Question About Notes

[Jonathan Kessous]

Hi All,

I have an option to buy a non-performing note from a Notes wholesaler. Before i jump into this (i am new to this) I would like to know if some of you who have done it can assist. I know I will need to hire an attorney to check the note and see what it is legit.

I have a few questions.

Do you use an escrow when purchasing a note?

What needs to be checked prior? 

If you have some tips or a good attorney in Columbus, Ohio let me know.

thanks

[Eric Hyde]

Good stuff Jonathan. I love notes. So there’s a lot to know when doing your due diligence on a non performing note. Yes, you do need an attorney who can look over your collateral file to help protect you. You need to make sure you can ultimately take the house back if the borrowers don’t pay. Will it be an eviction...full foreclosure? What are the timeframes to take it back? Costs associated with servicing the note? Attorneys costs? Insurance...and so on. These are factors to look at...and more. If this is something you are looking to learn more about, I recommend researching Scott Carson. He has an online seminar this weekend that dives deep into all of this.