As you progress through Watch Trading Academy you will come to understand and respect banks more than you could have ever imagined as a regular consumer.
That’s the killer advantage of learning this business from a former banker (PJ).
Once you start sending and receiving multiple wires a month, ranging from $5-10k, your bank may get upset and ask you to open a business account. This is better suited for handling those transactions compared to a personal account.
If you’ve already incorporated, go ahead and get this set up ASAP.
I always recommend opening your accounts with one of the major banks like Chase, BoA, Wells Fargo, Citi, US Bank, PNC, Truist, or TD. Especially if you already have a personal banking relationship with one of them.
Strategically, choose a bank with a strong presence in your area. For example, when I was in Chicago, Chase, US Bank, and BoA were prominent.
Now, in South Florida, BoA, Truist, and TD are everywhere, which gives me the convenience of easily accessing branches.
On the West Coast, Wells Fargo might be the most prominent.
You can’t imagine how much of a deal-breaker it is to use a bank that still requires in-person wire approvals in 2024. Some of you might not even know that major banks have moved past that. The big banks are set up to move significant sums of money daily.
Make sure you’re aware of your Zelle and wire limits. I once had a $55k deal that could have gone south because I found out my daily wire limit was $50k.
As you become more successful, you’ll want accounts with multiple major banks so you’re always in the best position to transact with your clients.
In the beginning, I recommend having at least two banks, just in case one experiences a freeze, glitch, or other issue.
This way, you’re never completely shut out of doing business. There are fewer issues when my BoA account wires to a client’s BoA account because it’s all internal.
This business is about cash flow and speed. Do whatever you can to avoid holds or delays, because that downtime is money you’re not making.
For those of you who’ve been doing this for six months, you know good deals come up all the time. Imagine having to pass on a home run deal because your money is pending.
It’s similar to the difference between business and personal payouts on platforms like eBay and Chrono24. Not having your money for weeks after a deal closes can be a disaster.
Here’s a key piece of advice: Meet your banker.
When I set up my business account, I scheduled a meeting at a local branch. However, I didn’t just go to the nearest branch—I went to the most affluent area in town.
I researched the banker I was scheduled to meet and compared them to other bankers at other affluent branches. Like in any big company, there’s always that one top performer among the clock-punchers.
I wanted to bank where wealthy clients already do, so handling my business would be easy for them by comparison. When I met with my banker, I explained exactly what I do and who I am.
I even brought watches to show them it was real. Building a genuine relationship was important.
I remember wanting a new credit card at one point, and instead of taking an online offer, I went to my banker so they could get the credit for signing me up.
Why go to all this effort?
When a wire gets blocked or you need something done at the last minute, you want someone on the inside who can prioritize you and override holds because they know you and know you’re serious.
After meeting with my banker, they even reorganized the categories of business I was listed under (NAICS codes). They showed me how changing my business classification dramatically improved the bank’s willingness to lend to me.
I went from nearly unlendable to a favorable lending category after one conversation.
Regarding lending, many people get denied loans because they don’t know how to fill out the application or understand what the bank is looking for.
You and I could take the same car or real estate deal to a bank, and just by knowing what the bank is looking for and how to position it, I could get far more favorable terms.
If you know, you know.
Make yourself bankable and lendable.
It will pay huge dividends in both watch trading and car hacking.
Don’t be the guy who misses out on 50% ROI opportunities because of tricks used to save 10% on taxes.
Some of you are saving $10k in taxes but preventing yourself from acquiring $200k assets.