Mobile Home Investing in Minnesota

11 Replies

Hi Everyone,

I bought Lonnie's materials and started looking into buying and selling MH's here in MN. However, the first park owner I talked to told me that you have to be a dealer to buy and sell mobile homes. Sure enough - I looked it up in the statutes and it looks like he is right.

However, he did say you could work with a dealer and finance them. So I got in touch with a dealer who told me she thought I needed a finance license, but did not know how I obtain one. Does anyone have an idea how I do this?

The dealer license has ridiculous requirements ( you have to work for a dealer for 2 years and you have to put up a $20K bond as well have $1M in insurance etc.) but it sounds like the finance license is a lot less?

Thanks.

Hi Hal,

Yes, the dealer license issue is an ongoing issue in the mobile home business. I'd definitely check with the state and/or local authority to see exactly what is involved. Talk to the folks there and ask them what is involved. Some people give info out but it can be outdated. I find that laws always change. I think Lonnie did mention this issue in his books as well. Hope that helps!

Hi Hal,

I am based out of South-West Minneapolis and was looking at Mobile home investing as well. Did you find out more about this? I am just starting out in real estate bought first property last fall.

Vinayak

mobiles are a pain in the rear in this area also. you cant lease them in most places, the park approval boards are very strict, the list goes on.

WRONG, You do not have to be a dealer to buy and sell, only if you Retail sale your homes. If you lease to own you do not have to.

BTW what are the windzones of the homes in your state?



Originally posted by Hal Cranmer:
Hi Everyone,

I bought Lonnie's materials and started looking into buying and selling MH's here in MN. However, the first park owner I talked to told me that you have to be a dealer to buy and sell mobile homes. Sure enough - I looked it up in the statutes and it looks like he is right.

However, he did say you could work with a dealer and finance them. So I got in touch with a dealer who told me she thought I needed a finance license, but did not know how I obtain one. Does anyone have an idea how I do this?

The dealer license has ridiculous requirements ( you have to work for a dealer for 2 years and you have to put up a $20K bond as well have $1M in insurance etc.) but it sounds like the finance license is a lot less?

Thanks.


Hi...

Talked with a guy who has been doing MH deals in MN for 3years and he says all you need is a license and it takes 140$...not much hassle...there are other limitations in MN which make it difficult like the upper limit on interest rate you can charge and default procedures...

Vinayak

I was wrong, sorry about that, Good thing I only invest in Texas.

Originally posted by Vin L:
Hi...

Talked with a guy who has been doing MH deals in MN for 3years and he says all you need is a license and it takes 140$...not much hassle...there are other limitations in MN which make it difficult like the upper limit on interest rate you can charge and default procedures...

Vinayak


Vinayak,

I have been talking with a broker who seems very honest and been in the mobile home business for 20 years+. She said you need a dealer's license (the pain in the butt one) to sell them, but you can sell through a dealer and just get a financing license for $250.

Could I get in touch with your contact who says you only need a $140 license? I have called several state agencies about this and they all give me different answers. Nobody seems to know!

Thanks.

Hi Hal,

Here are the details.
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https://www.revisor.leg.state.mn.us/pubs/

The ones to look at are 327B and 327C. You can look at Chapter 82 for the limited brokers license.
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Let me know if this helps.

Vinayak

Hey Hal,

I know this is an old post but I'm in MN and after buying and selling 1 MH, I figured I better comply with everything if I'm going to make this into a business. I'm curious if you were able to find anything else out on how to make Lonnie deals work in MN? When you were saying sell through a dealer, do you mean they would baically just broker the sale for a commission, just like a realtor would do with regular houses?

Thanks ahead of time for any help you can give!

Hal, Vin, and Lance,

Im reading Lonnie's book as we speak, do you have any updates as far as licensing requirements go? I'm looking at a deal now, and dont want to get off on the wrong foot.

Also, I'm a licensed realtor, although I am a leasing manager for a commercial real estate developer in the cities, do I need to disclose this when working in mobile homes? It seems I wouldnt since its not considered real property and its all registered through the DMV.. any guidance on this??

A whole lot has changed since the original post. The first required license is an MLO. The second required license is for the company so that the MLO can be activated. Estimated first year cost of licensing: $4,000.00, and then there are the compliance issues like written policy and procedure manuals that you must actually follow and an understanding of state and federal compliance issues. Add to that the documents that must be a part of any closing package and a full understanding of what those documents must contain, when the borrower must get them, as well as those things a lender is required to check before making a loan.

Lending on real estate or a manufactured home that you did not actually live in before you sold and financed it has become very complicated, and the new federal agency, The Consumer Financial Protection Bureau intends to enforce both state and federal laws through a new joint agreement being signed with all the state attorney generals, and several other federal agencies.

As much as I dislike writing this because I know people won't like it, the reality is the internet is not the place to get information on lending law. I have been a lender since 1975 and I still use six different law firms to keep on top of legal and compliance issues. Now I will grant that I have a greater need, given our consultancy, but no one that wants to stay out of trouble can afford not to either hire a qualified consultant or a highly experienced attorney with plenty of background in lending law. The fiasco in Ohio where a number of people who post here wasted money on, is a prime example of not engaging truly qualified attorneys. These forums are great for many things related to Lonnie Deals, and once in a while real experts like John Hyre posts tax advice here, which is well worth paying attention to, but, to the best of my knowledge, very few true experts on lending even know this forum exists. I would not have known if John Hyre hadn't ask me to come and speak at a MOM event in Indiana which was followed by another MOM event hosted by Shawn in Rolla, MO. Get qualified expert help and stay out of trouble.

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