Just back from a 2 day workshop in Columbus put on by the the OMHA and I figured I’d post the gist of what I learned before I hit the sack.
I’ll get the really bad news out of the way first: If you are a street dealer of any sort or brokering loans to 21st, etc, then there does not appear any possible way for you to avoid the SAFE Act. You simply cannot do your business unless you are compliant.
On the other hand, the good news is that if you are selling homes that you own and are carrying the financing, what you do does not fall under the terms of the Act. The attorneys who helped put this on specialize in all sorts of financial matters. They said OH makes a clear distinction between a “loan” and selling/financing something you own. A “loan” is where money in some form actually changes hands and the Act refers all the way through to “loans”. The other transaction is called a “retail sales contract” and no money changes hands. Think financing a ‘fridge’ at Sears of buying a car through GMAC. When you finance your own chattel property that you hold in your name, all you do is collect payments from the buyer until the financed amount is paid in-full.
OMHA and the attorneys put together a booklet with all sorts of forms and you can buy it directly from them. Don’t ask for a copy from me as I don’t believe in that sort of thing and besides, the workshop was expensive and worth every penny if this works out.
Post your questions. I’m going to bed.
Rolf
Wheat Hill