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Important Documents When Investing in Real Estate Notes by Michelle Janson
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Important Documents When Investing in Real Estate Notes |
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Advice,Finance & Investment,Real Estate
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Once you have found the mortgage note you’d like to purchase and you or your broker have presented an offer the holder, there are a few simple guidelines to help make the process smoother in finishing the transaction . Apart from making sure that all of the needed documents are legal and signed, and reflects what was originally communicated within the deal, here is a list of some of the documents that are necessary for the transaction: • The deed of trust – this is used in most states in the United States, but can generally be used interchangeably with the mortgage note. The main differentiation is that they confer different options in the event of a default. If for some reason there is a default on the note – this document makes it so it is collateral. To protect yourself, make sure the legal description within the document is correct. • The mortgage note – also commonly known as the promissory note, should be clearly stated and include a description of the grace period and result in the event of a default. The mortgage note is the most crucial document when it comes to investing in real estate notes. Make sure that all of the information within the document reflects the deal that was agreed upon. • The closing statement – this will display the breakdown of costs for the transaction. Make sure that the attorney or Title Company signs the document and that sales and down payment match that of what was originally agreed upon. • Title insurance- this will protect the property against liens on the property that were unknown. Doing the due diligence of ensuring all of these documents have all the same information that was agreed upon offers peace of mind that buying real estate notes can be profitable an often times, a less risky investment in comparison to other alternatives.
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buying real estate notes, purchasing real estate notes, real estate note auction,
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