PRIVATE MORTGAGE LOANS COMPARE WITH OTHER REAL ESTATE INVESTMENTS - PART 1
Wednesday, August 11
In any proper evaluation of the worth of an investment, the particular investment in question must be compared with similar alternative investments. In the case of private mortgage loans, this means a comparison of these loans as investments with other high yield, fixed income, real estate relate...
HAZARD INSURANCE
Wednesday, August 11
PROPERTY INSURANCEFire and hazard insurance will protect against the most common cause of real property destruction. Property coverage prices and availability vary from state to state, region to region, and by type of property insured. The private mortgage lender should make sure that the propert...
TITLE INSURANCE PROTECTION
Wednesday, August 11
TITLE INSURANCEA Lenders Title Policy will protect the lender in the event that a claim is made against the clear title of the property. Title Insurance Companies underwrite these policies and guarantee that the owner of the property is indeed the rightful owner, that all liens and encumbrances h...
INVESTMENT PARAMETERS WHEN MAKING A PRIVATE MORTGAGE LOAN - PART 5
Wednesday, August 11
Market value and equity of the property and the security for your loanThe market value of the Property is critical to your decision to lend your funds or purchase a promissory note because there is a possibility that the only way to recover your investment is through the sale of the property. The...
INVESTMENT PARAMETERS WHEN MAKING A PRIVATE MORTGAGE LOAN - PART 4
Wednesday, August 11
Ability and experience of borrowerFinally, the investor in private mortgage notes must evaluate the ability of the borrower to successfully operate the property and to successfully complete the property renovation or disposition plan. A professional real estate investor with a long and successful...
INVESTMENT PARAMETERS WHEN MAKING A PRIVATE MORTGAGE LOAN - PART 3
Wednesday, August 11
Exit StrategyThe fourth major investment parameter we must consider is exit strategy. Very simply, this is how the borrower plans to repay the loan. Since most private mortgage loans are short term the private mortgage lender/investor has a keen interest in finding out the borrower’s exit strateg...