Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them.

This has been my favorite discussion since joining BP, mainly because it just might pertain to me lol.

In the case of being the private lender, make certain that you do the following: Only 1st lien position, visit the property, conduct your research on current market value & current market trends, as well as future projected market trends for that immediate area, have a professional appraisal conducted on the property by an appraiser of your choice, research local laws pertaining to foreclosure process & costs, conduct a lien search, make certain that the property does not have a ground rental attached to it that is owned by a separate party (as this can jump in front of the mortgages on collection/foreclosure), consider having the borrower gain a term life insurance policy with the lender (you or your entity) as the beneficiary (might help in case there are problems with probate in case of borrower death), research state laws pertaining to lending to be certain of maximum interest rate/points/fees allowed by law, and also if a license is required for this form of lending in that particular state (in some states if you loan to a person, it is considered consumer lending, but if you loan to an entity, it is considered commercial lending, and the laws apply differently for each type of lending), have as much collateral for the loan as possible, even consider cross-collateralizing of another property if possible, just to name a few.

There is a ton of resources on this site pertaining to this topic alone.

Another thing I would like to note as it pertains to the education and experience level of those speaking from positions of authority.

I am not going to address this point for purposes of brevity but I would like you to know that these comments only pertain to the use of the cells and not the parent LLC.

If you have some advice to share that actually pertains to my question, please feel free to share.  

If you have a balloon payment the defect may prevent any future refinancing.Another issue is future modifications, such are a new extension of credit and you need to ensure that the priority of the lien remains, so state law needs to be examined.Future sales can be delayed, foreclosure may not solve all defects.Defects in title or the note, DOT or mortgage may render the note unmarketable.The 61 points listed (some may not be a concern and there are basically double entries of the same issue) may all be associated with performing or non-performing notes.In seller financed notes, I can add to that list as those primarily pertain to conventional securitized notes.In that list you'll see issues of self dealing, arm's length transactions and improperly executed documents, these issues are magnified with seller financed transactions.Add property valuations at the time of sale, often over valued.Incomplete or inappropriate servicing records.Application of funds not properly made.The loan is between related parties.Notes in connection with installment contracts, CFD, Sub-To or Option financing improperly drafted, or identified with the contract.Personally property was included in the transaction and financed, security not perfected and that security interest in the RE is overstated.Now, these are some issues to ad to the list provided in the link, but just moving on:Dodd-Frank,Illegally originatedNon-compliant termsServicing is not compliantThe note doesn't have the seal of the MLOIncomplete loan fileBorrower had possession of verifying documents during loan processingAbility to pay not documented or computations incorrectly madeBroker/seller is not registered or in compliance, then revert to the "linked list"MLO is the note holder, seller of the property securedNote is originated by a Trust or closely held entityDeed in lieu of foreclosure, executed by the borrower & originated by the note holder, (escrowed deed for default)Financed options or credit leases with notes being disguised salesOption agreements requiring any contract performance by the optionee.Lease- with financed options having lease amounts under FMRNotes assumed by assignment to a new buyer without lender's approval.Non-recourse notes without asset based justifications or additional security.Any prohibition against the ability to obtain future equity, such as a HELOC.Notes that include cash advances together with equity.Zero interest notesOriginal married note holders divorced, died parties, incapacitated without proper assignments.Tax liens or judgments against the note holder.Notes held by entities not properly filed or in compliance, improper authorizations.UCC filings on note seller's assets, note not released.Okay, getting tired !

Hi,Sorry to post this, I couldn't find anything pertaining to this in the Title Company Forum.Some friends of ours Partnered with 4 other people and 2 business's in a Real Estate Deal.When Escrow closed Title Company did not obtain all Parties Signatures to sign off on Sale.

If they can locate statistical data that pertains to their borrower few have the knowledge and experience to apply prudent risk assessments to set interest rates.