I examine the property transactions for my local jurisdiction every day. It is all a part of knowing and understanding my market. By doing this, I see what is being paid for properties, who is financing them, along with who is buying and selling. All good information I think you would agree.
One of the more interesting things to me is the names of some of the LLC’s, partnerships and other entities I see conducting various real estate transactions. Whether or not you should use one of these entities is a discussion for another time. But, if you choose to use an LLC or some other types of business entity, I want you to think very carefully about what you name it.
Why?
Two reasons I believe. One, a name can say a lot. Second, people will infer a lot, either right or wrong, from a name.
Let’s look at a couple of examples.
My management company is called Kevron Property Management. Such a name has several good qualities. The name states what the company does. Plus, once people meet me or my wife Terron, they come to understand the Kevron part. “Oh, you combined Kevin and Terron,” they will say. “That’s cool.” People like a husband and wife team and like that we were creative with our company name. Thus, our company name says who we are and what we do and that is a positive to most.
Property management is pretty straightforward however. What if you flip houses, or fix up properties for retail buyers? What type of name would you select then? Here is a chance for you to be really creative and use your company name to help you achieve your company goals. However, I see many names that are perhaps questionable and not conveying the best image.
Take the hypothetical name, T and L Investments, LLC. T and L Investments, LLC does retail flips and holds a few rental properties and was started by two friends, Tom and Larry. The name they chose seems pretty good on the surface. But what might a retail buyer think when looking at one of their homes? What might a prospective tenant think? Perhaps, just perhaps, they might think that these “flippers” are ripping us off. Or perhaps a tenant might think you are a rich landlord that can afford the damage I will cause. I am not saying this always happens, but folks can read a lot into a name. And it simply might cost you a sale or a good tenant.
Instead, what if they had named their company something like Quality Homes? The connotation here is different. They provide quality. They are not investors. It might seem silly but people really do think this way. That is why I think it is so important for you to give some thought to what is in a name. While “More Money Properties” might be what you are really after, toning it down a bit to MM Properties might actually work better for you in the long run.
Thoughts on what’s in a name? Let me hear from you with your comments.
