OK it's not sexy - but the easiest way to set up you checking accounts for success in Real Estate (or the hell you will go through by doing it wrong)

Katy Real Estate News - OK it's not sexy - but the easiest way to set up you checking accounts for success in Real Estate (or the hell you will go through by doing it wrong)

OK, it not the sexiest part of real estate, but how you disburse your commissions can make your life easy or turn it into hell on earth.

I have an easy system that works.  We put it in place when we started and it has worked as we have grown into an 80+ unit per year producer (and I think it will work into the future).

You have to have some discipline to pull this off - but if you do it you can only be the better for it.  We have four accounts set up with out bank.

#1 Disbursement - All checks go into the disbursement account and sit there until we disburse the money once per month.

At the end of the month money is disbursed into three other accounts.

#2 Operations Account - Put about 45% of you money into this account each month to run your business (with 15% of this going to advertising - marketing)

#3 Taxes - Put about 17% of your money into this account to keep for the good ole US government.  You should not need this much, but it is good to have.

#4 Long Term Saving - Put 10% of your money into long term saving to buy rental properties, IRA's, mutual funds etc.

That leaves about 28% for you.

We have lived on this budget from the beginning and it makes me produce very aggressively.  I have enough to run the business, always have money waiting to buy the next rental, and can pay Uncle Sam.

I am sure there are better systems out there - but this one works very well.

If you would like to buy a home in Katy or West Houston from someone who really understands the community contact Katy Realtor Tim Sojka at 713-822-2152.  For more information about luxury homes, Houston and Katy relocation, the beautiful city of Katy Texas and the Katy waterfront homes, estate homes, leisure ranches, golf course homes and master planned communities within contact Tim at 713-822-2152 or go to www.katyestatehomes.com to shop for a home online.  Do a free home value search anytime day or night.

All information posted is the intellectual property of Katy Real Estate Agent Timothy Sojka and cannot be republished or used without his written consent.