My 2 cents, Using family names there is always a liability issue and paper mess. Say you have a MHome in aunt Jan’s name, some kid falls off the steps breaks his arm. Jan will be responsible as the “Lien Holder” for whoever is uninsured. You (Jan) should have insurance for every home or you may be at risk for a visit to the Judge and possible settlement $$. As a dealer yes you pay a bond and liscense fee AND and you can form a LLC. WITHOUT A LLC Your personal finances are at risk if a unforseen accident happens. The LLC PROTECTS YOUR PERSONAL PROPERTY.
You sell a home and the the owner is supposed to furnish insurance? What happens if it cancels did you know in time? It is my opinion business with a Dealer Lisc is not worth a risk to gamble one’s investments AND PERSONAL ASSETS ect.
Another problem is you buy homes in peoples names, and the state finds out the connection, your still on the hook. In Idaho it a possible $10,000 fine.
I’m at the point now where I’ve run out of people in my house to do deals under, if I want to continue I need to get my dealers license. Both according to the State and my wife. I have the packet and have some questions, if there are any WI dealers on this forum. I’ve searched the archives and am trying to track down some past posters for their advice. Or perhaps others have had to address the issue of needing an office, but it can’t be in a residence, needing to provide a service agreement (not even sure what that means) after the sale and showing a 4 year lease for the above mentioned office if I don’t own the building. I’m enjoying this too much to stop now but these regulations are cetainly going to put a crimp in my business plan. I’ll also be at the boot camp in 3 weeks, hopefully I’ll pick up some ideas there too. Please feel free to email me at jeshomes@yahoo.com, or call me on my cell phone at 608-931-4593.
Re: Getting a WI dealers license…maybe - Posted by John T (WI)
Posted by John T (WI) on August 03, 2008 at 11:24:34:
Dave,
As far as I can figure, a lot of the dealers license rules seem to be aimed at those who are selling them from a lot. I think the service agreement only applies to homes that are sold with a warranty, but I could be wrong.
Frankly, I always thought the best bet was to rent a 100 sq ft token office, and keep your records there. You’d still have to have the sign, but big deal.
I wonder if the licensing people would understand that you only get homes that are already set up in parks, so you don’t need a lot, etc.
In Idaho if you do more than two used sales in or out of a park, you need the Liscense and Bond. Get caught, fine is 10,000 dollars. Check your local Gov for details.
Tater
Re: Getting a WI dealers license…maybe - Posted by Dave (WI)
Posted by Dave (WI) on August 04, 2008 at 19:59:31:
John,
I was in Madison and stopped at the office of the Dept. of Commerce to get this clarified. I spoke with a lady who headed up the department at one time and she had never heard of anyone doing what we do. She had to check with some others in the office but they did come to some favorable conclusions. First, I will be considered a non-broker because I own the homes, and as such will have to have a $50,000.00 surety bond (already applied for). Second, because I will meet the customers at the trailers and not in my “office” I will be viewed more as a realtor (in a strange sense of the word) and I won’t have to have a leased office, posted hours, inventory nor will I havce to provide a service agreement for the homes that I sell. I put off filling out this paperwork for several months just because it is so complicated and overwhelming and now I’m on hold for two more deals because of my fear. I have two children who are over 18 and could use their names for “ownership” but my wife is afraid of the tax ramifications for them so I’m having a hard time talking her into that. It goes to show again that fear of the unknown is worse than what really happens. I sat on the fence for over two years debating if this is something I should do, the two checks and $550.00 I got this weekend make me wish I had gotten started sooner.
Re: Getting a WI dealers license…maybe - Posted by John T (WI)
Posted by John T (WI) on August 05, 2008 at 10:52:12:
Tater,
In WI, its one deal per calender year per person without a license. So if you have friends and relatives willing to lend their names to the titles, while you do the financing in your name, you’re good.
I’m not sure what the state of WI’s definition of a calender year is though. a 12 month period, or the calender year 2007, 2008, 2009, etc.
Anyways, kind of a moot point right now, since it looks like we won’t be doing our next deal til spring anyways.