Posted by TC on December 30, 1998 at 19:27:05:
Hey DJ,You can get a little harsh, but I do like your advice of not sweating the small stuff.Like the saying for Nike…JUST DO IT!I needed that.Thanks
MH Dealer status - Posted by Berwyn
Posted by Berwyn on December 29, 1998 at 13:01:06:
Just read Lonnie’s books, got fired up about flipping MH’s. Called the DMV to find out the rules and got my fire hosed.
North Dakota doesn’t have a minimum number of sales before you need a licence. Whether you sell one or a hundred, if you “hold yourself out to the public as someone who buys and sells vehicles” you need a licence. The licence itself is only $35/yr, but you have to be bonded for $10k. I panicked and hung up before finding out if you need a lot and office.
Now I can figure I could get away doing maybe one or two if I’m discreet and do it as just some guy with a trailer to sell. However, it would kind of quash using some of the advertizing strategies in the book.
I’m wondering if anyone out there is doing Lonnie deals in a state with similar requirements, and how you deal with the dealer issue.
Thanx
Berwyn
Re: MH Dealer status - Posted by J.P. Vaughan
Posted by J.P. Vaughan on December 31, 1998 at 06:16:08:
Just a note. A $10,000 bond doesn’t cost $10,000. I’m
guessing, but it will probably cost around $500-$750 or so.
JPV
Re: MH Dealer status - Posted by Dirk Roach
Posted by Dirk Roach on December 30, 1998 at 03:51:58:
Hi Berwyn,
I’m with DJ and David Alexander on this one. There is a great little document called power of attorney, which I’m sure everyone is familer with if they ever bought a car.
What David and DJ are talking about WORKS.
Don’t get all worked up and remeber while your on the phone and worrying about everything, someone like me, David or DJ are out in your parks getting all the deals and beating you to the bank. lol
Good luck and let us know how it goes,
Dirk
Re: MH Dealer status - Posted by DJ
Posted by DJ on December 29, 1998 at 17:17:07:
Relax!
Everyone who buys and sells vehicles isn’t licensed! Whether it’s cars or MH’s, Get the contract to buy, and make your cash on the flip. The object is to never title it to yourself! Have the seller sign title, and leave buyer section blank, then when you sell, fill in the blank! Get a few deals under your belt, then if you want to go big time, you’ll have plenty of cash for licensing and bond! As far as advertising goes, if you work the parks like Lonnie says, and establish yourself as a buyer, you shouldn’t need to advertise! get some park managers in your hip pocket to do bird-dogging for you, pay them a finder’s
fee, stop in and see 'em often with some donuts, or take 'em out to lunch! Guaranteed, you’ll find more deals (and friends) than you can handle! Your other
option could be to find some MH investors in your area
that already have licenses and wholesale to them! There’s lot’s of ways to do it, you just have to be creative! Don’t let the Gods(DMV) p— on your parade!
Good Luck!
DJ
Re: MH Dealer status - Posted by MarkHOUTX
Posted by MarkHOUTX on December 29, 1998 at 14:35:45:
Berwyn, take a few deep breaths and call them back. You need to find out for yourself what the dealer requirements are in your state. It might be that the license fee and the bond are the only requirements. If that is the case – what a deal. In Texas, the license is approx. $200/yr and the bond is $50K and the whole scheme is pretty screwy down here. By the way, a $50k bond costs $1000/yr in TX. Good Luck
Re: MH Dealer status - Posted by Tom Brown
Posted by Tom Brown on December 30, 1998 at 09:40:29:
What you are talking about will not work in every state. It’s called skipping the chain of title and is illegal in some states.
Go directly to Jail? - Posted by John Law
Posted by John Law on December 30, 1998 at 10:38:01:
I think you can do these deals without taking title and no one will ever say a word but my County Clerk did tell me that it was illegal. I don’t know what kind of punishment there is or who would bring action against you but I just thought you might want to know. If you try to circumvent laws and regulations such as taxes the authorities seem to be tougher on you than if you did the deals strait up and plead ignorance if caught. Just my opinion.
Re: MH Dealer status - Posted by Kelly H.
Posted by Kelly H. on December 29, 1998 at 20:29:14:
That sounds like a good idea, but don’t you have to have your name on the title as a lienholder if you sell on contract? Wouldn’t the buyer get suspicious if some one else’s name is on the title? Just curious.
Kelly
Re: bond required - Posted by Robert McNeely
Posted by Robert McNeely on December 30, 1998 at 08:57:16:
I just applied at my insurance co. for a $25K bond in Ohio, cost in Ohio was only $250 for the year. $10K bond may not be too expensive.
Re: No, Pass Go, Collect $$$$ - Posted by DJ
Posted by DJ on December 30, 1998 at 13:25:30:
Laws vary from State to state. What works in NC,
may not work in your state! But car dealers, even the one’s who sell them out of their front yard do it everyday!
No, Your missing it - Posted by David Alexander
Posted by David Alexander on December 29, 1998 at 20:50:22:
You buy the Mobile Home, you have a purchase agreement, and the title, the seller signs the paperwork that would transfer title to you, but you never actually take title, when it comes time to sell to your new buyer you simply put there name in the space where yours would have gone. Your main objective at first
should be to find deals and do deals, when you get the cash going don’t forget to take care of the details.
