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7E Investments

Note Investing - Due Diligence Software

10 min read
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Note Investing

Chris Seveney with 7e investments and I hope you're doing well this afternoon. Today I want to spend 10 minutes with you and do a quick tutorial on data tree by first American title. Data tree is my due diligence software that I use to research properties when I get a tape of notes or contract for deeds. Note investing

There are a lot of software systems out there that people use and people may use a variation or several different softwares. Some of you may not even have heard of data tree, so I want to just educate people on it and give you a brief tutorial on how I use it within my note business. As we log in. One of the first things you'll see is the main home screen and I'm going to put in a property that was recently on a harbor portfolio tape 12, 19. I could type today,

Datatree

Speaker 2: so as you start typing, it actually starts automatically pulling the property, so it's 12, 19 bench street and Lansing Michigan and gives you a Google Street view right off the bat and it gives you the address, the owner and public information that's available. You can also view other property zoned, which as a note investor, wink, wink, we'll let you know if somebody got nonperforming. N

Note if they have other properties as well. A tells you the county information and when the information has been updated. So this is generic, right When you put the property in, you can take notes, you can export this information and you can also click on the links. This to me is gold because I don't have to go to google or you know, input the property address several times and click on the other links. I click on Zillow, Trulia, realtor, and boom, they pop up.

Here's the Trulia website. You can look at the crime. This one has an nine extra pictures. Realtor brings it up. Again, that takes a Google street view and then zillow as well will pop up the property. So right then and there automatically brings you access to those three sites. The other component I really like is the map feature with the map view. Zoom out first, it highlights the property,

Due Diligence

Speaker 2: sorry about that. Highlights a property and then gives you the list of properties. Recent sales for sale defaults, auctions, and you've got a property here for 50 3005. Zoom out a little more, get a sense of the area, got one here for 45, 93. You could look at all these other properties if you wanted to see what they're selling for, can see what else is in the area.

Another component I like is a river down here and this blue is a flood plain so you can look at to make sure that you're not looking at property that potentially could be in a flood plain because if you are then when you go and try and get insurance on it, the costs you may have put into your calculator can be drastically off.

Speaker 2: So don't between the links looking at the three properties and then this overlay is probably about 90 percent of the due diligence that I do a to get a sense for the area and then look at the properties. Few other things I'll do is well run a property detail report and transaction history report.

These reports are free as part of the subscription that I have. So property detail report is just that. It's a very detailed report. The owner name, lot information transfer conveyancing, so it says harbor bought this for 2,800 bucks back in 2011, you know, last sale date, property characteristics, information. Where I find this to be handy is saying I've got this property under agreement and I wanted to market it to my vip list to get funding on the deal. I can download this pdf, have a cover sheet with the information, slap this to the back of it.

Real Estate Investing

Speaker 2: There's the information on the property right there. I can also put on a transaction history, if it's a note, it may show the assignment chain here so he can start looking at the assignment chain to see if it makes sense. Another report sometimes that may get run is a tax status report, so I know who the county is that I should be calling. It will give me paid as of what date, um, and when it was updated.

But again, I still like to call the county, but further on, if you've got a several assets that are in your portfolio, you may just want to check on the tax status and you can come in and if you've got 10 notes, a, you can order the report on all 10 notes, which I'll show you in a minute. So you have that status and you can put the phone numbers down and have a va call or call yourself.

Speaker 2: Just keep updated. And again you can put notes to keep these in a file. Few other components to this that are nice because data tree is really owned by a title company. You can order documents, uh, it can order the last finance doc or transfer docs or assignment of mortgage. I can order, I can order abstract or services. I can order no one report. I do use pro title for own use. I don't use data tree, but it's something you could order. The other is avms.

Note investing

So if the numbers between Zillow, Trulia, realtor, a way out of whack, I may run an Avm, it's 10 to 15 bucks that give you a range, like a cma of the property is worth 50 to $80,000 and they'll give you a confidence score. Are they 20 percent confident or 80 percent confident So that's another component. Other reports you can run, you can run a title chain and lean report on here.

Speaker 2: You can run sales comps for sales in the area. So all these greens, it would basically run a cma for all these Greens that are in the area. And again, I think the sales report might be five bucks or even less. I can run openly and reports a total review report combines a lot of these.

So on data tree, they give samples of what some of these reports look like, where you could go and take a look at it, but primarily for my due diligence I stick with the detail report, transaction history, look at the map and you know, look at the links through these three others. Another cool feature that I mentioned earlier is if you have a portfolio and you wanted to order reports, are you got a list of 20 assets that you're thinking of putting bids on. I can order a batch order, I can go in and order a property detail report and upload a CSV file of those 20 addresses and it spits out an individual pdf of each one.

Note investing

Speaker 2: So back to the component of I've got seven under agreement and I want to include this information as part of a JV package. I will upload that CSV file, download the PDFS, put them in the dropbox for people and there's that information and it's much quicker than having to order one by one by one, but it's just a nice quick way that downloads them all together that you can do a.

The last component I'll talk about is marketing through datatree. Datatree also can be used like a list source so I can go to an advanced search and advanced search allows you to search public records based on pretty much any information that's out there. I can search by county, by the name, by the street. As we scroll down, you'll get a sense for how much we can actually search for here. Uh, and as a note investor.

Speaker 2: Okay, so it's got characteristics where if you were looking for just three bedrooms within a certain location or neighborhood or school system, but as again, a note investor, if I was looking for IRA investors, I could do a search that contains a certain name within the owner of the property. Now I've done search with like quest IRA and I'll be honest, it probably has 30 percent accurate. It doesn't list everybody, but if it still gives me a list of 500 people, 500 people I may not have had.

Note investing

Note investing

I'll give you an idea. There is a cost additional cost to this, but it's under ten cents per results. So if I put in quest IRA for, I'm in Fairfax County, Virginia for Fairfax County and it popped up 500 results, I'd pay 50 bucks for that and can also search owner occupied, corporate owned. Since I've been buying cfds, one of the things I look at is when I go transaction type, I can put in land contract, boom.

Speaker 2: If I had a land contract in Cuyahoga county that is looking to sell, I could search by land contracts in Cuyahoga county to see who's buying, who's selling. Now some of this information you can go to county websites and find it, but also if the county website isn't online, data tree is another location where you can go pull this information. You can also look up seller carryback loans, who are owner finance loans that are out there because there could be loans that are, you know, owner finance. Note investing

That could be in default. You could look up on our finance and come down here and there's a place for foreclosure information. So you could do owner finance, pre foreclosure, which is a quote nonperforming note, and reach out to that investor and say you looking to sell that note because most people who do owner financing aren't note investors and once a note goes belly up, a lot of them don't know what to do. Note investing

Note investing

Speaker 2: So a lot of flexibility availability and the search advanced search function that you can do to find more assets as part of data tree. So not only can it be used for due diligence solutions that can be used for finding sources in marketing. So hope you enjoyed this video on datatree wanting to get in and give you a quick 10 minute tutorial how I use it in my note business. Note investing

I find it'd be very helpful as a full time employee with a company and working notes on the side essentially that trying to maximize my effort and minimize the amount of time that I have to spend on due diligence, but also being very thorough, which I am. And find data tree to be that right. That right mix for me. And if you would like more information on Datatree, feel free to reach out to me. Note investing

I'll answer questions, comments, I can get you 30 days free, uh, with data tree if you're interested in just testing it out. Uh, so it'd be happy to share this with people. And best way to reach me is via email at Chris at seven. He investments.com. Again, that's Chris at the number seven, the letter e investments.com. Thank you. Hope you enjoyed the video and enjoy the rest of your day.