Posted by Brad Crouch on April 11, 1999 at 23:37:49:
Hi David,
> Is “rent to own” covered in your license pkg? Doesn’t
> seem to be covered in this state.
I don’t think so. At least I haven’t seen any references to it. It almost doesn’t matter since the park owners out here insist on “ownership”. The park where I live is now requiring a copy of the registration for each coach in the park. They don’t allow any rentals or lease options. But they do allow owner financing. If a purchase agreement contains a liquidated damages clause, This is the same as a lease option, I think (real property vs. personal property?)
Anyway, a healthy part of the licensing fee goes into a “fund” to compensate disgruntled buyers.
> Why not do business in a corp or LLC to offer
> personal protection?
Mainly because it is kind of expensive. It costs over a grand to get a Corporation started here and a minimum of $800 per year as a “franchise fee”. LLCs cost the same.
However, if you’re a broker . . . you don’t need another license to do “used mobile home deals”, if the MH in question is more than 1 year old.
I found a broker I could work with in my area, on mobile homes . . . but before I could get started, I became involved with the PACTrust methods. It is doubtful that I’ll go back to thinking about mobile homes any time soon.
I want to get started in MH deals, and I ordered Lonnies book yesterday. I have the CS course, and it has one chapter on MH’s but everyone says Lonnie has much more info.
While I’m waiting for the book, I do have some questions, though. I live in Arizona, and in this state, a dealers license is required for buying/selling MHs. (I don’t know if this is common in other states). So I called and got the license application package, and there seems to be a lot of information they need. I have to give my fingerprints to the FBI (I have no criminal record, but I do question why they need them). I need some of the paperwork notarized, I need a “Qualifying Party”, and the fees for the licenses are around $500.00. There are also bond requirements of $15,000.00. Please excuse my ignorance, but I don’t know what bonding is, or how it works.
It just seems like they need a lot of info. Is all this explained in Lonnies book? Has anyone here run into these snags? I am so eager to get started, but I don’t have much money, and I want to be as conservative as I can.
I appreciate your responses, and this website is my new favorite. Thank you.
Before I would worry about a license, I would get a few deals under my belt. This will give you the needed info on who, what, when, and where concerning the MH business.
This will also give you some cash to work with.
Re: MH questions for the experts - Posted by Brad Crouch
Posted by Brad Crouch on April 10, 1999 at 12:16:20:
Tim,
There are similar requirements in most States. Consider it a cost of doing business. If this were easy, everybody would be doing it.
No, this information is not covered in any depth in Lonnies books. Each state is different.
A bond is sort of insurance. If you screw somebody and your bonded, they have some recourse. A $15K bond will most likely only cost a few hundred dollars.
In California, it costs about $2,000 to initially get a MH dealers license. After that, it is $1,300 every two years. Consider yourself lucky!
IN Va. until you buy or sell three or more MH’s in a 12 month period you don’t need the license. So I would read over the application carefully. Find the loop holes and use them to your advantage. A couple of good deals under your belt could easily finance your startup costs.
Re: MH questions for the experts - Posted by Brad Crouch
Posted by Brad Crouch on April 10, 1999 at 21:44:40:
Rod,
Lucky you! In California if you sell ONE, for a profit . . . you need a license. Operating without a license carries a fine of “up to $2,000”, and some have told me (dept. of Housing and Community Development - the folks who regulate mobile homes out here) that this can be construed as “per transaction”, depending on how the judge sees it.
Is “rent to own” covered in your license pkg? Doesn’t seem to be covered in this state. Why not do business in a corp or LLC to offer personal protection?