LMLOs are licensed in each state so don;t know if there's a business model for nationwide loan origination for investers selling with financing following Dodd Frank. My local LMLOs I called are wanting $1500 for a $75k note doesn't make sense and also risks the Dodd Frank limits on expenses when you add up the other closing expenses the borrower pays. I'm wanting to pay $750 to $795. My loans are in GA.
I can put you in touch with a company that handles origination in all states with licensed LMO's. Their specialty is owner originated loans compliant with Dodd Frank regulations (or at least how we understand them so far). However, I don't know what their costs are, that is something you would have to negotiate with them. In my opinion with the effort that is expended by an LMO the 1500 is not a horrible deal. They have a lot on the line when they originate in this envornment. This is also a fee the borrower should be paying for anyway.
Msg me and I will put you in touch.
I'm going with an originator for $695, just for the origination paper work AND signing the Lien with his MLS license number and name AND statment at the top of the lien saying:
- Mortgage originated following all reguations and requirements of Dodd Frank.
And aside; my seller finance process also has the borrower sign an Affidavit acknowledging they agree all Dodd Frank requirements where followed as well as full Doc and verifying at least 43% DTI... The Affidavit came from the source Josh mentions above: Seller Financing Consultants (some thing like that). Folks who help you scrub a seller financed note to meet marketable standards so you can sell your note into the market. A step I'm not interested in.
I'm creating a private retirement system from passive income from active rentals and post seller financing notes.
I know Terry and Mark at www.SellerFinanceConsultants.com
They charge 1% or $2000
1% is $750 on a $75K inexpensive house.
So up to you guys.
Just contacted SFC.
fee is the greater of $1999 or 1% of the transaction.
Thanks for all the discussions you have contributed to regarding seller financing here on BP. You and I have a similar thought process on creating cash flow through a combination of rentals and notes. I am also in Georgia and was wondering if you elected to move forward using RMLOs despite the cost. I'm an investor in SFRs with a higher price point, so the $1999 SFC price is not quite as bad for me. But, that is a steep cost of doing business and I would love some quality alternatives if you or anyone else have any recommendations here in Georgia.
Hi James. Nice to meet you. I network with folks on topics like this face to face at GaREIA.org. I find it's useful to have a network on line as well as local.
Be sure to use a loan servicer. New CFPB rules coming out requiring use of a servicer. It's in the lenders best interests anyway plus it takes the burden of reporting interest received to the IRS for the borrower. I use trustFCI.com
I use a RMLO that charges $695.
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