to use our Relay referral link to get those bonuses
Where would money be coming from if you were to create a new account for a new property? Operating/reserve account from another property, owners pay account, profit account, or would you need to deposit from your personal account since this is a new investment?
Does anyone know what the maximum amount per day that can be sent via domestic wire transfer is for Relay Financial?
Wow! This is gold!!!!! Thanks so much and I’ll be using that referral code. You guys have helped me a ton! 🥂 cheers from your Cali neighbor
Is there still a Relay “bonus” for us if we sign up using your link, because we didn’t see one….
Also, can you make the checking accounts using your LLC name instead of your own name? Because it just says First Name and Last Name when you want to sign up. Thanks.
Great video, i can't wait to start my airbnb
Great video guys, would love to see a video on the bookkeeping side and how you keep each property separate. What bookkeeping software do you use and how do you set that up for each account if you had say 20 properties Thanks!
Super helpful! Thank you for sharing!
I am curious how scalable this approach is. If you had 30 properties, would you have to open 60 accounts in Relay? (30 opex and 30 emergency fund accounts). This also doesn’t seem possible because Relay only allows 30 accounts under one LLC?
I rent out one room in my home and planning to do a second, should I set up two account even though they are in one home
Great info for a Newby like me 👍🏾👍🏾👍🏾
This seems like a great option but what if you don’t have a registered business yet? It seems like this is only for people who are already really established. What about for people who are just doing one room in their own home but want to keep accounts separate
Hey guys how do you navigate setting up Relay accounts when you have different STR’s in different states that are in different LLC/Business Account.
(Not looking for legal advise on LLC Setup)
Just wanted to get some insight into how you guys navigate Bank Accounts setup.
For example you have different op ex accounts for each property. If a property is under a different LLC can you manage your accounts with different LLC STR’s from one dashboard or would you need to have a separate login to manage a group of STR’s that you might have held in a different LLC.
I hope this question makes sense. Thanks for any thoughts or feedback.
So how did you get the Selling Sunset crew to work for you?
I really hope this becomes one of the most watched videos on your channel. Anyone who wants to start a business like this should understand the nitty gritty too! Thanks guys, I’m like halfway through Profit First and it’s fantastic
Can’t remember if they covered this but who is the book by?
@@NickSavino Mile Michalowicz. If you look it up on UA-cam he also has a great recorded seminar where he covers the book material.
@@streakingclothed thank you!
Great info! Really like that demo of how Relay works
Glad you liked it!! Be sure to use our referral link!
Amazing video, thank you!!
Thank you!!
So… does like each Airbnb have its own legal entity? Or are y’all using one LLC to operate all these accounts? I’m a commercial property manager so I’m used to seeing each asset have its LLC.
This was a great video! Thank you so much.
Glad it was helpful!
Super helpful. Love the thought behind setting up individual accounts for each property. Question for people looking to scale: which account do you use to save up to buy more properties with? Is that just from your profit accounts?
I also prefer to use a business credit card for purchases, but I can understand how the simplicity of those Relay debit cards are helpful!
Good question! We have another account called "The Vault" and yes, we take money from our Profits to fill that account up
I was about to ask- why not use credit cards for the points. But I can see how that can get messy opening up a lot of credit cards for each property. I wonder if there’s a bank who would allow us to open multiple credit cards in this similar manner to relay with debit cards. And keep it all in one account
What do you recommend if you have a triplex and two of the units are airbnbs? Would you do separate OPEX accounts per Airbnb or one since it is the same property? How about for the property reserves?
Big fan here guys! My brother and I want to buy a lake house air bnb. Hoping to do so within the next 18-24 months!
Such a dope channel !!!!
Does relay has zelle?
Great info guys! We are setting up our second Airbnb and this info is super helpful!!! Congratulations on your success and for inspiring all of us!
Glad it was helpful!
"Write that down Write that down!" -Me
Thanks for an awesome video! I read the book but it’s more general but your video is more Airbnb specific. Super helpful!
By the way, I opened an account following your referral link but did not get any of the bonuses you mentioned in the video. Do you know if there is an expiration date on it?
Did you receive your bonuses yet from mentioning them? I was thinking of opening an account with RELAY as well.
@@tarawalton6778 nope! Showed them the video but they ignored me. They are good bank tho so I’m not mad but … 🤷♂️
Are there any options to deposit or withdrawal cash?
If Airbnb let you split deposits by property, would you still use this system? We split the income by property when exporting from Guesty with their data export feature, so wondering if it’s worth opening separate account for each property.
Thank you so much for this valuable Contant! Could you provide more details on the overseas accounting?
Awesome Video! Keep it up. Signing up for Relay with your link. 🤙What bookkeeper overseas do you guys use? Currently looking for one. Thank you.
Hello I saw that only 250k is insured do you have an issue with keeping all your money in here which I’m sure Is over that limit ?
great video!! ho do you recommend for over seas accounting?
My question as well.
Hey, a little off topic here but what’s the fee per year for a LLC in Tennessee?
Thanks for sharing very helpful. I can see doing this as an owner/investor but doesn't seem feasible if you are focusing on scaling as a full vacation rental business with 10+ properties, rental arbitrage and vacation rental management.
