Business Name and Contact: Is it safe?

Question

When starting out in real estate, is it legally safe to contact prospective sellers under a company name, even if it is not an LLC, SP, etc?

For example, there is an abandoned property just conveniently one door next to me. If I were to contact the owner (found through local govt website) with a written letter, would that be okay? Can I even ask about the property if I don't have an LLC or other entity?

Thanks!

Wayne Brooks · Answer

You only need to be vague if you're trying to hide something, or lying about something.  People do deals with people, not entities.  You get sued when you're scamming.  Your REI buddies sound like a bunch of crooks, or dumb a$$es.

Karen Margrave · Answer

WOW!!! Really? Have we come this far that people now are afraid to contact their neighbors? This is America, as long as you aren't  licensed and encroaching on another agents listing,or for some other reason legally bound not to, it's still ok to call your neighbors or anyone else to inquire about the status of their property!

Call if you don't want your letter thrown in the trash.. Say "Hi My name is Emily Carling, and I live right down the street from your house on X Street. I love the area, and noticed your house was vacant. Do you think you would be interested in selling?" Don't use your company name, she's a neighbor, and people like people, not corporations, and they like to know you took the time to call, and didn't just send a form letter. If you do the deal, then you say, for tax purposes I purchase property under my corporation name, etc.

Ben Leybovich · Answer

Why is everyone so afraid of picking up the phone?  Doing deals requires building relationships.  What do you think works better, a letter or a phone call...?!

Account Closed · Answer

@Emily Carling

I think you are getting some really bad advice at your REIA.  Misleading people is not the best way to conduct business.

Will Porter · Answer

Just don't pretend to be something you're not. Don't say you're from "Acme, Inc." or "Acme, Corp." if you don't really have a corporation. And you aren't "Acme, LLC" if you don't really have an LLC.

You're just "Emily from Acme". If you want to do something, you can file a DBA to put the county/state on notice that you intend to use the name and to make sure it won't conflict with anyone else using the name already.

Talk to a lawyer if you're really unsure. Advice from an attorney tends to be better than advice from the Internet :)

Emily Carling · Answer

Have no fear, I'm no longer afraid to pick up my phone after Phone and Letter Phobia Intervention 101. Let the doorbell and phone ringing begin. No pets necessary @Rick Harmon !

Karen Margrave · Answer

@Emily Carling I have been in this business for over 30 years, and have NEVER had to hide who I was, or try to be deceptive. If someone isn't going to do business with you because you are honest, then you don't want to do business with them. There are no laws against talking to people, calling people, etc. Yes, there are laws against spamming and robo calling, etc., however; if someone is a neighbor or lives in your community, and you see their property is vacant, it's still legal to contact them.

I myself am extremely good at cold calling people, and being able to converse with them very easily. I can do that because I have a genuine interest in talking to them, listening to what they have to say, and if we can do business, all the better, if not, I learned something about someone new. Much like being on BP and doing these posts!

Larry Turowski · Answer

@Emily Carling Your post is a little confusing as you seem to asking about using a company name and then not having an business entity.

Most investors who do direct marketing do so under their own name.  It is more personal that way.  I suggest you stick with that.

As for company name, technically, if it is not an actual business entity, it should be a DBA (doing business as) filed under the county.  But many mom and pop businesses just use a moniker.  For instance, contractors often advertise (via business cards, flyers, craigslist, etc) as something like "Joe's Painting and Refinishing" when, in fact, they have no DBA.  It is just them.  And when you pay them you make the check out to Joe Contractor, not Joes' Painting and Refinishing.

Account Closed · Answer

Rick H.my REIA guidelines ... say BE VAGUE."

Rick H. · Answer

Good for you!  I'm happy to be wrong and want to read good stuff from your future posts.

Business Name and Contact: Is it safe?

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