There are fact and intent rules around dealer determination.On the rental, if your friend and you do not have a formal partnership agreement or other business entity (i.e. you're just co-owners), then you apportion the results between your two Sch.

Pricing will always be viewed as the annuity income and first the quality of the borrower and then to collateral.What matters is the ease of securing the collateral and that will depend on state law.A CFD, while it provides for a deed-in-lieu-of-foreclosure, there are many instances where the borrower objects to the process and a judicial foreclosure may be required.

@Douglas Snook Hi Douglas in my research I have found massachusetts is a non judicial foreclosure state which would suggest that loans issued here for real estate purchases would use the deed of trust security instrument rather than the mortgage security instrument.

Usually small borrowers, if they are hard up, didn't have the payment, they won't be paying the whole thing, nor will they be in a position to hire an attorney to go a the judicial route.I have had or ended up with some bad borrowers, I always try to work things out, but sometimes things won't work, I never lowered the boom due to one late payment just from fairness, but I could have.

What is crazy when I looked at the stats. for foreclosures the time can be as 900+ days because it is a judicial state.

This can be done in either judicial or non-judicial states but the process is slightly different for each.  

I would like to know how to lend in judicial states like il, Ny.

That does not mean that your business does not have to comply with a myriad of federal laws and rules that requires setting up a formal Compliance Management System to deal with them.If volume is only a few houses a year, it is almost impossible to legally seller finance anymore because of all the new regulations.

I'm considering buying a rental property to generate income and keep my wife employed managing the property since she doesn't have allot of formal education.

Well it is America right and if its legal then the smart hard working guys will get to it.I thought of doing this when sales first changed from TD to judicial however my reading of the statue was that to buy redemption rights one needed to be a licensed foreclosure consultant in Oregon..