Question about the new Dodd-Frank rule


I have a question about the new Dodd-Frank Bill. I am a big proponent of seller financing. The Dodd-Frank bill makes that much more complicated. I know that there are ways around it. I am not opposed to getting my MLO license, but currently do not have the time to do so.

My main question is about LLC’s. Do they follow the same rules of individuals. Can I create an LLC for every 3 seller financing deals that I do? Would that get around the rule? I know that there are options with Joint Ventures, Subject 2 and LO as well, which I would love to here more about.

I was just wondering if the LLC is considered a separate entity in the eyes of the law and if the limit of 3 properties could be limited to that entity.

Thanks in advance for your help with this question!

All of my best,


There is more than one way to bypass Dodd-Frank.

Put the property into a trust and sell the trust, along with the mortgage wrap you created that includes the original seller’s loan balance and the equity you created in the sale to the new buyer. You can create any kind of loan terms, and have the buyer simply take them over. I would consult Bill Gatten on trusts in order to understand and implement this strategy.

Also, if you sell to an ‘investor’ there’s no limits on the loan terms. If the ‘investor’ moves into the house, well, you have no control over that.

The issue with the MLO is that it costs money and is unnecessary if you finance an investor.