Pitfalls with purchasing notes? Due diligence

[Austin Moran]

I have the opportunity to purchase a small note on undeveloped land which was purchased with the intent to clear and build. Below is my checklist. Am I missing anything critical that needs to be answered before investing?

• Verify title / ensure lien has been recorded
•    -When is it customary for seller to pay for this?
• Is note senior to any construction loans?
  
• Compare land value to note
  
• Review credit histories of borrower
•   -What's the legal way to do this?

Thank you for helping me work through the due diligence.

-Austin