Can You Lend OPM In Florida Without a License?

[John Thedford]

Yes..and no. 
Per Statute 494 which governs mortgage lending, an exception is granted to those who lend THEIR OWN money. 
So--can you lend OPM and stay within the law?
My interpretation is YES--provided you lend the money, which you borrowed, secured by RE or even a promissory note.
Imagine borrowing money at 6% and lending at 18%. Can that be done? Absolutely. Even if you borrow the money from friends or family, and give them a promissory note, it is YOUR money to do with as you please. However, if you lend THEIR money, and ask for points or other fees and YOU are not the lender on the mortgage and note, you are mortgage brokering and a license is required. I see LOTS of investors lending money using their 401K or IRA to make great returns. Got an IRA or 401K that you want to diversify? Consider being a lender, or purchasing 1st lien mortgage notes for steady income. Due diligence required in either case. Write bad loans--get bad results.

THIS IS NOT LEGAL ADVICE--MY OPINION ONLY
CONSULT YOUR ATTORNEY

[John Thedford]

Originally posted by @Odie Ayaga:

Very interesting @John Thedford I wouldn't have thought that was the case. Thanks for the info!

 Get legal advice. I realize FL has carved out an exception for lending one's one money for their benefit. The statute also states that one should not be holding one's self out as a lending BUSINESS. I have talked to the state a few times, and have been led to believe that stating they are PRIVATE funds is ok. However, the reality exists that they could state this was not the case. My ads state PRIVATE funds.