How to get around Dealer License - Posted by Kevin

Posted by Tony-VA on February 28, 2002 at 13:40:25:

Not to start another commotion, but Joe’s post read like the story told about 1/2 down this post by Lonnie.

http://www.creonline.com/mobilehomes/wwwboard4/messages/8901.html

How to get around Dealer License - Posted by Kevin

Posted by Kevin on February 27, 2002 at 21:52:57:

I have purchased “Make Money with MH’s” today, so I haven’t read anything yet other than the discussion group which I have found very informative.

I did an archive search for discussion about MH’s dealing in Louisiana and to my surprize I understand that you must get a Dealers license if you by and sell more than 3 per year. Additionally, without a “lot” you cannot get a license. I don’t want to get discourged, but this sounds like a major roadblock. I know that there may be “unofficial” ways to get around this, but I am concerned with doing things legally with no fear of getting “caught” doing anything deemed illegal. Any thoughts on this?

Concerned,

Kevin

Re: How to get a dealers lot - Posted by CAW (OR)

Posted by CAW (OR) on March 02, 2002 at 12:25:53:

Getting a dealers lot in order to get a dealers license should not be a problem. It is very likely that you can lease a 10 square foot corner of a used car lot for a couple hundred a year, as long as you have no intention of actually moving any mobiles onto the lot. Basically, you strike a deal to use the address of a licensed commercial lot. Perhaps the car dealer would do it for a “commission” of $25 for every deal you close instead of a fixed rate.

The same idea can be applied to mobile home movers, if they have a legal place to park units. Or a local mobile home lot might rent you their address. Or contact the owner of any vacant commercial property and see if you can use their address for a small fee.

The owner of the commercial property will probably want to see proof that you have liability insurance – which you do have, right?-- and you will sign a “lease” that absolves the lot owner of any liability for your deals, and which does not actually allow you to place anything on the property.

You never use that address for anything except to obtain your license.

Re: How to get around Dealer License - Posted by Brad

Posted by Brad on March 01, 2002 at 20:19:48:

Kevin,

Don’t let this discourage you! Go out and do your three deals under your name then have your wife do three under her name and then get the kids involved. Then do it again next year. Get the idea.

Good Luck,

Brad

Just do your 1-3 deals a year FIRST and then - Posted by Carey_PA

Posted by Carey_PA on March 01, 2002 at 09:10:54:

worry about the rest :slight_smile:

CAREY

Re: How to get around Dealer License - Posted by Brian

Posted by Brian on February 28, 2002 at 09:24:39:

Hey join the club I’m in Oklahoma and its the same way. I don’t want to be a dealer, I can’t afford a lot to store homes or for people to see them. I also refuse to do anything illegal to try and make a profit. I hope someone response so we can find out.

Re: How to get a dealers lot??? - Posted by Fl. Kevin

Posted by Fl. Kevin on March 02, 2002 at 16:36:48:

Kevin,
Never thought about doing that. If it works within the state law that I’m in(Florida), I’ll be sure to do that. Anyway’s thanks!

Fl. Kevin

Re: How to get around Dealer License - Posted by T

Posted by T on March 01, 2002 at 23:37:32:

Theives. You should have a license.

How about "How to solve whatever problem… - Posted by lyal

Posted by lyal on February 28, 2002 at 17:56:10:

is keeping me from getting into this business.

Brian,
Have you actually read the OK statutes? They’re on-line at http://oklegal.onenet.net/statutes.basic.html
I just quickly checked them out. Here’s Section
47-581.5a and 5b.

  1. a. “Manufactured home dealer” means any person, firm, corporation,
    or other legal authority who, for a commission or with intent to make
    a profit or gain of money or other thing of value, sells, offers to
    sell, or attempts to negotiate a sale or exchange of interest in, new
    or used manufactured homes, or that is engaged wholly or in part in
    the business of selling any new and unused, or used, or both new and
    used manufactured homes. A valid franchise letter as proof of
    authorization to sell any new manufactured home product line or lines
    shall be attached to the application for a dealer license to sell
    manufactured homes.

