Hello, I am in the same boat as Chancard. I am recently married, we are in our early 30’s and both professionals with good income. I have been wanting to do “LD’s” and RE Investing for years, but am only now in a situation where it is feasible for me to do so.
Of course, now I am entering the game right on the heels of SAFE and Dodd-Frank, and it appears the rules have completely changed in regards to owner financing (and no-one seems to know what the rules really are…)
I live in the Land of Enchantment (Entrapment as it is called locally) and cannot find any information from SAFE or Dodd-Frank that has been boiled down to the state level. I have read extensively about these acts up to July 2011, but any info beyond that seems to have fallen into a black hole. I read HUD’s interpretation of these acts, and they do include MH’s and owner financing as being under the umbrella of “Mortgage Loans”. Some sources say you can do 3-5 deals a year without being a MLO, but again, no confirmation from the state level.
Probably the best information I have come across is from a local Note Buyer who studied the act and blogged on its contents and effects:
From what I can tell, Main Street Ma and Pa are being regulated (punished) for the result of the government’s creation of the housing bubble and Wall Street’s rampant greed thereof.
I prognosticate that this is going to lead to a black market in the cheap used mobile home business and other areas. The SAFE/Dodd acts basically forces owner financers’ to do the same paperwork and qualification process that bank/mortgage originators need to comply with (in the face of 25k fines per deal). Is a buyer of a 5-10k mobile home really going to choose to go through the intensive screening required of a regular mortgage? I recently got my first mortgage and my rear still hurts…
Please keep in mind that this post is “My Opinion”, and is based on what I “think” to be true based on the reading/research I have done.
I see the great potential of owner financing especially in today’s tight credit markets. The SAFE/Dodd acts seem to completely choke off our only real alternative to institutional credit.
Well, next time someone wants to borrow 20 bucks I can say it is not worth it. Becoming a MLO and complying with the regulations are just too stringent.
Ok, so it appears the game has changed. How do we play now?