Avoiding Florida Dealership Status
Since the rules are rather strict in Fl., what about taking title in a personal trust with the trustee being an out of state person or entity with a P.O. box address, and the beneficiary your L.L.C.? I'm thinking this would work for a while untill you got your feet wet and was willing to make the commitment to being a dealer. Anyone tried this?
Even buying or selling a single mobile in FL can be construed as being a dealer. So this would mean a new trust every time. Much cheaper and safer to do it legally.
The penalties are pretty harsh in FL if you get caught.
IMO you are better off just biting the bullet and getting your Dealer or broker lic.
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On 2003-11-28 22:14, MrMike wrote:
The penalties are pretty harsh in FL if you get caught.
IMO you are better off just biting the bullet and getting your Dealer or broker lic.
Absolutely NOT!! Become a dealer. Not me! The taxes will kill ya. Raise your REI knowledge and learn how to invest wisely. There are ways to legally avoid the dealership status. Take it upon yourselves and find out how successful REI's have managed to do it. Cheers!
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On 2003-11-28 22:48, jonesoe30 wrote:
Quote:
On 2003-11-28 22:14, MrMike wrote:
The penalties are pretty harsh in FL if you get caught.
IMO you are better off just biting the bullet and getting your Dealer or broker lic.
Absolutely NOT!! Become a dealer. Not me! The taxes will kill ya. Raise your REI knowledge and learn how to invest wisely. There are ways to legally avoid the dealership status. Take it upon yourselves and find out how successful REI's have managed to do it. Cheers!
WOW this sounds GREAT>
Could you point us in the right direction to see how to do this.
Are you sure you are not confusing the State designation of a mobile home dealer with the Federal designation as a Real Estate Dealer for tax reasons??
Also another question, dealer status for mobile home is a State requirement and has nothing to do with the IRS, since of course here in Florida we don't have a state tax we don't worry about that.
So how does becoming a mobile home dealer or broker increase the amount you are paying on your Federal Taxes??
Thanks
[ Edited by MrMike on Date 11/28/2003 ]
Ok, I'm only here to refer you to someone else, but I was listening to Ron Legrands cd's (and no, everyone, I do not have any alterior motives for metioning him again) and he addresses this very subject in his "wholesale module". The truth is, I don't remember the specifics, but I do remember that becoming a dealer is not a good idea, and there are ways to avoid it. Ron lives in Jacksonville, Fl., so he probably knows all about the laws in Florida, too. That being said, continue investigating until you find those ways. Z
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On 2003-11-28 23:28, Zach wrote:
Ok, I'm only here to refer you to someone else, but I was listening to Ron Legrands cd's (and no, everyone, I do not have any alterior motives for metioning him again) and he addresses this very subject in his "wholesale module". The truth is, I don't remember the specifics, but I do remember that becoming a dealer is not a
good idea, and there are ways to avoid it. Ron lives in Jacksonville, Fl., so he probably knows all about the laws in Florida, too. That being said, continue investigating until you find those ways. Z
Hey thank you very much Zach.
I will try to research that.
So just to clarify you are saying that Lagrand says to avoid being a MOBILE HOME DEALER.
NOT being considered a Real Estate dealer according to the IRS correct???
Thanks
Uh oh. No, I'm sorry for any cunfusion, I'm pretty sure he was talking real estate. Sorry if I screwed you up. Z
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On 2003-11-28 23:53, Zach wrote:
Uh oh. No, I'm sorry for any cunfusion, I'm pretty sure he was talking real estate. Sorry if I screwed you up. Z
No problem Zach,
Yes we are talking about being a LICENSED mobile home dealer. A REQUIREMENT in Florida.
We are not talking about if the IRS considers you a real estate dealer.
It is my understanding that in Florida mobile homes are not considered real estat unless they are attatched and the same person owns the mobile home and the land. I am NOT saying I am correct, just stating what my understanding is.[ Edited by MrMike on Date 11/29/2003 ]
Quote:
On 2003-11-28 22:48, jonesoe30 wrote:
Quote:
On 2003-11-28 22:14, MrMike wrote:
The penalties are pretty harsh in FL if you get caught.
IMO you are better off just biting the bullet and getting your Dealer or broker lic.
Absolutely NOT!! Become a dealer. Not me! The taxes will kill ya. Raise your REI knowledge and learn how to invest wisely. There are ways to legally avoid the dealership status. Take it upon yourselves and find out how successful REI's have managed to do it. Cheers!
