MH dealer's license. - Posted by David Elliott

Posted by Dirk Roach on January 07, 1999 at 02:56:03:

Hi Jason,
The last thing I want to do is get into a debate on something which I’m not clear on.
Okay say that you find a used mobile home for sale and decide to buy it. Now in TX your telling me that there is a state regulation stating that before you resell it you must move it onto a “lot (I’m assuming like a used car lot)” which you own? Or you can resell it on it’s existing lot but must pay a fee in addition to registration and title transfer and what not of $300?
And they (which ever branch of state government handles such matters) monitor this pretty closely?
I am in CA so a TX regulation doesn’t affect me as such. However I do know several people who are actively doing Lonnie Type Deals in TX. Perhaps they have overlooked this regulation and I would like to inform them of it.
In your post above you asked if I could give you some e-mail and such, which I decline to do. But I know of three people who are almost nightly in the chat room, who are doing these deals. I’m not trying to be a jerk, however if someone isn’t going strictly by the TX book I don’t want to state who they are.
In my above post perhaps I came across as a little abrasive. I apologize for that. I on a daily basis receive quite a bit of inquires from all of the place about this subject.
And from people who get spooked and stop dead in their tracks because of the looming MH Police factor.
Needless-to-say it can be frustrating.
As TX is such a huge market for these Lonnie Deals I think that I will get a copy of the states rules, regs, and requirements. Just so that we are all on the same page and not talking apples and oranges.
I by no means am saying that there are not screwy requirements in these MH deals. Believe me the state of CA is very “tenant” oriented state. But lets once and for all find out what the screwy requirements are and explore ways in which to deal with them.
I’m sure that if we all put our heads on the problem, in no time we will have a solution.

MH dealer’s license. - Posted by David Elliott

Posted by David Elliott on January 03, 1999 at 15:02:32:

I am just now learning about MH dealer’s licenses. Is this the exact license a used automobile dealer obtains. Also would it be worth it to start to buy MH before actually obtaining the license. One last question: I noticed one post noted how a dealer could not sell a MH thatis located in a park and not on the actual dealers lot. Is that the custom everywhere? Does a dealer actually have to move the MH to his/her lot to sell it? Your help would be greatly apprieciated.



Re: MUST READ if you want to do Lonnies! - Posted by Jim Simons

Posted by Jim Simons on January 04, 1999 at 24:14:43:

If you want to do Lonnie Deals - you should go down below and read a reply by JHyre in Ohio called “Not To Bad” in a reply to a post about Doing Mobile Home Paperwork.

Some people on this board are suggesting that if you’re just getting started in Lonnies, you should just jump in and do it without regard for the reprocussions. I suggest you read JHyre’s post.

I can tell you the Rules, Regs, and Fines in Texas are quite stiff and more than myself or most people could afford. It’s been suggested to me that they won’t prosecute on a first offense, and that other people have been doing it for years without getting caught. I personally would not like to be the one they choose to make an example of. Call me paraniod or whatever. I suggest if your going to do it all . Don’t go in with blinders on. Find out what is right and legal and what the reproccusions are. Do it right. Do it Legally. Then don’t worry about it.

Re: MH dealer’s license. - Posted by DJ

Posted by DJ on January 03, 1999 at 16:31:42:

David, you have obviously missed this past week’s
on-going argument on this subject. Read Lonnie’s post “Once upon a Time” from yesterday! See if you get what he’s saying! If you’ve got any questions, email me!

Re: MH dealer’s license. - Posted by David

Posted by David on January 03, 1999 at 19:44:07:

I read Lonnie’s post again and still have trouble understanding it all. I take it that Lonnie says to jump in to it with out looking back. Yet it still doesn’t quite answer the question “Is a dealer required to move the MH before it is legally able to be sold?”


Re: MH dealer’s license. - Posted by Dirk Roach

Posted by Dirk Roach on January 03, 1999 at 20:05:28:

Hi David,
I’m CA, so what I know apply’s here. A dealer does not have to move a MH before selling it here. In fact I have never heard of anywhere where that is the case (of course I could be wrong) But I know that here in CA that is not the case.
As far as this last week’s discussion about even being a dealer. What Lonnie (and many others) have been trying to do is tell
people to get over the hang up’s an obstacles, in not doing deals.
JP Vaughan says that you have to get out and move molecules and she is right. If you want to learn about the Used MH business get Lonnie’s Materials. To learn about the paper side of it, in greater detail, check out Terry Vaughn’s “Cashing In”.
Read everything you can about MH finance (there is a ton of stuff here on this site, how-to articles, news group postings, success stories, and the chat room is great).
Find out what branch of your state government handles Used mobile homes (title transfers, taxes, dealer requirements and whatnot).
It is a great business and you can make money doing it. There is little competion, and it works pretty much everywhere.
Anyhow good luck,


Re: MH dealer’s license. - Posted by Jason-DTX

Posted by Jason-DTX on January 06, 1999 at 23:02:06:

Texas has a similar law about having to move a mobile to your lot to sell it or getting a seperate licence for each location that you have a mobile at and need to sell. A couple people have posted it here to find a loophole but I haven’t seen any answers from anyone in Texas getting around the absurd law.

Re: MH dealer’s license. - Posted by JHyre in Ohio

Posted by JHyre in Ohio on January 04, 1999 at 07:10:19:


In Ohio, you have to move the thing on to your lot OR sell it out of a park that you own. I do not know how other states approach this.

Lest my other post be misunderstood, I’m NOT saying do not do Lonnie Deals. Nor should legal issues STOP you in most cases. Simply be aware of the risks and CYA. Whether you hire an attorney or do the research yourself depends on your inclination, time, desire and the complexity of the deals involved. Not hiring an attorney AND forgoing the research is dangerous- not everyone will get away with a slap on the wrist. I believe Lonnie’s point is don’t let legal details keep you from doing anything- just CYA, exactly as he did/does.

John Hyre

Mobile Home Police - Posted by Dirk Roach

Posted by Dirk Roach on January 06, 1999 at 23:37:42:

I Don’t know Jason.
I DO know several people who have been doing deals and making money, using the classic Lonnie Method in Texas. The Mobile Home Police have yet to bust anyone. However I’m sure that they are on the case.


Re: Mobile Home Police - Posted by Jason-DTX

Posted by Jason-DTX on January 07, 1999 at 24:25:17:

I didn’t say that people weren’t making money in Texas. Since you know so many of them why don’t you give me some names and e-mail addresses - I would like to talk to someone in Texas who is doing them correctly so I can get some advice and ideas on how they work with the law.
The law doesn’t keep you from doing deals it just makes you get a license for each deal if you don’t move the mobile to your own facility. It cost $300 for each license and takes a couple of weeks to get.
I do a lot of house deals and come across mobile deals along the way. I’ve done a couple mobile deals myself and reffered some of them to others.
You said in your post that CA doesn’t make you move mobile and that you weren’t aware of any state that did. I was just telling you and anyone else that was following along that Texas does have a wierd law on mobiles that makes you move the mobile or jack around with more licenseing crap.
Why do you think Texas leads the nation in executions? The Mobile Home Police are doing an excellent job of capturing capital mobile home dealer wanna-bees!