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Mike Mazzucco
  • Realtor
  • Gilbert, AZ
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Licensing requirements for Hard Money Lending in Arizona

Mike Mazzucco
  • Realtor
  • Gilbert, AZ
Posted Nov 27 2022, 10:46

Hi guys!  Anyone out here a private hard money lender in AZ?  Trying to get my head around all the requirements to get in to the game. It seems like you (maybe) need a Mortgage Broker or a Mortgage Banker license in AZ.  

It seemed in reading some of the rules/regulations that if your funding the loan yourself, that one is not needed.  However, another hard money lender I spoke with seemed to be adamite that one is needed but provided no further insight.

Curious if there is anyone out there that has been funding notes that could shed some light.

Here are a list of scenarios to prompt discussion:

1) Would a license be required if funding myself and only I am the beneficiary?

2) Would a license be required if me and several family members pitched in to fund a note, and we were all listed as beneficiaries? (No origination fee charged)

3) Same scenario as #2, but with an origination fee charged.

4) Assuming the answer to #1 is no, would a license be required if I initially funded and then assigned part of all of my position to someone else? 

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