Posted by Tony-VA on February 04, 2001 at 18:29:24:
It is prudent to check your local licensing agencies and have an attorney review the forms that Lonnie provides. The attorney can adapt them to fit your states requirments. The following responses are not to be considered legal advice but rather suggestion:
You should not need a “Banker” license to loan people money. What you may be thinking about is “Usury laws” that limit the amount of interest a loan can charge. Your attorney will review that when he looks at the notes. I would find it hard to believe that any state would prohibit 12.75% in light of the outrageous rate credit card companies charge, not to mention finance companies like Conseco.
As for licenses, Lonnie explains who to ask about your states requirements for a Dealers License.
Mobile homes typically are considered personal property, not real estate (unless someone has gone out of their way to qualify the home as real estate). Because this is personal property and not real estate, you will repossess instead of foreclose. Our courts treat mobile homes much like cars.
By selling these homes as Lonnie teaches, we become the lienholder, and not the landlord. Eviction processes vary from one jurisdiction to the next. Again, your attorney can research how to evict from mobile homes. Lonnie explains in his books how we repossess the homes here in VA.
You may be thinking about the ‘Truth in Lending Act’ that we are required to spell out all the details of the loan, interest, what the people will pay over the life of the loan and how much interest. It goes in the closing paperwork, not advertising.
Your questions are good ones, that it why Lonnie adresses them in his book.
Does anyone know about the laws? - Posted by john_il
Posted by john_il on February 04, 2001 at 18:08:38:
I’ve been reading these posts and the free articles and like what I hear. I’m considering purchasing some of lonnie’s materials, but I must admit a tad skeptical. Since many posters here sound like they’ve been quite successful, I was wondering if someone might comment on:
Don’t you have to have a some kind of bankers’ license to offer these kind of loans? Particularly at interests rates of 12.5% and higher? Surely there are some kind of laws surrounding these types of transactions?
In a similar vein, aren’t there foreclosure laws and tenant eviction laws that people might exploit and create some serious headaches for you should someone default on a loan? Maybe someone could post their experiences?
When selling property and also financing it, aren’t you required by law to include the interest into the advertised/discussed price of the MH? For example, if you sell a home for $6000, the total amount paid by the buyer (down payment, monthly payments, and interest) must not exceed $6000?
I certainly don’t want to be a nay-sayer, but I certainly would appreciate anyone’s input on these matters. Further, can someone suggest the order in which a beginner like me should buy Lonnie’s materials? They each sound so similar that I’m not sure which to buy first.
Thanks in advance for any responses, and thanks Lonnie for a very informative webpage.
If you’re only going to buy one of Lonnies books grab Deals On Wheels. It covers all the basics and gives you all the info you need to start buying and selling used mobile homes.
Personally, I bought both books in one whack and never regretted it. Making Money With Mobile Homes has alot of valuable info and many real life examples.