It will also ensure you are compliant which is a solid part of integrity in this business.All the best and Merry Christmas.

Is the creator of the note compliant with Dodd Frank's SAFE act?

Legality - As wholesaling is legal "if you do it right" does anyone have insight on how to set up contracts to be compliant with real estate law in CA and MO Additionally for CA it seems as if their Law spells out the stipulations of being a real estate broker and limits "sales/exchanges/purchases etc. of property sales contracts" to 7 within a calendar year and anything over that requires a license.

So currently I am looking for someone who is experienced in wholesaling in these areas or anyone in general that may be able to offer advice on any of the following:Legality - As wholesaling is legal "if you do it right" does anyone have insight on how to set up contracts to be compliant with real estate law in CA and MO Additionally for CA it seems as if their Law spells out the stipulations of being a real estate broker and limits "sales/exchanges/purchases etc. of property sales contracts" to 7 within a calendar year and anything over that requires a license.

Doing seller financing at any reasonable scale will probably require you to get compliant with Dodd-Frank and its progeny. 

It must be setup in a certain way to be IRS compliant (not a DIY project).Self-directed IRA in itself is not a form of asset protection, it is a retirement savings vehicle allowing your to invest in alternative assets.If there is unrelated business income in an IRA - it would be subject to UBIT.

-MikeProperty 1: $650,000 | 10 Units | 8.2% CAP | 1Bed, 1Bath Gross Revenue Q3 2017MonthlyAnnualUnit 1$ 615Unit 2$ 630Unit 3$ 615Unit 4$ 745*New Tenant 08/10/2017Unit 5$ 615Unit 6$ 635Unit 7$ 665*New Tenant 08/10/2017Unit 8$ 570*Long Term TenantUnit 9$ 600Unit 10$ 635Annual$ 6,325.00Other IncomeLate Fees$ 58.33$ 700.00Laundry Revenue$ 150Total$ 6,533.33$ 78,400.00Vacancy0Expenses:Cleaning and Maintenance$ 150$ 1,800Insurance$ 442$ 5,305Legal$ 41.67$ 500Repairs$ 278$ 3,338Taxes$ 606$ 7,276Utilities$ 632$ 7,582Total Exp$ 2,150.12$ 25,801Income$ 4,383.22$ 52,598.58*Current Offering Price$681,8127.71%Units: 4,6,7,10 are on Current LeasesAll other units on Month-to-Month from previous leasesSingle Meter for Water/Gas, can be billed back to Tenant monthlyElectricity in Tenants NameProperty 2: 23 Units | $1,652,000 | 7.24% CAPUnit Mix:Proforma:Rate/MonthSF/Unit1 Bedrooms12$ 650.00$ 7,800.008002 Bedrooms11$ 800.00$ 8,800.001000$ 16,600.00Actual Gross Revenue Q4 2017:MonthlyAnnualUnit 1$ 750Unit 2$ 550Unit 3$ 550Unit 4$ 475Unit 5$ 505Unit 6$ 605Unit 7$ 585Unit 8$ 795Unit 9$ 595Unit 10$ 550Unit 11$ 600Unit 12$ 525Unit 13$ 570Unit 14$ 625Unit 15$ 570Unit 16$ 630Unit 17$ 555Unit 18$ 500Unit 19$ 525Unit 20$ 490Unit 21$ 600Unit 22$ 650Unit 23$ 675Monthly Total$ 13,475Other IncomeLate Fees$ 50.00$ 600.00$ 600.00Laundry Revenue$ 245$ 2,940$ 2,940.0010 Garages (Included in Rents)$ -$ -$ 4,200.00Total$ 13,770.00$ 165,240.00$ 206,940.00Vacancy: (100% Occupancy***)$ 688.50$ 8,262.00$ 10,347Total:$ 13,081.50$ 156,978.00$ 196,593.00*Assumed 5%Property Management: (Self***)$ 915.71$ 10,988.46$ 14,485.80Total:$ 12,165.80$ 145,989.54$ 182,107.20*Assumed 7%Expenses:Cleaning and Maintenance$ 291.67$ 3,500Full Coverage Insurance$ 710.42$ 8,525Legal$ 50$ 600Repairs$ 279$ 3,350Taxes$ 1,392$ 16,707Utilities$ 1,082$ 12,988Total Expenses$ 3,805.84$ 45,670Analysis NOI:$ 8,359.96$ 100,319.46$ 136,437.12Asking Price/ Cap Rate$1,652,0006.1%8.3%Current NOI/CAP-Actual Operating:$ 9,964.16$ 119,569.927.24%Owner Improvements & Costs:All New Windows$ 40,000New Hail Resistant Roof & Gutters$ 40,000New Garage Doors$ 10,000New Carpet in Common Areas$ 8,000New Circulating Pump/Hot Water$ 2,000Unit Upgrades/Appliances$ 20,000$ 120,000Kitchen & Bathroom Reno:Unit Cost $3,000; Resulted in $150 - $200/Unit Rent IncreaseOwner creating a waiting list for unit reno's from tenant demandUnit Rental Rate Inflations:Rent Increase Notices given every year, Tenants aware & compliant

You should site them on breaking lease guidelines and force them to become compliant with your lease guidelines, IE. getting rid of all animals but 1 dog.Sounds like there is already damage to the unit so you can site them on that as well.

(Just kidding... don't do that).But if there is no sourcing or seasoning of the down payment required, then it might be best to keep your friend off the radar while still being legally compliant.

I would give them written notice with 7 days to be compliant.