My attorney says I can only do 3 "Rent to Own" per year. I was seeing what others knew about this or could verify specifics? I was hoping to build an entire business around this model, so I'm disappointed if true. Here's what he said:
"It's the federal Dodd Frank act. Here is a synopsis:
However, land contract sellers may be exempt from these rules if certain criteria are met. First, there is a “one property” exception that applies if the seller only finances one property in a year, is a natural person, an estate or a trust and meets certain other requirements. Balloon payments are allowed, with certain limitations. Importantly, under this exception, the seller does not have to determine and document the borrower’s reasonable ability to repay the loan.
There is a second available exception if the seller provided financing for the sale of no more than three properties in a 12-month period, is a natural person, an estate, a trust or an entity, and meets other requirements. In addition, the loan must be fully paid off after a fixed time period (with no balloon payments). Unlike the “one property” exception, here the seller must make a good faith determination that the borrower has a reasonable ability to repay the loan."
