, hold meetings and do any other number of things to stay compliant.

Note too that any modification that would be done, the note will have the due on sale clause, so how you draft an option will need to be compliant in the lender's eyes, short term but renewable to make it work.

Michael, how someone else puts themselves in a NP affiliation can be tricky and many are really not that compliant, but go, for the most part, unknown.

While you could make payments to the LLC and be compliant with accounting and tax issues, it just seems simpler if the trust were to act as the owner, receive payments and pass them on and act in any other matters.I'd guess to that the trust will need to act in zoning and building permits required, again with the trustee acting one behalf of the trust.I'd rather see the trust as the member of the LLC and the LLC be the owner......whatever.....LOLMaybe one of our legal minds (attorneys) can chime in.....?????

Also, if you plan to finance non-owner occupied residential properties or lease/options, you need to be compliant with the SAFE Act and state law.

Yes, that's wrong, but the bank is the real issue - they had a loan officer, underwriter & loan processor at a minimum who were on the payroll getting paid to make sure these loans were compliant.

Is the appraisal good, there is a difference between an appraisal being compliant with acceptable methods of analysis and being a good picture of the collateral valuation.

That would mean two closings so make sure it's worth doing, otherwise just sell the option and take your assignment fee.Options are specifically addressed in the SAFE Act, better check with your state, as anyone who has been doing them for 50 years may still not be compliant, nor really know what issues arise, or care if they are selling a book.:) Good luck...

Are you confident that the firm will structure the offering properly to be both legally compliant and marketable?

Four state associations are seriously considering forming captive finance companies for their smaller members to offset the cost of getting legal and compliant when seller financing homes.You might want to talk to the association in your state to see if they are considering this, or in the process of setting it up.