How To Get Away From License Requirements In Texas To Retail
I just came from the TDHCA, the department that handles MH affairs in TX and was overwhelmed by so many rules that a would-be investor have to deal with before even thinking of buying one, one of them being is getting a retailer license if you buy and sell more than 1 MH in any 12-month period.
my question is, can you do away from this rule if you create an entity(LLC, or whatever form) for every house that you buy? are there any inexpensive ways of forming an entity?
eventually, i will get the license if i want to make this a serious business, but meantime this is my short term solution.
any input would be appreciated
th
NO!! Dont call ads, get in the car/truck/van had to cover the bases there anyway and see them in person.
Note, they all want to sale something, everyone of them regardless of what they say needs to sale something cause they most have a large overhead each month to make.
Now, they arent going to sell you new units for nothing and you dont want new units stay away from them for now that comes later.
Tell them you are looking for units they can wholesale you understanding ofcourse you all need to make a buck but leaving you room to also make a buck.
Some will cut to the chase and ask how many do you need?
You say, well Sir that depends on what sort of prices you give me, 1 to start off with or maybe 2 if the price is right!!!
They will ask, what are you looking for? You say, well mostly need Doublewides but will consider Signlewides as long as they are at least 16x80 units.
Also, tell them you preffer 1999 and above for the most part but may consider an older unit depending on size and shape.
They may ask, what are you going to do with the homes, say well, this is why I have come to you!!!
Let me come right out with it..... I am a realestate investor and in my business I am starting to get alot of demand for mobile homes, some want them for temp homes till they get their homes built others though just want mobile homes.
Well the bottom line is this Mr. Dealer,s Name.... I was thinking if I could find me a Licensed dealer that would work with me on these I would be willing to cut you in on 50% of the proffits.
Now, I am willing to give 50% because you have the experience and I dont and also you have the license
So what do you think do you think we could work something out???
Now shut up They know what you are wanting to do, and will let you know how they want to do it..... if they want to
Anyway, this is an idea, but let me tell you right now.... get your license as soon as possible becauwse you are going to throw thousands of dollars in the toliet
Hey if you do get your Dealers license let me know I get customers from TX calling me all the time
Anyway, I hope this helps you.
MarkB
mhdeal,
Im telling you man, the best way to get stqrted is with someone already in the business. They can assist you in getting your TX license and help in cutting a lot of corners for you.
Itsa not as hard as its made out to be.
With a partner, you will learn the ropes, with the right partner you will learn the resources in your area for homes.
There are so many ways to get into a good partnership too.
You can really get in good with them by showing you have customers of which you need homes for especially used homes.
Then ask if they have inventory they need moved, if so what sort of deal can we work out.
The thing is, dont just say it do it. Place an ad or two and get a few customers lined up.
Talk to everyone you know and let them know if they want a MH then your the guy that can get them. It only takes one customer to get in good with them.
One customer could be as much as 10,000 to them and on your first deal as much as 3000 + to you.
Or even more, my firsat deal brought me 7000 and it has gone up ever since...
Partner ... then experience then License then do it all by your lonesome and not worry about loop holes
MarkB
The way I do it is like this
I have a buyer already inline so that when I buy it I sell it and often use His or Her money to get it done.
Mark
Claw,
There is no way I could absolutely advise you on this and its not because of your market, its just not knowing the unit, park history or reputation, how well the mannagers are for the park which if they have alot of vacants gives me the idea they may not be the best.
However, perhaps older MH units just arent that popular in your area.
Do I believe the market could really effect people from mvoing on the home eve when you are4 offering Owner Financing.
Sure, I know of an example just like it.... where an area where there were just as many home (site built homes) 3 bedrrom and up being offered with owner financing. This could hurt you but not stop you.
Lets examine something, and I appreciate your growing tired, I had a unit that gave me some trouble becuase of the park it was in, but, I still got it done.
You mentioned you offered the MHP mannagers $200.00 but it didnt motivate them..... and now you are going to pay an agent 2000.00
Hmmm, lets work a diferent possibility here....
Instead of paying the agent 2000.00 how about lowering the cost 2000
Or, offering the Mannagers 2000....
Im just curious what an agent is going to get done that you couldnt?
Ok, I am going out into some dangerous waters now because truth is I dont know how you have advertised... and I dont mean method I mean how the ads read.
The problem I am having here is knowing that in the park even though there are vacancies, there are people living there. If there are people lving there, then there are others out there that will too.
Personally, and respectfully, I dont think an agent is the way to go, but I respect your choice but, Im still not sure what an agent is going to do you cant do yourself.
