getting started on Lonnie deals - Posted by Kelly H.


#1

Posted by Tim (OH) on December 29, 1998 at 16:56:09:

12 PER YEAR? Good deal…go for it.


#2

getting started on Lonnie deals - Posted by Kelly H.

Posted by Kelly H. on December 28, 1998 at 22:44:04:

I just bought Lonnie’s books and am just starting to read them. I have a question maybe someone out there can help me with. I haven’t found much in the book yet concerning the legal aspects of buying/selling mobile homes. Where do I find out if I have to be a dealer or how many homes I can sell without being considered a dealer? I’m also concerned about doing my taxes, how much taxes I would have to pay on every deal and whether or not I need to consult an accountant. Any help you can give me would be appreciated.
Thanks,
Kelly


#3

Re: getting started on Lonnie deals - Posted by Kelly H

Posted by Kelly H on December 29, 1998 at 15:02:35:

I want to thank everybody for all the great help. I
called the license branch in the town where I live and
they gave me the dealer’s branch #. I found out that
mobile homes are dealt with the same way as cars and in
Indiana you can buy up to 12 per year(not bad, Huh?),
without having a dealer’s license. Thanks, Kelly


#4

Re: getting started on Lonnie deals - Posted by Jen (NE)

Posted by Jen (NE) on December 29, 1998 at 13:11:41:

Check with your Dealer Licensing Board. Autos and MHs in Nebraska is the same license. In NE, each person/entity can buy 8 without being a dealer. It may be differenct in your state. However, if you are not a licensed dealer you will typically have to pay Sales Tax (similar to a car purchase) on each deal. Although sales tax isn’t much on a couple of thousand - just factor it into the deal.

I know one gentleman here in NE is considering having a different LLC buy up to 8 max MH each to get around having to get a Dealers license. I think it’s a creative concept.

If your state is very rigid like mine in which you have to have an established property/business, room to hold X # of MH, etc…to get a dealers license, you could maybe find a licensed Dealer and strike up some deal to work off of his/her Dealer’s license. They would get you a salesperson license as opposed to setting up multiple LLCs--------Just a thought

Good Luck


#5

Re: getting started on Lonnie deals - Posted by Terry

Posted by Terry on December 29, 1998 at 12:33:11:

HI Kelly.I have not personally done any Lonnie deals but I have read a post a couple of weeks ago that said if you do more than one a year that you do have to have a license and a bond.I think it said you go thru public housing and urban development dept.This was pretaining to Tx.Hope this helps!I am possibly interested in Lonnie deals also here in Tx but have not made it for sure yet.Any info you come up with I would appreciate an email.Thanks and good luck on your quest.


#6

Re: getting started on Lonnie deals - Posted by Jim Simons SATX

Posted by Jim Simons SATX on December 29, 1998 at 11:31:14:

Hi Kelly,

I’m in Texas and I’ve been trying now for weeks to get the same information you’re asking for. - without a lot of luck.

However, I would not just jump in. Like Tom said - if you’re operating without a (needed dealers license) it could cost you dearly.

If (like me and several others) you’re in Texas and trying to get started doing Lonnies, keep watching the newsgroup. If I get any info I will pass it on for everyone. And if you find out anything we could use, please post it ok?

Good luck and God Bless - Jim


#7

Re: getting started on Lonnie deals - Posted by Tom Brown

Posted by Tom Brown on December 29, 1998 at 08:03:17:

The place to find out about requirements for your area would be your state government. Most likely the same agency that licenses auto dealers. You definitely want to find out about that before you go too far. Operating without a dealer’s license if you are required to have one could cost you big bucks in fines and could prevent you from getting a license in the future.

I have just started with Lonnie’s books after doing other types of real estate deals. So far, the mobile home business seems to have more in common with the auto dealer business than the real estate business, at least as far as regulations go. After I read the first few pages of “Deals on Wheels”, I saw this business as a gold mine because of the similarity between the way Lonnie does the business and the way used car dealers who use the “note lot” concept do business. My wife worked for ten years in the “note lot” auto dealer business, working for the two largest dealers in OKC. Those guys made a killing using the same principles that Lonnie uses.


#8

Re: getting started on Lonnie deals - Posted by Darin

Posted by Darin on December 28, 1998 at 23:10:39:

My suggeston would be to focus on learning every thing you posibally can. Take action by going out and find the deals, negotiate the contracts, and get them them done. I would put the tax implications and other stuff second to doing the deals. Not saying to ignore the legal aspects in any means. Just take action and not get caught up in the small details. From my experience and watching others get started, I see alot of people get caught up in the non dollar productive activities when you should be focused on DOLLAR PRODUCTIVE ACTIVITIES. Find motivated sellers, write deals, get to a closing.