If you have an office where you actively sell (or at least attempt to sell) real estate four days a week, you definitely would have a hard time arguing that you’re not principally engaged in the business.You don’t necessarily have to be a real estate broker to engage in the sale of real estate, but, if you’re not, you’ll have to be licensed as a real estate salesperson and work under a real estate broker or be licensed in some other occupation that does not require an additional license to sell real estate, e.g. a licensed attorney or builder.

None of these things are acceptable, although people will argue and insist that they are.

So I hired an attorney that argued my corporation should of been named in the LP because my corporation had a financial interest in the property.

I was able to buy a lot more doors and the rental rate between them was not as dramatic as the price.Actually, I was arguing that exact fact to my partner just yesterday.

But, you can use the argument that the ADU would have a higher rental value utilizing both ADU's as one larger one, assuming the entire structure is legal.So, to use your example, you can argue that if the units were combined, you could rent it as a 2 bed/2 bath unit (using the studio as a 1/1), for more than $1,200/mth.

As others have said, no point in arguing with this company.

@Roy N.Account ClosedGood memory Roy, yes I mentioned keeping partnerships to 3 initially funding a project in one company as that is sure to keep you out of the SEC issues.If you have Dave and Bob in ABC LLC, they can admit CDF LLC as a member where Frank, Abby and Rick are members. ;)A series LLC is probably the best structure from an operations side as you can have many cells and all the cells don't have to be involved in a project, or, they may as each cell is a mini LLC within the series but using common tax returns, general bank account and operating agreement, with each cell accounting for its own business.

Those buyers, I think one could argue, are disadvantaged in some fashion.  

But if you had to say either supply will increase or demand will increase, isn't it easier to argue that we see demand increase more than supply? 

I would argue that one derived from the other.