Posted by Jon Richards on December 08, 2000 at 13:56:59:
Elizabeth, The laws differ in each state, so you need to do some research. Most institutional note buyers will buy from you even if you don’t have a license. Typical of a new industry the law is not clear about licensing. For a more extended discussion by Attorney John Beck, who says you don’t need a license visit: http://www.noteworthyusa.com/beck.html.
This issue usually is that the state agencies want to protect the private party consumer, not big note buying companies. To protect yourself never sell a note to a private party (even your mother!) and your chances of running afoul of the law are greatly reduced. When you are licensed, you can begin to develop a pool of private investors.
The good news is that the institutional note buyers will probably give you a better price than a private party, including your mother, anyway. Request broker packages from some of the institutions to learn their policies. They are listed on our site, under “other sites” at www.noteworthyusa.com
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