So whats in a Name ? holdings, properities ETC (then) LLC

I'm not totally sure I understand your question, but I can say that every state that I know of requires that you include the words " Limited Liability Company" or " LLC" or some other specified variation if you are creating an LLC, e.g. " BiggerPockets LLC" .

That doesn't mean you have to use the " LLC" part of the name all the time because you can also file a Doing Business As (DBA) for " BiggerPockets" which enables you to market under the new name which does not have the LLC addition. So the short version is: When you're creating the entity you may be required to have specific words in there, but you can file a DBA and use whatever name you'd like in practice of normal trade.

Similar rules exist for corporations, professional partnerships, etc.
Hope that helps!

-Jeff

Edited: 06/26/2010 at 04:35AM

Mark Hawthorne

Handyman · oklahoma city, OK

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Jan 26 '08, 07:17 PM

Thanks Jeff ,that is great info !,I was refering to what Jon was saying,

As i am setting up my LLC ,and deciding on what name to call it.
got the first part of the name ready , now I need to define it a bit, for the most part planning on Wholesaling at least in the begining but i dont think naming it " X And X Wholesaling LLC " would work, most likley start getting calls on toys made in china,,

Thanks Jon about not using " Properties or Investments" I was not aware af that fact !

What are some other " key " words one might use in an LLC Title for doing this kind of work ?

realestate,, holdings, home buyers,,???

Thanks- Mark

Edited: 06/26/2010 at 04:36AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Jan 26 '08, 07:33 PM

Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various " Zork Investments" , " Zork Holdings" , etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.

Jon

Edited: 06/26/2010 at 04:36AM

Jon Holdman, Flying Phoenix LLC

Mark Hawthorne

Handyman · oklahoma city, OK

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Jan 26 '08, 08:14 PM

Thanks Jon,,once again the K.I.S.S system seams to be the best!

Edited: 06/26/2010 at 04:36AM

Anthony Stokes

Real Estate Investor · Auburn Hills, Michigan

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Jan 26 '08, 08:52 PM

Originally posted by "Wheatie"

With the exception of a few specific words like " Bank" , you can put whatever you want into your name.

According to my mortgage broker, lenders don't like names like " xxx properties" and " xxx investments" . Just a data point.

Jon

Wow! I was totally unaware of that. So what negative effect will it bring when you are trying to conduct business with these lenders and your " LLC" includes " investments" or " properties" ? Why is there a downside for them knowing that you are an investor?

Edited: 06/26/2010 at 04:36AM

Matthew Gil

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Jan 27 '08, 10:28 PM

First, yes, you HAVE to have LLC in the name of the company.

Second, learn from our mistake and keep the name of the company short. We came up with Wellington Group Real Estate Investments, LLC. That is to long a name for a company and makes your hand fall off when having to write it down on contracts and other paperwork.

Edited: 06/26/2010 at 04:36AM

Anthony Stokes

Real Estate Investor · Auburn Hills, Michigan

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Jan 28 '08, 05:20 AM

Originally posted by "Wheatie"

Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various " Zork Investments" , " Zork Holdings" , etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.

Jon

Waiting for a response from you Jon. If the lenders know that you are an investor, how is that used against you?

Edited: 06/26/2010 at 04:36AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Jan 28 '08, 08:48 AM

Sorry, missed that. Honestly, I really don't know exactly what the hang up is. I'm guessing they just won't make the loan, from the way my broker described it. That means you have fewer people who will make the loan.

In the same discussion, he also mentioned lenders don't like to make a loan they think will be paid off soon. That's why a property listed on the MLS is impossible to get a loan on. So, it may be the same factor. Lenders think you're an investor, so you may sell quickly, paying off their loan before they can earn back their costs.

On the other hand, he also said it was generally difficult to get a loan directly to a LLC in any case, even with a personal guarantee. So, what's the net-net? Not really sure. But, I'll take his advice and leave the " properties" off the company name.

Jon

Edited: 06/26/2010 at 04:36AM

Jon Holdman, Flying Phoenix LLC

Anthony Stokes

Real Estate Investor · Auburn Hills, Michigan

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Jan 29 '08, 02:54 AM

Interesting. Thanks a lot for the info Jon.

Edited: 06/26/2010 at 04:36AM

Bienes Raices

· Orlando, Florida

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Dec 30 '11, 05:43 AM

Originally posted by Jon Holdman

Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various " Zork Investments" , " Zork Holdings" , etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.

Jon

I know this thread is as old as the hills, but...

Does this advice (not to use "properties" or "investments" in the name) apply only if you're going to be using the LLC for flipping or wholesaling? Are you talking about hard money lenders in this instance? Thanks!