Posted by Ray (NJ) on January 20, 2000 at 11:24:17:
You’re asking the wrong guy. I’m just starting doing Lonnie Deals. Thus, the reason for my original questions.
I read in a few places (I wish I could remember and post them here), but there were fines for not registering the “business”, for not being properly “licensed”, for not having the correct “permits”, etc. Actually, I thought I read a post on this site (but could have been a competing site) referring to a California man being fined $125,000 (yikes!) for financing Mobile Home deals (yikes, again!). Now, it could have been due to fraud, or something major, but I don’t remember. I have read in other places about potential fines for not receiving the proper permits before doing deals.
Unfortunately, I can’t VERIFY any of this. This is the only obstacle I have before doing the deals. As a business owner (retail & service businesses), I know how diffcult local and state agencies can be. I just want to cover my rear before doing anything.
Posted by Ray (NJ) on January 19, 2000 at 18:41:41:
Just got finished “Deals on Wheels” and starting to look for MH. Right now, doing homework, learning the market, making the contacts, etc.
Was researching legalalities for deals in NJ.
Found nothing (checked DMV, and State sites) about licenses, dealer status, etc. Anyone know what I need to do in NJ? Must I be a dealer? Are there any licenses/permits I need?
During my research I found there are special licenses required for “Home Finance Agency” in NJ. If I finance Lonnie Deals, am I considered a “finance company”, especially if I have to be a dealer? Or does it not count for “owner financing”?
Thank you VERY much for you help. I am VERY excited to do my first Lonnie Deal, but want to make sure I’m not going to get fined or jailed!
2 answers…but hope the pros respond - Posted by chris_WA
Posted by chris_WA on January 19, 2000 at 20:15:14:
ray
can’t speak about the rules and regs in your state. of course they vary. but what seems to be recurring on this board is the question of being a dealer. seems the general consensus on this board from the guys doing the deals day in and day out is don’t let that kind of stuff slow you down. take it as it presents itself. when you get to the point where someone in the county offices actually realizes that you are running deals(which probably never happen until you have done some serious volume) they may come at you and say, hey, do you have a dealer liscense? your response…“didn’t know i needed one! how would i go about getting the liscense.” the main point i guess is this…don’t let the little things hold you back. get into the game. get some deals done.
as for question 2…i would assume…and don’t hold me to this…but that requirement may be considered for real property. lonnie mobiles…and used mobiles sitting in parks are considered “personal property” totally different set of rules there. again…you may wish to consult the pros on that. oh, one neat thing about the difference between the two. real property as you probably know means you have to evict or foreclose on the property…with personal…we have the benefit of a “repo” get em in and out quick baby!
you may be interested in getting to know about how doing a repo in your area works.
Re: 2 answers…but hope the pros respond - Posted by Ray (NJ)
Posted by Ray (NJ) on January 19, 2000 at 23:01:12:
I was seriously considering going that route. Thing is, I read about people doing that and getting caught and fined HEAVILY. (Any by heavily, I don’t mean a few hundred or a few thousand dollars. Tens of thousands of bucks!). Now, a couple hundred bucks is doable. More than that is definately not.
RE: learning about how repos work. Where do I find that (what agency)? Is there a legal procedure, or do I simply consult the handy yellow pages for my local repo man? What percentage of deals do you actually think I would have to forceably EVICT someone? In my limited (real estate) experience, I’ve found the Carleton Sheets method of PAYING them to leave works 99% of the time (when all else fails).