b. “Manufactured home dealer” shall not include any person, firm,
corporation, or other legal entity who sells or contracts for the sale
of a personally titled manufactured home or homes, or any person
acting as an auctioneer who has been engaged by a seller to direct,
conduct, control, or be responsible for the sale of manufactured homes
as a part of an auction or liquidation of an estate, or any Oklahoma
licensed real estate broker or sales associate when buying or selling
used mobile homes as a part of a real estate business. No person,
firm, corporation, or other legal entity shall be considered a
manufactured home dealer as to any manufactured home purchased or
acquired by the person, firm, corporation, or other legal entity for
purposes other than resale; provided, that the restriction set forth
in this sentence shall not prevent an otherwise qualified person,
firm, corporation, or other legal entity from utilizing a single
manufactured home as a sales office;

You see that part in 5b that says "Oklahoma
licensed real estate broker or sales associate when buying or selling
used mobile homes as a part of a real estate business"
I’m no attorney but to me it looks like an auctioneer or licensed real estate agent / sales associate can sell without being a dealer. IF that’s the case, do you think that if you did all the legwork (advertise, show the place, etc.) that you might be able to find a real estate agent that would “close” the sale for you (using the agent’s trust account etc so its all legal) for a fee. Maybe 100 bucks or so for an hour’s work??? (Yes you can, most realtors don’t make a lot of money)

If you want to be in this business you need to cast yourself as a problem solver. If you’re going to listen to what someone else tells you (THAT’S ILLEGAL!!)instead of viewing it as a problem (How can I get this done??) you’re beaten before you start.

TO EVERYONE who’s not jumping in because of the dealer issue, I would bet that a realtor being able to sell mobiles is legal in most areas. Find out and if that’s true, then get friendly with one or have your wife / husband / significant other / brother / mother-in-law get a real estate license and start doing business!!
All the best, Lyal

Comments about “the system” - Posted by Joe

Posted by Joe on February 28, 2002 at 10:35:34:

I assume that this board is for discussing how to best operate within “the system,” which is fine and helpful discussion. But sometimes I feel it’s necessary to make brief mention of changing the system back to the way it’s supposed to be, where you have FREEDOM to conduct private business affairs between two consenting parties, without interference from government.

A “license” (or the “granting of a right”) should not be required for something which is a natural right (buying and selling goods). Natural (God-given) rights are not supposed to come from government, and exercising one of those rights should not make you a criminal because you have not obtained the government’s permission.

I was reading through the mobile home archives regarding licensing, and some of the things I saw made me sick, and are so oppressive that I can hardly believe it.

For example, in California they appear to require someone to be a college grad for obtaining a license. That is totally absurd and unjust. Persons who will benefit the most from a course such as Lonnie’s are those who have an entrepreneurial spirit and guaranteed they will have more business sense than the vast majority of college grads, (perhaps even if they have not graduated from high school). Some of our most noble people and brightest inventors had little in the way of formal education, but I suppose they would have been stifled by government if they were around today.

I know of people who have not graduated from high school who have gone on to become mulit-millionaires. What if they were stifled in their particular endeavors, say if they happened to live in California? That’s the worst state I found, but what restrictions does your state have?

Sorry, I just had to mention this, otherwise there could just be a denial that anything is wrong with “the system.” Forgive me if I stepped over a guideline or changed the subject, and remove my reply if need be.

Re: How to get around Dealer License - Posted by Brad

Posted by Brad on March 02, 2002 at 07:30:32:

T,

You are implying there is something illegal about the suggestion I gave to Kevin. Please tell me what it is?

Good Luck,

Brad

What’s YOUR problem, T? - Posted by Jerry Freeman

Posted by Jerry Freeman on March 02, 2002 at 07:21:27:

Dear T,

I’ve reviewed the posts that you’re attacking and found that the direction of the discussion is how to legally conduct business, not how to get away with breaking the law. In many states that require a license, the law does allow a person to do a small number (typically three) mobile home deals without a license. Most of the people asking about licensing have never bought or sold a mobile home. If I worked for the government in their state, I would advise them to go ahead and do their three deals before they get their license too, so that they can see if the business is for them.

Most of the people posting here who do a significant amount of business in states that require licensing are licensed. The vast majority of the posts I’ve seen are advising people of ways to work within the rules.

So my question to you is, who are you and what is motivating you to attack these people? Are you a mobile home dealer afraid of losing business to them? The tone of your posts is too strong for the subject matter that you’re discussing, so I must assume that you have a personal agenda that’s influencing your comments.

Best wishes,
Jerry Freeman