High License Costs

High License Costs

Member since 2010 · 4 posts · 0 votes

I'm like many here, just getting started, and doing as much homework as possible.

I live in Las Vegas, and Nevada has its own MH division. Any dealer has to be licensed through them, and additionally through the county (for unincorporated areas-most of greater LV) and the three local townships (City of LV, City of North LV, and Henderson) if you do any business there.

My problem is that (SAFE act aside) to be licensed, the state requires $2200, plus $50 for the education/exam costs, and $50 for the 'background check.' (I'm a cop and have been background-checked to death. No, no waivers)

The county and cities mentioned require about $200 each, and then there are the costs to incorporate or form an LLC. Add some inspection fees, permit costs, (permit required to remodel a mobile- $200) I figure the total just to get started in the traditional Lonnie deals will be upwards of $5000. Renewals are required every two years and run about half the initial cost, plus eight hours continuing education. So subtract $1300 or so annually just for compliance/license costs.

Nevada doesn't make any distinctions about the number of transactions to be considered a dealer, and their title transfer forms specifically require the dealer's license number. Additionally, any one who leases or rents a MH to someone else is legally considered a dealer.

Is Nevada just a bad state for Lonnie deals? There are so many parks and so many promising homes for sale, and I've only been looking for a week or so... If anyone is operating in NV, or can see a legal or permissible way to get started, I'm all ears. Thank You!

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  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y

    With your background, you should be able to apply state law. But I find it hard to believe that if granny moves out of her MH and rents it to go live with her kids that she has to be a MH dealer. Might check that again.

    Most of our laws today are economic laws disguised as health and welfare, consumer protection, etc. Many laws are barriers to enter a business and costs to remain in that business, it keeps the big boys from having competition by little guys in many different ways. In Missouri, we have a law that limits the state or any municipality in charging for fees or services to the extent of actual cost to provide such. Probably the most abused and broken law in the state!

    You might consider buying the MH with your buyer. You find a deal, then find your buyer, then both of you buy from the dealer/seller and your buyer can buy you out of the owner occupied deal. When you are paid off, you sign the title over. It's owner occupied, no SAFE Act!
    Later, Bill

  • Member since 2010 · 4 posts · 0 votes
    16y

    I guess by 'apply' you mean I should be able to interpret how it fits what I'm talking about? Yeah, I can, and that's the problem...

    However, buying with the buyer like you said might do it.

    And you're also right about granny; selling hers doesn't make her a dealer. Primary residence selling is excluded. It says anyone in the business of selling or renting, (full or part-time) is a dealer. Even an owner of one rental MH is a dealer, while a SFH landlord can have 3 properties rented with no license at all.

    I think we must be one of those states where tenants/MH dwellers were getting burned somehow and a lawmaker (like you mentioned) made it their pet project to "protect" them in particular. By doing so they've taken away a major opportunity for them to get financed through private investors.

    Not giving up yet! Just have to figure out how many deals it takes to recoup license costs. That will have to be my goal figure.

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