Whole Selling Mobile Homes in the Wisconsin and Illinois Area.

4 Replies

Hello, Bigger Pockets community. The reason for my post today is to try and find a member who has experience in wholesaling MH’s in Wisconsin and/or Illinois. My partner and I will be traveling throughout the area in the upcoming months. We have had some success in Arizona, closing on three mobile home deals, but are looking to branch out into other states where the mobile home market may hold further opportunities. If anyone is knowledgeable on this subject or has invested in those areas, I would love to connect and talk about our experiences in both of our markets.

Thank you in advance to anyone who is willing to help!

PLEASE Read the Laws in each state, Wholesaling is Illegal in Illinois unless you are licensed in that state, and technically it is in Wisconsin as well, Mobiles in WI have there own set of rules regarding resale, much will depend if you are selling it as real estate (assigning a contract for real estate) or chattel (personal property) Mobile homes are registered with the department of motor vehicles in WI and there are limitations as to how many you can sell same with Real Estate, 5 in 1 year or 10 in 5 years after that you need a license.

Both Illinois and Wisconsin have complex laws dealing with this issue, and both have excellent state manufactured housing trade organizations. Frank Bowman, the Executive Director in Illinois is one of the best and most knowledgeable executives in the nation. You might consider reaching out to them and seeing what membership could offer you which I believe would be considerable. (In full disclosure, I have been elected to both the Board of IMHA three times and have also been elected as Chairman of the Board in the past. My companies were members of both associations. As I am retired, all of that is past, but both associations provide valuable services to people and organizations.)

Far too many operators have paid a price for not knowing the laws, the rules, and the landscape in both Illinois and Wisconsin. The history of the industry is littered with both very large and small operators who have disappeared because they were ignorant of what they were getting into.

WISCONSIN HOUSING ALLIANCE
258 Corporate Drive, Suite 200C
Madison, WI 53714

Illinois Manufactured Housing Association
P.O. Box 2008
Springfield, IL 62705

@Chase Gabriel If you buy and sell mobile homes regularly, then "yes" you will need to get a license. As @Scott Schultz and @Ken Rishel mentioned, check the laws in each state and area you intend to buy and sell. Usually, it's just a matter of paperwork and reporting your sales activity. So make sure you know the laws and have your paperwork in order. Hope that helps! 

Originally posted by @Rachel H. :

@Chase Gabriel If you buy and sell mobile homes regularly, then "yes" you will need to get a license. As @Scott Schultz and @Ken Rishel mentioned, check the laws in each state and area you intend to buy and sell. Usually, it's just a matter of paperwork and reporting your sales activity. So make sure you know the laws and have your paperwork in order. Hope that helps! 

Unfortunately in Illinois it is much more complex than just paperwork. Dealers of both new and used homes must have a physical location with regular hours and manned phones during business hours. Non community owners need a different (and stricter) license than community based retailing. Illinois laws regarding retailing just changed after years of negotiation between IMHA and the Illinois Secretary of State so old rules no longer apply. Street dealers and community based retailers ended up with considerable relief, but for those who used to sell a few homes to consumers must have a manned physical location with regular hours. There are also complex rules regarding titling and sales tax. 

Again, I suggest contacting the associations and joining for help. It will be a whole lot cheaper than hiring a qualified law firm for guidance.