Posted by Jon Richards on December 08, 2000 at 13:56:59:
Elizabeth, The laws differ in each state, so you need to do some research. Most institutional note buyers will buy from you even if you don’t have a license. Typical of a new industry the law is not clear about licensing. For a more extended discussion by Attorney John Beck, who says you don’t need a license visit: http://www.noteworthyusa.com/beck.html.
This issue usually is that the state agencies want to protect the private party consumer, not big note buying companies. To protect yourself never sell a note to a private party (even your mother!) and your chances of running afoul of the law are greatly reduced. When you are licensed, you can begin to develop a pool of private investors.
The good news is that the institutional note buyers will probably give you a better price than a private party, including your mother, anyway. Request broker packages from some of the institutions to learn their policies. They are listed on our site, under “other sites” at www.noteworthyusa.com
Jon Richards
Publisher, NoteWorthy Newsletter
415 824 1864