California mobile home dealers license?
Dinuba, CA · Member since 2018 · 5 posts · 2 votes
Hi Chad,
Great job being proactive and wanting to help local mobile home buyers and sellers. You are certainly in a good area of your state for this type of investing, away from the coast and fairly close to the interstate.
First things first, what a great website this is that you can ask a question and receive a bunch of great advice in such a short period of time.
Remarks that folks made above were mainly correct. The state of California does want a person to have a mobile home dealers or retailers license if you plan on purchasing and reselling mobile homes inside parks. If you will be acting as a real estate agent or broker in order to help facilitate a transaction between a mobile home buyer and seller then you should be licensed as a real estate agent or mobile home dealer.
I think it’s important to also mention that there are certainly investors and mom-and-pop type folks buying and reselling mobile homes without the proper licenses all around the state and country. In no way am I saying that this is the correct thing to do, however I did want to mention it because it is reality and important to understand. Some of these investors do not have the proper licensing, the proper paperwork, proper procedures, and maybe not even the proper ethics. Some folks are not licensed due to ignorance, some are just lazy, and some have just chosen to avoid following the law on purpose. However, until someone reports each and every individual there will always be more unlicensed people investing in mobile homes, cars, and likely other types of properties. Two reasons for some people not choosing to be licensed may be because there is no one actively checking on why you are buying or selling any specific mobile home that you are dealing with. Additionally, most mobile home park managers and owners will not require or ask you if you are licensed within the state, however some will.
I hope this all helps and makes sense. Again, getting a license is the right thing to do, especially if you will be in this business for any length of time. As I’m sure you know the list of requirements for licensing can be found on the HCD website.
All the best. If you have any follow-up questions never hesitate to reach out anytime. We’ll all be happy to help.
Talk soon, John
No. If the DRE found out there would be a sanction against your cousin's license.
Why not consider obtaining your real estate license.
@Chad Lunsford If you are buying and selling mobile homes, then yes you may need a dealers license. If you are renting them out, you would not need them. The entity that licenses real estate licensees is separate from the one that licenses manufactured housing dealers. You'll have to find the entity in charge in your area and inquire into the process of getting your dealers license. Also, you may want to check with your local manufacturing housing association. They are a good resource in this niche and may be able to offer assistance as well. Good luck!
Hello @Chad Lunsford - Are you looking to buy mobile homes in parks or on land? I would highly recommend reaching out to the California Housing Department to find out the state laws - some states allow 1 or 2 deals before a license is required. I learned mobile home investing from John, and it seems like most of the California investors in the group have a license. Maybe try reaching out to a local mobile home investor for their input? Also, it would be a good opportunity to see if mobile home investing is your cup of tea.
Hi Chad,
Great job being proactive and wanting to help local mobile home buyers and sellers. You are certainly in a good area of your state for this type of investing, away from the coast and fairly close to the interstate.
First things first, what a great website this is that you can ask a question and receive a bunch of great advice in such a short period of time.
Remarks that folks made above were mainly correct. The state of California does want a person to have a mobile home dealers or retailers license if you plan on purchasing and reselling mobile homes inside parks. If you will be acting as a real estate agent or broker in order to help facilitate a transaction between a mobile home buyer and seller then you should be licensed as a real estate agent or mobile home dealer.
I think it’s important to also mention that there are certainly investors and mom-and-pop type folks buying and reselling mobile homes without the proper licenses all around the state and country. In no way am I saying that this is the correct thing to do, however I did want to mention it because it is reality and important to understand. Some of these investors do not have the proper licensing, the proper paperwork, proper procedures, and maybe not even the proper ethics. Some folks are not licensed due to ignorance, some are just lazy, and some have just chosen to avoid following the law on purpose. However, until someone reports each and every individual there will always be more unlicensed people investing in mobile homes, cars, and likely other types of properties. Two reasons for some people not choosing to be licensed may be because there is no one actively checking on why you are buying or selling any specific mobile home that you are dealing with. Additionally, most mobile home park managers and owners will not require or ask you if you are licensed within the state, however some will.
I hope this all helps and makes sense. Again, getting a license is the right thing to do, especially if you will be in this business for any length of time. As I’m sure you know the list of requirements for licensing can be found on the HCD website.
All the best. If you have any follow-up questions never hesitate to reach out anytime. We’ll all be happy to help.
Talk soon, John
In California, a licensed sales person may not sell new mobile homes. But s/he may sell used mobile homes, if they have been registered with the State of California and are on a lot or in a mobile home park. S/he would have to become licensed by the California Department of Housing and Community Development to sell "new" mobile homes. I find this formation from a sales person license exam material. So it must be correct. This is not a legal advice. You may need to verify this.
@Chad Lunsford and @Seong Lee .... Yes, that is probably true. Arizona has multiple different licenses (New Homes, used homes, installing, moving, brokers, and etc.) and each license has a different set of requirements. They also have one license that covers all manufactured housing.
@Chad Lunsford be advised this is a broad overview on this topic however after the Dodd-Frank and Safe Act of the early 2000's a lot of things changed. for example many states now have a Manufactured housing division that is in place to prevent the low income consumer and much of the practices of the older days are now illegal such as Lonnie Deals for example. Lots of new regulations so i would look up California mobile home division and see what hoops you have to jump thru to get in the game. I have a feeling it will be so many that it wont be worth it but thats up to you.
