Dhankar Infrastructure
'Dhankar Infrastructure' Real Estate Agency provide professionalism, experience, in-depth local knowledge and a commitment to providing personal service at its highest standards
Read More..Purchase:-
1) Perform a search to find properties that have loans (also called property liens) on them. Use keywords such as real estate notes, real estate liens, property liens, seller carry back notes, seller financed notes and real estate notes for sale. Individuals can readily purchase existing real estate notes from banks, brokers or private lenders. When you purchase a real estate note, you are buying the actual note instrument and all the terms that come along with it. You can find real estate notes to buy by contacting sellers who have participated in the financing of a property. Most of the search results you get back will most likely be individual sellers who have financed a home buyer through real estate notes.
2) Call the holder of the note. Explain that you are interested in purchasing the real estate note. Inquire about the reason the note holder is selling the note. Ask what price the seller would accept for the real estate note. Once you agree on terms, draw up a written real estate note assignment agreement signed by you and the note seller. Be sure to have the original real estate note security instrument, with all rights, and proper title signed over to you. Also make sure to record the real estate note assignment at the clerks office in the county where the property is located.
3) Obtain all of the original documents executed when the real estate note was created. The note seller should be able to locate them and hand them over to you. Verify the loan balance described in the note, the payment amount, the next payment due date and the total duration of the loan payments. Carefully read over all of these documents to make sure that everything is in order and stated as agreed.
4) Find out the current market value of the property which secures the real estate note. The property serves as collateral, so make sure that the property value is sufficient to cover the balance of the note. You can search online and use recent property sales near the property to get a true picture of the value. If you want a more solid market value, then order an appraisal report from a professional appraiser.
5) Run a credit check on the note seller to make sure that there are no pending bankruptcies or foreclosures that could jeopardize your position in the real estate note. If there is a pending bankruptcy or foreclosure, it could cause your note to become difficult or impossible to collect on. The note seller will have to sign a document allowing you to check his credit. But it is worth the time to take this extra step to ensure the security of future note payment income.