getting into transactional lending

[Brian Schilling]

Hello all!!

First of all, new member here.....so bear with me if my question has been answered elsewhere. I have yet to fully digest the wealth of information here! :)

I am interested in providing transactional funding to flippers and investors, following these terms (this is NOT a solicitation by any means - just putting this out there to help get the right answer):

- 72 hours max

- 1.75% - 3% points against purchase price

- $299 processing fee

- 18% interest charged if not paid back on time

- Copies of A-B and B-C contracts

- Approval letter from C's bank

In California, would I need NMLS or Finance license to set up this kind of business? I already have my LLC set up under Zero BS Group, LLC. I have not done anything more than personal loans and seller carries in the past. What would you all recommend? I have city and county business licenses already.

Thanks in advance! :)

[Jay Hinrichs]

@Kevin Schulte  not that difficult in CA no attorney needed.. If you put a debt instrument on a piece of real property you need to be licensed.. unless you are doing it as a retirement hobby there is usually some exclusion for a few a year.

If this person wants to go into the business of doing financing then that requires licensure.

although most transactional that happen same day not sure those need licensing since your not loaning money just moving money into an escrow and out. .but it oculd be in Ca.