If you are a real estate investor, you have probably felt the frustration of dealing with your bank. Most banks are not set up for working with real estate investors, making banking a major pain point. Today, I want to walk you through my review of Relay Bank, which I switched to several months ago. Relay is designed for business banking and caters well to real estate investing. I will walk you through what I love about it, its features, pros and cons, and who it’s best suited for.
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If you are thinking about QuickBooks as part of your investment portfolio organization, check out episode 20 of my podcast, where I review QuickBooks and discuss the must-use features for real estate investors.
Now, let’s talk about Relay Bank. I will explain what makes a bank ideal for real estate investors, highlight four key features of Relay Bank that I find powerful, and discuss its pros and cons to help determine if it’s a good fit for you. Switching banks is a hassle, so it’s important to choose one that will serve you well long-term.
Real estate investing involves numerous bank transactions. Income from different properties, mortgage payments, maintenance costs, and payments to cleaners all add up. Even if you use a credit card, that money still moves through your bank. A banking system that simplifies cash management, provides analytics, and automates transactions without high fees can be a game-changer. Traditional banks often limit the number of accounts you can open, charge high wire fees, and lack automation, making money movement costly and time-consuming.
When searching for a business bank, I wanted one that allowed easy management of multiple accounts, had low fees, offered automation, and provided a seamless user experience. Relay Bank checked all those boxes.
One of Relay Bank’s standout features is that it allows multiple checking accounts for easy fund management. It’s specifically designed for business banking, making it a great fit for real estate investors. Relay allows up to 20 business checking accounts, making it easy to separate funds for different properties, security deposits, and operational expenses. Savings accounts are also available with slightly higher interest rates. This setup is particularly beneficial for those with multiple LLCs, as it simplifies keeping funds separate for legal protection.
Relay is also perfectly suited for the profit-first model, where money is divided into categories like income, operating expenses, owner’s pay, and taxes. The ability to create multiple accounts makes it easy to allocate funds accordingly.
Another advantage of Relay is its low or no fees, which helps protect your bottom line. Traditional banks often charge monthly account fees, overdraft fees, and high wire transfer costs. Relay eliminates many of these charges. There are no monthly account fees, no overdraft fees, and free incoming wires. Outgoing domestic wires cost just $5, which is significantly lower than many competitors.
Relay also offers automated wire transfers and rules to streamline cash flow. You can set rules to automatically allocate rental income for mortgage payments, reserves, and property expenses. If your operating account drops below a set balance, Relay can automatically transfer funds from reserves, reducing the risk of running short or having excess idle cash.
Relay’s online and mobile banking experience is another highlight. Unlike traditional banks that rely on in-person visits, Relay is fully online and designed for digital efficiency. The desktop and mobile apps are user-friendly, allowing seamless navigation. Relay also supports team banking access, making it easy to grant access to business partners while maintaining security protocols.
Now, let’s talk about the pros and cons of Relay Bank for real estate investors. The pros include its business-focused features, the ability to open up to 20 checking accounts, no monthly fees, low wire transfer costs, automated money transfers, and a seamless digital experience. Relay is particularly beneficial for investors using the profit-first model or managing multiple LLCs.
However, there are some drawbacks. Relay has no physical branches, so if you prefer in-person banking, it may not be the best fit. Additionally, cash deposit options are limited, making it best suited for investors who primarily handle electronic transactions. Transfers can take a few days, so those needing instant access to cash may find this inconvenient.
Overall, Relay Bank is an excellent choice for real estate investors looking for a digital-first, business-focused banking solution. It is ideal for those who manage multiple properties, need to separate funds easily, and prefer an online banking experience. If you prefer traditional in-person banking, you may want to explore other options.
If you found this review helpful, give this post a like and subscribe for more insights on optimizing your real estate investing. I regularly review tech and financial tools to help you manage your portfolio like a business. Let me know in the comments—what banking setup do you use for your real estate investments? Be sure to tune in for my next post, and I’ll see you soon!