Like many (most) businesses it requires an investment of capital; money expenditure for ongoing marketing; management of operating, marketing and professional personnel; keeping accounting records and filing tax returns; established sales practices; constant monitoring of goals, budgets, and productivity; establishment and implementation of operational systems; and providing customer service.  

Background checks help verify the integrity and track record of the sponsor.

The contract/sale was never recorded on the deed.For those wanting the horror story on how I got into this Contract for Deed, here you go....Had all 5 properties rented, 2 two people I knew personally.

Maintain proper records - Contracts, Settlement Statements, Agreements, Promissory Notes etc.Additionally, you can track income and expenses consistently, using software or spreadsheets. 

My rules are legally accepted and their IP address recorded so I don't do any lease signing.

Look for reviews and a track record of closing. 

Run a full background check to see their credit score, prior evictions and criminal record.

But since private money is relational based versus purely collateral based, you'll need a track record to prove yourself.

I spoke with the seller and got information about the house that is different from what I found in public records.

Hi Everyone, I'm trying to get some info on recording a second position lien/mortgage on an investment property in Texas.