Dealers Licence


#1

Hi,

I am just getting started in the mobile home business and ran into a problem I don’t know what to do about.

I am in minnesota and here you apparently need 2 years experiece working with a licenced dealer before the state will give you a dealers licence. They seem pretty strict about pretty much anyone making money off a mobile should have a dealers licence.

What can I do?

Thanks,

Eric P.


#2

MOVE------LOL

Research.

Maybe someone from MN will comment.


#3

This comment has nothing to do with Minnesota specifically. I do not know of any state where a company needs a license in order to sell corporate assets that where previously used in the business. The idea would be to emulate Enterprise Rent-a-Car. Buy mobiles instead of cars for the purpose of renting them. Rent them to the public. At some later date when the mobile needs upgrading (just like rental car companies) sell them in order to buy newer fresher models. Of course, who’s to say you don’t need a license to rent mobile homes in your state too :slight_smile:

Some people have creatively done this using very carefully drafted leases and options. Under scrutiny most states would find away to make these deals a “sale” whereby you would need a dealers license. But, if you really are in the business of renting mobile homes and later decide to sell your inventory (for cash or on a note) then this may be an acceptable business model.

Another more blatetent solution is to buy homes and hire a state approved broker/dealer to represent them to the public. A carefully structured JV/partnership like this could easily satisfy state and local laws.

Of course, there’s always going through the hoops of getting your own license. It sounds like this barrier of entry could actually reduce competition since those who have been there and done that will likely be protective of their turf.

Please note this is not legal advise or even specific or pertinent to your state. Good luck finding the business model(s) that best suits your skills, wants, needs, time and ambition.

Karl