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How to Invest in First Trust Deed Loans

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Visit: REILoanPro.com How to Invest in First Trust Deed Loans: 6 Categories of information for Trust Deed Investors: 1. Property (Collateral) / Appraisal 2. Title Insurance / Condition of Title 3. Borrower 4. Transaction 5. Exit Strategy 6. Loan Servicing I. PROPERTY - Has to be worth a certain amount relative to the property that secures the trust deed investment. - check both the comparable sales and the comparable listings in the area - Sources for lists of sales o title insurance companies o county recorders o real estate brokerages - Title Company o Actual printout of comparable sales from the provider o Some investors obtain this - Get independent opinions about property, other than from the person offering the trust deed investments to check if the collateral is saleable II. California Title Insurance / Condition of Title - can give you protection against liens you're unaware of, incorrect ownership and a host of other problems - always obtain and read the actual title insurance policy as there are many important details with title insurance - learn the difference between a preliminary title report and an actual policy of title insurance. III. Borrowers - Reason why some people with so much equity pay a higher rate when bank rates are lower is because Banks don’t make loans just because there’s lots of equity. Banks, mortgage bankers, credit unions and all the other “institutional lenders” require o Credit o documented income with likelihood of continuance o verification of assets o compliance with a host of banking rules and laws. - There are many good borrowers who don’t meet all those requirements - Aspects being considered: o Credit - credit report and related credit information can provide valuable o Income - to determine if the borrower has funds available to pay. This can be determined by:  Bank statements  proof of gross income and leases  invoices  contracts  o Purpose/Plans/Projections  analyze what the purpose of the loan  the borrower's future plans  projections they have for their finances and the property IV. The Transaction - Be sure that the right disclosures and documents were used and that applicable laws were followed. o Purchase – if down payment was paid o Refinance or equity loan (and not part of a purchase transaction)  Owner occupied - there are a host of laws to investigate  Non-owner occupied - fewer laws V. Exit Strategy - determine what types of areas best suit your investment objectives - Aside from paying off the loan, the property can be: o Sold - look at the market and potential market for the property in the future o Leased - if a property can’t be sold, it can be leased out until better times. VI. Loan Servicing - Should have an experience, qualifications and interest in resolving loan problems Loan servicing manager handles: - servicing the loan - collecting payments - handling delinquencies - foreclosing (if necessary) Visit: REILoanPro.com
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Beau Eckstein (3 years ago)
*How to Invest in First Trust Deed Loans* Visit: REILoanPro.com   How to Invest in First Trust Deed Loans:   6 Categories of information for Trust Deed Investors: 1. Property (Collateral) / Appraisal 2. Title Insurance / Condition of Title 3. Borrower 4. Transaction 5. Exit Strategy 6. Loan Servicing   I. PROPERTY - Has to be worth a certain amount relative to the property that secures the trust deed investment. - check both the comparable sales and the comparable listings in the area - Sources for lists of sales ·         title insurance companies ·         county recorders ·         real estate brokerages - Title Company ·         Actual printout of comparable sales from the provider ·         Some investors obtain this - Get independent opinions about property, other than from the person offering the trust deed investments to check if the collateral is saleable   II. California Title Insurance / Condition of Title - can give you protection against liens you're unaware of, incorrect ownership and a host of other problems - always obtain and read the actual title insurance policy as there are many important details with title insurance - learn the difference between a preliminary title report and an actual policy of title insurance.   III. Borrowers - Reason why some people with so much equity pay a higher rate when bank rates are lower is because Banks don’t make loans just because there’s lots of equity.  Banks, mortgage bankers, credit unions and all the other “institutional lenders” require ·         Credit ·         documented income with likelihood of continuance ·         verification of assets ·         compliance with a host of banking rules and laws. - There are many good borrowers who don’t meet all those requirements - Aspects being considered: ·         Credit - credit report and related credit information can provide valuable ·         Income - to determine if the borrower has funds available to pay. This can be determined by:  Bank statements  proof of gross income and leases  invoices  contracts  ·         Purpose/Plans/Projections              analyze what the purpose of the loan              the borrower's future plans              projections they have for their finances and the property   IV. The Transaction - Be sure that the right disclosures and documents were used and that applicable laws were followed. ·         Purchase – if down payment was paid ·         Refinance or equity loan (and not part of a purchase transaction)  Owner occupied - there are a host of laws to investigate  Non-owner occupied - fewer laws   V. Exit Strategy - determine what types of areas best suit your investment objectives - Aside from paying off the loan, the property can be: ·         Sold - look at the market and potential market for the property in the future ·         Leased - if a property can’t be sold, it can be leased out until better times.     VI. Loan Servicing - Should have an experience, qualifications and interest in resolving loan problems   Loan servicing manager handles: - servicing the loan - collecting payments - handling delinquencies - foreclosing (if necessary)   Please visit my website,  http://reiloanpro.com Or reach me, Beau Eckstein CA BRE #01307829 at 925-852-4720 You can also send an email at [email protected] #hardmoney #privatemoney  
Beau Eckstein (3 years ago)
*How to Invest in First Trust Deed Loans* http://www.slideshare.net/privatemoneyloanscalifornia/how-to-invest-in-first-trust-deed-loans-44046900 6 Categories of information for Trust Deed Investors: 1.       Property (Collateral) / Appraisal 2.       Title Insurance / Condition of Title 3.       Borrower 4.       Transaction 5.       Exit Strategy 6.       Loan Servicing           I.            PROPERTY -          Has to be worth a certain amount relative to the property that secures the trust deed investment. -          check both the comparable sales and the comparable listings in the area -          Sources for lists of sales o   title insurance companies o   county recorders o   real estate brokerages -          Title Company o   Actual printout of comparable sales from the provider o   Some investors obtain this -          Get independent opinions about property, other than from the person offering the trust deed investments to check if the collateral is saleable         II.            California Title Insurance / Condition of Title -          can give you protection against liens you're unaware of, incorrect ownership and a host of other problems -          always obtain and read the actual title insurance policy as there are many important details with title insurance -          learn the difference between a preliminary title report and an actual policy of title insurance.       III.            Borrowers -          Reason why some people with so much equity pay a higher rate when bank rates are lower is because Banks don’t make loans just because there’s lots of equity.  Banks, mortgage bankers, credit unions and all the other “institutional lenders” require o   Credit o   documented income with likelihood of continuance o   verification of assets o   compliance with a host of banking rules and laws. -          There are many good borrowers who don’t meet all those requirements -          Aspects being considered: o   Credit - credit report and related credit information can provide valuable o   Income - to determine if the borrower has funds available to pay. This can be determined by: §  Bank statements §  proof of gross income and leases §  invoices §  contracts §    o   Purpose/Plans/Projections §  analyze what the purpose of the loan §  the borrower's future plans §  projections they have for their finances and the property       IV.            The Transaction -          Be sure that the right disclosures and documents were used and that applicable laws were followed. o   Purchase – if down payment was paid o   Refinance or equity loan (and not part of a purchase transaction) §  Owner occupied - there are a host of laws to investigate §  Non-owner occupied - fewer laws       V.        Exit Strategy -          determine what types of areas best suit your investment objectives -          Aside from paying off the loan, the property can be: o    Sold - look at the market and potential market for the property in the future o    Leased - if a property can’t be sold, it can be leased out until better times.        VI.        Loan Servicing -          Should have an experience, qualifications and interest in resolving loan problems   Loan servicing manager handles: -          servicing the loan -          collecting payments -          handling delinquencies -          foreclosing (if necessary)   #hardmoneyloanlenders   #privatemoneylender #hardmoneyloan #houseflipping

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