Property Managment Startup

**JL22** · 03-31-2009 12:20 AM

I am a college student looking to start a property managment company. I will start out with single family housing rental units. With the possibility of expanding over time. I am wondering if the best legal structure for a company liek this is a LLC? Also, if you have any helpfull info about this industry i would much appreciate it. Thank you all!

**jmandgroup** · 04-05-2009 01:22 AM

I would suggest a LLC to form your real estate company. If you are looking into investment funds I would suggest looking into SEC Regulation D (506). There isn't enough space on this form to explain Regulation D but I suggest reading up on Reg D and all SEC laws if you decide to bring in investors.

M. Markgraf
Senior Portfolio Manager
J M & Group

Originally Posted by JL22

I am a college student looking to start a property managment company. I will start out with single family housing rental units. With the possibility of expanding over time. I am wondering if the best legal structure for a company liek this is a LLC? Also, if you have any helpfull info about this industry i would much appreciate it. Thank you all!

**ScottRobertson** · 04-07-2009 02:44 AM

Look into REITs.

100% tax free (as long as 75%+ of your income comes from real estate) on the corporate level. You only pay taxes on dividends at the individual level.

**Sophie** · 04-07-2009 06:08 PM

I've been reading a book about starting businesses (way better than the usual books I've found!) and they have a chapter called "Boring!" that talks about the different legal structures with pros and cons for each. You can check it out at bootstrapbusiness.org or send me a pm and I'll give you more details about it. Oh, the book is called "Bootstrap Business: A Step-by-Step Business Survival Guide".

**JLeezer** · 04-07-2009 09:35 PM

JL22, I would advise that you look into real estate law, specifically any laws that may require you to be a licensed real estate professional (i.e. real estate agent or broker) prior to be permitted to advertise your services as a property management company. This should be at the state level, not the federal or local level...just to give you a starting point.

**DFrancis** · 04-22-2009 02:16 PM

The LLC might be the best way to go. It is not very difficult to set up. Many people do it with an attorney, however, many people do it themselves. It might be better to talk to an attorney to protect yourself and your investments.

**mcstartup** · 04-22-2009 03:42 PM

There's a guy that does a local Saturday morning radio show here that helps people do this very thing (in addition to doing it himself). His website is Real Estate Monkey | A Home For Real Estate Investors. I don't know if there are podcasts there or not, but you might, if nothing else, give him a call and ask. He might even have archives that aren't on the site but that he can email you.

In this kind of business, since it's very common and with a road paved with others mistakes, the best way to go is probably to shadow or apprentice with someone who has experience. Maybe this monkey guy can help you out. Good luck!

Jeff

**BusinessAdviser** · 04-22-2009 03:54 PM

Originally Posted by JLeezer

JL22, I would advise that you look into real estate law, specifically any laws that may require you to be a licensed real estate professional (i.e. real estate agent or broker) prior to be permitted to advertise your services as a property management company. This should be at the state level, not the federal or local level...just to give you a starting point.

Why would you need to be licensed as a real estate professional in order to start a property management company?

As for the original poster, do you plan to manage properties for others? Your own properties, which you plan to purchase as part of this business? Both?