According to the CA HCD site, a sellers license is required. The applicant must take a 6 hour preliminary course and receive a Certification of Completion for it. The certificate must be presented to HCD when taking the exam. The exam is 50 multiple choice questions and at least 70% of the answer correct to pass. There are exceptions, go to the HCD CA GOV site, select Manufactured & MobileHomes to get more details. Download this PDF to get the details.
@Mike G. I've yet to have anybody within the mobile home spaces tell me directly or verify that the DODD FRANK rules apply to mobile homes because the "Lonnie Deals" are not MORTGAGE NOTES. Mobile Homes are personal property transactions and those putting together MH notes are NOT mortgage originators, as outlined and identified within DODD FRANK.
I am a real estate Broker and don't deal with DODD FRANK daily like a lender might, but I personally think MH SHOULD NOT fall under the DF guidelines.
If I'm wrong, then OH BOY are there a lot of investors out there in violation of this strategy of creating notes and I also guarantee most are not licensed either, so DOUBLE JEOPARDY!.
But with all that said, I don't believe there is anybody really policing this activity and I also think predatory lending laws under DODD FRANK have bigger issues to deal with than the small MH deals going on.
Just my opinion.
@Chad Lunsford I know this is an old post, but I've been MIA for a few years from BP and I'm interested in the MH asset class, so came across your post.
I am a licensed Broker in CA and legally I can sell a manufactured home IF it's fixed to a foundation because it becomes REAL PROPERTY at that point. I CAN NOT legally sell a MH if it's in a park or not attached to real land. Thus I would need to get the MH dealers license or retailers license for CA.
Some states don't have LIMITS on how many MHs you can sell in a 12 month period, but most do.
CA apparently says you can't sell any (It's BS in my opinion) and as indicated in an earlier reply, I am not aware of anybody policing this activity, but being above board would be the right thing to do if this is a business you want to get into. Also, for those operating without a license (and that's the majority I'm sure), if it's every CRACKED DOWN, then the competition goes away for those who are licensed.
Until the powers that be start policing this activity, there are more NOT LICENSED people doing Lonnie Deals in multiple states and it's been going on since the 70's.
@Jeff Petsche I am interested in learning more about Mobile home investing in SO CAL ... anyone you can refer me to?
Hi chad or any body who can help me did u ever get your Lic. to sell MH in California I need to get mind. The dealer Lic says I need to be a sale man for two years just trying to get clearly
CA salesman license is all needed to sell or purchase mfg homes. The E&O insurance should cover mfg homes...
Hi, Sam. I know this was posted over a year ago, but I've been trying to find the answer for a while.. Is there a straightforward way about obtaining your salesman license? When I try to research it, all I find is info about dealer's licenses and/or real estate licenses.
Hi Chad,
Great job being proactive and wanting to help local mobile home buyers and sellers. You are certainly in a good area of your state for this type of investing, away from the coast and fairly close to the interstate.
First things first, what a great website this is that you can ask a question and receive a bunch of great advice in such a short period of time.
Remarks that folks made above were mainly correct. The state of California does want a person to have a mobile home dealers or retailers license if you plan on purchasing and reselling mobile homes inside parks. If you will be acting as a real estate agent or broker in order to help facilitate a transaction between a mobile home buyer and seller then you should be licensed as a real estate agent or mobile home dealer.
I think it’s important to also mention that there are certainly investors and mom-and-pop type folks buying and reselling mobile homes without the proper licenses all around the state and country. In no way am I saying that this is the correct thing to do, however I did want to mention it because it is reality and important to understand. Some of these investors do not have the proper licensing, the proper paperwork, proper procedures, and maybe not even the proper ethics. Some folks are not licensed due to ignorance, some are just lazy, and some have just chosen to avoid following the law on purpose. However, until someone reports each and every individual there will always be more unlicensed people investing in mobile homes, cars, and likely other types of properties. Two reasons for some people not choosing to be licensed may be because there is no one actively checking on why you are buying or selling any specific mobile home that you are dealing with. Additionally, most mobile home park managers and owners will not require or ask you if you are licensed within the state, however some will.
I hope this all helps and makes sense. Again, getting a license is the right thing to do, especially if you will be in this business for any length of time. As I’m sure you know the list of requirements for licensing can be found on the HCD website.
All the best. If you have any follow-up questions never hesitate to reach out anytime. We’ll all be happy to help.
Talk soon, John
Hi, John! This was super helpful. Quick question - Is a retailer's license the same as a salesman's license? Meaning that we would have to work under a dealer? Sorry for the newb question 😂
Hi Joshua Hodges,
Thanks for reaching out and connecting. No apologies ever needed. Questions are great. Keep them coming. It looks like you are in California. In California they DO use the term salesperson to describe a person that works under a dealer and buys and sells mobile homes. California does NOT use the term retailer, however retailer is more similar to a dealer. Some states will use different names to describe dealers, retailers, installers, salespeople, distributor, manufacturer… Even though they may be used interchangeably from state to state. I hope this helps some. If you have any follow-up questions never hesitate to reach out.
Talk soon, John
Hey All - if you wanted to sell a mobile home most efficiently and for most possible return - would you choose a salesperson (operating under a dealer) or would you go with a regular realtor? :) I am in CA.
Thank you for any assistance.