But, better safe than sorry so don't leave any stone unturned.

* The dreaded SAFE Act comes into play if you do it habitually.

Without adequate reserves, you might not be able to survive as a landlord.Once a safe level of reserves is in place, then you should put the money into that which best suits your "plan".

-Unemployment is decreasing 8.7%The criteria I used is pretty simple: RealtyTrac, Zillow and city-data.Do you have some proved searching technique (demographic trends)?

It seemed to be the only "super safe" method that I could realistically achieve and that my lawyer agreed with.

I am very interested to hear the response's on this one Regarding the Safe act and owner contracts for Owner Occ homes..

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"End quoteMy first followup question:It's my understanding that I need not be concerned about the impact of the Safe Act and licensing requirements if I'm using just my money to loan to others, and that I have a broker creating the loan documents.

She just called this morning and said she just wants to move because she does not feel safe there.

I used to consider myself an expert in creative financing techniques as well as using the more conventional means of the banking industry.

See other BP forums on this technique.