All Forum Posts by: Brian Sanchez

Thank you both for your advice 

Hey BP, I got another question...

The property I am purchasing is all cash

The property requires rehab. I have a silent partner who is willing to lend the costs for rehab.

I have structured a Note for this agreement which outlines repayment on the rehab funds borrowed. The Note states the loan is secured with the property as collateral.

My question is…

Is it required by the State of Indiana to record the Note in the county?

Do I need to have Title create a mortgage attached with the Note for rehab costs only or is the Note sufficient for legal purposes of borrowing only rehab costs?

Do I need to have Title insure the Note or insure the Note/Mortgage if needed?

Hey BP, I got another question...

The property I am purchasing is all cash

The property requires rehab. I have a silent partner who is willing to lend the costs for rehab.

I have structured a Note for this agreement which outlines repayment on the rehab funds borrowed. The Note states the loan is secured with the property as collateral.

My question is…

Is it required by the State of Indiana to record the Note in the county?

Do I need to have Title create a mortgage attached with the Note for rehab costs only or is the Note sufficient for legal purposes of borrowing only rehab costs?

Do I need to have Title insure the Note or insure the Note/Mortgage if needed?

Hey BP, I got another question...

The property I am purchasing is all cash 

The property requires rehab. I have a silent partner who is willing to lend the costs for rehab.

I have structured a Note for this agreement which outlines repayment on the rehab funds borrowed. The Note states the loan is secured with the property as collateral.

My question is…

Is it required by the State of Indiana to record the Note in the county?

Do I need to have Title create a mortgage attached with the Note for rehab costs only or is the Note sufficient for legal purposes of borrowing only rehab costs?

Do I need to have Title insure the Note or insure the Note/Mortgage if needed?

@Peter Walther it’s a rehab loan from a private partner. Not for purchase

@Peter Walther I am using a title company to close of course. I am paying cash for the purchase. I am asking if I need title insurance for a note and/or mortgage agreement?

David:
Your post is actually much appreciated.  Thanks for the response.  I was thinking the exact same thing.  I don't see why it would be necessary if my cash provider is not requesting it and he is only covering rehab not purchase.  His interests are protected with the collateral of the property as stated in the note so no need to insure it.  

Welcome to other opinions from others on this topic.  

Hey BP:

I am about ready to close in the next week on another property in Indiana.  It is an all-cash purchase.  However, I have a partner who is willing to cover the rehab costs of 40K.  I have the promissory note which states the loan for rehab is secured with the home as collateral.  My question is whether or not I have to obtain title insurance for the rehab loan?   Is that a thing?

Hey BP. I have another investment property in IN that will be finishing up in the next month or so and I am looking at obtaining a HELOC when I refinance. I used PENFED to obtain the HELOC on my other properties and was happy with the business and quick process. However, I was hoping to find some other lenders who are willing to meet the same % of LTV and speed of PENFED. With rates currently at a low I am looking to shop around.

If any of you have used a Lender recently or are a Lender that offers a HELOC of max 80% LTV on non-owner occupied homes please message me with details and I would love to connect.

Thanks in advance.  

@Adrien S. Marion County