Posted by Chuck (AZ) on March 04, 2002 at 11:33:47:
I’m not a lawyer and I’m not going to give legal advise.
I’ve already posted what I did and why… it’s simply what worked for me. Your going to have to determine your own version of it, if your going to proceed in this business.
My advise is to talk to a attorney about your state’s statutes, and see how he interpets them… then proceed as you both decide.
Just don’t let this issue be the reason you why you don’t change your life for the better.
I am taking that this means I am going to have to summit a credit report, which also means that I am going to wait until I get my credit turned around(in the process of doing that now however):
R 125.1202a Credit reporting.
Rule 202a. An individual, including all general partners or copartners in a
partnership and officers of a corporation applying for an initial license
under the act or these rules, shall submit a credit report as part of the
application process, unless the department obtains the report directly from
the credit reporting agency. The credit reporting agency shall forward the
credit report to the department. Credit reports shall be for the confidential
use of the department only and shall not be available for public inspection
under section 13(1)(a) of Act No. 442 of the Public Acts of 1976, as amended,
being §15.243(1)(a) of the Michigan Compiled Laws, and known as the freedom
of information act.
Also, I keep hearing people talk about what the penalties are of operateing without a license but don’t see anything mentioned in there…I am not worried about it, just the curious type…plan on doing a few of these as soon as Lonnies books arrive anyway.
Re: Browsing the Michigan Mobile Home laws - Posted by Blane (MI)
Posted by Blane (MI) on March 04, 2002 at 17:40:57:
I probably could have just kept going without a license, but it did hinder me with a few parks, and plus it knawed at the back of my mind about being totally legal. The main issue is saving money on sales tax; that alone makes it worthwhile having a license.
You could probably do the same, and do it without a license and noone would ever say anything, but give yourself peace of mind and get it.
No issues, but Blane has a story he can tell… - Posted by Kevin (MI)
Posted by Kevin (MI) on March 04, 2002 at 08:23:43:
Tony and Chuck are both right on this one…
I have never seen anyone prosecuted on this AND it is all a matter of risk tollerance. I do not think you will ever find an issue with the State of Michigan, but PM’s in our state can be a little challenging if you do not have a license (Blane has an incredible story on this)
Also, as Blane will testify, when I was going through and getting licensed in Michigan, it seems really hard, but it is easy. You just need patience and a will to succeed. This is no different than the business itself. If you take no for an answer and think the obstacle is too high, then you already have lost.
Just keep plugging away and always keep asking questions. The Michigan Commission is really helpful and if you get them on the phone, they will answer all your questions to why they need certain items and what they do with them.
Barriers to entry in this business seem high, but are not terribly so. The biggest obstacle you will run into in this process is the Surety Bond. Companies do not have a good impression of Mobile Home Dealers and they want to see everything you PERSONALLY own before they will write you one…
Posted by Tony (Ga) on March 03, 2002 at 17:29:30:
I think that my response to “T”'s message may well have generated undue concern and effort over the issue of obtaining a dealer’s license. As an avid reader of the discussion forum, it angered me to have an individual make blanket accusations about a group of people that have demonstrated drive, initiative, and imagination. Perhaps the undue concern over a license issue would not have arisen had I used the colorful terms that I gave voice to upon reading “T”'s posting. I chose to, out of respect for the column, to avoid describing him as a “F@#$%^% Idiot” and leaving it at that.
The concept of obtaining a license should be a moot point for 99% of the readers. My marriage to a lovely lady judge warrants that I be cautious when pursuing Lonnie deals. Therefore, I will apologize for kicking over the licensing anthill.
I know the debate on dealer licensing will go on anyway just like the dreaded “due on sale” issue on the main board.
BUT…just out of curiosity,
Has anyone actually heard of someone being prosecuted or fined, told to “Cease and Desist”, or punished in any way for selling mobile homes without a license in any state?
Feel free to poll the Attorney General’s office in your state.
Lyal
To some degree I think the Dealer License issue boils down to risk tolerance.
For example, do you speed when driving? We all know that it is wrong and we could be fined, however, to many it is a chance they are willing to take. They do so with the full understanding that they may get away with it, or get fined.
In one post it is mentioned that the poster is married to a lady judge. I would imagine that at times, even she has chosen to speed. Letter of the law says she/we should not, but…
No one here is suggesting that anyone take a risk they are not comfortable with. No one here is suggesting that anyone break a law or ordinance.
I obtained a dealer’s license for my deals based upon several factors. One directly contradicts the post by “T” in which he states that we are essentially robbing our local tax collectors of their just due. On the contrary, I paid more in taxes prior to obtaining the dealer’s license. As a dealer in VA, I no longer had to pay sales tax. As an individual, I could not re-assign a title so I had to pay sales tax and then two weeks later (when the home sold) my buyer again paid sales tax.
It only took a few Lonnie deals for that tax savings to more than outweigh the cost of being a dealer. (Not to mention time saved going back and forth to DMV).
Re: EVERYONE PLEASE READ THIS!!! - Posted by Chuck (AZ)
Posted by Chuck (AZ) on March 03, 2002 at 14:26:28:
As I said before, I’ve been in this business and a poster on this site (and others) for almost 7 years now.
In all that time, I’ve NEVER heard or read of a single case of prosecution regarding the statue in question.
I’ve done this business in 3 different states to date. In each one I had the state statue reviewed by my attorney, who agreed with me that the “intent” of the wording “implied” or “referred to” to a mobile home dealership, not a private indivdual doing small personal loans on real estate.
To compound (or clarify) this issue even further, look at seller carry-back financing (stay with me here). If I own a mobile home and sell it on contract (a note), your going to have to go along way to convince me that I need to pay some government agency “x” number of dollars for the “right” of doing it, and the “privleage” of kissing their red tape along the way.
that setting ourselves up as a business entity is the problem here? Would I be better off thowing out the business cards with my chosen company name (that I have already distributed to PM’s )and not apply for a EIN# that I would need to open a business bank account?
Have you done all your business as a private individual?
You must be sick to death of this issue, as most of us are already but you’re opinion is valued.
Thank You,
Lynn(CT)