As a private money lender, you’ll need to set measures in place to secure that your investment is protected come what may. Three of those protections are really vital and you’ll be learning why they are vital and how to put them in place.
Read on to learn about them and how to have them in place. Still, if you want to do it right and profitably, we provide expert help to all of our investors and you can join them today.
- Get Listed on the Deed of Trust
The first protection you need to have is to be listed on the deed of trust that is recorded with the county. When you are recorded with the county, if something happens and your borrowers die; since it is on title, nothing can be done to that property without you being contacted first.
- Get a Promissory Note
Secondly, you need to have a promissory note. The promissory note generally gets recorded on the deed of trust. The Promissory note is what states the exact amounts to be paid, off dates, timelines, and all of that.
- Be Listed as Insured on the Property
The third protection you need is to be listed as an additional insured on the property. If something were to happen, and the property probably gets burned down, or there was a construction accident or something of that nature they, you want to be listed so that they contact you first and make payments to you guys first, because you’re the invested interest before the other parties.As you know, a threefold cord is not easily broken, hence it is important that you have all of these three protections in place. That’s how you’ll be sure to mitigate the risks associated with investing. Still, there are a few other things that you should learn and we’re education oriented at American Made Home Solutions, we’d be happy to guide you step-by-step. So, give us a call today at (360) 386-7493.
