Module 5 SHORT PAPER Putting It All Together

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Hortense Lang
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1 Module 5 SHORT PAPER Putting It All Together

Two Easy Steps Paper Work #1) Buy the NOTE Option to

Endorsement (Allonge) Assignment of Mortgage / Deed of

Sale Acceptance Letter Title Instructions for Payoff of

2 Two Easy Steps Paper Work #1) Buy the NOTE Option to Purchase Mortgage Purchase Agreement Promissory Note Endorsement (Allonge) Assignment of Mortgage / Deed of Trust #2) NOTE Pays Off (When Property Sells) Short Sale Acceptance Letter Title Instructions for Payoff of Lien Sample HUD-1 Satisfaction of Lien (filed by Closing Agent)

3 Step #1 - Buy the NOTE A) Option to Purchase (L.O.I.) Secures Note During Negotiation Gives You Time for Due Diligence Guarantees Exclusivity Between YOU and the Lender B) Mortgage Purchase Agreement (Contract) Final Agreement Gives Wiring Information Includes Estoppel

4 Step #1 - Buy the NOTE C) Promissory Note Endorsement (Allonge) Prepared by Lender in Most Cases Assigns Rights to You, the Buyer Between YOU and the Lender D) Assignment of Mortgage / Deed of Trust Assigns Collateral Goes Into Chain of Title Public Record

5 Step #2 NOTE Pays Off A) Short Sale Acceptance Letter Prepared by YOU Because You re Now the Lender! Given to Current Property Owner Payoff Determined by How Much is in Deal B) Title Instructions for Payoff of Lien Prepared by YOU Given to Title Company for Closing Tells Title Company What the Payoff is on the Existing Loan

the Seller Doesn t Receive any Cash (unless there is room in the deal and you want him

6 Step #2 NOTE Pays Off C) Preliminary HUD-1 Settlement Statement aka a HUD Form #1 Prepared by Closing Agent Sent for Your Review Prior to Closing Should zero-out so That the Seller Doesn t Receive any Cash (unless there is room in the deal and you want him to) D) Satisfaction of Lien Releases Lien from Property Goes Into Chain of Title Public Record

7 Alternate Exit Strategy #1 Option the Note to Another Investor Assignment of Mortgage Purchase Agreement You assign YOUR agreement to Another Investor The Lien will Never be in Your Name No need to file an Assignment of Lien

8 Alternate Exit Strategy #2 Sell Property with Owner Financing Seller (you) receives cash from down and loan, and carries a small 2 nd or. Seller Carries 1 st Lien Note (sells) Seller Carries 2 nd Lien Note (keeps) Sample Promissory Note

9 Alternate Exit Strategy #3 Get the Deed from Owner Deed in Lieu of Foreclosure (State specific) Hold In Escrow if You Already Have Buyer Lined-Up File if No Buyer in Sight Property is Now In Your Name Re-sell for Less than Market Value Develop both Short Term and Long Term Income

10 AND FINALLY LET S RECAP!

11 7 Steps to Success 1. Identify the Deal 2. Talk to Real Estate Agent / Seller 3. Find the Note Holder 4. Negotiate the Note 5. Get Funding Source 6. Get Good Closing Agent 7. Collect Money At Closing

12 Step #1: Identify the Deal Find the Deal Usual Methods Direct from Lenders Aggregators (Google) Does Property Already Have Buyer If not get one!

13 Step #2: Talk to Involved Parties Talk to Real Estate Agent Will Agent Work with You? Is Agent Competent? Do They Have a Buyer in Place? If not find out WHY not Have them Find a Buyer PRONTO! Seller Will Seller Cooperate? If they are selling, then GREAT. If they balk WALK AWAY from the Deal!

14 Step #3: Find the Note Holder Secondary Department Secondary Manager Special Asset Manager Non-Performing Asset Manager Lane Guide Investor Relations In most cases, they can find the right dpt. for you. Administrative Assistant to President

15 Step #4: Negotiate & Buy the Note Use Negotiation Service Option to Purchase (L.O.I.) Secures Note During Negotiation Gives You Time for Due Diligence Guarantees Exclusivity Between YOU and the Lender Mortgage Purchase Agreement (Contract) Final Agreement Gives Wiring Information Includes Estoppel

16 Step #5: Get Funding Funding for a Day Aegis Find Long Term (private) Money Low Interest Rate Long Term (36-60 months) Secured w/ Deed of Trust

17 Step #6: Get GOOD Closing Agent Coordinate Purchase of Note Assignment, etc. Coordinate Short Sale Acceptance You Issue Letter Coordinate Final Sale of Property Records in Order: Assignment of Note/Mortgage Deed Transfer Satisfaction of Lien

18 Step #7: Get the Money Collect Money At Closing Money Comes from the Settlement of NOTE You Paid One Price Seller Pays Off at Higher Price

! One that is Experienced in foreclosures and in Double Closings Be Sure to Get on the Q&A Calls,

19 Your Homework Assignment Go Through the Entire Process Find a Good Title Company / Closing Agent!! One that has at least two brain-cells to bump together!! One that is Experienced in foreclosures and in Double Closings Be Sure to Get on the Q&A Calls, and LISTEN to the ENTIRE program! Register for the Upcoming Workshop!! Call DeAnna at or go to the Website:

Paper Power Note Investing

Paper Power Note Investing Jayme Kahla Module 6 - PUTTING It All TOGETHER! Today s Topic How to Find GOOD Deals (not the junk that is splattered all over the Net) How to Gather Specific Information (and