At this point, you know having a good loan means having good properties and good borrowers.
But there’s still one more key component that will help you build a solid foundation for your investments:
We all interpret the same conversation in different ways. For example, a conversation between you and a borrower might be understood in two different ways: your way and their way.
That’s why it’s so important to know these top 3 ways to secure your loans:
- Get it in writing and get it signed by both parties.
- No verbal agreements allowed.
- Record agreements like rates and terms.
- Always have an attorney prepare your documents.
- Use YOUR attorney, not the borrower’s.
- Require the borrower to pay the cost of the attorney (not you).
- Ensure defaults are in place.
- Include all documents required by the state.
- Close through a title company
- Make sure you’re in the proper lien position (first).
- Make sure the lien gets recorded.
- Make sure the closing is handled by a third party (title).
All of this might seem like a lot of work, but these simple steps will protect you, your loved ones, and your money.
Creating good returns with good loans can be easy and profitable. All you need to do is use the 3 key building blocks I’ve shared with you to create a strong foundation.
- Good Properties
- Good Borrowers
- Good Security
Ready to build your foundation for good loans? Contact us today and see how we can help you succeed in private lending.
- Email us a question at Mike@TheNoteShop.com
- Schedule a 30-minute consultation.
- Enroll in my personalized coaching services.
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Private notes-Income and Security #3