Broker license a property manager requirement in California?

I've just read that to be an outside property manager in California one must have a brokers license, not just a real estate salesperson license. Is this true?

Craig E.

Real Estate Investor

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Jul 27 '11, 09:02 PM

To own/operate your own outside PM company, yes.

Mitch Kronowit

SFR Investor · Orange County, California

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Jul 28 '11, 09:39 AM

What Craig said.

Real estate sales license if you're going to manage property while working for a PM firm, a broker's license if you're setting up your own shop.

http://www.ehow.com/how_6699996_become-property-manager-california.html

Brian P

Real Estate Investor · Salt Lake C[ty, Utah

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Aug 20 '11, 09:35 AM

Mark

What the others said is true, however there is a legal way around it but it limits your clientele, but on the other hand you can make more money net.

Michael Quarles

Real Estate Investor · Bakersfield, California

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Aug 20 '11, 03:15 PM

In California anyone can own a Brokerage Company... You'll just need to hire a managing Broker, pay them 200 a month, and have your license with theirs...

There are a lot of retired Brokers willing to be that Broker...

Michael Quarles, Yellow Letter Mail
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James T

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Aug 26 '11, 08:09 AM

Originally posted by Brian P

Mark

What the others said is true, however there is a legal way around it but it limits your clientele, but on the other hand you can make more money net.

Hey Brian P,

Could you explain in more detail how you go about getting around it?

Thanks,

james

Edited: 08/26/2011 at 08:14AM by James T

Rusty Eddy

Real Estate Investor · Huntington Beach, California

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Sep 12 '11, 06:21 AM

One way around needing a brokers license is if you are a principal, meaning you have a financial interest in the property. Such as a Master Lease Agreement (aka Sandwich Lease), you arrange to be the master tenant from the owner, then sublet the property.

James T

Renter

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Sep 14 '11, 09:06 PM

Originally posted by Rusty Eddy

One way around needing a brokers license is if you are a principal, meaning you have a financial interest in the property. Such as a Master Lease Agreement (aka Sandwich Lease), you arrange to be the master tenant from the owner, then sublet the property.

Rusty,

Thank you for the reply. I currently manage my own properties(in Los Angeles,CA) and had someone ask me to manage a few they currently have. I don't have a license(broker or salesperson) so I am trying to figure out how I could manage legally without a license. I called my lawyer about the master lease idea but he thought a broker would still have to sign off on it to make it valid. Also told me to contact the DRE before I go forward with anything(left a message today and no call back yet).

Any help or suggestions would be appreciated.

Edited: 09/14/2011 at 09:17PM by James T