Get money Easier with a GENERIC LLC

Financing, Hard Money Lenders, Private Money
1

Investors Please set up a GENERIC LLC because it helps when you get a MORTGAGE

I did this over at another site and I felt that investors on this site need to know about this also

I hope that this is the right section for this comment and this is VERY IMPORTANT so that you get to the MONEY

I do a lot of loans for many many many investors and the common thread that I have found is when investors first start out and after they have gone to the boot camps they are told to set up an LLC so that you are not labeled as a dealer.

Well seting up an LLC or other styles of corportations are important for that reason and many other asset protection values.

THE ONLY PROBLEM IS… when you are trying to get a loanTWO YEARS LATER by being self employed and you have named your LLC OR CORP

using these words INVESTORS ,INVESTMENT, REAL ESTATE, REALTY,PROPERTY,PROPERTIES, OR ANY OTHER NAME THAT TELL US THAT YOU ARE A REAL ESTATE INVESTOR

Please set up a generic LLC and then do a DBA with the title that you want to do business in

Why is this important ?

Well Real Estate investors are considered the TOP risk of default on loans and
FRAUD.

LENDERS DO NOT LIKE ANY BODY WHO IS IN THE BUSINESS including Real Estate Agents and Mortgage Brokers for similar reasons plus they believe that we know the loopholes that help to get financing (we are insiders)

THIS IS A STIGMA and it is best to stay away from this.

A GENERIC LLC. is the ANSWER and if you have to specify in the LLC of what type of business it is please just say CONSULTING or something generic like that also because consulting you can do about anything. (The lender may ask for your article and if real estate investing is in your articles well the rest is history)

Like name it Jack and Jill LLC or Daisy LLC or what ever just don’t specify the business in the name of the LLC please and can not stress this enough do a DBA with the real name that you want every one to know you as.

I will be able to help you get loans so much easier and the underwriter will love it because they do not have to tear your loan apart and you will get your loans easier and the name of the game is TO GET TO THE MONEY

2

Can this be applied in reverse, so as to avoid refiling to get a whole new LLC once it’s already in place?

What I mean is… say the existing LLC reads, “JOHNSON INVESTMENT GROUP”. What about getting a new, local DBA that reads, “JOHNSON CONSULTING” and then applying for the loan under the new DBA name rather than the LLC name? Would that fly with the application process when going for a loan?

As for asset protection (which is mostly why we get LLC’s along with tax reasons)… if the property is bought under the DBA, and the DBA reads;

“Bill & Mary Johnson aka Johnson Investment Group doing business as Johnson Consulting”… and “Johnson Investment” is owned by Bill & Mary Johnson… the protection would still be in place, no?

Have things gotten to the point where banks quickly figure out that anyone with ANY LLC seeking a loan for a home is most likely an investor anyways??

3

Where would I go to set up LLC. I am in indianapolis, IN Would father time LLC be example

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I would recommend NOT using your LAST NAME in the main LLC or CORP. it is ok in your DBA that wont really matter.

I know that if you have already set up an LLC then I would recommend starting over if it is fairly new LLC now if you have an existing LLC and you have started bulid credit on it Well I would suggest just doing a DBA or getting a second LLC

5

Usually you set up an LLC at your states department of commerce and you register it there.

Father Time LLC would be a GREAT Example

6

When filling out the app for an LLC, they ask “What is the primary business you will be in?” and then they have a list of categories. What category does one pick since they obviously have a Real Estate category that we SHOULD be filing under. Do you pick something like Retail Sales, Automotive Repair or what??

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Consulting is an excellent one because how you are consulting is that you are helping people save their credit buy selling the home to you.

You are consulting by helping people get into homes.

you are cousulting by problems solving for many people on both sides.

8

I had a private individual email me about this and I felt that I need to do a little clarification

Just an FYI for you newbies out there is always consult your attorney or cpa for thier final opinion because only they will truely know how to set up your LLC for asset protection and for tax purposes all I am saying is make the name and what type of business you do generic

Do not do a generic LLC that is not what I mean

Each state is different and you must consult with a professional.