I’ve been researching to see if I ( as a park owner ) in TN can still offer owner financing of park owned homes. From what I have read, the SAFE Act said no, TN Dept. of Finance made an exception that as long as you do five or less a year and you are not an INC. or LLC. you can still offer financing. However, I can’t find anything more recent than 2012. Does anyone know the status as of 2015 ?
Do a search on here, there’s all the info you need. Search rent credits and rent to own. As to individual states, you’ll have to do your own research.
The final rules of the SAFE Act* limited the exemption (not exception) to three. More importantly, these de minimis level were enacted to allow someone to sell a home they owner occupied prior to sale to seller finance the sale. Just in case one had an ongoing loan on one home and then sold their second home that they had also owner occupied another exemption was created. It was also considered in the case one also inherited a home they wanted to sell and owner finance.
Regulatory law is all about intent. It was not the intent to create a de minimis so that commercial sales could be seller financed without a need to follow the laws, rules, and regulations that state and federal regulators require of those engaged in lending. Trying to bluff regulators and courts can result in some very expensive lessons.
- The Final Rule referred to here was written by HUD after the authority for such was transferred to the CFPB. In a compromise reached at the time, the CFPB has the authority to rewrite those final rules to their satisfaction. They have repeatedly stated they intend to do so, and they have repeatedly stated they are going to tackle the issue of “disguised credit transactions” which puts many methods in potential jeopardy especially if they choose to recharacterize those transactions as unlicensed lending as opposed to grandfathering them.
Thanks. That is the current info I was searching for. I will just stick to renting. Great reply. Thank you.
You’re not searching the proper keywords. Search " rent credit". If you attend the bootcamp you can get a legal version of a contract for free.
Thank you, I own four communities and feel like the boot camp would be beneficial provided there is a real forum to discuss real issues facing park owners and not a series of sales pitches. I have a family business and I am in this business full time not only for my self but moreover for my sons who work with me. I want to make sure that what I pass along is the best it can be. Thanks for your reply.
Honestly, I can’t remember what I paid for the bootcamp but I can remember thinking it was a bargain. It’s not a cost it’s an investment. That coming from a veteran real estate investor.
I’m not sure what this means, but I do know that many people think the boot camp was well worth their time. I do know that when you want expert advice you normally have to pay for it.
When our consultancy does a workshop we never know exactly what people might need from us in addition to what we promise (and deliver) to cover. After the workshop is over, we offer to those who want to stick around for it, additional services with some of the workshops and not with some others. That way, people get what they paid for with no additional obligation, but have the opportunity to engage us further if they wish and they perceive the need.
I have also been to seminars where the main point of getting me and others there was to sell something else from the back of the room and I have never been happy about that. However, I think the workshops we do aren’t like that, and I believe the same is true for the boot camp that Frank and Dave run. Sometimes people need or want more that what was promised and paid for.
Our workshops are not set up to be forums for community owners even though some of them do offer networking opportunities. Frank and Dave should speak for themselves but I would bet theirs are also educational events so discussion forums are likely not a part of that.
If that is what you want and need, I would consider the annual SECO event in Georgia or the annual International Roundtable (this year in San Diego) or the annual NCC event (at which Frank has spoken) in Chicago, or if you really want brain trust discussions, spend the $10,000 per year in dues and join ULI for their four meetings a year which are held all over the country.
@LFP, the bootcamp is certainly worth every cent and then some, although because you mentioned it it worth saying that a lot of the material offered at the boot camps is somewhat remedial in nature, given that there are many people there that are beginners in this industry (and some who have never dealt in real estate at all). That having been said Frank fields questions throughout the boot camp of all kinds and is available in the evenings to discuss more nuanced topics. I would say that even if you are a fairly seasoned investor it is certainly worth your time, particularly if you live in a city where it is held.
Will insert Jefferson’s generic line here “I am not paid for promoting materials or courses on this website.”
To your continued success.
@LFP – I was exactly in the shoes of your sons 5 years ago. When my wife and I were offered a chance to take over from my retiring parents we attended boot camp as soon as we were able to spare the time. I too felt a lot of the boot camp is remedial in nature (if you own 4 parks already) but I am still very glad I went. If you are an old hand, it will confirm the parts of your operation you are doing the same and make you wonder about parts of your operation that you are doing differently, and why, and whether that’s a good idea.
The “TN Dept. of Finance made an exception that as long as you do five or less a year and you are not an Inc. or L.L.C. . . .” for the reason of making the exception for people who are PEOPLE, not companies operated for profit. Inc or LLC in this case includes your business (if not by the letter of the law, at least in spirit). I would do more than “be careful” as Ken says, and outright say, get compliant with SAFE. Ken Rishel runs a seminar for this purpose.
(If “you” are a company that is not operated for profit, does that make you people or a person? See, Citizens United.)
Anyway, you can always get a very nuanced discussion here after attending the boot camp to get oriented. This forum is absolutely worth the price of admission and has several times been compared to a gold mine. I would like to echo ac1309. They are certainly worth your time, both the boot camp and the gold mine – and time they do take.