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    Private Money Advantage: Speed Of Closing The Transaction

    October 24th, 2014

    Private Money loansMortgage money obtained from banking or institutional sources, called conventional mortgage money, usually takes between 45 and 90 days to fund. Institutional lenders need not only obtain appraisal of the value of the property, but also require detailed examination of the borrower’s credit history and current financial status, as well as financial statements and tax returns not only for the property securing the loan but for all real property and business interests owned by the borrowing entity and the borrower himself. Read the rest of this entry “

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    How To Conduct Due Deligence In Real Estate

    June 18th, 2010

    Due diligence is concerned with the investigation of the property being considered for purchase or used for collateral and the assessment and verification of the investment parameters being used to decide whether to invest in a property – either as a direct purchase or a loan. The real estate investor going the solo route will have to do all information gathering, assessment and verification him self. The investor utilizing the services of a real estate advisor will only have to spot check and verify the due diligence already done by the advisor. As the relationship develops between the investor and his advisor, the investor should be spending less and less time verifying information submitted by the advisor, although the investor should never totally abandon due diligence efforts.

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    Investing In Private Mortgage Notes vs. Investing In Discounted Mortgages – Part II

    June 1st, 2010

    In my previous blog, I covered the differences in investing between a private mortgage note and a discounted mortgage.

    Although the investor in discounted mortgages can decide not to purchase a particular mortgage because of a poorly written note or deed of trust, the investor will find most opportunities presented to him in this field to have deficiencies in paperwork to one degree or another. The private mortgage note investor controls all the risks associated with a bad or improperly drawn mortgage instrument by having a real estate attorney he knows and trusts prepare and exam all documentation required to perfect his lien holder interest.

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    How To Conduct Due Diligence On Real Estate

    May 25th, 2010

    Due diligence is concerned with the investigation of the property being considered for purchase or used for collateral and the assessment and verification of the investment parameters being used to decide whether to invest in a property – either as a direct purchase or a loan. The real estate investor going the solo route will have to do all information gathering, assessment and verification him self. The investor utilizing the services of a real estate adviser will only have to spot check and verify the due diligence already done by the adviser. As the relationship develops between the investor and his adviser, the investor should be spending less and less time verifying information submitted by the adviser, although the investor should never totally abandon due diligence efforts.

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    What are Trust Deeds Investments (Private Mortgage Notes) and what is the Investment Opportunity?

    May 19th, 2010

    What is a “promissory note?” A promissory note is a written promise to pay or repay a certain amount of money at a certain time, or in a certain number of installments, or on demand to a named person. It usually provides for payment of interest, and its payment can be secured by a deed of trust.

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    Trust Deed Investing After the Real Estate Meltdown of 2008 — 2009.

    May 4th, 2010

    With real estate prices falling as much as 50% in the last two years, many real estate investors, as well as many trust deed investors lost a significant part of their principal. The real estate investors that used leverage ended up in an even worse position, sometimes losing their entire investment. Many trust deed investors ended up foreclosing on property and having to take large losses in order to sell in the current market environment. But it did not have to be this way. If these trust deed investors had followed simple common sense rules their principal would be intact today.

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    Investing In Private Mortgage Notes VS. Investing In Discounted Mortgages Part I

    April 30th, 2010

    Much has been written about the high yields and relative safety of investing in discounted mortgages, especially second and other junior lien instruments. Furthermore, since both private mortgage investments and discounted mortgage investments are based on investments in real estate debt security instruments, i.e. mortgages or deeds of trust, these two investment opportunities do have many similarities. Information on techniques and formulas for investing in discount mortgages can be found in numerous books and on many web sites devoted primarily or exclusively to this type of investment. However, significant differences between these two types of investment do exist.

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    A Real Estate Portfolio for Higher Current Yield and Greater Potential Gains

    April 20th, 2010

    Real estate investments are made for two main reasons. One is to provide a stable source of current income, the other is to provide a hedge against inflation. Popular thinking is that the investor can gain both through the purchase of income producing property. And while this is true, this investment may not yield the highest return possible with the least risk.

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