Posted by Justin on March 24, 2005 at 15:47:58:
I already asked about that. They told me that license is only for a scenario such as selling repos. Good luck, but I do not think you will hear what you want to hear.
Justin
More on LA Delaer’s License - Posted by Justin
Posted by Justin on March 23, 2005 at 17:32:43:
“Retailer” means any person engaged in the sale, leasing, or distribution of mobile homes or manufactured housing primarily to a person who in good faith purchases or leases the home for purposes other than resale. Any person who sells, leases, or distributes more than one such manufactured home in any twelve-month period shall be presumed to be a retailer
I do not even think the leasing option would work any better than selling under the law.
I will try to see if there is a loophole I can live with
Link and phone number below to Louisiana, if anyone cares:
225-342-2943
I guess this issue is nothing new as I got the following from Ernest Tew website FAQ:
Q ? Do I need a mobile home dealer?s license to buy and sell for profit?
A ? While most state laws require a license, it appears that the laws are not usually enforced?unless someone complains. Everyone has the right to buy and hold rental property. For tax and other reasons, the best approach is to buy mobile homes and then net lease them with an option to buy. Our Net Lease and Option forms can be downloaded from this web site.
I know nothing would probably happen to me from selling a few mobile homes. I will continue to see if there is a loophole that I can live with. I do not want to worry about getting in real trouble if someone would file a complaint.
In the mean time, thanks for all the replies, and there is nothing from stopping me from at least doing one deal. Any creative ideas would be appreciated.
Justin
That’s funny - Posted by Jeffery (LCLA)
Posted by Jeffery (LCLA) on March 23, 2005 at 18:51:52:
RS 51:911 petains to the selling of eyeglasses. They need to get their stuff straight. The real statute starts at RS 51:911.21
I’m looking for a loophole for you. If you’re a bank or other lending institution, you don’t need a license.
Jeffery (LCLA)
Re: That’s funny - Posted by jeff in oh
Posted by jeff in oh on March 23, 2005 at 21:51:10:
Would retiring the title work for him. Maybe it would then be cosidered a house? Not a mobile home. Or do you need a license to sell a house in LA.
Re: That’s funny - Posted by Jeffery (LCLA)
Posted by Jeffery (LCLA) on March 23, 2005 at 22:10:52:
You can’t do an Act of Demobilization on a MH in a park. However, Folks in Louisiana can get a broker’s license whereas you don’t need insurance, a lot, a bond, or any other qualifcation other than $176 or you can sell MH’s to other dealers and not need any license. Personally I think it’s a dumb a$$ statute.
Jeffery (LCLA)
License - Posted by Justin
Posted by Justin on March 24, 2005 at 10:49:38:
John T. Reed an ethical real estate guy even praises Lonnie.
Most real estate “gurus” either imply you must break the law with creative financing or are only worried about selling their tapes.
I even figure I could get the #$%^&! License if I had to. I already have an office which would work unless I actually need a lot, but I can not get around the need one years experience as a salesman to get my license. Only angle I see here is if someone else has their license and lets me ?work? for a year, and then I get my license. You could also probably sublet your office from the person who has their license once you get yours. Also, if you have access to an office the rest of the rules would probably cost you under $2000 a year, maybe even under $1000 a year if your net worth is over $50,000. Sometimes it costs money to play.
Every state is different and the laws seem to have gotten more restrictive. When you could put 3 or 4 deals in your name, and your wife?s name you could get the license if things really took off or make some nice money on the side. If it was not for you then you would not have to spend a small fortune finding out.
The way I see it this is a major if not the major flaw with mobile home investing currently in many states.
Yes you can ignore the law, and probably not get caught, but that is not a sound business plan in my mind.
I know the world is not black and white, and we live in the grey area no matter how ethical and moral we are, because that is the way the world works whether we like it or not.
For me, however not having a license seems to be more of a black or white issue, and I have too much to loose.
I do not think less of you that operate “professionally” without the license, you are just taking a risk, a real risk that I am not willing to do.
My Lonnie books will probably be delivered in the mail today or tomorrow. I will still read them as knowledge is power, and it may give me an idea for a different angle in real estate investing. I will talk to the state some more, but I know I will not get their permission. Mainly I just want to see if I can get my license without one year in sales, and I already know the answer to that one too. It is no.
I will be the first to admit this may not even be for me (I have not really even pounded the pavement), but nothing like a roadblock before you even start.
If I end up doing a Lonnie deal, hear something worthwhile from the state, or end up in real estate in another way I will report back.
I am interested in reading a post from anyone in Louisiana who has their license, until then I will stop beating a dead horse, and wish you all the best.
Justin
Hear from state - Posted by Justin
Posted by Justin on March 24, 2005 at 13:07:32:
I just received an e-mail from the state.
-
You can rent as many mobile homes as you like, but you can only sell one a year.
-
No easy way to get your license without one year in sales.
Bottom line:
I do not want to be a landlord dealing with leaky toilets.
Net lease with option to buy, where they are responsible for repairs may be an option. This would be better than doing Lonnie deals under Louisiana law. I may need to look more into the Ernest Tew approach or just do land/home deals
If I am aloud to buy as many as I want to lease wouldn?t I eventually have to seal them anyways? When you actually sell the mobile home this is the grey area, but it is not a direct violation of the law. You are not simply buying and selling which would require a license.
I do not think getting your real estate license would help with the way the law is worded:
“Retailer” shall not include:
(a) Public officers while performing their official duties.
(b) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or Acting under the judgment or order of any court.
(c) Banks, finance companies, or other loan agencies whose principal place of business is in Louisiana that acquire manufactured housing as an incident to their regular business.
(d) A developer, or a contractor licensed as a developer under the provisions of
R.S. 51:911.24, or a real estate broker or real estate salesman retained by a person to sell a manufactured home together with immovable property on which the manufactured home is located.
I think net lease with option to buy or just doing land home deals may be better for me.
I do not want to quit my day job anytime soon, unless I am making 3 million a year flipping (holds at least 12 months) strip malls like my buddy (I am not joking). He just recently quit his day job in a big firm and investors need a million dollars minimum just to play with him.
Thanks for all the replies. I will find a way to make this work or find a different angle in real estate that is for me. I was looking for a nice way to get some money and either see if the mobile home thing really took off, or use it to feed other investments.
$70 dollars on Lonnie books and a few hours on the internet is not that much invested, and I am learning. Even if it is learning what is not for me.
Thanks again and great forum!
Justin
Re: Hear from state - Posted by Jeffery (LCLA)
Posted by Jeffery (LCLA) on March 24, 2005 at 14:11:10:
I’m still waiting on an email from them regarding the Broker License. Apparently there are no qualifications other than $176.
Jeffery (LCLA)