Lonnie Deals In FLORIDA need help please - Posted by Jeremy

Real Estate Investing
1

Posted by Rodney (AZ) on January 19, 1999 at 19:59:47:

In Arizona, the dealer licensing is handled by the Department of Fire and Safety. I sent for a “dealer’s packet” and found that the kind of deals that I intend to do (older, used mobile homes) require a class of license that costs $420 per year, PLUS a 2-hour examination. (The $15,000 bond requirement is waived). One is only allowed to sell 2 mobile homes per year in Arizona without a dealer’s license, and those must be your principle residence.

Those are some tough requirements, but I plan to follow through on them. I do not want the long arm of the law shuttin’ me down!

Comments?

Rodney Mullins

2

Lonnie Deals In FLORIDA need help please - Posted by Jeremy

Posted by Jeremy on January 18, 1999 at 15:21:14:

Hi,
I am going to be doing some Lonnie deals in Florida. I am looking for someone that is already doing them in Florida and would not mind sharing a copy of the contract for a Land Contract, or Contract for deed due to the fact that I do not want to rent and be responsible for maintance. (Tenents and Toilets)

Any and all help will be greatly appreciated.

Thanks
Jeremy

3

Info on FL Mobile Home Dealer Requirement - Posted by Tom Brown

Posted by Tom Brown on January 19, 1999 at 08:31:35:

Department of
Highway Safety & Motor Vehicles
Licensing Requirements for Mobile Home Dealers

In Florida, mobile home dealers are licensed and regulated by the Division of Motor Vehicles under Section 320.77 Florida Statutes.

The Law

Florida law states that any person, firm partnership or corporation that buys, sells, offers for sale, displays for sale or deals in one or more mobile homes in any 12-month period is presumed to be a mobile home dealer and must have an appropriate license issued by the State.

License Types

There are two classes of licenses issued to mobile homes dealers. They are:

Mobile Home Dealer–for a person dealing in new or used mobile homes. This license permits the licensee to transact business at retail or wholesale.

Mobile Home Broker–allows the licensee to sell used mobile homes only. This license permits the licensee to transact business at retail of wholesale.

Application

Before going into the business of selling mobile homes, a person must submit a completed application, with required documentation and fees. License applications may be obtained from any Division of Motor Vehicle regional office.

General Requirements

Approval of business location by a DMV representative.
Completed application form.
Fee of $300 for each main location.
Annual fee of $40 required for the Mobile Home and Recreational Vehicle Trust Fund.
$25,000 surety bond.
Copy of lease for location or proof of ownership.
Dealer training seminar certificate.
Registration of fictitious trade name.
Copy of corporate papers.
Sales tax number.
Federal employer identification number.
Fingerprints and applicable fees. ($39 per person).

Failure to Obtain A License

Any person violating these licensing requirements is guilty of a second-degree misdemeanor, punishable by up to six months in jail and/or fine of $500. Such person will also be liable under civil law for violation of Florida?s Deceptive and Unfair Trade Practices Act, subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.

More Information

If you have questions about application procedures and licensing requirements, contact the DMV regional office.

4

Re: Lonnie Deals In FLORIDA need help please - Posted by Dean (IL)

Posted by Dean (IL) on January 18, 1999 at 15:57:33:

I may be wrong, but if you stick with MH parks doing Lonnie Deals, you won’t need either. MH’s are titled like your automobile and you would want to be the first lienholder on the title. Like a bank, once you pay your car off, they release the lien and send your your title.

5

Re: Info on FL Mobile Home Dealer Requirement - Posted by Tom

Posted by Tom on January 19, 1999 at 14:35:21:

I checked with the Fire Marshall for teh State of Ga (they are the regulatory agency that liscense dealers). In Ga you can sell 3 homes a year without getting a license. After that, you send in an application and an authorization for them to do a background check, and a check for $100 dollars. No bond or anything…

Tom

6

Fascinating… - Posted by JPiper

Posted by JPiper on January 19, 1999 at 11:20:51:

Looks like the government in the state of Florida got together and passed a law that makes EVERYONE who ever sells a mobile home a criminal.

Now I wonder how would the state of Florida go about enforcing a law that makes the selling of even 1 mobile home without a dealer license illegal??

JPiper

7

A thought… - Posted by JHyre in Ohio

Posted by JHyre in Ohio on January 19, 1999 at 08:58:28:

I noticed that the statute says that if you sell 1+ MH’s, you are PRESUMED to be a dealer. I wonder if there aren’t any ways to REBUT that presemption buried in the statute or case law. Such a rebuttal, if possible, would get you OUT of dealer status. Just 1 thought on how one could do deals without being a dealer and still complying with the law.

8

Re: Info on FL Mobile Home Dealer Requirement - Posted by Tom Brown

Posted by Tom Brown on January 19, 1999 at 15:03:11:

Thanks for the info.

I am in the process of expanding into mobile homes. I live close enough to the FL/GA line (GA side) that I was researching both states. Guess which one I am going to pick?

There are far too many new mobile home dealers in my area to serve just the local population. I wonder how many of those homes are going to to Florida?

9

Re: Fascinating… - Posted by Tom Brown

Posted by Tom Brown on January 19, 1999 at 15:07:26:

I’m sure that there is a provision that exempts people that are selling their own home.

Given that you have to pay sales tax and transfer the title, I think that they would catch you sooner or later.

By the way, I don’t think that FL is the only state that has such restrictions. I seem to remember another post some time back that stated basically the same thing in another state. (Texas?)

10

Re: A thought… - Posted by Tom Brown

Posted by Tom Brown on January 19, 1999 at 15:12:30:

I’m sure that there are exceptions that apply if you are selling your own home, but if you are in business doing Lonnie deals or something similar, I doubt it.

Tom’s post above stated that the requirements in GA are less restrictive. I live in S. GA and there are at least a dozen new mobile home dealers in my area. I would bet that a lot of those homes are going south.