EP91: The Differences of Due Diligence for Land Notes and Mortgage Notes

In this episode, we talk about differences in land notes and mortgage notes' due diligence.First, due diligence, or DD is a process used to investigate and verify information about a potential investment before deciding. The due diligence process for note investing can vary depending on the underlying collateral or the type of real estate attached to the note.Regarding land notes versus mortgage notes, what you look at to determine value can be similar and different regarding your due diligence process and what you need to consider before making an investment decision.  For land notes, due diligence may include researching the property's ownership history, zoning, land use restrictions, property boundaries and survey, and any outstanding liens or encumbrances. Additionally, it can include inspecting the physical condition of the property and assessing any potential environmental hazards. This will all help with determining the value.For mortgage notes, due diligence may include researching the borrower's creditworthiness, income, employment history, and payment history on the loan being considered for purchase. Additionally, it may involve reviewing the terms and conditions of the loan, including the interest rate, loan-to-value ratio, and amortization schedule. It can also include an assessment of the property securing the loan, similar to land notes due diligence.Overall, the due diligence process for land notes and mortgage notes have similarities but different focuses depending on the type of asset. 00:00 Introduction & Holiday Plans03:10 Due Diligence for Land Notes Vs. Mortgage Notes04:08 What's The Collateral04:55 Establishing Collateral Value 09:28 Worst Case Scenario11:58 Tracking Chain of Title19:02 Note Investing EducationFor more videos on mortgage notes & real estate investing, SUBSCRIBE to our channel: https://pstac.co/subscribe_on_youtube Press the bell icon to get notified of when our new videos are published.Share this video: https://youtu.be/7SswhphKcRU_______________________________________________________Follow Us On These Platforms:👇Facebook: https://pstac.co/facebookLinkedin: https://pstac.co/linkedinTwitter:  https://pstac.co/twitterTikTok: ...