Help! Is Vesting properties like naming wifi networks?

5 Replies

I need some advice. How important is the name of the LLC you vest your property into? Is it like naming a wifi network? Basically I'm wondering if there's a tangible difference between "Skyler's funky company LLC" and "Secured Multifamily Investments." Would potential buyers care? Would other investors care? I'm sure I'm not seeing something here, but I can't think of the negative consequences of goofy names right now. How do you guys choose your LLC names?

This is the "there are two types of people" meme. Are there two types of investors?

Shouldn't matter as long as the name listed when you sell it matches what you took title as. That's all anyone's really going to care about. When I was working in the title industry I saw people that would set up LLC's for each individual property and name them based on the address...like "1505 Elm St., LLC".

I think the only thing you should be aware of is if you're renting to tenants, is your LLC something that you'll be embarrassed to ask your tenants to write a check out to every month.

Toe Jam or FBI Surveillance Van #13 or even I Can Hear You Having Sex are funny for wifi hotspots and might be amusing to you (and me), but imagine if your tenants will think you're less than professional every month while writing the check.  It might be hard for them to take a late notice seriously when they're dealing with a really silly name.

I'm with @Linda Weygant on this.  Any is good as long as it isn't ludicrous.  

My 11 Clover St property is held by 11 Clover St LLC :)

I would recommend having a business name that is somewhat explanatory:
Skyler's RE Investing
Logan's Local Landlord LLC
etc

Sometimes, especially in technology, you see some cool, but utterly mysterious names:
Aegis
Rontom
Morian Systems

I don't like to make potential investors/buyers think too hard.  People get stuck on the strangest things.

Thanks for the input you guys! @Linda Weygant the tenant's rent check question is really what pushed me to go the professional route. 

Here's what I ended up doing: 

From @Aaron Montague 's suggestion I created an LLC to run my Realty and investing commissions through, and an LLC for each property that are just Skyler Holdings One, Skyler Holdings Two, etc.

I opted out of naming the LLC's the property addresses from a suggestion my CPA gave me, he said if I didn't have them property specific I could let the LLC's sell the properties off when the time comes and move new units into old LLCs to save headaches & confusion down the road.

Thanks again guys!

Originally posted by @Linda Weygant :

I think the only thing you should be aware of is if you're renting to tenants, is your LLC something that you'll be embarrassed to ask your tenants to write a check out to every month.

Toe Jam or FBI Surveillance Van #13 or even I Can Hear You Having Sex are funny for wifi hotspots and might be amusing to you (and me), but imagine if your tenants will think you're less than professional every month while writing the check.  It might be hard for them to take a late notice seriously when they're dealing with a really silly name.

I've seen some really far out LLC names but I'm pretty sure none of them were for rental properties. Some of them had names with political leanings and were suggestive of some pretty negative things. Most tenants would notice that on a lease or when writing the check. That being said my daughter has been making out her rent check to a company name for years that doesn't match the LLC that endorses and cashes it. When I paid her rent last month I made the check out to the LLC endorsement name. They called and wanted a new check and I didn't respond. They cashed it a few days later. I decided not to get involved in their bookkeeping and entity mgmt. :)

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