Licensing Requirements to lend my money

[Michael G.]

New to Private Money Lending/Hard Money Lending and I would prefer to hear from you guys before I make a million mistakes! 

Scenario: I myself, want to lend $200,000.00 and the lawyer does up the contract for the note and a Trust Deed between myself and this guy I had already sold a property to, a year ago. What licenses must I have if any? Do I need any?

1. My own money

2. I am not a business

3. I do not advertise or have any business cards.

4. Yes, I would like to charge a couple points and it will be an Interest Only loan that will have a 6 month to 1 year term.

I have read that you cannot charge points.

I have heard that no license is needed and then someone said that a license is needed

I am hoping someone can spell it out for me so I can comply 100% and not have to worry about losing the little money I have.

Thanks

[Jay Hinrichs]

@Jeff S.  good points its state specific.

In Oregon you need a NMLS and state license for any 1 to 4 unit regardless of purpose.

5 or more no license  land no license new construction no license.

Oregon though also has a carve out for mom and pop lenders ( basically to allow private individuals to lend their retirement account money which is so popular these days)

and I believe its 3 loans per year and no more than 7 in your portfolio at any one time.. but I would double check those numbers.. most states have a carve out for this type of activity.  And you cannot hold yourself out as a lender.. IE go to reia's and advertise your a lender.. there was a pretty big private guy in Portland who had about a 5 mil book.. and that's what he did he went to every ria and advertised his services he got a cease and desist.

If your in the business though and domiciled in Oregon you need the license no matter what state you lend in.. And again subject to the mom and pop carve outs..