Author Topic: Banking for Real Estate Investment  (Read 2446 times)


  • 5 O'Clock Shadow
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Banking for Real Estate Investment
« on: November 28, 2012, 10:12:08 AM »
My brother and I are planning to open up a joint bank account (checking & saving) and pool our money together for future properties.  Instead of shifting money around like we've been doing when a property comes up, it'll simplify the money trail so the loan companies can stop hassling us for explanations.  We're both responsible and we don't have trust issues, so that won't be a concern.  He's very nonchalant about staying on top of things, so I will be mainly taking care of everything.  It'll be just a way to direct deposit equal amount of money to a single source.

Any pros and cons to this that I'm not aware of?
Is there a reason to open a personal vs business account for this?



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Re: Banking for Real Estate Investment
« Reply #1 on: November 28, 2012, 05:13:08 PM »
Any pros and cons to this that I'm not aware of?

Potentially ruining a family relationship.

Something like this just sounds headed for disaster.

There is no reason you can't each have your own account, then use statements from those two accounts to show down payment funds. (I.e. you show 25k funds in one, he shows 25k funds in one for 50k total).

Hope it works out well for you though.
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  • Stubble
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Re: Banking for Real Estate Investment
« Reply #2 on: November 28, 2012, 05:32:07 PM »
It's great that you trust each other and have found a way to make it easier to deal with the banks. But I would still plan for the unexpected.

I have seen agreements based on trust alone become warped, painful, and difficult to sort out correctly and fairly. The presence of trust does not eliminate the need for documentation. In fact, it should make it easier since you have common ground and goals. Make it as simple or thorough as you want, but something should be in writing.

Ask yourself what kinds of circumstances might arise where you want clarity on  how to respond. For example, what if one of you experiences an emergency or worse and access to the cash is needed? Do you have other family members that will need to get involved? Etc.


  • 5 O'Clock Shadow
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Re: Banking for Real Estate Investment
« Reply #3 on: November 30, 2012, 01:13:57 PM »
I have to agree with the others, this does not sound like a good idea.

The little bit of extra work in your paper trail is better than the potential for personal problems between you and your brother.