With that, we became the American Association of Private Lenders—and we began spreading the word.Finally, Some DefinitionsUnderpinning the concept of minimizing the use of “hard money” in our industry is a recurring theme of standardization—that the root of the issue is too many interpretations of what the same terms mean.We offer up the following definitions for discussion, debate, fine-tuning, and eventual consensus [last updated 5/9/2022]:Private lender: Any non-depository individual or entity that primarily originates business-purpose loans secured by hard assets, generally real estate.Hard money lender: A subset of private lender where creditworthiness is determined solely by the securing real estate collateral.Correspondent lender: A subset of private lender where the closed loan is sold to investors.Portfolio lender: A subset of private lender where the closed loan remains in the lender’s portfolio.Fund manager: A subset of private lender where, depending on the fund structure, the deployed capital is sourced by offering exempted securities to accredited and occasionally non-accredited private investors.Private investor: An individual or entity that seeks a return by deploying capital through a private lender or fund; the investor may or may not be named on the loan’s promissory note.Private money broker: Any individual or entity that acts as an intermediary between a borrower and a private lender without directly originating the loan.

however there is a reason states are cracking down on it  ( at least un licensed actiivty)I mean just read the regs in virtually any state.A license is required if for compensation you are bringing a buyer and seller together.. of course there is all sorts of interpretations on this.  

I think these terms are open for interpretation in that some people estimate different values for vacancy and repairs etc. when calculating these numbers.  

Different CPA's will interpret things diffidently. 

A notice is taken to be received:i.in the case of a notice delivered by hand, when so delivered;ii.in the case of a notice sent by pre paid post, on the third day after the date of posting;iii.in the case of a notice sent by facsimile, upon the receipt by the sender of a transmission report from the dispatching facsimile machine which confirms that the facsimile has been successfully sent; oriv.in the case of a notice sent by email, upon the receipt by the sender of a confirmation from the recipient or the recipient's email server that the email has been received by the recipient.b.If any provision of this Agreement is judged invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction, such invalidity or unenforceability (unless deletion of such provision would materially adversely affect one of the parties) will not affect the operation or interpretation of any other provision of this Agreement to the intent that the invalid or unenforceable provision will be treated as severed from this Agreement.c.This agreement is governed by, and must be construed in accordance with, the laws of the State of Victoria, Australia and the parties irrevocably submit to the exclusive jurisdiction of the courts of the State of Victoria, Australia and their Courts of Appeal.

My interpretation of the realtor code of ethics is that as long as I am not creating an agency relationship I am fine. as for state law in Massachusetts, it is vague and open to interpretation, this is what we talked about for a while in the continuing education class and the general consensus is that when there is a written offer or purchase agreement it needs to be disclosed on that, but it could be done anytime up until the point the interest in the specific property is actually transferred, this is the opinion of my attorney as well.

If I'm interpreting this correctly, they are passing this to the borrower's lender?!?

I’m furious at the city’s interpretation and intend to take this situation up to my local congressperson.

I tend to fly under the radar mostly because I'm pulling small quantities and I also fall back on a more literal interpretation of the law in that I'm not "selling"...I'm "buying". :)

But I interpreted this seasoning requirement to not apply if there's no first mortgage on the property (initial purchase was all cash). https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-r...