California mobile home dealers license?

[Chad Lunsford]

Hello BP community I am in search of some answers in regards to mobile home investing using John Fedros techniques in mobile home communities. After doing some quick research it appears I would need a dealers license to do even my first deal... I have a cousin who is a Real Estate Broker would I be able to work under his license as a partner in order to get around having to get a dealer license?

[John Fedro]

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