Is a Broker's License Needed?

[Jay Cho]

Hi

I am interested in investing in a property (located in New Jersey) with a few other investors. We will be creating a new LLC that will own/invest in the property. I will also be creating a property management company (based in NJ as well) to manage the LLC's property.

I am aware that I need a broker's license to manage properties that I do not own. However, in the above scenario I would be owning the property but through an LLC with a few other investors. Would I need a broker's license to manage this property under these circumstances?

Thanks,

Jay

[Drew Sygit]

@Jay Cho it's more complicated that you may think.

You technically won't own the property!

You will have an ownership stake in the LLC that legally owns the property.

Many states would not allow you to represent the LLC in a landlord-tenant case (eviction, etc.) and would require an attorney to represent the LLC.

So, the same logic may require you to have a RE Broker's license to manage the LLC's property.

Run this by a knowledgeable real estate attorney!