A HELOC is a variable rate instrument based usually on the Wall Street Journal Prime Rate (sometimes LIBOR).

A full bundle of rights is granted to the Mortgagee if the Mortgagee is the recipient of a Certificate of Title, Sheriff's Deed or similar instrument and post any redemption period, if not already passed.

At 50% you have some pretty good insulation in equity to recover your principal and costs of enforcing the remedies provided in the instrument, usually through foreclosure in the event of default.The general private money market or hard money loan market flirts around the 9.0% interest mark.

A borrower has a contractual relationship with the Mortgagee through the security instrument (DOT/Mortgage).

You have to put the borrower on notice they defaulted, allow for time to cure before proceeding with the remedies afford in the security instrument and according to state and local law.The state of Georgia requires any investor who holds an interest in a Mortgage or Deed of Security to hold a state issued license.

No problem, there are others with poor forum habits as well.Back on topic.Just about everything you find about notes will have an underlying marketing tone or agenda to it, certainly stay away from dated materials.Notes are legal documents, instruments and obligations.

The FAA has a military comp test to take and our training counted towards commercial rotary with instruments.

So, I wouldn't cut hairs saying it's only the "lender's" problem.I'm not an attorney or a judge, but that's where I'd take it, more to who is responsible for this debt or mortgage instrument being used in this transaction?

Will they be on legal and compliant instruments?

The NOI and Cap Rate (considering tax, maint, capital costs, etc.) is very positive.My question is actually on the instrument/contract to spell out the deal.... and ensure that the title/deed is held in escrow (or some other form of trust) over the 36 months.