Owner financing and Dodd Frank

[Michaela G.]

What's the deal with Dodd Frank - has it become more streamlined and easier to deal with over the past few years, that it has been implemented? Maybe I'm not up on the latest details of this. 

I have a friend, that is planning to sell one of his properties (he's a full-time investor), that he owns with an LLC with owner financing to a buyer, who can't qualify otherwise. He's planning on taking 10K down, starting off with 7% interest and going up a point every year.

I warned him about the Dodd Frank Act , which requires an entitiy to have firm interest rates for the first 5 years and to qualify the tenant. 

His attorney tells him that there's nothing to worry about and that Dodd Frank is only for big banks and mortgage companies. 

While I've never gotten involved in selling by owner and thus didn't keep up with all the details, that does not sound like correct information to me. Has DFA changed?

I hate to see this backfiring on him, but maybe I"m the one that's wrong.