Updated about 7 years ago on . Most recent reply
Note Investing - Second Lien Position
Hi All,
I'm considering lending money to a turn-key company in MO for an APR of 10% paid monthly with all funds to be returned after 6 months with possibility to renew.
They've given me a promissory note which contains the following term:
"This loan shall serve as a second lien to the property located at ------------"
They reported to me that they have more than enough equity to cover both liens.
Is this term in the promissory note enough to protect me in the case of default? I've spoken to a lawyer who recommended I also be added to the Deed of Trust.
In general what's your take on this investment approach? I may be moving in the next year so I'm looking for reasonable return, short-term investments with low-voltility monthly cashflow.
Best,
Will