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Updated over 4 years ago on . Most recent reply
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Real Estate License VS Dealer License
Hi everyone! I'm at the very beginning of my journey of real estate investing. I have taken an interest in manufactured homes and am trying to learn about it. But I'm confused about something. I live in Illinois and I'm trying to understand the laws. If I wanted to wholesale or flip manufactured homes where the land is owned, I need my real estate license to do that because the home is considered real property. But I've read that if I am trying to wholesale manufactured homes where the land is rented, I need to get a dealer's license if do do more than 4 deals because the home is considered personal property. However, it seems like there's a lot of people out there doing this without a license. I would be very appreciative if someone could help me get a better understanding of what licenses I need.
Thanks!
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In NJ, Realtors can broker the sales of mobile homes. I haven’t done a transaction, yet. But in talking with co-workers and other agents, it’s sort of like any other real estate transaction except closing is at the DMV since Title to the property is transferred there since it’s still a vehicle.
Hope this helps.
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More states are bringing up the issue of wholesaling and whether it requires a license. My recommendation is if you want to be a real estate professional and see yourself in the industry long-term, get licensed. It can only help your RE career.
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@Algie Horton - I agree with @Chris Bounds, I always encourage people to get their real estate broker license. You get access to the MLS and you learn a ton about the transaction side of real estate.
I have never heard of a dealers license before.......can you explain exactly what that means?
- Jonathan Klemm
- jonathan@qualitybuilders.com
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Thanks for replying! Let me clarify. I've definitely decided to get my real estate license. I'm really more confused about a certain type of transaction with mobile homes. For example, a homeowner owns a mobile home in a mobile park but rents the lot the home sits on. Because the homeowner does not own the lot, apparently a real estate license does not apply because the home is considered personal property not real property. If I do more than four of these types of deals I'm told I need a dealer's license. Dealers licenses typically are needed for automobile sales, mobile home sales, and some other types of sales and services. It's as if the state treats these types of deals as of I am a mobile home dealer. Does anyone know anything about these types of deals and if a dealer's license is required?
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In NJ, Realtors can broker the sales of mobile homes. I haven’t done a transaction, yet. But in talking with co-workers and other agents, it’s sort of like any other real estate transaction except closing is at the DMV since Title to the property is transferred there since it’s still a vehicle.
Hope this helps.
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Hi Algie,
I'm not sure about a brokers license. But contact John Morey on FB. I think he can help you. IF you're going to wholesale single family homes, you might want to think about NOT getting a real estate license. The license will restrict you in a dramatic way. Plus, many brokers may not allow you to wholesale. Best of luck.
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@Algie Horton You may want to contact the local government entity in your area in charge of titling and re-titling manufactured homes. They may be able to help with your licensing questions. Also, talk to your local manufactured housing association and some mobile home dealerships in the area. They'll probably be able to give you some more information and point you in the right decision. If you haven't done a deal yet and are well within the law in regards to the licensing requirements, you may want to do a deal first before you get licensed to see if the business is right for you. Hope that helps!
In Illinois you need a "Dealer License" to buy and sell a certain quantity of "titled" personal property per year. It may be 4 I don't know. To find out about a Dealers License go to your local DMV office. They can give you the requirements. I do know that there are insurance and bonding requirements.