The Future of Rental Property Banking: Everything You Need to Know

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Michael Zuber (1:01)

All righty, folks, he's back. The CEO of Baseline, Matias, is here with us. And man, I've seen you guys push this idea, building a banking system that runs your rentals.

And I got to tell you, it doesn't jump out at me what exactly that means. So help me break that down. What does that mean, building a banking system that runs your rentals? Help me understand.

Matias (1:25)

Thank you so much, Michael, for the question. It's something that we've spent quite a lot of time thinking about here at Baseline. Baseline is a bank, it's a booking platform, it's a financial intelligence platform for over 50,000 real estate investors today. And we're growing pretty quickly, probably be close to 100,000 real estate investors by this time next year.

I think the most interesting thing is, most investors spend weeks analyzing a deal. Correct. And then they spend five minutes deciding where rent goes.

Michael Zuber (1:54)

Yeah, maybe, maybe five minutes.

Matias (1:56)

And I think the second decision quietly shapes how much time you actually spend on financial admin, how much stress you're going to have in tax season, and whether you actually know if a property is making money. And so I think we've taken what a traditional bank account is, and kind of the legacy form is actually what does a modern bank account look like? Okay. And what should that bank account do for you? And I think what's interesting is whether you have one door or 15, the goal really is the same, right?

You want a simple setup that you can run, but it also is able to handle what your real estate portfolio looks like 10 to 15 years down the road from now. So three things I would like to cover to answer that question is one, how do you structure your accounts, right? You can always know where your money is, where it belongs without having to make tons of complicated decisions, how your money should move, right? Rent is hitting every month, and you're having to make decisions every time from scratch to kind of where to allocate those dollars.

That can be quite automated. Let's jump into that. And then the question that I posed before is like, what should a bank doing for you beyond just holding money? So that bookkeeping, so that performance tracking, so the tax time, all of that is super easy. And so that's kind of the agenda for today.

Michael Zuber (3:18)

Yeah, so I like that setup. I'm going to appreciate those breakdowns. But that last point is the one that I think hits home the most to me, because I do think most investors, myself included in the beginning, was like, I didn't even think where the rents went, right, to your earlier point. I didn't give it five minutes. I'm like, it goes to a bank, and it might as well be the bank where everything else I have is.

And that was the level of complication I gave it. And because of that, I really didn't know how my properties were performing. I didn't divide them in the beginning by buildings or by houses. It was all one bucket. And we've talked about this before.

I might be able to tell you how my portfolio is performing. Maybe. I probably had a pretty good guess. But I couldn't tell you how any individual asset was going. The only time I could do that was at tax year. And that's because I had to go through and, even when I had just a dozen properties, it was a two-day affair to peel back what the year was.