Posted by Chuck (AZ) on February 13, 2002 at 12:40:49:
I used to live in Reno.
Licensing (Yes? No?) - Posted by ScottC (NV)
Posted by ScottC (NV) on February 12, 2002 at 12:48:16:
There seems to be several questions on the board about whether you need licensing to do MH deals.
In DOW, Lonnie mentions he has both a MH dealer’s license AND a business license, so I’m in the process of applying for both (I just picked up Nevada’s study guide for the dealer exam yesterday).
Do I need one in Nevada? In the Nevada Revised Statute (NRS) 489.311 it says:
“Except as provided by NRS 489.331 (limited MH licenses for real estate brokers), no person may engage in the business of a dealer, manufacturer, rebuilder, serviceman or installer in this state, or be entitled to any other permit or license required by this chapter, until he has applied for and has been issued a license by the division.”
Now, the word “dealer” is defined in NRS 489.076, and talks about the usual activities of buying and selling for profit “subject to the requirements of this chapter” (I can send the entire statute for anyone who wants to understand this further). This subsection further goes on to say that “dealer”, as used in NRS 489, does NOT include an owner selling his private residence (NRS 489.076.2e)
The main differences I find between a private party and a licensed dealer are:
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The dealer can transfer the title straight from a seller to buyer. The private party must transfer title from the seller to himself, and then to himself to the buyer.
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Dealers don’t pay property tax while they’re holding the home.
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The Nevada Manufactured Housing Division (it’s not part of the DMV here, it’s part of the Nevada Dept. of Business and Industry) can take action on complaints about a dealer.
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Dealers must have an established place of business (the NRS never says anything about a commercial building or being seperate from one’s home, just an enclosed structure), and allow inspectors to come and examine their books during normal business hours.
So, as long as I don’t try and take advantage of any of the special privileges afforded dealers, and I do everything else legally (like transferring the title, etc.), do I really need a dealer’s license?
If nothing else, can I at least do my first few deals without a license? In NV, the MH dealer’s license cost $1750, and that’s after you take a $50, 2-hour test (dealer’s must get 80% or more) and submit your fingerprints to the FBI for $39. This might not be too bad after a few deals, but in the beginning, I’d like to save that money for the deals themselves.
Re: Licensing (Yes? No?) - Posted by Chuck (AZ)
Posted by Chuck (AZ) on February 12, 2002 at 20:43:14:
You don’t qualify to be a dealer, as the law/statutes define it… therefore your a private individual, conducting private business. I wouldn’t be concerned with a business license either (I wasn’t), but if you “go deep”, I’d definately look into a LLC to protect your assets (I did).
Bonus point - there are no usury laws in NV.
Are you in Reno or LV?
LLC info …? - Posted by JohnT
Posted by JohnT on February 13, 2002 at 13:50:42:
Chuck…can you suggest any materials that would be good to bone up on LLc’s, which would be best to have and how to set them up, that are geared for the lay person…( I assume from your remark that you don’t need a buisness license to create and use a LLC ?? yes ??? PS cashflow quadrant is a very good read…thanks for the tip!
Re: Licensing (Yes? No?) - Posted by ScottC (NV)
Posted by ScottC (NV) on February 13, 2002 at 10:50:18:
I’m in LV.
Thanks for the advice about the LLC. I’ll definitely look into that when I get out of the shallow end of the RE pool. (Rich Dad Poor Dad already had me thinking along those lines)