Posted by Josh on January 20, 2000 at 21:33:11:
From the Master himself! When Lonnie speaks…people listen. Thank you for a very inspirational illustration. You are appreciated very much. The moral,of the story: Have the courage to act… instead of react. God bless you, and best wishes always.
Lonnie Deals…license required??? - Posted by Josh
Posted by Josh on January 19, 2000 at 23:37:05:
I have found that in the state of WA. one must have a dealers license, commercial lot with signs, etc., so they say…before you can buy and sell mobile homes. Any way around all this, or is this just the process and proceedure?
I would appreciate any and all comments and input.
Best wishes to all,
Josh.
Re: Lonnie Deals…license required??? - Posted by Lonnie
Posted by Lonnie on January 20, 2000 at 20:57:14:
The enemy is… “They”
For one reason or another, it seems there?s always a number of folks that won?t take that first step and get started making money. You wouldn?t believe all the excuses I?ve heard over the years. The reasons are numerous…“Can?t do it where I live.” “Can?t find any cheap MH?s where I live, the prices are too high.”. “Lot rent is too high.” The paper is full of MH ads with small payments.“Too much competition”. “Must have a dealer license” “Can?t get a dealer license”. (Dealer license seems to be the number one hang-up.) " And the reasons go on and on.
I wrote this article some time back and kept it to run occasionally. This seems to be the appropriate time to run it again. See if you recognize anybody?
Once Upon A Time
Once upon a time there were two men named John and Charlie. Both men had finished school after getting a “good education” and was now working a “job”. The problem was, they both worked a job they didn?t like, that paid just enough to live on. But that “job” provided “security and good benefits”. At least that?s what "they: said.
These two men kept hearing about how you could make a lot of money buying and selling mobile homes, so they decided they wanted to give it a try. So they both bought a book that explained exactly how to do this.
John was the type of man that was more concerned about details and paper work and making sure everything was exactly proper and right, rather than just doing a deal and making money. And John also listened a lot to what “they said”.
When “they” told him that this mobile home business couldn?t be done where he lives, John believed it. When “they” told him he couldn?t buy cheap mobile homes where he lived, he believed it. When "they? told him that he would have all kinds of problems with licenses, paper work contracts, John believed everything “they” said. “They” even told John that people go to jail, and get fined big bucks if you didn?t have a dealers license. Then “they” told John of cases where the buyers stopped paying and just skipped out leaving a trashed home. John was just terrified.
Then John checked with a lawyer who charged him $500 to review his contracts and advise him what to do. (His lawyer knew nothing about mobile homes, but was willing to do all the research necessary for only $150 an hour so John wouldn?t get in trouble). Finally John decided this mobile home business was much too risky and expensive. So he decided to keep working his job. After all, he was now making $8.00 an hour and was due for another 50 cents an hour raise next year if his company was still in business. So John kept doing the same things he had been doing, and kept getting the same results he had always gotten. (A small pay check.)
Charlie, on the other hand, wasn?t as smart as John and didn?t even know he couldn?t do these mobile home deals. “They” didn?t tell him it couldn?t be done where he lives, or that he needed a lawyer, or that his buyer wouldn?t pay, or that he could go to jail, and all the other war stories that “they” like to tell. So being a little dense, Charlie just started doing it. After 3 years, Charlie had bought and sold a lot of mobile homes, had created $300,000 of mobile home notes and was getting checks dropped in his mail box almost every day.
Then Charlie decided to do something totally unthinkable…he quit his job!! All his friends and family tried to tell him what a horrible mistake he was making. How could he give up a steady paying job with good “benefits” and even a “retirement” plan when he reached 65? But Charlie was just plain bull headed, and stubborn as a mule and refused to listen to what “they” said. So he quit that job that he hated and was now full time in the mobile home business. Charlie was a now a man without a job. What kind of a future could he expect with no job, no guaranteed benefits and not even a retirement plan.
Everything was bopping along just fine for Charlie. Then one day a terrible thing happened…a man from DMV called and told Charlie he couldn?t buy and sell mobile homes without a license. Charlie said, “A license!! I need a license? I didn?t know that, nobody told me I needed a license. My goodness, what do I have to do to get a license”? The DMV man said, “You have to come in, fill out an application and pay $1,000.” Charlie said, “OK, I?ll be right down, after all I sure don?t want to get in trouble for not having a license.” So Charlie got a license and now he can buy and sell all the mobile homes he wants without worrying about getting in trouble with that bad DMV man.
Now Charlie spends half his time just hanging around the house, going fishing, or waiting for the mail carrier to deliver mobile home checks. And regardless how hard his wife tries to persuade him to get a “real job”, he still refuses to even look for one. What will the neighbors think, Charlie?
Happy investing to all
Lonnie
PS I never heard anymore about John. Probably still working that “good job”… unless he?s been “downsized”.
Re: Lonnie Deals…license required??? - Posted by Nancy Cason
Posted by Nancy Cason on January 20, 2000 at 11:28:03:
Each state has different requirments and definitions of dealer status. In North Carolina two sales a year requires a dealers license. However I can do two deals in my name, two in my husbands name, and two in the Limited Partnership name. See we are now up to 6.
There are other ways around this also. I know one lady in Florida who did 60, by using rent to own (land contract) methods she sold each home on the installment method. (See IRS pub 544 & form 6252 instructions).
Another person I know just carried on his business for several years without a license.
HAVE FUN
NANCY
Re: Right-On Lonnie - Posted by Eric Anderson
Posted by Eric Anderson on January 21, 2000 at 12:10:24:
Lonnie, Well done. Very well said. Today you have again done your part to turn another couple dozen every-day people into extra-ordinary money-makers. You have such a marvelous talent for making it plain and simple, and telling it how it is. Thank you Lonnie from all of us mobile home investors.
Eric
Always enjoy reading this story! (nt) - Posted by Jim-WI
Posted by Jim-WI on January 21, 2000 at 08:53:39:
(nt)