Insights on the Risks of Note Investing

[Michael Terry]

My concern is doing due diligence on a property that is not located in my state. For instance, if I bought a mortgage note on a property in Baltimore, MD (I live in Massachusetts), how would I go about doing the the due diligence I need to protect my investment? Are there 3rd party companies that do this for me?

Also, if the client defaults on the payments, am I on the hook for the mortgage? Do I have to make the payments? Does the property come to me by default? Can they squat there without payments?

Furthermore, do I have to contact him and let him know I am now in charge of the payments and give him my home address? What if he decides I dont have the clout of the banks and, again, decides he doesn't have to pay?

Thanks all. 

[Chris Seveney]

@Michael Terry

My recommendation is to take the time to learn more about the business and even a training course. It will answer these questions and give you an idea of note investing is for you.