ATTENTION LONNIE, RAY, ERNEST and others - Posted by MasonNV

Posted by Madeline on March 01, 2006 at 16:41:15:

I was just reviewing archived emails and came across this one. I wonder if I could get a copy of the forms that you mentioned and whether this approach still works in Nevada. Thanks

ATTENTION LONNIE, RAY, ERNEST and others - Posted by MasonNV

Posted by MasonNV on December 23, 2000 at 22:08:24:

Hi all –

Recently I posted a message that expressed my frustration with the Nevada licensing requirements for mobile home dealers (e.g a huge outlay of cash and proof of more in the bank, and a minimum of 2 years experience or 30 semster hours in classes that the Manufactured Homes Division deems exceptable; by the way…they have no “approved classes”)

Nonetheless, I believe we have come up with a solution for the licensing requirements in any state…I wanted to run it by you guys to hear your thoughts:

the dealers license in NV is for the SALE of any mobile that isnt your primary residence. You can buy all day long, and lend money all day long, but you cannot SELL without a license.

A MH is personal property and personal property can be placed in a trust. A trust is a simple thing to set up, why couldnt each home be placed in a seperate trust when I purchase it, and then the benificial interest in the trust could be sold to the new buyer. Title would never have to change, except from the original sellers to the name of the trust. I’m no CPA, but I believe this could get around taxes to some extent as well.

And because I’m not selling the home, only my interest in the trust, I am not technically a dealer.

Just an idea…could this be a loop hole in the stringent licensing requirements? Even if your state isnt difficult, what would happened if some one without a license used this technique where you live??

Please poke holes in this idea, I have to find a working method to run a mobile homes business in my state, and getting a license isnt an option for me at this point.

Thanks in advance!


Re: ATTENTION LONNIE, RAY, ERNEST and others - Posted by Ernest Tew

Posted by Ernest Tew on December 24, 2000 at 18:06:32:

Hi Mason:

Your idea of putting mobile homes in a trust might work–at least for awhile or on a limited basis. It is important to keep your customers happy so that they don’t complain–and a low profile so that the competitors don’t complain to the state. If anyone complaines, the state agency might give you some grief.

From the standpoint of income taxes, it probably wouldn’t be any differet than owning the mobile homes individually.

However, you have the right to purchase mobile homes and rent them. That could solve both the tax and licensing problem. That’s what we do. We also give the occupant an option to buy. Their down payment is treated as option money, working pretty much the same as any other down payment.

However, there are some pitfalls so you have do do it just right. If you would like to receive a copy of the forms we use, please send me an e-mail.

Good luck.