Jimmy, HMLs that do consumer lending, like a bridge loan for a purchase will have the SAFE Act issues, there are tons of threads here, some very recent within a day.If they only do commercial, D/F won't really apply, but then they will need to ensure that the use of funds remain as agreed and used only for commercial enterprise, if those loans become tainted they could be required to reclassify the loan which can impact there operations.The question is simply too broad as to how life could change or what the impact could be.

So I realize this post has been dormant for a few months but better than starting a new topic...In particular @Matt,  because you brought up the 'out-dated' issue, but also @Belinda and @John, because you seem to be familiar with the materials: Now, with implementation of DF and SAFE what is lost or missing now in a qualitative sense and how best to recognize the out-datedness and supplement.Thanks.

But if this is your plan and you have the resources behind you, this place looks like a good, safe, first investment.

Two concerns that are, IMO, bigger than any of these:- you're violating the due-on-sale clause in your existing mortage, giving the lender the option to call the loan due, and- SAFE act complianceIf this tenant wants to buy, why can't they just get a mortgage and buy?

There's no safe route with any type of investing.

So even with concrete evidence that it was safe, this person would jump back if the snake was held in his direction.

Was with a couple this weekend and all they were whining about was upcoming layoffs, if they were safe, and the beating their IRAs and 401's were taking.I just said, I know how you can make 12% on your funds.Next thing I know, I had a couple more private lenders.Just a thought!

I beleive tenant said he runs it 220v because it uses less electrictiy, either way i told the contractor to spare no expense in keeping the house safe from possible electrical overload.

To all my outhouse lawyer friends, you're looking in the wrong place as a mortgage broker will be seen as originating mortgages, as under the SAFE Act, which also includes the sale of notes.

Dale I agree with your first statement about government, however, I wish I could tell you that bankers are smart enough to look into the future and realize they would profit from the Safe Act.