Investment Properties

Is Seller Financing and Private Lending Illegal In GA???

dwr267 — Mon, 09 Aug 2010 16:13:26 +0000

Thanks Steve for clearing up all of this confusion!!

Does the SAFE Act prohibit private and hard-money lending?

If you haven’t heard, the federal SAFE Act (SAFE meaning the Secure and Fair Enforcement for Mortgage Licensing Act) established a nationwide licensing system for mortgage professionals, and Georgia’s Residential Mortgage Act was modified to bring it in compliance with the SAFE Act. It’s kind of gotten a lot of buzz recently.

The changes to Georgia’s laws have been significant: You need a license to negotiate a short sale. You may or may not be able to offer seller financing.

And private lenders loaning out of their self-directed IRAs, as well as hard-money lenders are wondering: Does the SAFE Act require that I have a license?

Well, the devil is in the details, and the details are always in the definitions. So, let’s see what the law really says.

First of all, it’s important to realize that you need to look at the Georgia Residential Mortgage Act – because that’s the law of the state of Georgia. And Georgia law prohibits non-exempt persons from transacting business as a mortgage broker, mortgage lender, or mortgage loan originator without a license.

Great. So how are you supposed to know if you’re acting as a mortgage broker, lender, or loan originator?

That’s easy. Georgia Law defines those terms for us.

A mortgage broker is any person who “solicits, processes, places, or negotiates mortgage loans for others.” You’re a mortgage lender if you make, originate, underwrite, or purchase mortgage loans. A loan originator is anyone who “takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.”

Well, maybe that’s not too helpful. But it’s pretty clear that mortgage brokers, lenders, and loan originators all work with something called a “mortgage loan.” Luckily, there’s a definition in the Georgia law of that too, and it’s this:

A “Mortgage Loan means a loan or agreement to extend credit made to a natural person, which loan is secured by a deed to secure debt, security deed, mortgage, security instrument, deed of trust, or other document representing a security instrument or lien upon any interest in one-to-four family residential property located in Georgia, regardless of where made, including the renewal or refinancing of any such loan.”

That’s a mouthful. But read it again, because there are two important words to all private and hard-money lenders in that definition.

Catch them? It’s the part that says “residential property.”

Why are those two words so important? Because residential property has its own definition in Georgia’s law as well. And that definition goes like this:

“Residential Property means improved real property used or occupied, or intended to be used or occupied, as the primary residence of a natural person. Such term does not include rental property or second homes. A natural person can have only one primary residence.”

And therein lies the rub.

You see, as long as the property is non-owner occupied, it’s not considered residential property. If it’s not residential property, then you don’t have a mortgage loan. If there’s no mortgage loan, then the private and hard-money lenders aren’t acting as mortgage brokers, lenders, or loan originators.

And if they aren’t acting as mortgage brokers, lenders, or loan originators, then they aren’t doing anything prohibited by the Georgia Residential Mortgage Act. And that means that no license is required.

As long as the property is non-owner occupied, that is.

Harlan and Associates. We help investors be successful and profit in today’s real estate market. We’d love to work with you! Just contact us today and we’ll be happy to discuss how Harlan and Associates can be of service to you!

(Want to read the code for yourself? It’s all in O.C.G.A. 7-1-1000 and 7-1-1002. Email us, and we’ll send you copies of the statutes!)

Rehab Special in Atlanta, GA

dwr267 — Thu, 06 May 2010 14:06:23 +0000

Don’t Wait, GET THIS NOW!!! CALL ME: 404-910-5062

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IMPORTANT DATES

dwr267 — Wed, 21 Apr 2010 16:00:30 +0000

Have you gotten your check?

IMPORTANT DATES:

April 30, 2010: Cut-off date to be UNDER CONTRACT to qualify for the $8,000/$6,500.00 Tax Credit.

June 30th, 2010: Cut-off date to be for CLOSINGS to qualify for the $8,000/$6,500 Tax Credit

Internet Marketing for the Smart Business

dwr267 — Sat, 20 Feb 2010 04:10:50 +0000

Things have changed! Traditional advertising is becoming less effective each year. Already 54% of people have traded in their Yellow Pages and solely search online. Reaching new customers in your local area is vital to your continued success and LocalAdLink can help.

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LocalAdLink gives you an online presence and drives traffic to your Ad Site through Geo-Targeted Online Advertising

A listing in our complete online directory includes:

Performance statistics to measure results
Photos, videos & logo
Custom electronic coupons
Google maps with driving directions
Customer reviews from your peers
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WOW What a GREAT COMPANY

dwr267 — Wed, 16 Dec 2009 14:03:55 +0000

CHECK OUT THIS COMPANY FOR ALL OF YOUR HOME REPAIRS

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Fire your Phone Company and go Digital!!!

dwr267 — Thu, 05 Nov 2009 05:20:38 +0000

Unlimited GLOBAL Calling plan to 70 Countries! Get a Digital Phone Service (VOIP) with a personal assistant for 24 bucks a month!!

http://www.dray.zurvita.biz/products_telecom_voip.asp (click on products, click on Telecom, select digtia voice or remote access).

