This is the penultimate question from our private lending FAQs. The question is: How does title insurance help protect me as the lender?
And here is our answer:
When people buy properties they want to make sure that they are buying the property with clear title and that there are no unknown liens or other encumbrances on the property. Title insurance is what is usually purchased to protect the buyer and any new lenders against any unknown liens or encumbrances on the property.
Should we discover, some period after we have purchased the property, that there was an unrecorded lien or encumbrance against the property, the title insurance would insure against those claims.
Until my next post,
James
You may not even really need to address this next question that I answer in our private lending FAQ, but since I do invest outside of my local area and have a national presence, I do show it as a FAQ.
The question is: Are all the loans in my local city?
And here is my answer:
I primarily invest in Fort Collins and Loveland, Colorado where I am physically located and Jacksonville, Florida. However, for the right property I will buy just about anywhere nationwide.
So, if you happen to live in Fort Collins or Loveland, Colorado or Jacksonville, Florida the chances of the property being local to you is extremely high. If not, the chance is considerably lower.
Until my next post,
James
Today I will be answering yet another question from the private lending faqs. Today’s question is: How frequently do I get payments on the loan?
Here is my answer to our private lenders:
The frequency of your payments is determined by the loan agreement between you as the private lender and us in advance of the loan being made. The agreement is outlined in the note which is prepared by the title company, escrow company or closing attorney.
If we agreed to make monthly payments, you should expect payments to be made monthly.
If we agreed to let the interest accrue and for you to receive a check with the original loan amount plus all interest due at the end of the loan period (or when we sell the property), then you can expect to receive one lump sum payment then.
Until my next post,
James
