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

Answers:

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.


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