Avoiding using home address for real estate entity?

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Avoiding using home address for real estate entity?

Andre Deville
IL · Member since 2011 · 12 posts · 0 votes

I am trying to get started on real estate investing out of the Chicago area. I have be under the impression that using your home address to start a business entity is not the greatest idea. I've read in multiple articles that a better inexpensive solution would be to use a virtual address. I was looking into going that route because I want to utilize the entity credit rather than my own as much as possible. The problem that I'm having is that I don't know if any are actually reliable. The one I see in most articles is Regus but upon looking at comments it seems like a terrible route to go, mainly do to customer service and extra charges. I also seen that many people using the V.A services had a problem with setting up a bank account because the bank was able to recognize that they were using a V.A. I seen 2 other companies on the list Alliance and Davinci but I could not find any other information about them outside of what they had on the website. If anyone has some solid advice on the V.A.s or any solution to avoid using your home address for you llc to get the most out of building business credit it would be greatly appreciated. Thanks in advance.

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Allan C.
Rental Property Investor · Member since 2018 · 826 posts · 809 votes
6y

@Andre Deville I use PhysicalAddress since they scan your mail and also have registered agents. Limiting your personal exposure is a smart idea. It has less to do with piercing corp veil and more to do with privacy.

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  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Andre Deville - I use my home address on 3 different businesses, with one owning over 20 houses. I've pierced any kind of veil that an LLC gives you, but I'm not set up for that at the moment anyways. Don't get hung up in these fine details. You can always pivot down the road

    1Reply
  • Andre Deville
    OP
    IL · Member since 2011 · 12 posts · 0 votes
    6y

    @Michael Ablan - So in your professional opinion I Should just get one started now at the home address. Establish some type of credit and then worry about a new address further along the road if need be? Also unrelated I thought owning too many properties under one entity was not a great idea just in case of collateral damage in cases of a lawsuit. What is your opinion on that?

    0Reply
  • Andre Deville
    OP
    IL · Member since 2011 · 12 posts · 0 votes
    6y

    @Michael Ablan

    0Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Andre Deville - Simply owning properties in an LLC doesn't isolate them from each other and protect you from lawsuits. Especially if it's just a single member LLC. The primary purpose of an LLC is to act as a veil to dissuade lawyers from spending the time to find out what someone owns. You're better protected by having a property fully leveraged with a bank than by just having it sit in an LLC.

    3Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Andre Deville - To your original question.  You should probably get a P.O Box and have that act as your business address.  But then you have to check that box unless you have the mail forwarded to your home address.  

    1Reply
  • Account Closed
    Member since 2018 · 127 posts · 106 votes
    6y

    You may want to look in to hiring a Registered Agent. I use Northweast Registered Agent myself. On the State of Missouri's Secretary of State Website, it uses my registered agent's address as opposed to my own. I also have an LLC. While on the original articles of incorporation has my address on it, it is an old address and I no longer live there. Additionally, the registered agent submitted the paperwork to have the address changed to theirs. I am sure there is a way for you to set up an LLC and have your registered agents address.

    2Reply
  • Andre Deville
    OP
    IL · Member since 2011 · 12 posts · 0 votes
    6y

    @Michael Ablan OK no problem. Thank you for your advise.

    0Reply
  • Jonathan Smith
    Moseley, VA · Member since 2016 · 115 posts · 60 votes
    6y

    @Andre Deville

    I would advise the ups store where you can get a address and not a P.O. Box. I used my home address for a company that eventually close but you will still get junk mail for your old business. Plus people can search your business address and realize that it is in a neighborhood.

    1Reply
  • Allan C.
    Rental Property Investor · Member since 2018 · 826 posts · 809 votes
    6y

    @Andre Deville I use PhysicalAddress since they scan your mail and also have registered agents. Limiting your personal exposure is a smart idea. It has less to do with piercing corp veil and more to do with privacy.

    3Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    What are folks worried about re their address? 

    Adding insurance is critical to protect assets 

    0Reply
  • Dave Rav
    Summerville, SC · Member since 2018 · 553 posts · 252 votes
    6y

    absolutely do NOT use your home address!  You don't know these tenants, and tenant prospects.  People can be a range of ways - from respectful to downright rude (or worse).  I have a family, so I simply use the PO Box.  Another layer of protection and anonymity.  Besides, what benefit is it to anyone to have your home address?  I only see how it can be detrimental to you.

    1Reply
  • Dave Rav
    Summerville, SC · Member since 2018 · 553 posts · 252 votes
    6y

    @Mary M. oh gee, I dont know, some folks are crazy!  Take for instance the tenant who called me 6 times (yes, six!) in about an hour's time. No emergency. She was just upset we fined her for too many vehicles parked at our property.  I dont trust that she wouldn't hesitate to visit my home, after not getting ahold of me on "her time".  I dont need that drama at my doorstep

    1Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    I guess I should add that you need to check your local laws. Some places require that a tenant have the ability to post a notice for the landlord 

    IMO in this day and age you can be found. So use of a PO box probably wont keep someone from finding you - if they really wanted to. 

    I use a PO box, however all my tenants know me. I work on the property but I also have B class properties....

