How do I find a mortgage loan originator?

Question

I am investing in mobile homes and I want to use the exit strategy and offer seller financing, but as we know the Dodd Frank law makes that difficult,

I want to find a mortgage loan originator to work with.

has anyone tried to find one and if so what's your suggestions.

Bryan Schmitt · Answer

@Ken Rishel, Sorry I had to make a second post, as the @ function is not available to first time posters. See above.

Bryan Schmitt · Answer

@Ken Rishel, I would also be interested in learning about this answer as it applies to Pennsylvania for small operators.  And by a small operator, I am referring to contemplating getting started and researching whether this could be a viable and legally acceptable strategy for an individual looking to do a few deals a year, but potentially exceeding the magic state set number for private sales.

Ken Rishel · Answer

Unfortunately, California is a particularly difficult state for other solutions. Email me with your projections on number of transactions and transaction volume and I will try to help you find a solution.

James Holmes · Answer

@Ken Rishel, thanks for the response! I plan on doing business primarily in California.

Ken Rishel · Answer

It varies from state to state. What state(s) are you planning on doing business in?

James Holmes · Answer

@Ken Rishel, what are those other solutions if you don’t mind me asking?

Ken Rishel · Answer

From your question it appears you have a great deal to learn before hiring a MLO. In Pennsylvania, you cannot just hire an MLO to handle origination unless you already have a state lending license and everything that goes with having that license.

FYI: The typical MLO will not be qualified to advise you on all you need to know. You either need a knowledgeable law firm or a specialty consultancy like Rishel Consulting Group to help you and that assumes you have enough loan volume to justify the expense of setting up a related or captive finance company. In your state that means about 60 loans or about a $1,500,000 in loan volume because of the higher regulatory costs.

There are other solutions for smaller operators.

JC K. · Answer

Following.

For now, I am asking an attorney to help me draft some language I can use for situations like this.