>Alabama Securities Commission has recieved several complaints on private lending.
Probably from the mortgage brokers looking to snuff out the competition, and stockbrokers losing out on commissions. I seriously doubt the debtors complained.
>ASC possibly looking to pass more laws to constrict private lending any further
Somehow I think this isn’t a problem needing a solution.
>State claims you need: RE License, Mortgage Broker License, and Securities License to privately lend
In the states I’m familiar with, licenses are only needed if your selling your mortgages soon after originating them yourself, or if you’re not a principal in the transsaction (both of which is what mortgage brokers usually do). Keeping mortgages for your account doesn’t require licenses. Besides, ASC must be wrong about needing a securities license, as I don’t know any mortgage brokers who have securities licenses (unless they’re looking to require every broker in the state to get their Series 7).
SEC issues with soliciting private money lenders?? - Posted by Concerned!
Posted by Concerned! on June 24, 2005 at 14:28:46:
We have a situation in Alabama where the SEC is going after an investor who advertised for Hard Money Lenders in the newspaper. They have decided to regard that as DEALING IN SECURITIES without a license!! They are coming down on him like a TON OF BRICKS.
I will know more about this after our investors meeting Monday, but I wondered, since there are so many guru courses out there that recommend you ‘ask people if they would like to earn a good return by loaning money backed by secure real estate’, if this is something new?
Posted by John Merchant on June 28, 2005 at 09:53:33:
This is an ongoing issue for a lot of REIs who do use OPM in various ways (loans, JVs, P’ships, etc.)us, so please let us know what’s happening there in AL as soon as you do find out.
-Alabama Securities Commission has recieved several complaints on private lending.
-ASC possibly looking to pass more laws to constrict private lending any further
-Several cases are in session, including 1 dealing with real estate
-Advice is to seek advice from a lawyer experienced with securities if you are advertising, or doing private lending in any form or fashion.
-ASC is seeking more suits… BE CAREFUL
-Alabama is one of only a few states who’s security commissions are claiming private lending is illegal. If lending out of state, have lawyer research.
-State claims you need: RE License, Mortgage Broker License, and Securities License to privately lend