Note Purchase Check List

I. Assemble Documents From Note Seller

A. Obtain Documents From Note Seller
____Note Make Sure Seller Has ORIGINAL Mortgage, Deed of Trust, or Land Contract
____Amortization Schedule
____Closing Statement from Sale of Property
____Previous Title Work if Available
____Appraisal If Available Probably Not Much Value if Over 90 days
____Hazard Insurance Policy or Endorsement
___ Proof Taxes Have Been Paid

Obtain AT LEAST the Note and HUD statement to Be Able to Make an Offer
The Other Documents Can Be Gathered if Offer is Accepted

B. Review Note, Deed of Trust, Warranty Deed and HUD Statement
___Use Note Checklist to Make Sure It Is In Proper Form
___Use Deed of Trust Checklist To Make Sure It is Correct
___Look For Clauses That Will Devalue Note: Discounts, Right of First Refusal etc
___ Check Warranty Deed and Legal Description to Make Sure It Matches Deed of Trust
___Check HUD Statement For Down Payment, Lender's Policy, Address, Note ESPECIALLY LOOK FOR POC (PAID OUTSIDE CLOSING)

C. Perform Calculations
___Calculate Payments: to Make Sure They Are MATHAMATICALLY Correct
___Calculate Balance to Make Sure It Is MATHAMATICALLY Correct
___Verify Balloon Balance and Balloon Date
___Check Date of Note with First Payment Date
___Prepare and Amortization Schedule

D. MAKE OFFER IN WRITING
____Get Offer Signed Seller Warranties
____Open Escrow

E. Information on Payor
____Credit Report If Using an RMLO, Obtain Application
____ If Credit Report Is More than 90 Days, Reorder IF ACCEPTABLE KEEP GOING
____ Contact Information (Phone, Work, Address, Email)
____ Employment Verification
____If Payor Is a Corp or LLC, Proof of Good Standing, Resolution If Available
____If More Than One Payor, What Are Their Relationships

F. Information on Note Seller
____Authorization to run credit on Payor
____Contact Information
____W-9
____If Seller Is a Corp or LLC, Need Resolution and Proof of Good Standing

G. Information on Property
____Type of Property: SFR, Duplex, Triplex, Apartment, Office, Land, MH
____ Size: Sq. ft, Bedrooms, Bath, Lot Size, Acreage, Number of Units etc
____Owner Occupied or Rental
____If Land, How Is it Zoned
____If Income Property, What Was Income When Note Seller Owner it

II. Due Diligence Checklist:

A. Obtain title commitment
_____Note Buyer's Name and Contact Information Correct ____Dollar amount correct (not valid if blank)
____Property Owner's Name the Same as on Deed of Trust and Note
____Legal Description same as on Deed of Trust
____Lien Position Is Correct
____Title File Received with Commitment (Not Valid Without)

B. Order Appraisal or BPO
____Perform Your Own Comps

C. Obtain Property Hazard Insurance Endorsement (Must have in writing prior to closing!)
____Add Note Buyer as Additional Insured on Mortgagee
____Remove Note Seller as Mortgagee At Closing
____Check Address
____Check Amount of Coverage
____Check Terms of Coverage (Flood Insurance)

D. Obtain verification of senior mortgage balances, if any

E. Obtain fully-executed affidavits
____Payment History Affidavit
____ ALSO PROOF OF PAYMENTS FOR PAST 6 MONTHS
____Escrow Reconciliation Affidavit
____Seller's Warranties

F. Prepare Documents for Transfer If Not Completed By Title Company
____Endorsement of Note (Allonge)
____Assignment of Deed Of Trust MUST BE NOTARIZED
____"Good Bye" Letters Signed By Note Seller to Payor and Insurance Company
____"Hello" Letters Signed By Note Seller and Note Buyer to Payor and Insurance Co. TO BE SENT BY CERTIFIED MAIL AND REGULAR MAIL
____PAYOR TO SIGN FIRST PAYMENT LETTER.

PERFORM EXIT INTERVIEW WITH THE PAYOR Estoppel Letter

G. Closing Instructions
____Send Closing Instructions To Title Company
____Send Wiring Instruction
____Obtain a Closing Protections Letter

HAVE AN ATTORNEY CHECK FOR DODD FRANK COMPLIANCE and ANY OTHER LEGAL ISSUES. COLLECT PAYMENTS!!!!

Tom Henderson H&P Capital Investments, LLC 800.481.6588 www.hpNOTES.com

If you have a topic you would like Tom to discuss, Contact me. It is from your comments I get many of my topics.

Remember, if you know of someone who has a note to sell, I do pay referral fees and you receive the benefits.

To forward this email to friends or business associates who have an interest in time value of money, click the "Forward this newsletter" on the front page. Tom Henderson /a.k.a. THE NOTE PROFESSOR .

Copyright © H&P Capital Investments LLC
All rights reserved

If you have not attended a Note Professor "How To Get Rich with Notes" class, be sure and purchase the Note Professor Note Book manual to enhance your knowledge of creative real estate financing and note buying and selling.

