Installment sales screw the pooch in PA - Posted by Greg

import · October 23, 2003, 1:22pm

Posted by Dr. Craig Whisler CA NV on October 23, 2003 at 17:56:10:

…which states really enforce such laws. They all say they do but I know of dozens of investors in dozens of states that have been doing these deals for years and never had ANY problems.

Are you guys actually LOOKING for problems or what?

Regards, doc

import · October 23, 2003, 1:22pm

Installment sales screw the pooch in PA - Posted by Greg

Posted by Greg on October 23, 2003 at 13:22:44:

As discussed earlier, each “person” can buy and sell 4 MHs per year in PA. However, I’ve just learned that you can’t even do a single installment sale without an installment seller’s license. If you do, your contracts are unenforceable.

Installment seller’s licenses are on a per-“person” basis, so you’d need three of them (husband, wife, LLC) to avoid hitting the MH dealer’s licens threshhold. The installment seller’s licenses cost $250 apiece (annually), plus you need local business licenses. The state may also be unwilling to issue 3 licenses to the same address.

I’ve given some thought to moving to NH lately. A quick check indicates that installment sales are unregulated there. A move is starting to sound better…

Ideas, anyone?

Greg

import · October 23, 2003, 6:07pm

Notice how both words contain rats?. - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on October 23, 2003 at 18:07:29:

Investment money is mobile. It flees from where it is unwelcome and races to where it is allowed to work 24/7, unhampered by Democrats and bureaucrats.

Notice how both words contain rats…

…and that the screwed pooch also fleas.

Regards, doc

import · October 23, 2003, 2:36pm

Re: Installment sales screw the pooch in PA - Posted by KenM

Posted by KenM on October 23, 2003 at 14:36:08:

I live in New Hampshire. Do you know the laws in NH concerning Mobile homes??

import · October 23, 2003, 2:33pm

Re: Installment sales screw the pooch in PA - Posted by KenM

Posted by KenM on October 23, 2003 at 14:33:57:

I live in New Hampshire. Do you know the laws in NH concerning mobile homes?

import · October 23, 2003, 3:03pm

IS regulated - Posted by Greg

Posted by Greg on October 23, 2003 at 15:03:34:

I was wrong…it IS regulated.
http://www.gencourt.state.nh.us/rsa/html/allinone/361-A.html
However:
361-A:1 Definitions.
XIII. "Sales finance company’’ means a person engaged, in whole or in part, directly or indirectly, in the business of providing financing to one or more retail buyers, or in the business of purchasing retail installment contracts from one or more retail sellers. The term includes but is not limited to any federally chartered bank, savings bank, trust company, credit union, cooperative bank, finance company, lending agency, industrial bank, or investment company, if so engaged. The term does not include the pledgee of an aggregate number of such contracts to secure a bona fide loan thereon, nor does it include a retail seller who:
(b) Makes 4 or fewer retail installment contracts in any year;

So it looks like if you stick to 4 sales per person per year, you’re good.

import · October 27, 2003, 12:18am

Re: IS regulated - Posted by firefox

Posted by firefox on October 27, 2003 at 01:18:04:

I submit that a mobile home reseller is not in the business of providing financing, it’s in the business of selling mobile homes. The crucial distinction here is that finance companies, generally, finance third party transactions. You don’t. This very important fact is why seller financing is usually unregulated even when finance companies are heavily regulated. Specific exemptions often exist for both manufactured housing and real estate. Maybe NH really is different, but I would look more thoroughly; such exemptions are often hidden in odd places.

import · October 23, 2003, 3:10pm

Re: IS regulated - Posted by Chuck

Posted by Chuck on October 23, 2003 at 15:10:52:

I think you’ll find that every state (save maybe Nevada) has a similar law on the books.

import · October 27, 2003, 8:59pm

Good post. It is probably a lot like… - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on October 27, 2003 at 21:59:58:

…us not being required to have a real estate broker’s license if we sell our own houses but we can’t sell someone else’s house, for a commission without a license. An owner builder usually doesn’t need a contractor’s license either as long as he is building for himself and not someone else.

I think it is as firefox says. You probably don’t need a lender’s license to finance your own deals.

Regards, doc