RENT OWN SELL
Newyork
RENT OWN SELL
Newyork
The real estate industry is one of the most lucrative industries in the world, whether you’re situated in Asia, America, or Australia.
With each transaction costing up to 6 to 7 digits a piece, and with profit margins being just as high, many high-value investors place a sizable portion of their stake in the property market.
With that said, investing in real estate is not without its challenges.
Due to the large sums of money involved, investors typically have to go through hoops to ensure that they acquire real estate with as favorable terms as possible.
One crucial aspect of fulfilling real estate transactions is the bank account you use. A specialized business bank account not only helps facilitate large bank transfers but also comes with features that can make the entire transaction go as smoothly as possible.
This article will give you more details on how to undergo the transaction more smoothly through business banking. Let’s dive straight into it.
It’s vital to understand the process of buying real estate before knowing how business banking plays a role in bettering the experience of both the buyer and seller.
At its core, for a real estate transaction to occur, there need to be three main elements: a buyer, a seller, and an agreed-upon price. If there’s an absence of any of these variables, that would mean that the transaction cannot take place.
The first part of a transaction is the seller’s decision to sell a property. Once they’ve agreed to sell it, they can gather appraisals for it and create a relevant sales strategy for the property. They may or may not renovate the property to increase its market value.
Once the seller is done accomplishing the tasks above, they can establish an initial target purchase price. They can advertise it, and this is when potential buyers can get in on the deal.
Buyers won’t usually agree on the initial price set by the buyer—that’s to be expected. They’ll try to negotiate it. If there’s a match for both the buyer and seller, they can proceed to final negotiations.
These negotiations will touch upon many topics, from property issues to payment types. By the end of the agreement, a legal document called the sales agreement (or deed of sale) will be signed by both parties to legally bind them to the agreed-upon terms of the property transfer.
Now that you’re more well aware of the intricate world of real estate transactions, it’s time to see how business banking fits the bill and benefits both parties.
But first, let’s define business banking. Business banking—sometimes called corporate banking or commercial banking—is a type of banking that provides specialist support for business entities.
While banks recognize personal bank accounts in real estate transactions, doing transactions using a business bank account is much more reliable and streamlined due to the wide range of exclusive features.
One of the major distinctions of business banking is its ability to provide lines of credit to its users. Compared to personal banking accounts, business bank account holders have access to larger business loan amounts, credit cards, checking accounts, and a host of other features.
Furthermore, business bank account holders can also build relationships with managers in the bank, resulting in a more customized and personal experience.
Learn more about setting up a business bank account.
Business banking accounts provide a range of benefits for both buyers and sellers.
Here is the range of benefits one can expect for each side:
Business banking accounts can handle large amounts of cash at a time, which is not like personal bank accounts which tend to have a daily limit. This prevents the need for long, manual transfers since the payment gets processed almost immediately.
One of the best things about owning a business bank account is the larger loan amount you can receive. They also give you access to more versatile mortgaging options, like investment property loans and redraw accounts.
Many banking institutions offer real estate loans with good terms for business account holders. This can help you save more money and time to secure your commercial property.
Only reputable business owners can get approval and complete access to business bank accounts, making it a fairly exclusive and premium account to possess.
To protect these high-value clients, many bank providers provide advanced security features to safeguard their clients from potential thefts and fraud attempts. You even have access to a special relationship manager to help you conduct transactions if needed.
This gives peace of mind to clients dealing with multiple figures in their business bank accounts.
Due to the daily limit imposed on personal bank accounts, it usually takes weeks, if not months, to receive your rightfully owned sum of money from the property transfer.
Personal bank accounts have this restriction for security purposes. However, this is not the case for business bank accounts since it’s expected that account holders will be dealing with large amounts of cash.
Business bank owners can immediately send and receive large amounts of cash on short notice. Essentially eliminating the waiting game and therefore improving the current cash flow of the receiver.
Business bank holders often provide escrow services, a type of service wherein the bank stores the funds and deed of sale on a neutral ground.
This helps ensure that the terms of the contract are agreed upon before you (the seller) release your property.
If you’re handling multiple real estate transactions, many business bank account features can make it easy for you to streamline several administrative processes.
One such process is the payment of recurring fees, such as property taxes and utility bills.
This feature puts weight off the seller’s shoulders since it essentially automates the payment process. This can save hours over a year, making it a good way to remain efficient.
