So you want a LLC or Corp. Here is one pitfall that I experience when getting checks made out to my Corp that I thougt I would share and ask for help solving.
My accounts are at Bank of America and I have known the loan officer for years. When I had better credit I had 5 loans with the same bank but different name years ago. I finally close on my rehab and am excited about the title companies check for $22,000. Off I drive to Compass bank to get it cashed or get a cashiers check so I can deposit at Bank of America without a 5 day hold on all but $100. My account was already overdrawn and this does not hep the problem of course. Compass Bank would not even give me a cashiers check and no way to cash it even with all the corp documents with me. They sent me to BOA and said that if I got a signature guarantee that they would then give me a cashiers check. I had already learned that BOA will give only $5000 instant credit which also means I could get that much cash back too on cashiers checks and put a 5 day hold on the balance.
To make the 3 hour ordeal seem short I get back to BOA with the cashiers check and BOA says no cash back because the account is overdrawn. I finally get my loan officer to approve the $5000 cash back but she acted like it was the biggest favor she ever did anyone in her life.
This may be too much info but just wanted to let everyone know the banking problems I encountered. I was told that because of high fraud rates and fake computer generated title company and cashiers checks that all banks are extra cautious.
I did learn that Compass would have given me $8000 cash back and no hold on their customers funds if I started an account there. Maybe I should have just opened an account there and Wells Fargo and Chase and First State etc etc. as well. Any other ideas?
Make it even easier on yourself! Ask your title company for a cashier’s check at close. It costs them a few dollars and their time to run to the bank the day of the closing, but it is funds that you can use immediately. I’ve done this with desperate sellers who need the money immediately, not in five days, and there has never been an issue with the title company doing this. Just be sure to communicate this with them several days in advance, or preferably when the application is submitted.
Ted – B of A sucks. No ifs, ands or buts. My personal account is at a credit union and my corporate account will soon be opened at a small, local bank. If you are into masochism, stay at B of A. BTW – Wells Fargo is only slightly better (like death by lethal injection is better than death by hanging). Also, I’m not sure what the title company is willing to do, but a wire transfer (instant $ access) costs only about $15.
Thanks so far for the input. I am looking at other banks Monday. Also even cashiers checks are given 5 day holds on the amount over $5000 at BOA and it was actually $10,000 at Compass Bank and the manager said it was a Federal Reserve requirement. Also the wire transfer would not have made it into my account until Tue possibly because of the late hour after 2 PM I believe. I am checking this out too. I will try that next time hopefully in a few days on another closing but only $8000 this time. My liquor store will cash it for $80.
With a little planning and calls I am going to cut my check cashing fustration to 120 over 80 and holding steady.
I typically require all proceeds from the title co to be wired into my account. If it is too late in the day for the wire to get to my account the cash deposit probably would not be credited that day anyway.