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