Buying First Note through Paperstac

[Brittany P.]

Questions for all you seasoned note investors: does Paperstac's built-in auditing services furnish a title report?

If not, what are we getting out of the auditing services on their platform?  I'm just trying to figure out what part of due diligence I should be handling myself versus what is covered in their $500 escrow/auditing fee.

Also, are you Paperstac experts completing due diligence before signing the sales agreement, or just before you wire money?  Does the sales agreement allow for the buyer to cancel the whole action before the escrow process if due diligence turns up an incurable defect?  Just trying to determine the best time to sign if I'm going to sign.  Thanks!

[Jamie Bateman]

@Brittany P. I agree with everything @Chad U. stated. 

Just to add a little, I think the audit can be a nice supplement to your own due diligence process, especially for new note investors. But I would not solely rely on the audit, even for just for the collateral-file-review part of your due diligence process. My advice is not to buy a note yet if you don't have your due diligence process down already (whether through Paperstac or elsewhere). 

Regarding the the PSA, I agree with Chad. Although you can still cancel a transaction after you've signed the PSA, that should be done in rare cases. You should be essentially ready to close once you sign the PSA. One suggestion I had was for PS to add a 2nd (middle) phase for each transaction; essentially a due diligence phase after you've agreed upon a price but before you've fully committed to closing (and signed the PSA).