Posted by Glenn-TX on May 23, 2002 at 11:50:06:
Gary, I’m glad to hear that real-world experience. They gave no such guarantees of ‘quick response’ at the class but I’m glad to know it’s possible.
Update from TX Licensing Class - Posted by Glenn-TX
Posted by Glenn-TX on May 21, 2002 at 20:01:55:
The short version is…I’m beginning to think that buying partial or full MH notes would be MUCH easier than getting licensed in Texas.
Now for the long version…
Since I’ve already bought and sold 4 mobiles I am now THREE over my legal limit without a license. While I doubt I will experience any legal trouble the fact is that each of my last three buyers could call the state and ask an innocent question and the state could fine me or force me to take the licensing class and get a bond and license. I could also lose the ability to legally sell mobiles in Texas.
So, I’m trying to head this off at the pass. Here is what I have to do to get my current deals legitimized:
- Finish this class ($125)
- Apply for a RETAILER’s license ($225)
NOTE: This is the ONLY level of license that will allow
for Lonnie deals in Texas. (more on the hoops you will
have to jump through later) - Purchase a $50000 bond (costs about $1000 annually)
- Get seller to sign all titles over to me and send that
paperwork in to the state - Sign all titles over to buyers showing me as lienholder
- Fill out 2 or 3 other required forms for each mobile
If I can get all that done I’m covered. However, one home was sold to me on a bill of sale, and has no state seal, no serial # and no title. If I can’t find something on it I have absolutely no legal ground to stand on and could get stuck with having to salvage it and write off the loss.
Retailer’s License Issues: The address of any mobile home that you advertise and show MUST match the address on your Retailer’s license. Multiple homes on a lot? No problem. Multiple homes in one MH Park? No problem.
Multiple homes in multiple MH parks? BIG problem. In that case you would have to submit a change of address to your bonding company to match one home, advertise and sell that one home, then submit another change of address to match the next home, then advertise and sell that one home, etc. ad nauseum.
This is straight from the Manufactured Home Director of the TDHCA.
Having said all that it is quite likely that you could sell homes for years and fly under the radar as enforcement is spotty, but sales are way down this year and they have a lot more time on their hands to do inspections and follow up on consumer complaints. All it will take is one complaint or inquiry from one of your customers and you’ll be down here taking the class too.
Might as well get it out of the way…
Re: Update from TX Licensing Class - Posted by Gary -Tx
Posted by Gary -Tx on May 21, 2002 at 21:54:28:
Hello Glen,
Them chairs they have in class are comfortable. Tell Joe that Gary from Lubbock said hi. You can get the numbers off the home and go to Tdhca site and do a title search. The serial numbers is on the front apron.
Floating your license isn’t that big of deal. Sounds like you are having a good time. Enjoy yourself and keep us posted.
Have they got into the permanent foundations yet ? This is where it goes from personal property to real estate. This will be nice in a couple of years to do deals with. Get home and the lot already deeded to real estate.
Gary
Floating the License?? - Posted by Karen - TX
Posted by Karen - TX on May 22, 2002 at 09:30:03:
How is this done when working in multiple parks?
Re: Update from TX Licensing Class - Posted by Glenn-TX
Posted by Glenn-TX on May 22, 2002 at 24:02:59:
No serials on apron, frame or anywhere else. Heck, can’t even find a breaker panel!
I’m thinking that the real estate deals will be much easier too.
Re: Floating the License?? - Posted by Gary-TX
Posted by Gary-TX on May 22, 2002 at 17:13:17:
Hello Karen,
When you are working in multiple parks all you have to do is call the company that issued your bond and have them do a change of address on your bond. This can be done by fax. They will send you a change of address.
You then send this to TDHCA in Austin, with a request to float your license to a different location. I do this by overnight Fed Express. Be sure and add a note asking them to let you know when they put the new location in the system.
Usually they do it the day they get it. Once it’s in the computer system then you are legal to make the sell.
I have made two sells at different locations within a week and half. Hope this answer your question.
Gary