Posted by Paul(TX) on September 05, 2003 at 17:20:12:
Hi Brad:
As a complete newbie, I cannot offer any advice on buying and selling, only some gut feelings of what I’ve been able to glean from this board.
From a licensing aspect, this topic has been discussed many times on this board, so you could just search the archives.
Essentially, if you sell more than one MH in any consecutive 12 month period in Texas, you are classified as a dealer and are “required” to get a license. (This involves taking a three-day class in Austin, buying a bond, insurance, etc. There are several categories of license … dealer, broker, employee, etc.).
However, many “dealers” (in many states) appear to operate without being licensed … and if/when they do “get caught”, they claim ignorance and get licensed. (I have never heard of anyone on this board actually being fined, etc. for non-compliance. You are apparently just “warned”).
(I don’t know if the computers in Austin have a way to cross-reference MH re-title registrations to identify who is actually “dealing” in MHs. If they do, one way round this might be to title each one in a trust name).
If you read through the Texas MH laws, they sound rather intimidating, but the impresssion I get is that if you operate fairly, they’ll generally leave you alone. If a buyer or seller ever actually filed a complaint against you … assuming they have the savvy to do this … that would probably raise the red flag on what you are doing.
Bottom line … It would probably make sense to do a few deals first and see if this business is for you, before bothering with licensing.
The financing license you mention is not usually a requirement for “Lonnie deals”, as you are merely selling what you own on a payment plan (via a Promissory Note). If you were only “acting as a bank” and financing something that you do NOT have an equitable interest in, that is a different story and you would need to be licensed as a finance provider.
To find parks in your area, just go to www.bigbook.com and follow the instructions. This will show you all the parks (by distance, etc.) in your area.
Best Regards & Good Luck,
Paul(TX)