Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello my friends and welcome to another episode. Now here's your host Marco Santorelli.

Hello, my friends and welcome to another episode of passive real estate investing.

I'm your host, Marco Santorelli.

Well, I wanted to do another Ask Marco episode

because I keep getting some great investor questions and I hand

picked about four or five and I'm going to go through those today and they're actually quite diverse

so some of them might not be applicable to you but some of them probably help you out so let's just see what we have here

The first one was kind of interesting. I just felt that it was all over the place, but it is a question from Luke. And Luke writes in and says,

hey Marco, I have an LLC that files as an S Corp. I heard that it is wise to have three bank accounts for your LLC, one

for taxes which the IRS has access to, one for payroll, and one for operations. What are your

thoughts on this and is it necessary for proper asset allocation and diversification of funds?

If so, how much should be in the bank account for a business at a given time?

Luke, wow, this is really just all over the place because we don't know what you're using your LLC for.

Is it an operating business? Is it a title holding business? Meaning that it just holds title to assets and it doesn't actually have operations like a real business, meaning it doesn't have a product or service that it sells?

It's just holding assets for you. And as I read your question, it made me think of a book called Prophet First. In fact, I don't remember if I had the author on the show. I believe I did. Mike McCullough, he is either the author of the profit first book or the

sequel to it, which is profit first for real estate.

But you made me think about that because when you mentioned three bank accounts for your LLC or your company,

that's one of the things that they talk about is creating multiple accounts for your

business, so you separate everything into its own bucket.

And the way the profit first model works is you could literally have up to 20 bank accounts

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