I don't know why it is surprising me so much that government has found another way to get more income, but it just hit me wrong.  

The GSEs ( government sponsored entities) like Freddie Mac and Fanny May were designed to help individuals not businesses.

Sadly,  the government is an irrational force in the market so we can only guess how that will play out.

But in the case the bank approves your deal, they would roll the rehab costs into the mortgage amount, and required down payment/interest would be based on the entire amount.You would probably have a better shot at getting property loan+rehab funds from a smaller bank or local credit union, since most of them are not tied into Freddie/Fannie Mae loans(Government sponsored, with stricter rules/regulations).

Especially where you don't expect it - the city government.

Hi @Samuel Lacroix, I'm not sure how it would be setup in Canada but down here that would be a syndication which is a security and governed by SEC law.

I am in the process of getting my license and I want to use my commissions minus state and federal income tax to buy properties.

Lots of great meetups can be found at meetup.com and mines is in my signature link below.http://www.dailynews.com/government-and-politics/2...Tom and others please bring up the New AB 1506 bill to dramtically increase rent control in cities.Amid California’s housing crisis, several state lawmakers want to give cities the right to dramatically increase rent control , including imposing and expand the kind of strict limits that exist in SF, LA Santa Monica and West Hollywood but have been barred since the 1990s.

Can/Is he ripping me off or is this federally regulated therefore no worries?

Conventional loans are governed by Fannie Mae and Freddie Mac (if you recognize those names).