All Forum Posts by: Melissa Taylor

Thanks for your response Chris. I guess what I'm trying to ask is if the Borrower is purchasing the property, (the loan is for purchase, not rehab), then is the Borrower responsible for acquiring a recorded Deed of Trust and bringing the document to the meeting to when signing the Note? Do I hold the DOT or does the Borrower keep it? What is the handling of a Deed of Trust when used as collateral on a Promissory Note?

I see some examples of Secure Promissory Notes that never use the words "Deed of Trust". Instead they simply site the address of the "Collateral".  Is one way "better" than another in securing a promissory note?

I am looking at an opportunity here in California to be a lender to a known acquaintance who has a flipping track record.  I would use a Secured Promissory Note as the lending vehicle.  I would like to get information on how securing collateral via Deed of Trust actually works.  What specifically does the Borrower have to do? What paperwork, if any, accompanies the Note and is that paperwork exchanged at the signing of the Note?

Also, are there any legal protections that can be added to the Note that can protect the lender from third party claims, such as contractor or materialman claims of payment or perhaps injury?  

Yes, I anticipate that any bidding with a party who intends to be the primary resident will exceed my "investor's budget".  Thank you for pointing out the cultural component as well!

This will be interesting to follow.  The home will be auctioned around the 1st of October.  It is in a good neighborhood and, looking at the exterior of the property yesterday, the roof/stucco/exterior is in excellent condition.  Who knows what's inside.  But it's currently listed about $200,000 below current market value.  I'll try to follow up with what this property sells for.  Thank you all for your input--appreciate it!

Your points are well taken!  Appreciate your input, Kevin!

Hi Kevin, this would be a flip.  The property will be auctioned "as is".  Built in 1989, in a good neighborhood with little inventory.  My initial thought reflects your comments--some would care, others wouldn't.  This was a murder/suicide issue.

I am an investor in the southern California market and have an opportunity to invest in a property that has experienced a death-related crime.  I understand the disclosure of such information to any prospective buyers but I'm interested in receiving input from agents and investors who may have some insights on the pros and cons of pursuing this type of an investment.