Let me start by saying these are things you DO NOT want to ignore when it comes to note deals. What do I mean? Well, there is a reason investing in private mortgage notes can be an excellent investment – you get all the benefits of investing in real estate without collecting rents, dealing with late-night phone calls, or costly repairs. That … [Read more...] about 5 Reasons Note Deals Can Go Bad
note due diligence steps
Estimating Real Estate Value When Buying Notes
In the words of many savvy real estate investors, “You make money when you buy a property not when you sell.” But when investing in notes we are not buying the property itself. Rather we are purchasing the right to receive the remaining payments. However, the note payments are secured by a lien on the real estate. If things go South and the payer stops making payments then … [Read more...] about Estimating Real Estate Value When Buying Notes
What’s In Your Note Buyer Transaction Checklist?
Congratulations! The seller has accepted your offer to buy their note payments. Now what? The 3 Phases of Note Buying The purchase of a private mortgage note goes through three main phases before closing and funding. Most investors use a transaction checklist that outlines the due diligence, underwriting process, and closing requirements. The Note Buyer … [Read more...] about What’s In Your Note Buyer Transaction Checklist?
What is Due Diligence?
Before a note investor will pay cash to a seller for future payments, they perform what is called “due diligence”. This is really just a fancy word for research. You can simplify the process by being prepared for these common requirements. … [Read more...] about What is Due Diligence?
