Private R. E. Notes

The following are the requirements from the Private Mortgage Note Buyer

1. A copy of the closing statement when property was sold, showing disbursement of funds

( HUD settlement statement, etc. )

2. Copies of the actual note & mort security instruments - Recorded Copies, if available.

3. Note sellers Loan amortization schedule, if available.

4. A copy of borrowers hazard ( fire ) insurance policy, naming the note holder as a loss payee or mortgagee.

5. A copy of a Lenders title insurance policy, issued at the time of closing on the sale of the property ( not a commitment ) , if available.

6. Copy of buyers/sellers sales contract, if available, ( prefer on commercial deals )

7. Photographs, sales brochure, property brief, previous survey or a description of the property.

8. Financial & Personal information about the Mortgagor(s), name, address, S.S. #, Phone #

9. Employment information on payers, if available, ( Employer, address, phone # )

10. A running record of the payment history of the purchase money security instrument. If available, a payment ledger, or payer canceled checks, or note seller bank deposit slips, or bank statements. Post marked envelopes are O. K.

11. If serviced through a third party, their name, address, account #, phone #

If a junior mortgage, include the following :

1. Name & address of any holders of senior mortgages.

2 Account number or any identification that is used to retrieve information when needed.

3. Detailed information about the amount, method of payment, interest rate, & escrow provisions in regard to the senior mortgages ( an exact copy of the mortgage & note )

Private Real Estate Notes

Example of Converting Payments into Cash

You are receiving 675.00 a month in Annuity payments & would like to convert those payments to cash, to start a business, etc.

Example:

Seller sells 60 months of payments $675.00 to investor for $26,000.00 cash now

Buyer continues to make $675.00 monthly payments, which now go to the investor for the next 60 months

Investor pays Seller $26,000.00 cash and now receives monthly payments of $675.00 for the next 60 months

The $675.00 cash flow each month provides the investor 19% yield for the $26,000.00 investment

Benifits to Investor

Benifits to Seller

$675.00

$26,000