The S.A.F.E Act

[gabbygary1]

My friends!

A law has been passed at the federal level and is about to go into affect that will shake the very foundation of real estate investing as we know it. It's called the S.A.F.E Act. It was passed in Washington in 2009 & all 50 states must adopt it by this month. All have except the state of Minnesota...as I write this..they must comply or else less money from big brother. We need a discussion on this and its ramifications. It supposedly was passed to guard citizens against preatory lenders like me. I guess citizens can't say NO to my slickness. If that's the case why am I retiring In Iowa instead of my own island somewhere. My understanding is only licensed mortgage officers can write funding for residental deals. No more secondary sources..no more creative alternative funding can be sought. However, this new law does not restrict alternative funding sources for commericial or raw land deals just residental.
The IA law is found in Iowa Code Chapter 61, My attorney has yet to get back to me with an opinion, but I believe I can still operate as a consultant if I continue to make recommendations based on expertise and not represent a buyer or seller directly. I am not twisting the arms of my clients who seek private funding or wholesale property buyers. I would say as long as the deal plays out as cash only this law does not apply. What do you think!

[DanL]

the consumer always pays one way or another. under a free market you have a choice who you pay, under Obamunizm it is up to the government.

The more you read into the laws, well basically everything is illegal, including many of the laws themselves. That's ironic but also very telling. Most of these federal abominations directly violate the U.S. Constitution in terms of the soverign rights of the states. The feds make an offer to the the states that "they can't refuse" just like Don Coreleonne used to do! If you want to follow every single solitary rule there is, just stay home and live off the rest of us. Seriously, I bet everybody reading this broke at least 1 law or official rule of some type today, maybe 10, whether they know it or not. It's not possible or practical to know the difference anymore. Collecting welfare and eating dirt is legal, and the elitists want to keep it that way, they need followers to feel smart and important and also to keep them in power.

Your other choice is to do something. Be productive, in spite of the many obstacles. You might break a rule accidentally, it beats eating dirt though.

Don't let the moochers shut you down with their garbage. Our government has no tax revenue to waste/re-distribute unless they allow you to make a profit that is taxable, therefore they shoot themselves in the foot if they fine you for making a dollar. They need you and they know it, although they rarely admit it. If you have time, read "Atlas Shrugged" by Ayn Rand. It's long, but it more than replaces a doctorate in terms of it's worth.

Go make some money. Most of your crimes will go unpunished, but they will all be taxed.