Your state, like mine, allows up to five sales per year to be exempt from the South Carolina Mortgage Lending Act but it sounds like your plan is to ensure compliance and become a registered lending institution.

I live in Massachusetts, and would like to know if anyone has any referrals for an online class that they had success with.

Yes, loans for under $50k are hard to come by from institutional lenders.

I am not sure who you worked with here but, I can tell you that the biggest problem is the Gary stigma and there are no institutional note buyers that will buy in that area right now.

FDIC usually takes assets over and sells them to other institutions.

And then some of the odd actions taken, which appear as smoke screens, like the fed's instituting a new way to calculate CPI that does not factor in 1/2 of the true mass market factors, so to appear that there is little to no inflation.

Around here in MA, the lender sets the price and always have a rep at the auctions who bids that amount.

I'm of no use to you because I'm in MA and NH, not NC.Having said all of that, if you had the property under contract before you called the lender, you wouldn't have that problem, unless they dragged their feet so long that you were out of contract.So aside from J Scott's suggestion of finding partners, which is a good one, here is what I suggest.Ask all the real estate investors you know locally who they use.

Some investor or broker who has done maybe 300 deals has not done enough business to experience enough defaults and funding problems yet...you never know when you'll get squeezed for money.Best way is to line up with a bank or another institutional lender for a line of credit.

As for the question about funding notes at closing, there may be some private folks out there that may still practicipate in this but, no institutions that I am aware of any more.