All Forum Posts by: Chris Thigpen

Well.....

I appreciate everyones input and knowledge, but I'm not really here to debate federal law. In my earlier post I simply asked if my home state of SC had any state specific exemptions in so far as the Safe Act was concerned...and it turns out they do.

I finally got an answer directly from the staff attorney at the SC Board of Financial Institutions... I explained in our conversation that I wanted to make absolutely sure that I was in compliance with the law as far as how South Carolina interprets and enforces it. He assured me that SC has a state specific exemption allowing for seller held financing without the mandatory use of an RMLO for up to 5 properties per calendar year.

Taken directly from the SC code of laws:

"Exempt person" means:

"a natural person who sells residential real estate and who lends or services, in one calendar year, no more than five purchase money notes secured by mortgages, deeds of trust, or other security instruments on the real estate sold as security for the purchase money obligation."

I also happen to think that even though it's just one individuals view on the subject, Attorney Bill Bronchik does a pretty decent job of seperating the signal from the noise as far as all the fear and "the sky is falling" over-reaction to the Safe Act and Dodd Frank in this video: https://www.youtube.com/watch?v=wBSdQRd_Pu8

Well.....

I appreciate everyones input and knowledge, but I'm not really here to debate federal law. In my original post I simply asked if my home state of SC had any state specific exemptions in so far as the Safe Act was concerned...and it turns out they do.

I finally got an answer directly from the staff attorney at the SC Board of Financial Institutions... I explained in our conversation that I wanted to make absolutely sure that I was in compliance with the law as far as how South Carolina interprets and enforces it. He assured me that SC has a state specific exemption allowing for seller held financing without the mandatory use of an RMLO for up to 5 properties per calendar year.

Taken directly from the SC code of laws:

 "Exempt person" means:

"a natural person who sells residential real estate and who lends or services, in one calendar year, no more than five purchase money notes secured by mortgages, deeds of trust, or other security instruments on the real estate sold as security for the purchase money obligation."

I also happen to think that even though it's just one individuals view on the subject,  Attorney Bill Bronchik does a pretty decent job of seperating the signal from the noise as far as all the fear and "the sky is falling" over-reaction to the Safe Act and Dodd Frank in this video:    https://www.youtube.com/watch?v=wBSdQRd_Pu8

Hey Ken Rishel, John Fedro, or Bill Gulley... I'm in South Carolina. Can someone please advise...? 

I know this whole subject of Dodd Frank and Safe Act compliance has been beaten to death here, but I couldn't find an answer in any of the numerous other posts I have read.

-I know there are LICENSING exemptions in my state... apparently I can sell 4 mobiles per year without needing a dealers license in SC.

-I also know there are certain exemptions to DODD FRANK pertaining to the number of allowed transactions during a moving 12 month window (or is it a calendar year?), depending on whether you are selling as an individual/estate/trust, or corporate entity...as long as you meet ALL the other criteria to be either exempt or in compliance.

-What I'd like to know is, are there any STATE SPECIFIC EXEMPTIONS to the SAFE ACT that allow an individual/estate/trust or corporate entity to seller finance a certain number (even if it's just one) of mobiles per year without having to use an RMLO?....and if so, where would I go and whom would I speak with to find out what those specific Safe Act exemptions are for my state?

Thank you gentlemen...

Thanks a lot for your reply Brian. 

For what its worth, I was a licensed mortgage broker in SC for a number of years and I agree that finding an originator that I could trust would be knowledgeable enough about state exemptions to the SAFE ACT (assuming there are any for SC) would be difficult.

My guess is that most licensed brokers/originators wont see enough value in originating seller financed transactions on mobile homes when considering the potential for risk and possible future liability if one of those closed loan files happens to be audited during their next state review, or an evicted buyer wants to litigate....I know I certainly wouldn't have when I was in the business.

For anyone that would care to comment, please correct me if I'm wrong on anything stated below (I will be the first to raise my hand and acknowledge it if I am):

-I know there are LICENSING exemptions in my state... apparently I can sell 4 mobiles per year without needing a dealers license in SC.

-I also know there are certain exemptions to DODD FRANK pertaining to the number of allowed transactions during a moving 12 month window (or is it a calendar year?), depending on whether you are selling as an individual, trust, or corporate entity...as long as you meet ALL the criteria/qualifications so as to be in compliance.

