Most real estate investors are somewhat familiar with the Dodd Frank Act that goes into effect at the first of the year. One thing that I know for sure is that a whole lot of folks aren’t taking it seriously. The most frequent comment that I hear is, “The government will never enforce this Act”. And to those folks that say that, I would have to agree.
However, it is not the government that you will need to be concerned with in most cases… it will be your tenants. Did you know that you might be faced with reimbursing your tenants up to 3 years of payments under certain circumstances? Everyone needs to understand how the Dodd Frank Act has the potential to impact your business.
I did an interview recently with my colleague and fellow real estate investor Bill Walston who is expert on this subject. Some of the things we covered in this interview were:
- When the Dodd Frank Act goes into effect
- How it is different from the SAFE Act of 2008
- What effect it has on investors doing lease options
- The new requirement that the seller must verify the buyer’s ability to repay the debt and the procedures they are required to follow
- Buyer remedies and the stiff penalties for real estate investors that don’t comply with these requirements
I hope you will take about 30 minutes and listen to this interview. It has the potential to impact just about every real estate investor’s business, but there’s no doubt that the ones that will be the most affected are those investors that use seller financing as an exit strategy.
Are you familiar with the Dodd Frank Act and how it will potentially impact the way you do business?
Photo: Mr. T in DC
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.