Mobile Home Investing - Dealer License in NJ

Mobile Home Investing - Dealer License in NJ

Lumberton, NJ · Member since 2015 · 8 posts · 0 votes

Hi there, 

I'm new to investing and have found that I have an interest in mobile home investing. While researching this niche I read that most states at some point require you to obtain a dealer license in order to buy and sell mobile homes. I live in NJ and contacted the Department of Motor Vehicle to get more info. I explained that I'm interested in purchasing mobile homes primarily in mobile home parks and either flipping them or owner financing them. I was told that in order to buy and sell mobile homes in NJ I would have to obtain a used car dealer license and meet all the mandatory requirements, one of which is showing proof that I have a physical office with signage and a lot that is large enough to park two units on. Obviously that requirement makes sense for an actual used car dealer, but not for mobile home investing. Unfortunately the person I spoke to could have cared less and could offer no alternatives. So I'm wondering if there are any New Jersey mobile home investors out there who might know the solution for my problem. 

Thanks 

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Specialist · Parsippany NJ · Member since 2010 · 128 posts · 47 votes
11y

@Christine Lenz Are you looking to buy and sell them as an investor, or are you looking to open a business brokering mobile homes? I've never worked with mobile homes, so I'm stabbing in the dark here. The requirements for a "mobile home dealer license" sound very similar to those required for owning a real estate brokerage. I'm a broker, and I have to maintain proper signage, have a physical office, etc etc. That's because my company helps other people in buying and selling homes. If I were not a broker, and I were just selling my own properties that I own I wouldn't have to have an office or any of the other state requirements.

Is it possible that the law is being misinterpreted, and that buying/selling mobile homes for yourself does not require a dealer license?

If you find out I'd be interested to learn the answer...this is the first time I've come across this issue.

Maybe check in with the NJ Manufactured Housing Association? 

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  • Contractor · Texas Corners, MI · Member since 2012 · 37 posts · 10 votes
    11y

    hey Christine, I don't have the exact  answer for you but I will say that my uncle owns a property in Washington, NJ that has a motel and 8 mobile homes on it. It regularly gets state inspections since it has some state occupants and he does not have his car dealer license. I was also recently totally miss informed about a recent sheriff sale from receptionist at town hall. Good luck out there!!!

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Christine Lenz

    Welcome to Bigger Pockets.

  • Flipper/Rehabber · Atlantic County, NJ · Member since 2012 · 514 posts · 209 votes
    11y

    @Christine Lenz I personally have no idea lol sorry but I know there were one or two podcasts about mobile home investing you might wanna check out. Maybe even follow up with the guest. Good luck!

  • Lumberton, NJ · Member since 2015 · 8 posts · 0 votes
    11y

    Hi Guys, 

    Thanks for responding. 

    Yes, @Justin Bush, it did occur to me that the state employee I spoke with may not have been well informed. The trick of course if trying to figure out who is...lol. Not sure what the situation is with your uncles' mobile homes, but it seems that a dealer license is only needed if you intend to be buying and selling mobile homes. If he's renting them out then he's not required to have a dealer license. Which is an alternative that I can keep in mind, however I wasn't really looking to become a landlord. May have to change my thinking. 

    Thank you @Mark Nolan, for welcoming me to Bigger Pockets. 

    @Nathan Paisley, thanks for the advice. I have watched the podcasts and will contact the guests. Maybe they will have a little insight into my situation. 

    Appreciate all the advice.

  • Flipper/Rehabber · Vancouver, WA · Member since 2013 · 331 posts · 252 votes
    11y

    I had this happen to me with the auto dealer license confusion. I said Mobile Home and should have said Manufactured. They told me all about Motor Home rules. I had to explain 'Manufactured' NOT 'MOTOR' Home. Different rules for each.

  • Lumberton, NJ · Member since 2015 · 8 posts · 0 votes
    11y

    Thanks @Bill Neves, didn't give that a thought, hopefully that will resolve the problem. Appreciate the help. 

  • Specialist · Parsippany NJ · Member since 2010 · 128 posts · 47 votes
    11y

    @Christine Lenz Are you looking to buy and sell them as an investor, or are you looking to open a business brokering mobile homes? I've never worked with mobile homes, so I'm stabbing in the dark here. The requirements for a "mobile home dealer license" sound very similar to those required for owning a real estate brokerage. I'm a broker, and I have to maintain proper signage, have a physical office, etc etc. That's because my company helps other people in buying and selling homes. If I were not a broker, and I were just selling my own properties that I own I wouldn't have to have an office or any of the other state requirements.

    Is it possible that the law is being misinterpreted, and that buying/selling mobile homes for yourself does not require a dealer license?

    If you find out I'd be interested to learn the answer...this is the first time I've come across this issue.

    Maybe check in with the NJ Manufactured Housing Association? 

  • Investor · Raleigh, NC · Member since 2015 · 9 posts · 1 vote
    7y

    @Christine Lenz Did you obtain your dealer license?  Any clarifications for the state of NJ? 

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