I spoke to jonesoe30 through PM and he was confused about the Mobile Home dealer lic and the Real Estate Dealer IRS designation as was Zack. LOL
SOoooooooooo to recap we are talking about the Florida MOBILE HOME DEALER and AGENT lic NOT the IRS real Estate dealer designation.
Thanks for setting me straight. I just went back through 7 or 8 of those cd's looking for the info I heard. I couldn't find it, so I'm glad you guys figured it out. And now that you mentioned it, I do remember the info being about the IRS. So, thank YOU! Z
You are right about needing a dealers licence. I called the DMV here in Tampa and they said that you needed to have a lot with a 100 sg ft building on it along with paying the fee for the license.
try calling your DMV where you are and get the requirements. Maybe you could hook up with another deal some how and work something out together.
Ok, here's something interesting. I checked with the Florida MVD and gave them the scenario of having 20 friends and relatives that owned Mobiles, and they all made me trustee for their own individual personal property trusts, (for mobile's) now they are all selling their MH's. Do I have to be a dealer to handle all the sales since I'm the trustee? Well they said NO. Imagine that. As long as I'm the trustee I can sell a bunch and not be considered a dealer. See a solution to getting around the dealership status?
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On 2003-12-04 05:51, tcboj wrote:
Ok, here's something interesting. I checked with the Florida MVD and gave them the scenario of having 20 friends and relatives that owned Mobiles, and they all made me trustee for their own individual personal property trusts, (for mobile's) now they are all selling their MH's. Do I have to be a dealer to handle all the sales since I'm the trustee? Well they said NO. Imagine that. As long as I'm the trustee I can sell a bunch and not be considered a dealer. See a solution to getting around the dealership status?
LOL
Yes indeed you are correct it IS pretty to get around just about anything easily if you lie, temporarily that is.
BTW why tcboj, why are you so worried about becoming a dealer?[ Edited by MrMike on Date 12/04/2003 ]
I would put each property into a land trust regardless of dealor status or not!
It is not hard or expensinve and once you get the first one done the others are easy to do yourself.
I advocate integrity and obeying the law, if you can put it in trust and name yourself or your LLC the beneficiary thereby avoiding the dealer license issue I would go for it.
Let me clarify something for Mike. I would definitely not lie, or break the law. In fact I would follow exactly as the law allows. Being a trustee for someone's trust, and then selling their MH in that trust is totally lawful, and not qualified for dealer status. I didn't make the rules, I just follow them. As far as avoiding the dealer status, besides the fee and the course, the bonding and office and storage lot requirements are a little much for a little investor, just getting started, buying a few MH's and fixing them up and selling them. Down the road if things go really well, then I just might want the government to keep their nose in my business and let me give them money, so I'll become a dealer.
Thats cool MrMike
I will have to look into that arena. Thanks for the research.
I live in Florida.
I see a few others in this thread do also.
Just wondering if I were to go through the process of opening a dealership, get the lot, lic etc perhaps others would want to buy and sell under my dealership lic. for an agreed upon fee.
This is just thinking 'out loud' But just wondering if there might be an interest and it might be helpful for all of us. I would have to see what sort of liablity I am opening myself up for but perhaps something we could investigate.
Feel free to email or PM me. I live in Orlando I could call whoever gets hold of me.
I know a guy who lives in New Port Richey who is VERY knowledgable in the mobile home arena and has some unique business ideas. I could always look him up and get his input.
Mike
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this will give you an idea of the requirements in orange county.
Its more than one Mobile Home sold in a calendar year which might attract the strict dealer laws here in www.FL.Not Strictly enforced BUT definitely a possiblity.So better be safe than sorry!
A good book which deals mostly with Florida Laws for Mobile Homes is by Earnest Tew "How to get rich by helping others"
Here he is talking of lease options as a way of deferring that!
A second way could be having your mobile homes bought through a dealer
Best possible way could be to get close with some of the park managers in your area and see if you can finance the deal.where the seller is someone which the park manager refers you and the buyer is also someone who has already put in their residency application and approved.You step in and finance the buyer for the mobile home and put your name on the title as a lein holder.And why you?becuase you are not a conventional lender who goes by A to Z to qualify a buyer.And there are very few lenders anyways to finance a mobile home,that too for new ones.Used ones you are practically the only ones!!Also a park where they are strict with resident qualifications secures you to a certain extent on buyer www.defaults.even if they do the park will evict them for you and you just need to find one more qualified buyer!
While these are some options,please take it face value and check with a more experienced Mobile Home Investor on the applicable laws here in Florida!