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Updated about 1 year ago on . Most recent reply
why dont lenders like the word "properties, investment" in LLc
Hi there. Ive been reading on here that you shouldnt be naming your LLC like xyz properties or xyz investments, because lenders wouldnt be apt to invest in you, but what is the specific reason for that?
Also ive never seen a field where you can name it so many different ways. For example if your a plumbing company you call yourself xyz plumbing. But for investors i see
xyz holdings
xyz realty - isnt this just for real estate agents?
xyz properties
xyz investments
xyz home solutions
xyz group etc
Whats in a name?
Most Popular Reply
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I've read the same thing about lenders, but have never had the issue with my bank, but I have other business relationship with them going back for years and keep a lot of capital in their bank.
Also when you're trying to buy properties, if the seller knows you're an investor, they will sometimes try to get more for their property vs. if they think you're just an individual looking to buy a fixer upper project or your first rental property. My primary LLC is a holding company with the name XYZ "Enterprises, LLC". Whenever I contact sellers, I make it sound like I'm just a friendly guy who lives in the area and am looking to buy a fixer upper project for me and my wife (not married by the way). I don't even bring up LLC until the contracting. One of the most successful ads I use says "My Wife and I are looking to buy a fixer-upper project" and I include a nice photo of a family (again not married & have no kids), it always gets a much better response then "Investors looking for homes", etc. I keep giving away my secrets.... :-)