Tennessee Mortgage License for Buying Notes?

Question

According to Tennessee law, anyone in Tennessee who makes mortgages has to be licensed unless that person is making a mortgage on a house they own or making a mortgage to a family member. The license is $1,129 and you have to have at least 1 year experience in the industry. I do not see any exemptions for people wanting to do, say, one or two hard money loans per year from their IRA. No exemptions for business mortgages. I checked with the attorney for the TN Department of Financial Institutions and she confirmed it. So I see no way to loan money as an investment in TN without a license. If you know a way, please let me know.

My question is does a person have to have a license to buy an already existing note in TN?

Maybe @Victor Jernigan has some information on this situation? I ask because I have IRA money that I'd love to lend, but I do not have the minimum 1-year experience nor do I want to pay the $1,129 for the license. What are my options?

My question is does a person have to have a license to buy an already existing note in TN?

Maybe @Victor Jernigan has some information on this situation? I ask because I have IRA money that I'd love to lend, but I do not have the minimum 1-year experience nor do I want to pay the $1,129 for the license. What are my options?

Chris Eaker · Answer

@Mark Pierce

No, I haven't really pursued it further. I think maybe the only way to do it legally is to purchase an already existing note. Or be a partner on a deal instead of a lender.

Mark Pierce · Answer

@Chris Eaker. Any luck with this? What did you find out?

John Britt · Answer

@Chris Eaker

I just walked into an attorney's office yesterday that created a note for a closing here in Chattanooga.  I know that people do lend money from there IRA often here.  If you contact me I will give you the names of a couple of good attorney's or title companies that I am sure will take the time to explain how they do it.