The way we look at it however is this sort of situation would be OK - but its a one time referral fee - any sort of arrangement with a long-term referral fee / borrower protection is reserved for true professional mortgage brokers - who like @Chris Seveney mentioned, would be doing more legwork on the deal vs. a simple and clean referral handoffvia CFPB on referral fees for business-purpose hard money loans:§ 1024.5 Coverage of RESPA.THIS VERSION IS THE CURRENT REGULATIONView all versions of this regulationSearch this regulationRegulation X(a) Applicability.

We have some short term rentals and management that we are scaling in the area.

Hi Robin,I do a fair bit of business as a lender in South Carolina; a lot of short-term rental investors tend to focus on the Charleston & Myrtle Beach areas, but if you are looking for properties that are still reasonably priced and don't mind some renovations, Columbia can be a great choice 

The same amount invested in the securities market stays fully deployed for the entire term - in other words, all $12k of the principal (the basis) is at work for the entire 5 years.

If you can check these boxes off you would be able to start buying long term rentals with having owned zero real-estate prior to the first transaction. 

It's hard to give up $7k/m in cash flow, that is just great income, but long term, having appreciation is very important too. 

@Christopher Lynch  NH has some amazing area's for Short Term Rentals.

I wasn't sure if it was a group effort or just him or what. 

And the more motivated the seller is, the more willing the seller will negotiate terms and price. 

(Not that they actually set mortgage rates - but they influence them.)You now know that as you look at 2/1 houses that anything priced near or above $145,000 isn’t worth pursuing in the short term… so you look for ones that are cheaper than that.