Dealer license - Posted by Neil

Posted by Neil on September 08, 2005 at 21:45:14:


Thanks. This is much simpler, and I don’t have to worry about losing my deal to another dealer. Here’s where I saw a post about working with a licensed dealer:

I’ll only be in OR for another 9 months, so I won’t have to work with these restrictions much longer (although I’ll have to check with my new state). Hopefully by then I’ll be partnered up with a few friends (one of whom is a realtor).

Thanks for the help!

Dealer license - Posted by Neil

Posted by Neil on September 07, 2005 at 19:44:41:

I want to do some mobile home deals in OR. However, I don’t want to get my dealer license just yet (I want to see if its for me). It appears I don’t have to worry about the license when I buy. Does anyone know if I can get around the license requirement by using a realtor when I sell?

Re: Dealer license - Posted by Robin (OR)

Posted by Robin (OR) on September 07, 2005 at 22:57:59:

Hi Neil -
I have been doing quite a bit of research into the requirement to have a dealer’s license in Oregon. I can send you what I found out - copies of the statutes, etc. If you would like them, just send an e-mail. I think selling thru a realtor might help you to fly under the radar a little longer, but won’t change your legal obligation to get the license. The paperwork will still go thru Building Codes Division showing you as the seller. If you sell more than 2 mh’s in a year, the burden of proof is on you to show that you are exempt from the license requirement (i.e. that the mh’s were your residences)

The wall I am running up against in pursuing the license is the surety bond. Oregon requires a $40k bond, and I haven’t had much luck finding that. Have spoken with a few agents that do bonds - and so far I’ve been told that the bonding companies will require a personal financial statement showing considerably more net worth than I have. I’m not giving up - where there’a a will there’s a way - but the state sure doesn’t make it easy.

Good luck!

bonding - Posted by Lin (NC)

Posted by Lin (NC) on September 08, 2005 at 07:41:58:

Awhile back (no idea how long ago, since I’ve been reading this board a very long time) I recall somebody talking about finding a friendly established MH dealer who was licensed and bonded. This poster struck a bargain with them. The dealer got a few hundred bucks(?? Don’t remember the amount, but that isn’t unreasonable) from each sale, and in return the Lonnie dealer was covered by their license and bond.

Figure out a new way to skin that cat if you have to.


Re: bonding - Posted by Robin (OR)

Posted by Robin (OR) on September 08, 2005 at 19:29:57:

That sounds like it could work. I wonder how to approach a dealer about it. I don’t know any mh dealers personally, and I don’t think it would work to walk into an office and say, “Hi - I’m your new competition - would you help me get started?” :slight_smile: All kidding aside, if any of you “out there” have done this, any suggestions about how to approach the dealers?
I got a call today from an agent I had talked to that may have found a bond for me, a company that doesn’t have the net worth requirement - so hopefully that will solve the problem.

A sample transaction - Posted by Neil

Posted by Neil on September 08, 2005 at 14:18:45:


Yes, I saw that message in the archives. Here is what I am thinking a transaction would look like:

  1. Find a MH for $3K that I can resell for $6K.
  2. Make a loan to a dealer for $3K.
  3. That dealer buys the MH and resells offering 100% financing.
  4. The dealer sells for $6K ($1K down, the rest financed).
  5. The dealer “offers” me $500 (or some amount) and the note as repayment for my original loan.

Is this how this would work, or is there a simpler way I am overlooking?

I am new to this and appreciate the help!


what competition? - Posted by Lin (NC)

Posted by Lin (NC) on September 08, 2005 at 20:22:22:

I never met anybody I considered competition, not even Barry (OR) even when we were both working in little Corvallis. : ) He bought a wholesale deal from me! Other Lonnie dealers aren’t even necessarily your competition, if you can work out friendly arrangements. The big dealers aren’t your competition. They aren’t doing what you’re doing.

Good luck with your bond and license. I hope you find a way to succeed in the business.


Nope, not quite - Posted by Lin (NC)

Posted by Lin (NC) on September 08, 2005 at 20:04:33:

Gee, sounds like you’ve read the original post more recently than I have, since I never looked it up or came across it in the archives. Could you post the URL? I have never been licensed or bonded, so this is purely my interpretation of how it might look if I were to attempt it.

Here was my interpretation (and of course, you’d work on the script):

“Mr. Dealer, here’s what I do (insert very good abbreviated Lonnie Dealer explanation) and I’m looking for a partner who is licensed and bonded. This partner would receive $X of every deal I do in this state as compensation. In exchange, I would be covered by my partner’s surety bond, and refence my partner’s dealer’s license number in each transaction.”

And then you go ahead and do deals as you wish, paying whatever fee you’ve agreed upon to your new partner, but they have no control over your deal. They just get paid a flat fee. I really wouldn’t get into any arrangement that gives them any control over your deals (purchase, sale, notes, anything.)

I hope that helps clarify things - well at least my spin on them! : )