Pretty much as the title states - what are the legal requirements to become a transitional lender? Do you need to become an approved lending institution, or can it be done personally, like private lending? I tried to do some research online, and while there's a good amount of info on how to borrow, there's not much out there on how to lend. I'm very interested in getting involved with transitional lending, I'm just not finding much to read about it!
Sorry, TRANSACTIONAL lender! I guess I got autocorrected, just realized it.
@Charles Kamen , every State has its own requirements. Familiarize yourself with them. If you plan on lending to owner occupants (this is probably not a good idea) you should also become familiar with Dodd-Frank and the SAFE-Act. You may need to become familiar with SEC regulations depending on how you plan to raise funds. There is no manual that I know of but if you do a thorough search you should find many threads on BP dealing with private lending and some that deal with transactional lending. There is a lot of misinformation here but there are some very knowledgeable lenders here as well. If you have specific questions you may get some very helpful advice. Pay particular attention to those who have experience in NY and take everything with a large grain of salt. Once you feel you have a fair understanding of the process seek out an attorney well versed in lending laws in your State to get specific advice for your situation.
I would talk to an attorney for someone who does this already. Most hard money lenders require a specific title company. Find out from their customers who they use and call them up and see if the attorney can help.
Also beware that every transactional lender I've talked to has been approached to fund bogus, fictitious deals where they would have lost all the their funds lent. Scammers are everywhere and you'll have to know what you're doing.