NOTE INVESTING
Hey, good morning everybody. Chris Seveney here on the morning drive. Hope you're all doing well today. I want to give a little due diligence tips and tricks. I'm not sure that really tricks, but uh, some things I do as part of my due diligence, uh, that I think have been helpful along the way. First is a only reports when you get in one report, if, whether it's a contract for deed or notes, in note investing make sure that you let your attorney know who's going to review that one report.
Who does you're buying it from because uh, on a note, there could be an assignment that says it's from Bank of America, but it's actually a hasn't been assigned to the company you're buying it from and there is no way for your attorney to know that they're just going to look into one report and say, okay, the chain looks clear, but there could be two or three assignments missing based on depending on who you're buying it from, a on contract for deeds, a similar check for who the deed it is for. note investing
Who's Your Seller
You're actually buying it from. And the other is, if the land contract is recorded, check to make sure that it's the person from the land contract that is, you're buying it from a, I've had contracts for deeds in the past where, uh, the recorded land contract, which you didn't have a cancellation, a was never canceled and there was a new borrower on a land contract, uh, that hadn't been recorded, so that can create a lot of confusion, but just a lot more work to try and get one cancelled the other one taken.
And sometimes it can be pretty detrimental, um, and might have to spend some money to get that last one canceled and a new one a confirmed that also makes sure that it is a valid land contracts so it can get very confusing. So always make sure you kind of put the pieces together of when you send it to tyranny, you know, hey, Mr, Mrs Attorney, I've got this note that I'm looking to acquire from x, Y, Z and the collateral file that they had included a, a note from this date and time in this mount from this borrower.
So that's one second thing is on getting the servicing notes, whether it's a cfd or a note. Uh, I know some people don't get them on contract for deeds. I'm not sure why, but I've heard some people say they don't get those and if you don't get them from the seller, ask, you know, just ask for them and say, Hey, I want to pay history and surfacing comments. They'll provide them to you.
Due Diligence
They have them and they're not typically trying to hide anything. So make sure that you get those as well. A lot of useful information in there that I pull out a phone numbers if there is any social security numbers as well as some relevant highlights and I take that and I send it to my servicer who's getting the loan boarded and say, Hey, this loans on its way. Here's what I'm looking to do on this one here is kind of when they run a Tlo, here's the phone numbers that were in the service and comments.
And here's kind of some of the history. Because once it gets transferred, a lot of times a new borrower will think the old servicer is starting blind and doesn't know what's going on and that is not the case, but you also want to educate them with as much information as you have. So thanks for watching this morning. I hope you're having a good day. Remember to listen to us on the good deeds note investing podcasts, and follow me on Instagram, twitter, and hope everyone is getting ready for the holidays and talk to you later.