Lonnie, Dirk, Tony, Jacob, any MH veterans... finance license? AL regulations? - Posted by Chris in AL

Posted by Tony-VA on March 13, 2000 at 18:15:32:

Hey Chris,

I have no idea what AL law would require as far as finance licensing goes, but I would hazard a guess that your lawyer does not completely understand what it is we do. I am not a lawyer, but would not believe that a license would be required to owner finance your properties. Now maybe if you were advertising to the public to finance other properties and products that you do not own, you may need some licensing.

For what it’s worth, if they said I needed a finance license, a big fuzzy hat and unicycle, I would run out and get them in order to do these deals.

Your attorneys advice appears very sound and generic for anyone starting up a new business. Perhaps they can tell you where to look to find out. The point is that you are starting a great business, appear to have expended money and time to set this business up legal-N-proper like, don’t stop now if you are required to obtain more redtape. Also try posting this question on the legal corner here and see if Bill Bronchick can provide any input.

Yes people can sue for ridiculous amounts. I recall a person making quite a bit of money by spilling hot coffee on themselves. First things first, your company would have to have $140 million to sue for. Next, you would have to have missed some or all of the ideas at this site about asset protection. You would have to disregarded the advice above by your attorney etc. etc.

You are taking many of the right actions to set things up properly. Continue to research and develope your business and asset protection plans. Play by the rules and you will reduce much of your liability.

Best Wishes. Sorry I can’t say for certain what AL law requires.


Lonnie, Dirk, Tony, Jacob, any MH veterans… finance license? AL regulations? - Posted by Chris in AL

Posted by Chris in AL on March 13, 2000 at 16:36:55:

Hey everyone, I have just met with a lawyer to discuss the establishment of my S-Corp for doing MH deals. I have already gotten the required business licenses, and the state dealers license. The lawyer said she thought I would need to be licensed as a finance company as well. She also said if this was the case, to expect bonding requirements, and a lot more hoops to jump through.

She also suggested business liability insurance, and said that the AL law allowed people to sue for ridiculous judgements. Last year there was apparently a case where a person buying a satellite dish missed a payment or something, and after fees piled up, they claimed ignorance as a defence, and sued the sattelite company. The jury awarded the family something like 140 MILLION DOLLARS.

I am determined to do what it takes to get in to this business, and just want to know what I really need to do, and avoid what is unneccesary.

Please help me get the facts straight.



Auburn, Alabama.

PS- I would have LOVED to go to the convention, but my sister got married in Las Vegas that weekend. I really needed to meet with everyone. I have been reading the articles, newsgroups, and anything I can get my hands on for about 2 months, and am excited to get started. This weekend I sent letters to a lot of friends & family looking for a little startup captal. I have had an ad running for about 3 weeks, and have got a decent buyer list right now.

Re: Lonnie, Dirk, Tony, Jacob, any MH veterans… finance license? AL regulations? - Posted by Tom

Posted by Tom on March 14, 2000 at 08:49:47:

Now if I remember correctly, this sattelite company was doing the ol’ bait and switch. Advertising this great package and selling this great package, but delivering a far inferior package. Now that was what I understood to have happened. Hell, it was a funny story when it first appeared last year. The plaintiff brought the case forward without specifying the damages it hoped to gain. This was damages that the jury awarded on its own.

This past year, the Al legislature has passed a bill that will greatly reduce this types of judgements. Yet to be seen if it will work. By the way, I believe that judgement has recently been reduced to around ten million dollars. Still a hefty award for a two hundred dollar satellite, wouldn’t you say?


Re: Lonnie, Dirk, Tony, Jacob, any MH veterans… finance license? AL regulations? - Posted by Jacob

Posted by Jacob on March 13, 2000 at 22:40:40:

Hi Chris,

Even though I spent a wonderful 6 months drinking tons of sweet ice tea in Birmingham about 2.5 years ago, I am not familliar with Al. law. To be honest, if I remember correctly, there are some pretty strange laws down there to begin with.

I think your attorney means well, but my gut feeling is that she doesn’t understand what you are doing. I’d be surprised if you needed a license to finance your own properties. It’s simillar to needing a real estate license to sell properties for others, but you can sell as many of your own as you want without a license. I think it’s along the same lines, but not completely sure. Tony had a good suggestion about asking Bronchick.

As far as covering your duff relating to lawsuits, there have been many books written on that subject. Are you ever totally protected against crackpot lawsuits? I don’t know. People can still file against you (or your corp.) all day long for whatever reason they want. Does that mean it will be a successful case? Of course not. Even the little old lady that won a few million for dumping coffee on herself had the award overturned by the one smart judge we have in this country. The discussion on asset protection is a very lengthy one, and is more than we can get into here.

I must say you are really moving. It says alot for you and your chances of success.


(I hope that actually is the Auburn U. fight slogan, and not some sort of insult! I just remembered something like that relating to AU from my days in B’Ham.)

Tony said it all but you might want tro check out… - Posted by Dirk Roach

Posted by Dirk Roach on March 13, 2000 at 22:37:39:

these guys,
Alabama Manufactured Housing Institute
60 Commerce St.
Suite 1212
Montgomery, AL 36104
(205) 264-8755

Hope that helps,