Expected Documents / Communication in a Deal

[Chris Seveney]

As part of any good relationship, communication is key. I wanted to share with everyone the information I provide and also like to hear from others on what they share or what people want to see. This is important for both parties in a transaction as many of us have the goal of total transparency.

All collateral involved in the deal (via a link to documents), including note, assignment, allonges, OE Report, BPO, pay histories, servicing notes, loan sale agreement (with who I bought loan from) and new documents get saved to the location. This is provided before the deal is funding by the investor. 

Once the deal is funded: A monthly update with status on the loan, any new developments in the last month, rolling 12-month pay history and the overall status of property/loan including Servicer, Insurance Provider, Collateral Holder/status, occupancy status, UPB. I put an image file below to give people an idea of a template of what this looks like. I also send everyone a link at the beginning of every month with the ability to set up a call with me to discuss any aspect of the deal.

From the financial aspects, every quarter I provide financial reports and disbursement of funds.

Curious about what others provide. 

[Gail Greenberg]

Funny you're talking about this Chris. We have talked a few times on our podcast about doing due diligence before JVing and I said when thinking of giving money to someone to JV on a deal, you should ask to see sample reports they give to JVs. There was an audible gasp from our live audience. It's such a simple idea but I'm guessing many people who take investor money for deals cannot produce a single report. Someone told me after a year in a note deal with one famous guru she finally got them to supply a "report." It was an excel doc with 4 cells filled in. No detail on where the money went. Can you imagine doing business that way?