But, on the other hand if you sit around worrying about the details, You’ll still be wondering.
As for the buyer being suspicious, I believe that people will buy from you regardless, the only reason someone generally throws up the red flags of suspicion
is if you act suspicious or if they since your not dealing in a credible manner. On the other hand if you know your going to deliver then you have no worries. If they are still suspicious find another buyer. These buyers only care about how much down and how much a month.
David Alexander
ok, you’re sure? - Posted by John
Posted by John on December 30, 1998 at 15:40:34:
Agreed. Laws vary from state to state. I agree that this will work anywhere. But is it legal? Let me make sure I understand you… you have asked a lawyer or government official and they have told you it is legal in North Carolina? People can find lots of reasons to not get started and I think you sometimes need to JUST DO IT. But I also think you’re better off you are well informed. Just my opinion. Another opinion for Tom, If you believe your liability protection from a mobile home fire that kills a few people is that your name wasn’t on the title, you must believe that Bill Clinton did not have sex with that woman. Sorry but i feel you are being very naive.
Re: No, Pass Go, Collect $$$$ - Posted by Tom Brown
Posted by Tom Brown on December 30, 1998 at 14:45:56:
Lonnie brought up an excellent point in his book. If something happens to that mobile home (ie a fire) and someone is hurt, guess who is going to get sued and end up paying? The person with their name on the title.
Re: No, Your missing it - Posted by Jen (NE)
Posted by Jen (NE) on December 30, 1998 at 08:47:00:
Hi David. I like what you and DJ said. So basically I can do MH deals without taking title and paying sales tax or getting a dealers license (since I never took title).
I have one formality question (bear with me)—When you sell to your buyer and put their name in the space on the title where yours would have gone, does he then take that title down to the DMV and pay sales tax and have you as the lien holder? Or do you physically keep the title and give them other paperwork to register their MH, make you the lien holder, and pay sales tax? I’m just a little confused on that next step. I’m trying to compare it to when I buy a car?
Thanks for all your help!
Re: Earth to John! - Posted by DJ
Posted by DJ on December 30, 1998 at 16:42:48:
John,
I have done deals two deals this way, with no objection from the DMV, or any other government agency.
But due to the fact that I had one couple default on their contract and it took an act of congress to get them out, I try to avoid owner financing MH’s! Yes, it
works in NC, but as I said, it may not work for you!
Take your own advice and get out there and make some deals. There’s no better teacher than experience! If
worse comes to worse, you can claim ignorance the first time! You people that sit around sweating every little detail, are the one’s that will only experience
RE Investing through other peoples experience! As far
as your opinion for Tom, when a person buys a car, and goes out and gets killed in it, do you think the Dealership that sold it to him is responsible? C’mon
Man! Ever heard of Insurance? Wake up, smell the coffee, and get with it! Or sit back and watch everyone else do it!
DJ
Re: Here it is! - Posted by DJ
Posted by DJ on December 30, 1998 at 12:58:32:
Jen,
If you plan to offer financing for your buyers,the way it would work in NC, is, your buyer fills out
paperwork, just like an automobile purchase, listing you in the 1st lein position, then he would register at
DMV, title comes back to you, but it will have his name
on it. When he pays you off, you sign off releasing the
lein, and give him the title. Or you can simply take title in your name, pay the sales tax, and hold the title until your buyer pays off! You should make enough profit to cover all the fee’s anyway! But I would check with your local DMV to find out how their procedure works! It varies from state to state! I only do Cash deals to avoid the red tape. If you can find
a lender who finances used MH’s in your area, you can also offer financing through them. But, make sure you
get paid for your trouble! Good Luck!
DJ
chill dude - Posted by John
Posted by John on December 30, 1998 at 17:17:52:
I appreciate your experience in your two deals. I’ve done a couple of hundred but none your way. Yes I carry insurance to protect me. I do not keep the deed out of my name as a method of protection. I was just curious about your methods but for some reason you seem to have a chip on your shoulder want to hurl insults. I am sure sorry that i made you so mad. Try being nice to people and in return they’ll be nice to you. Do you work for the Postal Service? Have a nice day.
Re: Last Word! - Posted by DJ
Posted by DJ on December 30, 1998 at 18:04:19:
It’s pointless as well as childish to use this site as
an arena for slashing out differences! The post was meant as a wake up call to get you to quit sweating the small stuff, and go out and make some deals! When you try to give advice to others as a friendly gesture,
alot of the response you get comes back as what you said earlier, Excuses not to do something! Or atleast that’s the impression I got! There are alot of people actively investing that use this site for what it’s meant for, to get advice! There are also alot of wannabee’s who think they know something, and usually
end up giving bad advice, or commenting on something
they know nothing about! I can appreciate the fact that
you’ve done hundreds of deals. I’m glad to see your investing career treats you well! I have done more than 2 deals myself, but have only done 2 in which I carried financing! I was simply stating that unless you were going to retain property for rental purposes, there’s no need for your name to ever go on the title! And when you finance one for your buyer, you should require that they get liability (or renter’s) insurance to cover against any losses! Sorry for the harsh response!
Thought you were a wannabee!
Nothing Personal!
DJ
PS: For anyone else who reads this post, there is a difference between a Newbie, and a Wannabee!