-What I'd like to know is, are there any STATE SPECIFIC EXEMPTIONS to the SAFE ACT that allow an individual, trust or corporate entity to seller finance a certain number (even if it's just one) of mobiles per year without having to use an RMLO?....and if so, where would I go to find out what those specific Safe Act exemptions are for my state?

I know this whole subject of Dodd Frank and Safe Act compliance has been beaten to death here, but I couldn't find an answer in any of the numerous other posts I have read.

Can someone please advise...?

Hi All,

Im an investor in South Carolina and I'm interested in determining my state's specific exemptions (if any) to the SAFE ACT.

I have tried googling every logical term I can think of (i.e. "safe act exemptions south carolina" etc...) with no particularly useful results. I have also spent considerable time researching various sites for an answer, including BP. I'm embarassed to say that I'm not even completely sure of which state office or agency here in SC would be responsible for enforcement.

I am keenly aware of all the controversy, misinterpretation, and lack of consensus when it comes to correctly interpreting the Safe Act, Dodd Frank, and state licensing laws as they pertain to the sale of mobile homes (or any homes) when offering seller financing.

Is there anyone here on the forums...maybe a fellow investor in South Carolina that could kindly advise me on where I can go to find out about any state specific exemptions to the SAFE ACT here in SC?

If not, maybe one of the more experienced members like John Fedro, Ken Rishel, Or Bill Gulley would be able to offer their advice?

Much appreciated!

Sounds great, Russ. Thanks for letting me know.

Just a quick note to any of you who inquired or sent messages about the CL posting methods that seem to be working for me so far, I will definitely respond as soon as I get a little time to lay out the details. Cheers...

Thanks a lot gentlemen. both very helpful...

Great stuff Scott...great stuff. Very inspiring...Congratulations.

Hi all. I'm hoping some of the more experienced members here could maybe make some suggestions or point me in the right direction. I'm looking to educate myself more thoroughly on how to analyze a potential long term buy/hold to determine if it makes sense as a good investment and I'd like to know what your favorite books, courses, BP posts etc... are for learning how to do this. 

I know a lot more than the average beginner, but still need to better understand how to calculate and consider things like cap rates, capital expenditures, vacancy rates etc... to make sure my opportunity and plan are viable. Is there a "best" book or comprehensive resource anyone cares to recommend that really covers this stuff in a easily digestible way?

To provide a little more information:

I have found a small and somewhat undervalued, undeveloped parcel of land in an area of my city that commands very high rents. I have negotiated the price down with the seller who is also willing to hold a private 24 month note for the purchase. I'm checking the existing survey and talking with my zoning dept. to see what my exact building options are.

I plan to possibly build at least one, or possibly 2 duplexes (maybe modular construction for time and cost savings) on this parcel. Each unit will be 1500-1800 sq. ft., 3 beds/2baths with open floor plans and nice fixtures and finishes. My wife and I will live in one side as a primary residence and rent + hold long term the other side as an investment for its cash flow and appreciation. The plan would be to sell the side we are living in after 24 months to avoid capital gains taxes...then rinse and repeat in a different high rent area.

Any advice from the many wise members here is greatly appreciated...

Thanks a lot!

Hey everyone. Thanks for all your comments. 

After starting this thread, reading everyones helpful advice, and suffering through a little more trial and error, I think I have finally solved (at least for now) the riddle of successful posting on Craigslist.

Since tweaking my methods and figuring out what I was doing wrong, all of my marketing ads are posting and "sticking" with no problems. I've even hired a virtual assistant and implemented a step by step method for her to handle all of my buyer and seller Craigslist marketing remotely from the Philippines... So far, so good.

Say what you want about Craigslist (I probably won't disagree with you...), but it does actually work for bringing prospects into your pipeline and, best of all its free.

I've been very happy with my results so far. I've had one lead that is closing this week for a large commission (Im a licensed agent) and two more very strong prospects in the pipeline that should easily close soon...and thats just been in the last 30 days from CL only. I know its not for everyone, and I definitely wouldn't recommend it as your sole source of marketing leads, but I'm getting a tremendous amount of traffic and daily inquiries from CL now and its actually been great.

If anyone else here is struggling with the same issues I was having and might be in need of some helpful pointers, feel free to send me a message. I am always happy to help fellow BP members if I can.

Cheers!