How many Owner Carrybacks can you do?

Question

I think I read somewhere that there is a limit on how many real estate owner finance deals/seller carrybacks (you holding the promissory note) you're allowed to handle without being a bank or financial organization.  Is this true? If so, what's the limit and where do I find that info?

Brian Gibbons · Answer

@Jerome Hanson

There is no limit on buying on terms (creating notes or land contracts) if you are not OO ie Owner Occupying.

Selling on terms to owner occupants involves Dodd Frank.

Selling on terms to landlords - investors does not involve Dodd Frank.

See Dodd Frank summary here

https://www.biggerpockets.com/blogs/3/39942-dodd-f...@Dave Van Horn is a great note guy and has a recent BP article about REOs and notes

https://www.biggerpockets.com/renewsblog/sell-prop...

Anthony Gayden · Answer

@Jerome Hanson

I'm a little confused by your question. Are you asking how many houses you can buy via owner financing, or how many houses can you sell via owner financing?

http://www.realtor.org/topics/seller-financing/the...

The above link has a lot of useful information which may help answer your question.

Kevin Moen · Answer

I second the info provided above my post. I also know if you hire a licensed MLO to underwrite the borrower there is no limitation on the amount of properties you can seller finance within a rolling 12 months, and still be Dodd Frank compliant. Trump is also talking about doing away with Dodd Frank... He does a lot of talking in general though.

Nathan Turner · Answer

Currently the rules are very limiting when selling with terms. However, have a look at an article from Jeff Watson who is part of a coalition to help broaden the number of deals you can do. http://watsoninvested.com/baseball-apple-pie-seller-finance/

Dave Van Horn · Answer

Thanks for the plug @Brian Gibbons!

@Jerome Hanson   I concur with Brian. I also want to add that the  number depends on the state you're located in.  There are a lot of states  where you can do up to 3 to 5 mortgages without being licensed, but keep  in mind the loans should be underwritten properly.

I would recommend checking out ACA International. I believe if you're a member they'll tell you the requirements in every state.

Best,

Dave

Jerome Hanson · Answer

Just out of curiousity I'm gonna look to see if there are any stipulations on how many you can buy via owner financing too.

Jerome Hanson · Answer

@Anthony Gayden yeah I was specifically referring to selling via owner financing. The answer seems to be in the resource you posted though.  Thanks.

How many Owner Carrybacks can you do?

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