I am GOTC - Posted by MariettaMike

Posted by Johnp on September 12, 2005 at 07:07:01:

Hi Robin,

Your comment:
“I want to be able to advertise without fear of getting caught”.

Exactly why I persued the license early on. It has helped me tremendously. Example: On my second deal in the business I had a dealer inquire if I was licensed. He did not like the idea that I was in his territory.

JohnP

I am GOTC - Posted by MariettaMike

Posted by MariettaMike on September 10, 2005 at 12:08:16:

Hey guys and gals,

Finally getting ready to do my first Lonnie deals.
Just have one question. Should I do the first deal/deals
under my own name or should I form an LLC from the start?

Thanks in advance, MarriettaMike

less than 4 - Posted by Philip

Posted by Philip on September 12, 2005 at 17:37:35:

If you do less than 4 deals a year in Missouri, you don’t need a license…especially if it is clearly a sideline, not a “real” business.

I don’t know about doing 3 per year, doing a land/home, and then have an investor hand you money to do another few lonnie deals.

That might require a license…technically.

Philip

Re: I am GOTC - Posted by Sailor

Posted by Sailor on September 10, 2005 at 14:02:59:

You can set up a simple Trust to take title, then when you get the LLC set up (just download the forms from your Sec of State), fill out & mail w/a check Monday. Type up an Abstract of Trust & have it notarized the same time as your Trust. Use the Abstract to open a bank account & register titles you I don’t have to share Trust details w/anyone else. Once you have your LLC you can make it the Beneficiary of your Trust. Anne is right that the LLC is the best way, but if you actually have a hot deal now, the above is an option. Also get your papers (Credit Applications, Purchase/Sales Agreements, Notes, disclosures, etc.), cards & stationary ready. Don’t forget you’ll need flyers & pics to advertise, & a receipt book & simple record book from Staples for your bookkeeping. Sign up for a credit reporting service so you’ll be ready for your buyers. Once things start to happen you’ll be glad you’ve prepared, & don’t forget to schedule an appt w/your insurance agent. I also recommend a PO Box for rent payments so your home address is more private. Good luck!

Tye

LLC ~ NT - Posted by Anne_ND

Posted by Anne_ND on September 10, 2005 at 12:53:29:

you already know the answer

i may disagree - Posted by Steve-WA

Posted by Steve-WA on September 10, 2005 at 13:24:24:

just do one or two - see if it fits you.

UNLESS you will/have set up the LLC by Monday, and will be negotiating same day. Point is, don’t let “oh, first I gotta set up a LLC before I do anything” get in the way. That is couch magnet.

Re: i may disagree - Posted by Anne_ND

Posted by Anne_ND on September 10, 2005 at 14:46:49:

Steve,

Okay, you make a good point. But if someone is doing a deal this weekend, usually I’ll get them to sign a contract to sell, give them $100 and have the actual ‘closing’ a few days later so I have time to check on back taxes, back lot rent, etc. During that time one could get the paperwork ready, set up a mailbox and get the LLC.

Furthermore, I think that someone should just do a deal or two before getting all het up about getting a dealer’s license and a bond, but that’s just me. I think the bond is a bigger commitment to make before actually doing a deal than setting up an LLC (although it does vary state to state).

Back to those darn taxes…

Anne

Re: i may disagree - Posted by Robin (OR)

Posted by Robin (OR) on September 10, 2005 at 18:12:11:

You’re right that it varies by state. In Oregon, it is just a matter of faxing a form to the Sec of State to set up an LLC. More complicated to get a dealer’s license. However, to sell a mobile home that was not your residence without a dealer’s license in Oregon is a Class A misdemeanor.

I may be new at this, but I have owned other businesses in the past, and own a small wholesale nursery now. I have always complied with the law in setting up and running a business. I realize that there are lots of Lonnie dealers who do not get a license - and I’m not criticizing them. It’s a personal decision. But certainly a person should not be criticized for obeying the law. Yes, it is a commitment to get a bond. I wouldn’t do it if I wasn’t committed to following thru on this business. I look forward to posting a success story soon. I am working on a deal. But I’m also getting the license.

Re: i may disagree - Posted by Anne_ND

Posted by Anne_ND on September 11, 2005 at 14:31:54:

Robin,

My post was not intended to be a criticism of you personally, nor the fact that you choose to obey the law. I regret that you read it that way.

Best wishes to you in your new business.

Anne

Re: i may disagree - Posted by MariettaMike

Posted by MariettaMike on September 11, 2005 at 08:38:20:

Thanks for input everybody.
I have done or prepped for most of
what y’all posted. I have P.O. Box already,
no way was I going to use my actual address.
I’m getting my dealer license, in GA 3 deals
in a year can be done without a license.
There are some major lonnie deals brewing in a park
close to me. I did not want to miss out if I did not have an LLC setup.

Ciao for now, Mike

Re: i may disagree - Posted by Robin (OR)

Posted by Robin (OR) on September 11, 2005 at 17:03:05:

Hi Anne -
I tried to repond “off the record” but my e-mail was returned. You must have a good spam filter!

Anyway, I did not take your post as a personal criticism, but since the thread it was in did not involve discussion of bonds and licenses, I could only assume that you were responding to earlier posts, which I was involved in, on that topic. I was just responding with my point of view as to why I am pursuing the license. I can’t speak for anyone else.

Your earlier advice to me, to not do anything until I read the book, was good advice, and I appreciate it. I admit I got a little ahead of myself in my eagerness to get started. After reading the books and after countless hours over the past few weeks searching the archives, I feel much better prepared now. I know I still have a lot to learn, and I really am grateful for those of you who have experience taking the time to share. I have stepped back and taken a hard look at both the risks and opportunities involved in this business. I have taken on a partner (my son-in-law) who has the rehab skills I lack, and who is willing to share the risk. And I have researched the state’s requirements and am doing my best to fulfill them. I want to be able to advertise without fear of “getting caught”.

My point is that there are some areas where a “newbie” (I’m beginning to hate that term) may disagree with an experienced person, but that doesn’t necessarily make them wrong. Some issues, like when to get the license, really are a matter of personal preference.

I’m sorry that we got off on the wrong foot. I expect to be around in this forum for some time, and also expect in the future to go to boot camp/convention, etc. So maybe we will run into each other in the future. I get a lot out of your posts and look forward to future conversations.

Sincerely,

Robin