MH"s as Property? - Posted by CTChap


#1

Posted by David Alexander on January 04, 1999 at 13:56:02:

No, the actual conversation has to do with the ongoing
thread of the Dealer Liscense, that you can only do 1 deal that is sell one Home without a liscense, and, in Texas if you have a Dealers Liscense there are some quirks about actually having to have a seperate liscense for each home, this would greatly slow you down. I was trying to give some ways for them to get around it, or still be able to deals.

  1. Buy the MH and L/O it out, you would get the same cash flow effect.

  2. Have the Seller put in a trust and assign the beneficial interest to you to hide the ownership.

  3. Try to find someone else’s liscense to work under.

  4. You work out a cash price with the Seller, market it and Have the Seller sell the Home to the New Buyer and you buy the note.

My saying what I said about the liability was actually
just regarding what Lonnie says. He prefers to sell them on a note than keep the liability by keeping ownership of them. He doesn’t rent them out because
that could be a lawsuit waiting to happen. I personally don’t want to reinvent the wheel of where
people like you, Lonnie, Ed, Terry, JP, John, Bud and everyone have been.

I probably didn’t word my post correctly. So, correct me and enlighten me.

Thanks,

David Alexander


#2

MH"s as Property? - Posted by CTChap

Posted by CTChap on January 02, 1999 at 05:28:00:

A question for anyone into MH investments…

Since Texas requires you to become a dealer after 2 MH deals, would I still be considered a dealer if I kept the MH’s in my name?

Example: I purchase 4 MH’s for $1000.00 each. I owner finance to 4 individuals. Since the titles are still in my name and haven’t actually been sold (yet), are these considered deals as far as the state is concerned?

I haven’t received Lonnies book yet and I’m getting a little anxious!!!

Thanx for any input.

CTChap


#3

Re: MH"s as Property? - Posted by DJ

Posted by DJ on January 02, 1999 at 18:08:30:

You don’t need a license to be an investor! Last time I checked, it wasn’t against the law to keep property
in your name, and you didn’t need a license for it!
If this is your first time, I’d read the book first!
DJ


#4

One More Time, How Bout’ For… - Posted by David A;exander

Posted by David A;exander on January 02, 1999 at 14:57:38:

1999 we all start trying to think outside of the box.
Ok, here goes. The reason why Lonnie says to get them out of your name is because you want to remove the liability. But, what about a L/O, Ownership doesn’t transfer until you actually sell it. That could be 6 months, a year, 2 years, 3 years, all while still getting the cash flow. You could do as JP says and try to find someone that has a license and work under theres. What about having the person your buying from
put it into a personal property trust and then changing the beneficial interest.

OK Jim, whats the penanlty for the violation, selling without a license. Have they ever excersised this law,
what do they have to do to prove it. I’m not saying
go out and blantantly break the law, but, you shouldn’t
be living in fear either. For Heavens sake do a deal or two or three, you may find that this isn’t for you, on the other hand you may love it. Just go out and MAKE SOME MONEY.

David Alexander


#5

Re: Correction (1) MH in Texas - Posted by Jim Simons

Posted by Jim Simons on January 02, 1999 at 11:12:20:

Hi,

I just wanted to say that the TDHCA says if you do any more than (1) Lonnie in Texas per year, you are required to obtain a Dealers License.

You might want to contact TDHCA they can be helpfull in you call them - but don’t try to email them - they’ll never answer.

I’ve been trying to gather info for several people on this board about doing Lonnies in Texas - and I have to tell you, the way it looks right now, it doesn’t look very promising.


#6

Re: MH"s as Property? - Posted by Berwyn

Posted by Berwyn on January 02, 1999 at 10:45:42:

I think you’ld want to get the titles out of your name ASAP. If you hold the title, you’re the owner, and have the associated liability. If you’re just the leinholder, you’re in a better position that way.

Learned this once when I sold my old van to an accquaintance. He didn’t bother to get the registration changed, got in an accident, and it showed up on my insurance, since legally I was the registered owner.

Also, you may want to check the fine print in the Texas law as to their definition of a dealer. Some states have it that if you engage in the business or hold yourself to the public as being in the business, you fit the definition. Buying more than the 2 units per year could flag you in their system. (If it quacks like a dealer)

Berwyn


#7

Getting the Title Out of Your Name… - Posted by JPiper

Posted by JPiper on January 03, 1999 at 19:40:38:

Hi David:

Noticed in your post and in some of the posts below this concept of getting the mobile home title out of your name in order to remove liability.

As I suspect all of you know, I’m certainly no expert on mobile homes. But what exactly is this liability that you’re all afraid of?? I own houses that are in my name. There are certainly liability issues with houses. I deal with liability issues in a couple of ways. One is through liability and fire insurance. The other is through a variety of corporations, llc’s, trusts etc which remove PERSONAL liability from the equation and/or conceal ownership.

I think it’s always a good idea to minimize liabilities…it’s one of my major thrusts in life right now. But this can be accomplished in a variety of ways, not just becoming a lien holder.

Am I missing something here??

So the question remains. In Texas, does retaining the title in your name and/or a corporations name and NOT reselling in the normal way, make you a dealer under Texas law??

JPiper


#8

One More Way Around it… - Posted by David Alexander

Posted by David Alexander on January 02, 1999 at 15:02:10:

Lonnie talks about this. You could have them sell the home with Owner Financing and a down payment, ya’ll the
seller, the new buyer and you are sitting a the kitchen table, when the home is sold you buy the Note for an agreed upon price from the original seller, the New buyer doesn’t have to know about this about this transaction.

Good Luck

David Alexander


#9

Re: MH"s as Property? - Posted by Dirk Roach

Posted by Dirk Roach on January 03, 1999 at 04:08:30:

That’s it right there Berwyn,
that’s what everyone (well obviously not everyone) is missing, you want to be the LIENHOLDER!
Dirk