Posted by David Butler on August 23, 2003 at 14:48:43:
Good news, and interesting that you found some state officials that gave the correct answer - but actually, that’s the case in all states one way or another, depending on which definition you are using for the term “brokering”; and in some cases, what kind of notes you are dealing with.
Ordinarily, the term “brokering” is applied to “one acting on behalf of others”… but in the private cash flow industry, the term has traditionally meant “one in business of negotiating purchases or sales for himself” (a valid definition of “broker” as also found in Black’s Law Dictionary).
These two issues (acting for another; certain types of notes), are the basis of what regulations do exist in the handful of states that do have some type of regulation(s) pertaining to the buying and/or selling of private notes. The nice thing is, even these have loads of exceptions to the regulations - which allows us a great deal of freedom to enjoy a fun and profitable business opportunity!
The main thing is, simply conduct your business with integrity, and fair dealing - along with an understanding of your role, and what activities you perform in a given transaction, and you’ll be in good shape. And best wishes for your success!
David P. Butler