Have any of you guys got your Loan Originators license, so you can seller finance your mobile homes that you put in your parks? Pros and cons?
I did. Search this forum for a prior post on this very subject.
Thanks Brandon. Yes I searched but the post were from several years ago. Not sure if any new info came up since then.
Brandon, if I am Loan originator, and seller finance a mobile home in a park. Can I collect the note?
Can the loan originator and seller collecting note be the same person?
Here’s a couple of posts from a few months ago.
I 'm contemplating the idea of using 21st CASH program VS becoming a certified MLO for selling POH.
CASH program seems to charge high interest with long term loan and I don’t want my tenants to look at their balance a few year from now and find out they have little equity into their own home.
However, become a a certified MLO seems to have a lot of liability as well.
Is there anyone out there who has hands on experience becoming MLO and financing POH yourself?
What’s the good , bad and ugly…
Generally speaking, servicing is no more headache than collecting the rent.
Compliance will depend on your state regulator. Make sure you understand the system for regulation in your state, which may vary depending on what kind of lending you are doing. There are dollar limits and lots of rules that you must follow, but they are mostly not a big deal and/or part of your setup costs (e.g., getting all the required disclosures as part of your paperwork package).
Benefits over 3rd party financi…
To answer your question, yes you can originate a note on a home you sell and collect as well. This is what is known as “captive finance”, I believe.