Subject To/Seller Financing and the SAFE Act & Dodd Frank

[Brian Huber]

Hi, I'm planning on launching a direct mail campaign and hopefully there will be leads in which I can use Subject To and Seller Financing to solve problems and get some cash flow.

My concern is what the limitations are to these transactions as they relate to this legislation. I've been checking other threads and it seems to become very convoluted very quickly!

Can someone share what are the biggest things to watch out for in the interest of compliance? Is it the number of these transactions per year?  Full disclosure to the seller? I was not planning on getting my RE license.

Any assistance with this would be greatly appreciated.  Thanks!

[Brian Gibbons]

Hi @Brian Huber 

Dodd Frank when you are BUYING does not apply so you can do as many acquisitions on seller financing as you want.

If you buy - control with sub2, wraps, or lease option assign, then rent out you are ok.

If you sell on terms, then look at a straight lease and a straight option.

If you have a RMLO look at every seller financing buyer as to the Ability to Repay Rule, you will be well protected from the concerns of Dodd Frank.

See this post for a Dodd Frank Summary

http://www.biggerpockets.com/blogs/3/blog_posts/39...