Thinking that the originator of a note was accomplished by a lending institution and therefor underwritten properly and in compliance is acceptable, if you accept that 10% of those will be improperly underwritten or not compliant, I'd say 15% as you can have both issues.

Contracts, especially investor types, need to be compliant with local custom as well as state law.If you're working on the cheap, might ask a title company to look at your contract, they know what is customary and closing agents are well aware of any disclosure required. :)

The RMLO in a SF situation comes into play because of staying compliant with Dodd-Frank, their job is to qualify the buyer.

Scenario 3 When we have larger deals, we set up what is called a REG D syndication so we are strictly SEC compliant and we put together our deals using high net worth individuals.

Juries have been known to render ridiculous verdicts and judgments based on small and rather technical violations of securities code.The way to mitigate the risk is to have a private placement memorandum, partnership agreement and subscription agreement produced by an experienced law firm, compliant with all requisite Federal and state regulations and "safe harbor" statutes.

Unlike other alternatives to your education, we assure that you get information that meets your needs that is legal, compliant and directs you to obtain competent consultation.

If the tenant has a sharp attorney, (doubtful) there could be an issue if you were not compliant for a period where you are seeking damages, seems that would be up to the judge.Best to call the city finance department and ask them, I doubt they would misguide you for some fee.

You may have fun getting FHA note holder to release that new lot, but good luck, they may (after an appraisal review) to keep the loan compliant, but, they may not.But certainly, the solution is to do a minor subdivision and cut off that new unit.Don't get hung up with % rules, you need to pencil out deals in your market, the 2% rule won't fly here, the 50% may over a long term but it may not as our market has a lower tax and labor rate.

I'd say someone took the idea and adapted the concept to HMLs or private lenders in doing small deals simply as a profit motive, no issue with profit so long as you're compliant.

What I would bet dollars to doughnuts on is that with respect to charging fees and usury issues and lending requirements, I'd say half the private deals made by those who "really do" lending on the side so to speak would not be compliant.