Is there a cap/limit in NV considering the numbers of rental properties an owner can manage him/herself?

Asked by K & K, Las Vegas, NV Mon Feb 6, 2012

We (husband and wife) set up a series LLC and are planning to manage our own rental properties by ourselves (>5 properties)...Is there a maximum number of properties one could manage (otherwise s/he will be falling into a commercial category and thus a real estate license would be required??)?.....or such limit does not exist as long as one only manages its own properties?
If such restriction exists, would it apply per head (meaning wife could manage xx and husband could manage xx properties) or will apply to the LLC managers as a whole?

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10
Robert Peddi…, , Las Vegas, NV
Wed Feb 8, 2012
It sounds like you and your husband are on your way to capturing the American Dream. And, I agree with the other great answers you have received (in regards to your ability to manage as many of your own properties as you want under one LLC without being required to obtain a real estate license). Bottom line, I would not be concerned (if I were you), about you and your husband acquiring too many investment properties. What a nice problem to have.

Additionally, it sounds like you have addressed the “real,” concern that I would have in a situation like yours. The story goes like this; you and your husband gets 5 or 10 or however many investment properties all operating under the one LLC, and over time (with a little luck and lots of hard work), your efforts pay off and you have a healthy thriving business that will allow you the pleasures and quality of like that we are all hoping to achieve someday. But, then some unexpected accident or some unknown secret structural problem exists, or some development goes sideways, and the LLC is sued. Now, whatever incident has occurred on the one single property that caused the lawsuit bleeds over and into the other properties.

It’s never a good idea to maintain all of your investment properties under one single LLC. It’s like tying off a large number of mountain climbers to one single line. If one goes down, they all will start to follow. It’s the domino effect. The “Series LLC,” is the solution. You have indicated in your question that you did set up a Series LLC. I commend you for that forethought and planning. As you know, it prevents the very problem I was describing earlier.

Congratulations. It sounds like you have established a bullet proof plan, (with regards to the liability issue I am highlighting). When it comes time to start populating your new Series LLC with properties, please give me a call. You sound like the ideal clients to work with, and it would be a privilege to help you to continue on your path to success and happiness.

I look forward to hearing from you soon.

Robert K. Peddicord
REALTOR®
Real Estate Consultant
Prudential Americana Group, REALTORS®
Direct: (702) 218-3974
E-Fax: (702) 317-3371
Email : robertp1@americanagrp.com
Web : http://www.peddicordconsulting.com

871 Coronado Center Dr.
Suite 100
Henderson, NV 89052
1 vote
Damon Bottic…, Agent, Las Vegas, NV
Mon Feb 13, 2012
I see some good points below:
-no limit to the number if they're your properties
-you may be required to comply with Fair Housing laws with more than 4 properties
-some asset planning such as an LLC or a Nevada Series LLC would be good to look into

I should also add that there is a Nevada law that requires the landlord or someone designated by the landlord to handle emergencies and property issues to reside within 50 miles from the property. No problem if you're local, but if you live out of the area, you'll want to hire a property manager.
0 votes
David Cooper, Agent, Los Angeles, CA
Wed Feb 8, 2012
Here is one solution to your question that I use.
The land trust is a disregarded entity by the IRS, so it does not even have to file a tax return. The financial information which would otherwise have been disclosed on the land trust’s tax return flows to the beneficial interest holder’s tax return and is disclosed there. As a result of this fact, multiple land trusts can be used to protect multiple pieces of real estate. Each land trust can hold title to one piece of real estate. So, if one land trust is sued, all the other land trusts are not touched and the real estate held by those land trusts is protected.
Unfortunately, the land trust does not, by itself, provide asset protection for the beneficial interest holder. A judgment against the land trust can be collected from the beneficial interest holder. However, CSS Nevada has developed an entity structure which uses land trusts and other entities to not only shield the true ownership of the client’s real estate, but also to protect the client in the event of a law suit. By making the beneficial interest holder an LLC that holds no assets other than the land trust’s beneficial interest, the judgment creditor cannot collect from the client for he/she is no longer the beneficial interest holder. And the member of that LLC is not liable for the judgment either, for a member of an LLC is not liable for the debts and obligations of the LLC.

David Cooper
0 votes
Jeffery Sklar, Agent, Las Vegas, NV
Tue Feb 7, 2012
All of the answers below are great as they state the most important point. There is no limit on how many rental properties an owner may self manage. Key being that they must be your own properties. I always recommend that if you are going to manage your own properties that you take property management classes as there are certain laws out there that you must adhere to that you may not be aware of. Violations that could cost you MAJOR money and who wants that? If you need any advice, feel free to contact me.

Jeffrey Sklar
Broker
Property Manager
2012 Vice Chair GLVAR Property Management Committee
Southern Nevada Property Management
8871 West Flamingo Road Suite 202
Las Vegas, NV 89147
Phone 702-522-6764
Fax 888-203-2779
http://www.WeRentVegas.com
0 votes
David Cooper, Agent, Los Angeles, CA
Mon Feb 6, 2012
You can put all your LLC under a Corporation as the Management Company, then put the Management Company under a Title Holding Trust. Good for secrecy and will let you manage all you want. Google
Nevada Land Trust for more info





http://www.trulia.com/profile.lasvegaswinner- <- Buyer's Agent 35 Years Experience CALL 702-499-7037
0 votes
Andy Stahl, Agent, Las Vegas, NV
Mon Feb 6, 2012
I'm not an attorney (my wife is) :-D but here is the Nevada Revised statute that may apply to your situation:
NRS 645.240 Persons to whom chapter does not apply.
1. The provisions of this chapter do not apply to, and the terms “real estate broker” and “real estate salesperson” do not include, any:
(a) Owner or lessor of property, or any regular employee of such a person, who performs any of the acts mentioned in NRS 645.030, 645.040, 645.230 and 645.260, with respect to the property in the regular course of or as an incident to the management of or investment in the property. For the purposes of this subsection, “management” means activities which tend to preserve or increase the income from the property by preserving the physical desirability of the property or maintaining high standards of service to tenants. The term does not include sales activities.
Here is the link to this chapter:
http://www.leg.state.nv.us/NRS/NRS-645.html#NRS645Sec6052
If you're looking for some rental properties or have any questions, please feel free to call me:
702-430-9599 - Andy
Web Reference:  http://RealEstateAndy.com
0 votes
Suzie Marqua…, Agent, Las Vegas, NV
Mon Feb 6, 2012
K & K
There is no limit to how many rental properties you can manage. Good Luck. I am always available to help in anyway I can.
Thank You
Suzie Marquardt
702-234-7653
fahrnyteam@yahoo.com
0 votes
Allan Loving…, Other Pro, Las Vegas, NV
Mon Feb 6, 2012
i believe that once you get over 4 properties you are bound by fair housing laws but you can manage as many as you want as a private owner.
0 votes
Myra Gouger, Agent, Las Vegas, NV
Mon Feb 6, 2012
You can manage as many of your own properties as you want to. There is no cap limit. As long as you do not solicit any other properties that are not your own, you are OK to manage w/o a real estate license. You may want to, however, get a property manager after you have several properties as sometimes with older properties, you are replacing things all the time. My advice if you want to manage by yourselves is to buy newer properties where the properties are too new to have anything go wrong with them as yet.
0 votes
Paul May, , Las Vegas, NV
Mon Feb 6, 2012
You may manage as many personal investments as you like-
There is no maximum in that respect.
Web Reference:  http://www.mayteamlv.com
0 votes
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