    1Reply
  • Eric M.
    Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    6y

    Use a UPS store for a box.  And you are not going to be able to use the "entity's" credit. It is very difficult and lengthy to build credit as an entity. You will be personally guaranteeing all loans. They will be on your credit.

    But your address is not an issue for banking or credit. Just for privacy.

    0Reply
  • Richard Merkuris
    Rental Property Investor · Omaha, NE · Member since 2019 · 51 posts · 8 votes
    6y

    @Andre Deville

    You could use a p. O. Box number for address or check with a ups store. I've heard that they give addresses for there boxes.

    1Reply
  • Dave Rav
    Summerville, SC · Member since 2018 · 553 posts · 252 votes
    6y

    @Mary M.

    yes, but that address can be a PO.  Why not.  Further, the deferred authority angle is massive when it comes to tenants.  Dont get me wrong, the majority of them are good and this approach isn't needed.  However its the 5-10% I worry about.  The problem children, if you will.  My tenants only know me as an employee of the business, which I am legally.  They need know no more.  

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    @Dave Rav not sure a tenant could post a notice on a PO box? Basically check your localh laws.  Some places a
    PO box wont do 

    1Reply
  • Dave Rav
    Summerville, SC · Member since 2018 · 553 posts · 252 votes
    6y

    @Mary M.

    Hello again.  I believe you can. At least, I have been posted notices to my PO.  And I understand, with some work and research, yes people can still find you.  However, 25-50% of tenants won't put the work in.  Another 50% won't know how to perform said search properly.  Of the remaining tenants who get that far, only maybe 10% will know what to do with that information.  My other point is, why not engage this extra layer of protection?

    0Reply
  • Daniel Tsikata
    Investor · Fairfax, VA · Member since 2019 · 13 posts · 1 vote
    6y

    I got a mailing address from ups which was really easy to setup. It doesn't give you a PO Box so it should be good for the bank to use. Then again, if you are just starting out and on a tight budget, you can wait on getting the address until you do a few deals.

    0Reply
  • Mike S.
    Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
    6y

    @Daniel Tsikata

    Ups boxes are listed a crma and will not be accepted by banks. Due to the KYC rules banks need a physical address. They will use your P.O. Box or ups address as mailing address but will need your physical address for their file.

    All my LLC use the registered agent as official place of business on state filing and a usps P.O. Box with street address as mailing address. My banks have my home address as physical address for their file but mail everything to the P.O. Box. I am not worried about the bank disclosing my address to my tenants. They won't.

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    6y

    Hey! Wait wait wait.

    It depends on the business.

    If you own 20 proprieties and you are just managing your companies all inclusive... you don't deal with tenants or clients and it is all internal, sure use your home address.

    BUT, if there is any marketing involved, and interacting with strangers,.... of course don't use your home address.

    People are messed up, I mean look at me. I am a bonified friggin nutcase. You don't want to let me know where you live.  Your entire house will be TP'ed for thanks giving and you will be pranked for 3 years straight!

    I have come in contact with seriously disturbed people that get PISSED off when you can't make an offer that works for them.

    You really do not want those people to know where you live right? Especially if you have kids..

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    I would try not to give out your home address to tenants. Keep business things separate from personal. If needed get a PO box at your local post office. 

    0Reply
  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    for what it’s worth, I use a UPS box. The $150/yr or whatever it is, is worth my peace of mind that tenants can’t (easily) find my home address.

    They can accept notices there, and my bank uses it as my primary address for the LLC.

    BUT - I have no expectations that my single-member LLC is providing new any true anonymity nor legal protection. Since I manage my own properties, is someone she's the LLC, I'm quite certain they'll include me personally too. That's why I have insurance!!

    0Reply
  • Daniel Tsikata
    Investor · Fairfax, VA · Member since 2019 · 13 posts · 1 vote
    6y
    Originally posted by @Mike S.:

    @Daniel Tsikata

    Ups boxes are listed a crma and will not be accepted by banks. Due to the KYC rules banks need a physical address. They will use your P.O. Box or ups address as mailing address but will need your physical address for their file.

    All my LLC use the registered agent as official place of business on state filing and a usps P.O. Box with street address as mailing address. My banks have my home address as physical address for their file but mail everything to the P.O. Box. I am not worried about the bank disclosing my address to my tenants. They won't.

    I think it all depends on your location and the bank. Some banks will accept the ups address while other will not. Then again, if they need your physical address on file and they don't disclose it to the public, then there is nothing to worry about IMO. Unless you don't want to bank to know were you live as well.

    0Reply
  • Mike S.
    Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
    6y


    I think it all depends on your location and the bank. Some banks will accept the ups address while other will not. Then again, if they need your physical address on file and they don't disclose it to the public, then there is nothing to worry about IMO. Unless you don't want to bank to know were you live as well.

    Most if not all national banks are cross checking the address with the CMRA list. If not at opening, you will get a phone call a few weeks down the road by their compliance department reviewing your file. Smaller community banks may or may not look that deep into it, but they are supposed to per their KYC regulation. All UPS locations, USPS boxes and most commercial mail boxes would be on this list. Virtual office should not.

    1Reply
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