profyt7 0 Report post Posted June 30, 2010 Hi Guys, I am new to Lease Optioning and glad I found this site. There is so much info on here I don't know where to begin. I was wondering if the SAFE act is going to prevent us from doing Lease Options in the future? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 30, 2010 Hello, profyt7, and welcome to The Naked Investor.Regarding the SAFE Act, for those who are interested in reading about it, here is some info from HUD: SAFE Act.I'm neither an attorney nor an expert, that said, here is my two cents: a lease purchase agreement has nothing to do with the SAFE Act unless you are offering seller financing to the t/b should the t/b exercise their option to purchase. If the t/b obtains their own financing from a third party lender, then it shouldn't fall under the jurisdiction of this law. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted June 30, 2010 It looks like we are clear with L/O, but for RE investors in general seeking or offering owner financed deals sure seems like this is a large blow for the RE investor market. Share this post Link to post Share on other sites
profyt7 0 Report post Posted June 30, 2010 Hi MichaelC and Steve, Thanks for the replies and the welcome. That clears things up for me a bit. It seems to have a bunch of people worried. Share this post Link to post Share on other sites
EQUITY NOTES 0 Report post Posted July 2, 2010 Hi fellow investors, I wanted to add this email I received today from eddie speed a well know Note investor regarding the safe act. I copied and pasted this so maybe it will help calm our fears a bit about the safe act: Here is the email: Furthermore, there's good news about the SAFE Act, I will discuss with you: Many wrongly assume that the SAFE Act prohibits all transactions involving seller financing. In fact, there is a lucrative market awaiting you. Individual, owner-occupied property sellers are exempt from the SAFE Act. They and their realtors are increasingly attracted to seller financing as thesolution to the conventional lending crisis. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted July 2, 2010 That's good to hear. My concern would be also, if say, someone wanted to sell an investment property (not their primary residence) with owner financing. As a way around it, I guess a person could have a licensed mortgage broker draw up the mortgage paper work for a fee. I also read where "Habitat for Humanity" offers their own 0% or low interest mortgages to help the new home owners and would no longer be able to do this. I think there is still a lot that will need to be worked out as this goes into effect. Hopefully. Share this post Link to post Share on other sites
DrRE 0 Report post Posted July 3, 2010 I agree with Equity Notes as I have read and listed to Eddie also. It seems as though investors wanting to seller finance properties either have to be licensed to do so or work with a mortgage broker. Thats a big blow to that exit strategy. Another issue I have is that my 2 M brokers I work with don't know anything about it. Herbster Share this post Link to post Share on other sites
