The successful note businesses learn how to WORK a note; identify unrecognized value; deal with near bankrupt borrowers, foreclosure, default, attorneys, services, governmental regulations, collateral deficiencies, capital demands, and negative “surprises”.  

The recorders office will file any document that meats certain general criteria, this is not approval that the document is effective.When a title company issues a title report, the title examiner will offer his opinion as to what issues have to be cleared in order for the title company to be willing to provide title insurance and take the burden of deficient title.

Texas is a community property - Primary Security Instruments: Deed of Trust, Mortgage- Timeline: Typically 60 days- Right of Redemption: No- Deficiency Judgments Allowed: YesIn Texas, lenders may foreclose on deeds of trusts or mortgages in default using either a judicialor non-judicial foreclosure process.Non-Judicial ForeclosureThe non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust.

In actuality this is more risky; with specific collateral, such as real property, the lender must hold a foreclosure sale and only the DEFICIENCY amount is subject to judgement; in most cases the borrower can sign a”deed in lieu” and receive a release from any additional liability.  

If you have a personal guaranty also get a deficiency judgment against them as well.

it's typically used to mean an arrangement where there is some kind of value add opportunity or advantageous arrangement for the buyer. this could be a property that's distressed in some way, such as a property needing a major rehab; or a property with some other deficiency, such as below market rents, or a bunch of vacant units, or a property that is being improperly managed, or in need of safety or amenity upgrades, or some combination of all of those.a lot of us buy off market - so for SFH and small MFH these are properties that aren't listed on the MLS and where there might not be agents involved. 

I sincerely appreciate your feedback, and you've raised some excellent points.You're right to flag the 22% expense ratio—it is deficient, and I agree that a 35% ratio is a much more conservative and standard underwriting assumption.The numbers I presented, including the $33,894 in expenses and the $121,086 NOI, were taken directly from the seller's provided T-12 (Trailing 12-Month) financial statement.

Often buyers are seeking owner carry options because one of these qualifiers is deficient - or they are seeking better financing terms.

On commercial non owner occ loans the lender does not have to take the Dil and can foreclose and get a deficiency judgement against the borrower. 

in NIL funds there is also a lot of demand for long term/mid term housing for: athletes, coaches, sponsors, scouts, agents and otherwise - in a region that is chronically luxury home deficient.