Dallas-Fort Worth Real Estate Investor Club

Dodd Frank.

  • 17 Nov 2018 9:42 AM
    Message # 6911750
    Deleted user

    I've given out several loans on affordable housing in 2018... While I "cover myself to the max" with legal documents and separate llc's, other lenders have suggested that Dodd Frank is (or will be) all but dead... 

    What do you all think? 

    Brian R. Baker, MBA 

  • 18 Nov 2018 10:22 PM
    Reply # 6913433 on 6911750

    Personally, I think Dodd-Frank was an overreaction by Congress.  I look forward to the day it is repealed. Until that time, I use a loan originator on all my loans.  I prefer to point to them if an auditor comes knocking on my door.

    Thanks,
    Neil Aggarwal
    Property Financing, LLC

  • 19 Nov 2018 7:44 AM
    Reply # 6913858 on 6911750
    Deleted user

    Neal, thanks for your thoughts... Loan originator of course for lending (it's worth the $$)... But do you also use a texas series llc? Just curious? I personally do not use a series llc rather, I use seperate llc's but I'm finding that to be a waste of dollars given that the series llc has seemingly held up over the years.... 

    Brian R. Baker, MBA 

    Last modified: 22 Nov 2018 12:32 PM | Deleted user
  • 20 Nov 2018 8:31 AM
    Reply # 6915705 on 6911750

    I have a series LLC.  Its nice to be able to create entities quickly.  I create a new series per loan and never re-use them. The series LLC is not as well tested as regular LLCs but my attorney feels comfortable enough with Deleware law being a precedent to use them.

      Neil Aggarwal
      Property Financing, LLC

  • 21 Nov 2018 10:34 AM
    Reply # 6924066 on 6911750

    question about Dodd Frank rule - if I purchase a house subject-to, does that also need to wait the 3 month term before selling to FHA ? 

  • 21 Nov 2018 1:52 PM
    Reply # 6925997 on 6911750
    Robin Carriger (Administrator)

    The 90-day seasoning rule for FHA loans should be irrelevant in the case of a Sub2 deal.  Here's why.  Sub2 deals entail taking ownership of a property while the existing loan stays in place.  How likely is it that a home owner would need/want to do a Sub2 deal after owning it for 90 days or less?  I'd say it's not very likely, so a minimum seasoning requirement for most underlying loans in Sub2 deals shouldn't be an issue.

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