Posted by Tony-VA on July 17, 2002 at 07:21:05:
Being that you reside in Florida, it would be an injustice not to get Ernest’s material. He has developed a system tailored to the Florida repossession laws in particular and nicely enough, saves you money on the taxes. What’s not to like? Better control, faster eviction and less taxes!
As for financing, I think you may be applying 3rd party financing guidelines. I find it hard to believe that an Owner must be licensed to Owner Finance the sale of his property. As a Real Estate Broker, you must be dealing with some Owner Finance type deals. Do you run out and get each of these owner’s licensed as a bank? Of course not. Now if they were lending money on someone else’s property, I could see some regulatory agency peaking in, though I still believe hard money lending is done without it.
Steve, as an Investor you will be the Principle in the transaction, not the Agent. Thus the Owner Financing vs. 3rd party lending.
You may very well still need a dealer’s license, though I am not familiar with Florida law. In some states, I am told their Real Estate License covers mobile homes as well but this may not be the case in FL.
If owner financing remains a concern for you, then you will like Ernest’s Lease/Option approach all the more. It will remove the appearance of lending and as stated, provide easier eviction and better tax treatment.