Advertising, Licensing, Usury, Florida - Posted by KJW (FLA)

Posted by KJW (FLA) on June 06, 2001 at 07:30:15:


Advertising, Licensing, Usury, Florida - Posted by KJW (FLA)

Posted by KJW (FLA) on June 05, 2001 at 16:13:01:

Wow what a great board!

I have just started creating my own notes doing Lonnie Deals. A recent “buyer” gave me an idea that I want to bounce off you pro’s. He simply asked me if I would consider financing a mobile home that he can’t afford to pay cash for. The obvious benefit to me is that his situation brings me the three ingredients necessary to make a deal - a buyer, a mobile home, and a motivated seller.

This simple question lead me to a marketing idea - I am considering running an ad that will read, “Will Finance - No Banks. Do you need cash to buy or sell your used mobile home? If so please call …”

Hence two questions:
Do I need a special license in Fl? Two come to mind: a Dealers license for the ?Lonnie Deal? (although I plan on Net leasing the Mobile with an option to buy) and a Mortgage brokers license or a lenders license?! for the note (mostly due to the wording/solicitation of my ad). Although my ad is not specific my intent is to purchase for cash from the seller and then sell on terms to the buyer, disclosing everything to both parties. (I do have a Florida Real-Estate license and can run these deals through my Sub S corp.)

What is the Usury rates in Florida? How high can I go on the interest rate?

Here are the details regarding the “Buyers” question.

Seller wants $5000 will sell cash for $3000
Buyer will pay $1000 down on $5000
I will pay cash $3000, take the $1000 down, and create a note for $4000 with payments of 200mo/18%interest/for24mo.

I have read DOW & Get Rich Helping others. Just don’t want to run into any unforeseen advertising/licensing/usury issues in the great state of Florida.

Thanks in advance for the help.

Re: Advertising, Licensing, Usury, Florida - Posted by Ernest Tew

Posted by Ernest Tew on June 06, 2001 at 06:40:27:


The maximum interest rate an individual can be charged in the state of Florida is 18%.

The mobile home transaction you propose sounds like a good one.

As we discussed on the telephone, you need a dealer license to buy one or more mobile homes that you intend to sell. You may not be required to to have a dealer license for buying mobile homes that you lease (with an option to buy). The law isn’t clear.