I'm a member of several REIA (Real Estate Investor Association) groups in our area. Lately I've noticed the organizers giving attendees an opportunity to stand up and tell everyone what they're doing and what they're looking for in real estate and financing. Here's where individuals have to be careful with what they say to the audience. If you're going to speak to groups about financing you had better understand your limits especially if you're unlicensed.
First, ignorance of the law is no excuse so check your state's licensing laws and regulations, you should be able to find them on your state regulatory agency's web site. For the most part lending regulations are covered under federal laws but each state will have details that are sometimes more stringent or varied, check them.
Here's what I hear at these REIA meetings that make me shake my head, "I'm a private lender and I have money to lend." Unless you're a licensed lender you can not announce that you are a lender, pure and simple, that is a violation. If you want to be a lender, go through the process and get your license.
Second, in Michigan, if you make more than 10 loans on residential property in a calendar year you need to be a licensed lender, this includes land contracts. And if you are servicing (collecting loan payments) on more than 10 loans you need a servicing license. These are probably the most misunderstood lending laws and most violated amongst real estate investors.
I wouldn't be surprised if at some point an investigator from the state shows up at a real estate investors meeting just to hear what's being said and who is saying it, taking down names and numbers and collecting business cards. Know the laws if you want to lend and if you want to be in the business get your license.
Metro Mortgage Investments