If YOU were writing a Note, what do you need to feel secure?
I am funding a loan for a buyer this week, with the intention that they will refinance in the next 6 months to pay me off.
Terms of the deal:
2 points up front at close of escrow
10% interest only paid monthly via a servicer.
I will have title insurance through the title/escrow company. They will originate the note.
I’m actually doing an 80/20 (I am 80% and in first lien position).
Buyer is pre-paying 1 year of taxes and insurance at close of escrow.
Do I need them to do anything more? Something I missed? What else is important?
Thank you in advance, I do not have experience being a lender, this was an out-of-the-blue opportunity for someone I trust and decided to take it.