Penalty for no MH Dealer License in TX - Posted by Mark


#1

Posted by Greg (TX) on November 14, 1998 at 23:36:40:

Troy,
Where’d you get your info? I actually attended the class in Austin in March and if I’m not mistaken, I do recall that it’s one deal per year per person. So, if you have a spouse or a partner then they can do a deal and you can do a deal, thus arriving at two deals.

The other way to do multiple deals in TX without a license is to never put the home in your name, just become a financier and when you send off for the new title just put the home in the name of the person you sold it to and “Your Company” (your)as the first lien holder. Keep your lien on the title until they pay you in full. Quite simple and it also gets you off the hook for being liable for the property.

Be sure the home is habitable, because everyone deserves to live in a habitable home (no holes opening to the exterior, no broken out windows and all windows and doors must be functionable, proper plumbing, electric and gas if applicabe, then you must give your buyer a 30 day warranty of habitabilty. If they come back within 30 days and say they don’t want it because they claim it’s not habitable, if in fact it’s true, then they’re out of the deal, and should be out of your home relatively quickly, and they won’t have to fulfill the remainder of the promissory note (it would probably be a good idea to refund them their downpayment, or at least a portion of it). Then you can do what’s necessary to make the home habitable and resell the home. Do yourself and the industry a favor and don’t sell uninhabitable homes to people who plan to live in them , unless you put your buyer under contract to make the necessary improvements to make the home habitable by a pre-specifide date, then follow up. Don’t be lazy.

Try it out. Another good thing is to never let your buyer know that they’re making the payments to you. If they think they’re dealing with an individual they can sometimes become beligerent and not pay. Do yourself a favor and be sure to set up a bank account for your business and have them to make their payments to your business and not to you. Remember, never let them know that you’re the owner. You’re an employee of your company, not the owner (as far as your buyer knows).

It always makes getting them to pay or getting them out easier if they think they’re dealing with a large outfit.

Standard eviction verbiage when they call to try to make excuses to try to stop the foreclosure and eviction process: "It’s not my decision, it’s the company. If you don’t pay they’ll evict you in 3 days."
If they still say they can’t pay then: "I understand that things happen, but there’s nothing I can do about that. But I’ll Tell you what I can do. You go ahead and clean the place up and move your stuff out and then bring me the keys and I’ll give you $100 to help you out. You may want to write up a contract for this process too and have them to sign it, just in case they try to move back in.(You can offer more or less $$$, depending on the note; pick an amount that’s anywhere from half to a full monthly payment).

They’ll bring you the keys to get that money. Or you can arrange to meet them at the place at a time and date (just be sure to tell them to have it clean before you get there).

Many times this little technique will not only get them out faster and cheaper than if you have to take them to a JP court. It also insures that they won’t take a baseball bat to your property. It’ll cost you a whole lot more that $100-$200 dollars to fix the place back up once they’ve torn it up. Just consider this an expense of doing business (put it in the expense column and write it off).

Many Many Thanks to JP, Lonnie, and all the many visitors and other authors who make this the Greatest Real Estate Website On Earth!!!

Hope this helps. Happy investing.
Greg (TX)


#2

Penalty for no MH Dealer License in TX - Posted by Mark

Posted by Mark on November 11, 1998 at 20:02:57:

What’s the penalty for selling more than one mobile home per year in Texas if you don’t have a dealer’s license?


#3

try finding - Posted by mjs

Posted by mjs on November 12, 1998 at 12:44:10:

Look and see if you can work with someone else that has a license and offer them 11-35% of the deals for using their license.


#4

10 Years in the State Pen! - Posted by Randy-IL-

Posted by Randy-IL- on November 11, 1998 at 22:18:59:

HA HA! You are in Texas you know! Just kidding, I love Texas!

Anyway, I live in Illinois and have had the same question for my state. I keep calling the license people at the capital and nobody seems to know. How many deals without a license? What if I don’t get one? etc. It turns out that if you want to do MH deals in Illinois, you had better be ready to go all the way because of all the rules. Still a pretty lucrative (but time consuming) idea to me. Have you checked the technicalities for getting a license in TX yet? It’s bound to be easier than Illinois. Illinois has too many silly hoops to jump through…

I would advise calling your state licensing agency for a clearer answer. Wow, Texans are only allowed one MH sale without a license? Maybe you could do one Lonnie Deal to test the waters and learn a little, then pursue it further. Just an idea.

Just an opinion from a regular guy,
Randy


#5

Randy – here’s the scoop on TX requirements - Posted by Mark

Posted by Mark on November 12, 1998 at 19:19:49:

Must attend a 3 day $125 class, plus annual license of approx. $295, plus you need a $50k bond. I don’t mind getting licensed, but the class is only offered once per quarter, next one is Nov. 23 -25 and I can’t get off of my blasted current job (I’m doing MH’s part-time for now). The next class will be in 1999 and the bureau won’t set a date until they feel like it. Makes it hard to plan. A person can only sell one MH per 12 months without a dealer license. I’m just curious what the penalty is if I sell a couple before I get licensed?


#6

Re: Randy – here’s the scoop on TX requirements - Posted by Troy

Posted by Troy on November 13, 1998 at 13:14:14:

Hi All,

A minor point of clarification; Texas allows TWO sales in a 12 month period before a license is required.

Regards
Troy (TX)