"I got your news letter. It was great, purchased your (Notebook) and it was awesome. I used your renter technique and it worked also. I am getting 41% return thanks to your expert advice. I have spent hundreds and not able to do any thing thru other gurus" Gary W. Garland, TX

"It blew me away what a powerful tool notes can be. Lots of great information, worth every penny! Highly recommended."
Jeff C. The Colony/Investor

"Your manual is short and straight to the point, it's rare to buy something today that gives you your money's worth. Thank you" Stephan B. Phoenix, AZ

You will learn at least one new usable concept to increase your profit in buying or selling notes and real estate.
Tom Henderson, author

By popular demand, THE NOTE PROFESSOR NOTEBOOK is now available in easy, downloadable E- book form for a the low, affordable price of $39.95.

Other products are also available, including HOW TO MAKE OBSCENE PROFITS with SMALL MONEY, and GUIDE FOR SECOND LIENS. There is also a FREE download of CHECK LIST FOR OWNER FINANCING.

Simply go to the NOTE BUYERS STORE. I can think of nowhere that you can find such information packed products at such incredibly low prices. We are still working out the bugs, so if you have any problems, be sure to contact me.

Several of you have asked me to comment on Britain's exiting from the European Union and what is going to happen. The short answer is "I Do Not Know", and more importantly, neither does anybody else.

Those of my friends who paid attention to the "common wisdom" at the time, reminded me of how the stock market in America and Europe was taking a dive. When I asked him what economic principle would make the stock market dive; NONE could be given. I then made the comment to wait a week and see what happens. Sure enough, both markets have rebounded and even at records high. In other words, a nation withdrawing from an organization is no basis for its economy to falter.

A key factor in making an economic analysis is the term ceteris paribus, which is Latin for "all things remains the same". This principle applies the Brexit as well.

If we assume "all things remain the same", by this I mean the only factor is Britain's exiting the European Union, very little will change. Remember, that a nation's economy is dependent on the goods and services the individuals of that country produce.

For example, if the individuals of a country produce steel and automobiles, this country's exiting a "union" will not seriously affect the trade of steel and automobiles.

Granted there will be a period where the currency of Britain will seek its market value. The same applies to all currencies.

As it stands now, the pound is weak against the dollar. All this means is at the present time, British products will be cheaper to Americans and American products will be more expensive to Brits. The result is if we in America are buying a British car, the car will cost us less than a month ago. Likewise, if we plan a trip to London, we Americans will get more "bang for our buck".

Conversely, those in Britain buying American goods will pay more than they might have a month ago. A good analogy would be when Serena Williams won the Wimbledon, she was paid in pounds. It was reported in the news that because of Brexit, she made $380,000 less when the pounds were converted to dollars. If the opposite were true, and she were paid in dollars, and converted them to pounds, she would have received more pounds than the previous year.

The point is there will be a currency exchange adjustment that will reach a market level. Will there be winners and losers for those institutions and traders in currencies; most definitely. But currency exchange is a result of goods and services produced, not visa versa. In other words, the value of the pound will be dependent on the goods and services produced, just as with any currency. It should be noted that the European Union, and indeed Britain, were in dire financial straits long before Brexit.

Brexit did not change this factor. Why? Because their governments are spending more than the ability of producers to produce. The same holds true for Britain.

Britain is not "out of the woods" just because it chose to withdraw from an organization that is going broke. Britain also is spending more than its ability to produce. This is not a recipe for a healthy economy. For those saying Britain is headed for recession because of Brexit, are not using common sense.

Britain may in fact be headed for recession, but it will not be because it withdrew from the European Union, but rather because its politicians are spending more than the country is producing. Likewise, Germany, Italy, France, Spain, and Greece very well may head into recession, but it is not because one or more countries withdrew from an organization, but rather because the individual governments are spending more than they are producing.

Many have said that now Britain must renegotiate all their trade agreements with Europe. Sadly, this might be true. I say "sadly" because individuals trade with one another, not countries. Politicians get involved in trade, there will always be winners and losers. This is an element of trade where "all things being equal" do not apply because politicians always have hidden agendas that will result in winners and losers. So could Britain end up a "loser" because of political plans rather than economic laws? Of course, but it will have nothing to do with withdrawing from a bankrupted organization, and more to do with political retaliation.

Summary: Consumption cannot exceed production, no matter if you are an individual, a single country, or a collection of countries. As Adam Smith pointed out in his classic, "An Inquiry Into the Nature and Causes of the Wealth of Nations", a country's wealth is determined by the production and therefore the wealth of its individual citizens, not being members of the European Union, which is operated by global bureaucrats and politicians. If Britain is to become a wealthy nation, it will be because of the production of its individual citizens. If it heads into recession, like all recessions, it will be because consumption has exceeded production.

How does this apply to real estate and notes? Be aware that Europe's and America's governments are consuming more than is being produced. Take this into consideration and act accordingly.

If you have questions or a topic you would like me to discuss at the workshop. CONTACT ME Tom Henderson /a.k.a. THE NOTE PROFESSOR. It is from your comments that I receive many of my topics.

Copyright © H&P Capital Investments LLC
All rights reserved

Click here to subscribe and/or view the archives of past information packed issues 2003 to September 2009. (Current archives October 2009 though June 2016 click here)


Forward this newsletter to a friend that would have an interest in Owner Financing and buying and/or selling Real Estate NOTES.