Hey, since your going to pay an agent 2000 what not try this if motivation is needed.
ad; "Owner Finance, Nothing down, low payments, Beautiful 2bdr Mobile Home with New Big screen TV. YOUR NUMBER"
You can get a walmart cheap Big Screen TV for about 800 to 900.....
Hey couldnt hurt..... or offer the prize to the mannagers
At anyrate, personally I wouldnt give it to an agent..... but then thats me...
MarkB
Good ole Mobile Homes.....
Sometimes I wish I were in your state as a dealer. There are more repo homes in that state than just about any I have researched. When I came accross the list for TX I nearly shed a tear because I wasnt there to be in on all of that fun.
Ok, lets play a game!!! Lets call it lets make a mobile home deal just for fun.
Your in TX and you come across a 14x70 Now lets say its decent shape... just some minor clean up and cosmetics.
I own it we will say, now out of curiousity, what do you feel this is worth to you, what are you willing to invest, and at what price do you just walk away.
Also, I will let you name how old the unit is, this will be fine.
Oh, by the way, do not feel obligated to play, just thought I might assist you if you would like.
Oh, anyone else if you want, join right in
MarkB
Mark, I want to play.
I say that for a 14X70 i would want to pay no more than 1000 to 1500 plus "minor" fix ups as long as the home is 1995 or newer. With any more than minor fix ups I would offer less.
Reason for my offer is the size of the home and I am probably going to have to have it moved to another location (right?)
Then, I would look to do the minor fix ups and sell for anywhere from 7-9k. Feedback please.
[ Edited by skeedro on Date 05/06/2005 ]
Quote:
On 2005-05-06 23:47, skeedro wrote:
Mark, I want to play.
I say that for a 14X70 i would want to pay no more than 1000 to 1500 plus "minor" fix ups as long as the home is 1995 or newer. With any more than minor fix ups I would offer less.
Reason for my offer is the size of the home and I am probably going to have to have it moved to another location (right?)
Then, I would look to do the minor fix ups and sell for anywhere from 7-9k. Feedback please.
[ Edited by skeedro on Date 05/06/2005 ]
Ok, Lets take the $1500.00 plus the average cost to move and setup a singlewide of $2500.00 now we are at $4000.00
However, where are you moving it to? Did you move it to a lot where you have to put down the first sometimes last month? Or did you buy a little piece of land for it to be placed on?
Now we didnt add this to the variable, but if you already had a buyer in place before you moved it you might could move it to their lot or land if they have some.
But, since we did not add in the mix that you can have a buyer in this little game lets keep it that way for the moment.
So we are at $4000 investment so far..... we need a place to put it..... you might already own a piece of land to store it on a temp basis till you get to sell it.
But I am going to say that most people getting into this business at first do not so now you must descide...
first and last for a lot well lets say you got a lot for $200 a month in most areas that is way cheap but a good number.
First and last $400.00 they may also require deposits if they offer utilities, if not you got to get them turned on.
But I will stick with just the 400
Ok we are now at $4400.00
Hmmm, not to bad now let me critique it and compare it with another route..
Ok, 1995 or newer First off, I am not saying its impossible but to get a 95 or newer unit for $1500.00 and it be worth anything is going to be a rare find not one you will find offten if at all.
However, $2500 to 3500 a good number.
Lets take a real life example./.... I found a 14x70 near your area in TN on one half acre lot.
I called the lender and got info on it infact a few pictures. The unit needs cleaning, lots of trash taken out...
For the most part though, not a bad unit. I inquired about an offer on the unit ... they intimated I could probably get the unit around $6000.00
Hmmm, Lets look at this Here I have a 14x70 already setup in your area for $6000.00 I could worth this one 2 ways
1 I could advertise a rent to own.... Land Home package.
Get as much as 4 to 6000 down beleive me I get these offers all the time... I am working witrh one right now that offered me 35,000 down just 3 days ago...
Ok, none the less I could get the majority if not all of what I payed for it and sell it to them for lets say $23,500.00 this is cheap for a land home package especially for a 1998 unit.
or 2 I could advertise a CASH deal for quick sell at lets say $18,900.00 LH package and sell it in less than a week.
Ok, $18,900 - $6000.00 = $12,900.00 Proffit
MarkB
P.S. This example would apply for TX area too.[ Edited by MarkB on Date 05/07/2005 ]
Amen to that John,
I have had a unit or 2 that because of the market..... it was dificult to get people to buy it even on owner fiancing becuase there were so many actual houses being offered with owner financing in the imediate area.
MHP location, market all of this can be a real factor in being able to buy right and sell right.
MarkB