All Forum Posts by: Fred Moskowitz

@Andy Mirza check out NRTT - National Real Tax Tracking, for tax monitoring services.

Great question @James LaRocque, and welcome to one of the fun (an often unexpected) occurrences that happen when you are a note investor.

The main point is that you work closely with your servicer in the coming weeks to coordinate all of the details.

First, you should check the payoff quote to make sure that the numbers agree with your own expectations, and that any outstanding charges such as legal costs or advances that the lender has incurred, are included.

Get clear on how the funds will be received by the servicer and disbursed to the lender, and timeframes for this.

Will the lender or the servicer be issuing the satisfaction/release of mortgage, and who will handle getting it recorded? This will vary based on state and local jurisdiction, so be sure that you work this out with the servicer and you are clear on the process. Remember that if the ball gets dropped on this and there is a problem later on, the liability will come back to the lender. For this reason, we prefer to handle our mortgage satisfactions and releases in-house, when allowed by state law. Some servicers will require that they handle it for you. In any event, make sure that it gets done, and that you have a paper trail showing that it was completed. (I actually discuss this at length in my newest book on note investing)

Happy to discuss with you offline if you have further questions.

@Christian Thompson

Yes, this can be accomplished with a wrap note. This note will 'wrap' around the existing loan and leave the existing note in place. Be sure to work with a good RE attorney to put this transaction together for you.

Also work with a loan servicer that is experienced with handling wrap notes. Allied Servicing is one that I would recommend for this transaction.

@Joseph King

I recommend that you speak with a securities attorney. The majority of the questions you are asking, you will want to receive  legal guidance that is specific to your own situation. They will help guide you through the process.

@Peter Halliday great question. This comes into play as part of your due diligence and purchase criteria when bidding on notes.

And yes, you absolutely want to consider population density (urban/suburban/rural).

Reach out to @Bill McCafferty, he should be able to take care of this for you.

In addition, he is a very seasoned note investor himself.

Yes, for small and medium sized investors, I would recommend that you outsource all this to a loan servicer. They will take care of this for you on an ongoing basis for a relatively small fee.

@Keith Ghion this is a very specific tax question, specific to your personal situation. I recommend that you speak with the CPA that will be handling the tax returns for the entity that you are funding as part of the JV, so that you and your CPA can do adequate tax planning. Remember that part of the due diligence that you should do before getting into any investment is to evaluate and fully understand the tax liability of the deal and how it will impact you as an investor.

Hello @Antonio C. and welcome to the forum! Yes, you will want to use a loan servicer, and you will quickly find that they will become one of the key vendors for your note investing activities. The servicer will play a critical role in your compliance, handling of day to day activity, and taking care of the accounting and tax reporting on your note. I do see that there have been some good referrals made that you will be able to check out. Good luck!

@Victor Ong yes. Check out paperstac.com which is an excellent marketplace service dedicated to putting buyers and sellers of notes together.