GET THIS BOOK!!!

dwr267 — Fri, 25 Sep 2009 05:28:14 +0000

Hello, my name is Steph Davis, and I’m a full time REO wholesaler in Tampa, FL.

Formerly a bartender, I jumped into the real estate arena in October of 2006.

I got off to a very rough start, but eventually found my niche when I wholesaled my first REO in January of 2008. Since then, I’ve flipped close to 40 REO wholesale transactions.

I started a blog (FlipThisWholesaler.net) back when I was a newbie, and have chronicled my journey from being a broke bartender, to being a broke wholesaler, to finally finding my niche and becoming a successful REO wholesaler.

I’ve built up a large following over on my blog, and receive hundreds of emails every month from struggling newbies who are trying to put the pieces of the REO wholesaling puzzle together.

A few months ago, I decided to go through all of those emails, pick out the questions that were asked most frequently, and answer them all in an easy to read (and easy to afford) eBook that will walk you through the REO wholesaling process, step by step.

Who is This eBook for?

Flip This REO! is an eBook specifically written for beginning wholesalers who want to cash in on the current wave of REOs before it’s gone forever…but are sitting on the sidelines because they have unanswered questions about the mechanics of flipping REO properties.

What Questions Will Be Answered in This eBook?

Every Question You’ve Ever Had About Wholesaling REOs- and Then Some!

To Name a Few….

* Do I need MLS access if I want to offer on REOs? Should I get my license?

* What if I can’t get MLS access? Then what?

* How do I select a target neighborhood?

* Once I’ve selected a target neighborhood, how do I know what a good deal is in that neighborhood?

* How do I decide which properties to offer on?

* How do I decide how much to offer?

* What about repairs- how do I estimate those?

* Can I use my own contract when submitting an offer on an REO? If not, which contract should I use?

* Do I need an earnest money deposit to make an offer on an REO? Is so, how much do I need?

* What if I want to make multiple offers? Do I need an earnest money deposit to submit with each offer?

* What do I do if all of my offers get accepted at once?

* Where can I get a free proof of funds letter to submit with my offer?

* How can I structure my offer so I can protect myself and my earnest money deposit if I can’t find a buyer?

* If I add an inspection contingency to my offers and cancel the contract before it is up, will I get my earnest money back? If so, what do I need to do to get it back?

* How can I write my offer so it has the greatest chance of getting accepted by the bank?

* What are the best ways to find buyers for my deals?

* What questions should I ask my buyers to find out if they are the real deal?

* What if my buyer sees that the property is listed on the MLS for less than what I am selling it for?

* Should I get a deposit from my buyer? If so, how much?

* What contingencies should I put in my contract with my end buyer?

* What happens if my buyer backs out the day of closing? Am I still on the hook to buy the property?

* If I can’t assign my contract, how can I wholesale my REO deals to an end buyer?

* How can I get the bank to let me use my own title company?

* What is the best way to find an investor-friendly title company in my area?

* If I do a double or simultaneous closing, are there two sets of closing costs involved? If so, who is responsible for paying them?

* What steps should I take to get started? What should I do first?

Find out the answers to these questions, and many more..

__________________________

Flip This REO! is jam packed with content- I’m a “no BS” kind of person, and Flip This REO! is a “no BS” kind of eBook.

I provide you with straightforward and detailed answers to questions that you need to know if you want to start making fast cash flipping REO properties. If you’ve been sitting on the sidelines waiting for your opportunity to jump in- now is the time to do so! Take action NOW and grab your copy of Flip This REO! Today!

Don’t

How I sold my last deal in less than a Week

dwr267 — Mon, 10 Aug 2009 02:11:30 +0000

Quick tip on how I sold my last whole deal in less than a week!!!

After having the Decatur property under contract I sent an email to my cash buyer letting them know that I have another deal coming up. After about two days, no response from my buyers. So, I took my cell phone and started to call every investor I had in my phone, some of them I have never talked to!!! Three days after my phone call I had 3 investors that wanted to buy this property. I even had an investor to go out on a Sunday night to view the property and gave me a call right there and said that he wanted the property and was sending me a contract first thing Monday morning!!! I got the contract Monday morning and closed the deal a week later after tittle was clean.

Now, who say’s wholeselling don’t work???

Great Cell phone plans

dwr267 — Thu, 23 Jul 2009 12:00:12 +0000

check out http://www.dray.zurvita.biz/products_telecom_wireless.aspfor your next

cell phone. I have the Hottest and Cheapest Phones available at a WHOLE SALE PRICE!!!!! Get New Plans, Upgrade Plans and Accessories!!! (Click on products, telecom, zurvita mobile, enroll to see the phones and price list).

My Z number is: Z1836097; you may need this at CHECK OUT

Do all Land Lord’s Really Understand The Market

dwr267 — Wed, 22 Jul 2009 21:58:48 +0000

I called a landlord today to see if they’re buying any properties during this GREAT BUYING TIME and GREAT Rental Period. As we talked, the land lord said “I’m not buying anything right now because the Market is DOWN” I couldn’t believe what I was hearing. What are you thoughts on this??