Hard Money Lenders - Questions on State Restrictions

[avatar]

My company is a hard money lender based in Seattle, WA. Most of the business we do is outside of Washington state, but there are several loan requests we have been unable to fulfill due to conflicting laws about out of state lenders.

Specifically this applies to New Jersey, Tennessee and Florida. Does anyone know if setting up 'field offices' or working with a broker or 'partner' in these states can be used to bypass this type of regulation?

Thanks for your help!

 

[charlesesq]

My company is a hard money lender based in Seattle, WA. Most of the business we do is outside of Washington state, but there are several loan requests we have been unable to fulfill due to conflicting laws about out of state lenders.

Specifically this applies to New Jersey, Tennessee and Florida. Does anyone know if setting up 'field offices' or working with a broker or 'partner' in these states can be used to bypass this type of regulation?

Thanks for your help!

What specific regularions are causing you problems? Without more it is difficult to comment. Note that much has to do with the wording of these statutes and regulations.

 

[avatar]

New Jersey and Florida specifically require that commercial loans with rates over a certain amount (basically, any non-bank rate loans) must be funded by a company within the state of Florida. I believe this was one of those laws that Florida commercial lenders successfully lobbied for/bought from politicians.

In any case, I'm hoping to find a field office in Florida or an incorporation system whereby Avatar can fund loans within the state, as we get many requests.