If I purchase homes under an LLC with funds from a number of different investors, do I need to have a permit to manage the properties?

I run a real estate investment firm and we are entering the Nevada market. I keep hearing that in order for me to manage the properties I purchase for the fund I have to be permitted and licensed which means I have to be associated (i.e. give a cut) to a broker. I have read the regulations behind it, but it isn’t clear. I’m not starting a property management company. I am merely managing the residential properties that I purchase for the company. I am getting a lot of conflicting advice from different attorneys, any help?

Asked on March 8, 2011 under Real Estate Law, Nevada


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The best answer you can get is from your state.  Because if you are acting in two capacities and outside the scope of the LLC really and circumventing the law, they are the ones that will indeed come after you and fine you if you do not have a required license.  Contact the state attorney general's office and the state licensing bureaus on the matter.  They generally list on their websites businesses that are required to be licensed and if it is not clear then contact them for a advice or see if they can render a formal "opinion" to you in writing of your obligations under this situation.  I am sure the LLC is not for management purposes but it may not matter.  And make sure that you have errors  and omissions insurance here as well.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.