Posted by John Behle on November 26, 2001 at 13:04:22:
In Reply to: Re: excited again posted by Brian Condit on November 24, 2001 at 23:42:57:
There is no standard form or terminology you use with an investor and it can be very simple. The safest and simplest approach is to use the common forms of your area.
If you are a trust deed state, the way you transfer a trust deed is through an assignment. It is also the way you can "secure" the trust deed. I would give the investor an "Assignment of Trust Deed" for collateral purposes. It looks the same and is the exact same form, but the words "for collateral purposes" or "for security purposes" is type under "Assignment of Trust Deed" at the top.
The note with the investor can be a standard trust deed note. Instead of spelling out the trust deed secured by the property as collateral, it spells out the Assignment of Trust Deed as the collateral.
The terms of the note are whatever you work out with the investor, but you need to include one item, which is to spell out the time period when the investor can "take" the note and trust deed from you in the case of default. How long, depends on the investor, your circumstances and foreclosure procedures and time periods in your area.
I would run any forms and legal procedures past a competent attorney for at least your first transaction. There are some sample forms in the seminar manual of the 5 day workshop. They were put together by an attorney as samples and should just be used as a reference only. They tend to be very analytical and "lawyerish". For example, the form he uses to buy a note is 17 pages. Mine is one.
- Re: excited again Tilly Linnea 02:35:22 8/11/2004 (0)
- Re: excited again Brian Condit 22:12:38 11/26/2001 (1)
- Re: excited again Amy Lamb 21:39:12 7/31/2004 (0)