They have an actual registered NASD and SEC Regulated Broker Dealer that provides them with funding for REO Purchasing & rehabs.

He was definitely not a wheeler dealer type.  

Rul, then it will be an installment sale(unless you are a dealer), not the lease option. 

they are still in business because of the car companies, that do in fact compete for every car they sell.the dealer is nothing but the middle man between you and the car company.

(You could say you are not a drug dealer when you sell drugs, but you are still a drug dealer.)The bulletin (last link) references two sets of laws and notes that the laws are intended to be changed in the future for clarity.

If you are considered a "dealer" you may very well have to report the entire gain.Steven Hamilton II is a great person to ask this.

Lending money is one of the oldest scams in the book, recent regulations have cleaned up much of that.Another alternative in lending with fewer issues would be commercial business lending, talk to some pawn brokers, rent-to-own stores locally owned and used car dealers, you can get high yields, secured with inventory, I'd say it's easier than RE lending, but you still have due diligence, lots of it. :)

He mentioned something about some foreign drug dealers were depositing cash by "mules" and were not traceable by government.

The areas I am in, it would red flag as a possible drug dealer.

Originally posted by @Matthew Irish-Jones:@Daria BIf the finished product looks good, they come in on time, and on budget...