Seller Financing your flips in Virginia-licensing requirements?

[Patrick Sears]

Hello,

When offering to seller finance your own fix and flips to the public, everyone talks about Dodd-Frank and the need to use a licensed MLO to stay compliant. I started looking into how to become an MLO myself in Virginia. Upon reading all of the definitions and licensing requirements, it sounds as if I would actually be a "lender" and need a lender license, not a MLO license. Or maybe I would need both? An "originator" discusses terms and verifies borrower ability to repay, etc.. but the law says nothing about them actually funding the deal. That's what a lender does. When you seek out a MLO to do the loan origination for your seller financing, they are doing what the law says they should do-discuss terms and verify ability to repay. YOU however, are offering the financing-not them. You are operating as a lender and therefore should be licensed, right?

Does anyone know exactly what it takes to become a seller financier as a business for your own flips while staying legal? Especially in Virginia?

Thanks!