Wondering if any of my fellow Virginia BP posters can clarify what exactly are the licensing requirements to seller finance my own flips (more than three per year/as a full-time business). I know I will need the MLO individual license, but it sounds like I might need the company-level lender license as well? Or the VA broker license? Or are they the considered one in the same? (they kind of make it appear that way on the VA SCC website).
If I need both, than I guess I would be the owner of my lending COMPANY, as well as the licensed MLO sole employee of my own company?
The VA SCC website also mentions an "independent contractor" status as well. Would that apply to me?
Go to NMLS and determine if you are a broker or a lender (sounds like a lender). From there you will need to get you as an individual an MLO. Since around Dodd Frank most states got rid of a MLO working independently - must work for an entity.
Plan on it taking a while to get your lender license. It took me about 6 mos to get broker license.
Hi Chris, thanks for the reply.
I guess I could just call the VA SCC and see what they have to say about it. The NMLS says you have to be an MLO, but the individual states can add on extras like being a licensed "lender" as well (extra $$$$). Also, in Virginia to get an actual "Lender" license as a company, they want you to have $200K in "readily accessible funds" to start your business, whatever that means.
I know people are screaming for quality notes, so going the extra mile to start a business that actually creates notes on rehabbed properties for sale to owner-occupants, then selling those partial or whole notes to investors could be a good move.
Even better down the road might be setting up a correspondent relationship with a larger lender that might buy them from you at little to no discount...
BTW: Love your podcast Chris!