Managing units of 5 and up. Need brokers license?

Managing units of 5 and up. Need brokers license?

Haiku, HI · Member since 2011 · 50 posts · 19 votes

Hello everyone, hope all is well. I cannot seem to find an answer to this. In CA can you manage your own units that are over 4 units? I don't see why you couldn't but remember someone telling me it was a requirement. Thanks :)

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  • Residential Real Estate Broker · Pensacola, FL · Member since 2012 · 221 posts · 49 votes
    13y

    Ben, I can't imagine any state would prevent an owner/principal from managing their own units. I'm 90% certain you're okay, but do verify with an experienced CA broker. Good luck.

  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    13y

    Ben, in CA you can manage your own property regardless of size. You only need a license to manage for others.

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    It makes sense that you can manage your own property, regardless of how many units the building is. Thanks for the quick reply Sandy!! Can a CA broker verify this?

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    Awesome Brian, thanks for helping me out. I was scared for a second that I needed to get my brokers license just to manage multifamily units that I am trying to purchase. This makes life a whole lot simpler. Thanks again to both of you

  • Chicago, IL · Member since 2012 · 93 posts · 12 votes
    13y
    Originally posted by Ben Schembri:
    Awesome Brian, thanks for helping me out. I was scared for a second that I needed to get my brokers license just to manage multifamily units that I am trying to purchase. This makes life a whole lot simpler. Thanks again to both of you

    if you are thinking of REI long term get a license. real estate broker (not managing broker) license is fairly easy to pass ...you get access to MLS and nothing helps to grow your business like an access to true information ..whats is renting/selling and for how much in the area. also each reputable RE office has access to attorneys, contractors, mortgage people ...proven team of folks they have worked with for years...once you part of the furniture ..you can benefit form that ....aint no "realtor" gonna insult ur inteligence ..showing u the properties that are easier to sell or more expensive...etc

  • Lender · New York City, NY · Member since 2013 · 67 posts · 7 votes
    13y

    No license required buddy!! Just acquire the building.

  • Commercial Landlord · Oshkosh, WI · Member since 2013 · 299 posts · 88 votes
    13y

    Your safe to manage what your a principle owner in the only exception might be in regards to larger apt projects sometimes you need previous experience in managing hap contract properties.
    This is hud apts and you will know up front if this apt building requires that experience before you buy because the broker will tell you. Also if its a hud auction, its part of the bid packet. This is a very narrow range of property I am talking about. Hud form 9839 covers the previous participation certificate to manage such property.
    Id call a Calif broker or ask one on here what the rule is. In one of the states I operate in over 11 units your suppose to be licensed.

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    In CA you need 2 years experience as a salesperson or something that requires a salesperson license to be eligible to even take the CA brokers exam. Pretty sure I do not want to go that route and will stick to investing :)

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    Can't I work with agents who specialize in multifamily investments who have the resources to this information?

  • Residential Real Estate Broker · Pensacola, FL · Member since 2012 · 221 posts · 49 votes
    13y

    Ben Schembri Check out this thread: http://www.biggerpockets.com/forums/12/topics/81783

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    Thanks for the link Sandy Blanton. Good info both for and against having the brokers license. I think for now I will go ahead without pursuing the license.

    -Ben

  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    13y

    Ben, take a look at this page on the DRE website:

    http://dre.ca.gov/Examinees/BrokerExperience.html

    There are exceptions to having 2 years of salespersons experience. One is a 4 year degree with a major or minor in RE, another is to pass the Bar, and another is 2 years of "equivalent" experience, which could be real estate investment! That's how I got my broker's license.

  • Real Estate Broker · San Diego, CA · Member since 2012 · 104 posts · 20 votes
    13y

    Ben Schembri: California Code of Regulations, Title 25, section 42 basically says that an apartment building with 16 or more units requires an on-site resident manager if the owner doesn't live there.

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    Brian Burke I just graduated last May with a double major in finance and risk management. I just looked at what classes I would need to get the minor in RE. I was actually aware that having a bachelors in RE would meet the requirement but didn't realize a minor would work. If only I would have taken the extra 3 classes. I could always go back but will definitely think it over a lot more.

    Theresa K. That seems reasonable and makes sense. I am not getting into over 4 units for a few more years. My original question on over 5 was a little down the road pondering and preparing

  • Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    You guys sure are helpful and I am definitely enjoying this forum! Happy investing to all :)

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