That makes sense but I would set up different LLC’s for each type of business and nest all of them under relay. I could be wrong but just a thought
@@magalieatilus4152 that what i thought as well but when you are managing other people money, then I believe you have to go through trust accounting and things get to be really messy...
So many accounts - How do you keep track?
Is relay good for just regular investment properties as well single family
Greta point!
How does your bookkeeper overseas keep up with the latest U.S. Tax Best Practices? Or are they just crunching numbers 🤔 Sounds like you have that part pretty organized yourselves.
Hi Tony. I'm a BP member and found you through the Rookie podcast. Thanks for all you do to help other investors. My question is - When buying a property for a STR do any of these 5 accounts come into play or are you purchasing the property in a different account? TIA
Outstanding video 😎
This is the best. I took a lot of notes. Thank you! I need some clarification on the Reserves and Owner's Pay accounts... do I need one account per property or just one for the entire business? I'm assuming reserves would need one account per property?
Glad you enjoyed it! We have one Reserve account per PROPERTY, and one Owner’s Pay account for the BUSINESS.
@@TheRealEstateRobinsons how about if we don't have an LLC for Relay? I tried to sign up for Relay but it needs a website, a business entity and all that. I have one duplex that's a long-term rental and was planning on putting Relay to use but no LLC. Any second best option for a bank?
For clarity and as an example, if i have a Holdings LLC and two properties, do you recommend 3 Relay business accounts? One for the holding LLC, one for Property A and one for Property B? Then would you have the TAX HOLD and PROFIT accounts under the Holdings LLC and the OPEX, Reserve , etc under each of Property A and B? In Relay you can add an account, but you can also add a ‘business’. I just want to be sure I am clear on the way you guys do it and see if that fits my needs. Thanks in advance and great video!!
Does this bank works if I live in California and my properties are in Kona Hawaii?
Question , when you find someone willing to invest on a property for you what is a fair deal? I heard some people make the investor put all the down payment for the property while the one running the show gets 50% stake and some equity. Is that actually a fair deal? Also who pays for renovations and any repair work in that case?
@WhaTsApChat±①⑦⑥②②③②⓪⑦③⑦ not happening, scammer!
Thank you
does relay let you deposit cash?
Great info! I was just having a conversation about this issue. Can you provide me the referral link please? Thanks
Here ya go!
relayfi.com/?AffiliateProgram&TheRealEstateRobinsons&Blog&referralcode=TheRealEstateRobinsons
When is the next summit?
April 10th in Austin TX! Grab your tix here before the next price increase: STRSUMMIT.COM
@@TheRealEstateRobinsons thank you ! Do you have a course ? I ge like everyone in this arena is offering one? If do, How much is your course?
Great video guys as always. Moving money between account in Relay is easy; but you actually need to enter an specific amount to move from an account every month, In your video it is $150. It would be nice if Relay can auto move the money based on the percentage set, every time money is deposited in the “TRANSFER FROM” account.
Agreed! We’re always giving the team feedback about how they can make the product even better!
@@TheRealEstateRobinsons Just send Relay team a feedback to add this in their future updates. In the meantime, I use another software called ASTRA to autopilot the percentage deposit.
FIVE ACCOUNTS???? Doesn't that make things MORE confusing when doing your accounting? I remember when my wife and I bought our first home for us, we had like 3 accounts. My wife had hers, WE had a checking acct together and I had my business account. When applying for a mortgage, they were like, "Why don't you have ONE bank account? It would make your book keeping so much easier."
Five Accounts just seems to make it more confusing. Just dealing with ONE STR. If you have more than one STR, then yes, I can understand one account for each house.
I’m still confused what the difference is between the Profit account and Owner Pay account
Is the profit account more like you’re investment account? Like a retirement account? Wouldn’t it be better to invest that account?
I wish Relay had Zelle.. most of our cleaner/contractors use Zelle
Relay has “same day ACH” payments that work the same way as Zelle. It’s pretty amazing!
I'm a little confused... wouldn't that be A LOT of different bank accounts? Say, I have 50 air bnb rentals... I need 50+ bank accounts??
This looks great. I'm currently using Novo and I like it, but the extra account possibilities here are very intriguing. My biggest problem with Novo is that they don't support paper checkbooks and it appears that Relay doesn't either. How do you get around the need for writing checks to contractors when doing renovations?
We also use Novo. They do mail out checks directly from your account. We have done it about 2 times this year.
good to know, ill just look at 1 property lol
You use debit cards to shop on-line? That sounds really dangerous.....
S/o Selling Sunset lol
Great stuff as always! Always gotta keep business separate from personal accounts, but I can see it becoming quite problematic having 4 accounts for each unit or house as you start scaling past 10, 20 listings. Unless you can keep track of 80+ business accounts, which I don't think I could, lol!
You're wife is too distractingly pretty lol. JK love you guys!
Also, isn't it "death and taxes" not "taxes and death"?
Just don’t use Relay Financial. They are the worst.
How so?
Gold
So glad you enjoyed it!!
This was very helpful! Question - why not set up the Property Reserves, Profit Hold and Tax Hold accounts, as savings accounts, rather than checking? If you are only making infrequent withdrawals quarterly, annually and for major emergencies, it would seem they wouldn't need to be checking accounts. Thanks! @therealestaterobinsons