Making an offer in llc name vs personal name

6 Replies

Does anyone feel like making an offer in an LLC name lowers your chances? For example someone attached to their home might feel more comfortable selling to John smith vs abc development llc...

I can see that. Personally I have not experienced that but could see that.

One thing I do know flippers do is use a LLC and then gets a Dba for it so it doesn’t necessarily have the llc and all of that.

Originally posted by @Jonathan Orr :

I can see that. Personally I have not experienced that but could see that.

One thing I do know flippers do is use a LLC and then gets a Dba for it so it doesn't necessarily have the llc and all of that.

Do you work with single family properties? Please explain further your previous point. Thanks. 

Originally posted by @Ben C. :
Originally posted by @Jonathan Orr:

I can see that. Personally I have not experienced that but could see that.

One thing I do know flippers do is use a LLC and then gets a Dba for it so it doesn't necessarily have the llc and all of that.

Do you work with single family properties? Please explain further your previous point. Thanks. 

I have done several single family home acquisition for a couple of investors I was consulting for. We went the route of creating individual entities for each property they acquired because they were flipping them and wanted to protect each asset individually. We did not get a DBA for the entities, instead we just used whatever the entity name was when we purchased it. However I will say I did not hide the fact that we were intending on flipping the property. I think the honesty was the best choice because we explained to them how we came up with our offer price and really helped them through the selling process.

However, like I mentioned I know other investors who use a DBA (a ficticous business name). you get that through your local municipality after you create you LLC or Corporation. They use something basic like their last name and then maybe the city it is in or something like that so it doesn't includ 'LLC' or 'Development' etc...

Another thought I have is you can always get it under contract with your name personally and just make sure in the contract you can assign it. Then when you are under contract for the purchase just assign it to a LLC or entity.

Hope that helps.  However to answer your original question if it hurts your chances.  I don't think so, I think if you are honest with a seller and explain to them how you get a price or something like that it can ease their feelings, but to each their own and some people may not like it, but that is why I would make sure communication is open. Regardless if it goes to a company or a family of 4, everyones dollar is still the same value.

I find it makes almost zero difference.  99% of offers are won by simply offering the most money

In the big picture there are many, many more reasons why we will lose a deal.

@Russell Brazil thanks. I would think putting in an assignment clause (offer in person name take title in LLC) would scare the average seller more anyhow...

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