CA Usury Workaround

[Hament Raju Mahajan]

I am a private individual and am planing to lend money for a Note Secured by investment/non owner occupied California real estate (Single Family residence)
If my interest on the Note is less then the CA Usury limit (less then 10% Interest) , Can I directly get the note and deed of trust from the borrower and record it , without involving any CA DRE broker of record? "
I understand that if I go over the CA Usury I have to have a Real estate broker to originate this note. Please provide a strategy to directly lend to a borrower secured by CA real estate

[Account Closed]

Raj- You don't need to be licensed as long as you use your own funds, don't intend to sell the note (and don't actually sell the note), don't lend more than seven times in one year, don't exceed usury, and borrower uses funds for a business purpose. Check with a lawyer that specializes in this area to be sure and/or you can call the California Department of Real Estate, they have people that can answer these types of questions, if you can get through.

Good question, let us know what you find out.