Documentation Checklist for notes
DOCUMENTATION CHECKLIST The following is a checklist of documents needed by BTi TO PROCESS THE PURCHASE OF YOUR NOTE: *
Agreement to Purchase Note
*
Last 12 Months Payment History (copy of deposit slips, copies of checks, etc.)
*
Name, Address & Social Security Number of the persons making payments on the note - Home phone number of persons making payments - Employment information on persons making payments - Work phone numbers of persons making payments
*
Credit Authorization
*
Photos of Property (3 full view: straight on, front-right & -left to include sides & street)
*
Square Footage of Building and Lot Dimensions
*
Location Map/Plat
*
Copy of Signed Note in Place
*
Copy of Recorded Deed of Trust/Mortgage
*
Copy of the Signed Closing Statement
*
Copy of Mortgagee Title Insurance Policy (If available)
*
Copy of the Current Hazard Insurance Policy
You will find most of the information in your property folder given to you at Closing In order for BTi to begin processing your note purchase in a timely fashion, we will need all these items to be included in your submission package. Upon receipt and satisfactory review of this information, we will order an appraisal, updated title insurance policy and credit report (All at OUR expense). We will then schedule a closing as soon as possible thereafter. ____________________________________ At Closing, we will need the Original Deed of Trust/Mortgage and Original Real Estate Lien Note (which will be endorsed at Closing). If you have any questions, please call us at (760) 634-0492. We look forward to working with you and getting cash to you as soon as possible.
BT Investments, Inc. (760) 634-0492 (760) 634-3456 fax [email protected]
BT Investments, Inc. AUTHORIZATION TO RECEIVE CONSUMER REPORTS
Debtor: ____________________________
Address: ____________________________
Social Sec #: ________________________
____________________________
Telephone: (
)_____________________
Zip Code: ___________________________
Debtor: ____________________________
Address: ____________________________
Social Sec #: ________________________
____________________________
Telephone: (
)_____________________
Zip Code: ___________________________
Security Instrument and Note Dated:__________________________________
In connection with the possible purchase by BT Investments, Inc., or assignee, of the Security Instrument and note given by the above named debtor (the "Debtor") on the date referred to above and held by me, I authorize BT Investments, Inc., or its assigns, to order, receive, and review on my behalf one or more consumer reports on any Debtor from one or more consumer reporting agencies, all as permitted by the federal Fair Credit Reporting Act and applicable state law.
Date:___________________
Secured Party:_____________________________
___________________
_____________________________
___________________
_____________________________
___________________
_____________________________
BT Investments, Inc. (760) 634-0492 (760) 634-3456 fax [email protected]
Note Submission Worksheet [email protected] Phone 760-634-0492 FAX 760-634-3456
Submitted By: _____________________________________________ Phone ______________________ Fax: ________________________ E-mail __________________________________________________
Property Information Property Type: SFR____ (OO____ NOO____ ) APT____ Land____ Commercial____ Mobile Home____ Other_______________ Address: ______________________________ City ______________ County ______________ State: ________________________ Property Description: _________________________________________________________________________________________ ___________________________________________________________________________________________________________ Sale Information Date of Sale: ________________ Sales Price: ________________ Down Pmt: ________________ Loan Amt: ________________ LTV: ________________
Position: 1st ____ 2nd ____ 3rd ____ Wrap ____ Other __________ Contract Type: TD____ Mortgage____ Land Contract____ Other_____ % of Sales Price ______ Paid: Cash ____ Trade ____ Other _______ Current Est. Value: $___________ by APP____ FMV____ SALE ____
Note/Encumbrance Information 1st (Verified By______) Private or Inst: ____________________ Date of Note: ____________________ Original Balance: ____________________ Term in Months: ____________________ Interest Rate: ____________________ Payment Amount: ____________________ ____________________ Date of 1st Pymt: Date of Next Pymt: ____________________ # Payments Made: ____________________ # Payments Left: ____________________ Balloon Date: ____________________ Balloon Amount: ____________________ Current Balance: ____________________ Collection (Who): ____________________
2nd (Verified By______) ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________
Payer/Co-Payer (Buyer/Co-Buyer) Information Name: ___________________________________ Street Address: ___________________________________ City, State, Zip: ___________________________________ Marital Status: ___________________________________ Social Security #: ___________________________________ Home Phone: ___________________________________ Work Phone: ___________________________________
3rd (Verified By______) ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________
___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________
Seller Information Name: ______________________________ Address: ___________________________________________________________________ Home Phone: _______________ Work Phone: _______________ Spouse Name: __________________ Best time to call: _____________ Motivation to Sell: ________________________________________________________________________________________________
Quote to Seller Buy Total Note Buy _____ pmts for Buy _____ pmts for Date of quote Closing costs paid by
$ ............................................... $ ............................................... $ ............................................... ................................................ ………………………………..
I have copies of the following: Yes Note Yes Security instrument Yes Title Yes Sales contract Yes Payor credit report Yes Closing statement Yes Bill of sale Yes Insurance Yes Prior mortgage info
No No No No No No No No No
Note/Paper Resources Books: 1) Broadbent, Bill - Owner Will Carry 2) Napier, Jim - Invest in Debt 3) Richards, Jon; Armstrong, Jeff - Every Single Profitable Note Marketing Idea In The World (Almost!) 4) Rickabaugh, Dawn - Seller Financing on Steroids 5) Speed, Eddie - Streetwise Seller Financing, Sell Your Property Up To 70% Faster 6) Stevens, Lorelei - Fast Cash, How I Made A Fortune By Buying Notes 7) Stevens, Lorelei - Lorelei's Legal Lessons, The Essential Guide For Successful Note Buyers 8) Coats, George - Smart Trust Deed Investing in California ****
Web sites: http://noteinvestor.com/ http://papersourceonline.com/ http://www.noteworthyusa.com/ Note Courses: Tracy Rewey - Personal Profit Series: Notes John Behle - The Paper Game Jon Richards - Profit$ in Discounted Notes **** Peter Fortunato - The Paper Course John Schaub - Investing in Paper **** out of print Speakers: Alan Noblitt Seascape Capital [email protected] (858) 672-4678
Quixote Ventures
Ellis San Jose The Note Guys [email protected] (310) 414-9757
Bill Tan BT Investments [email protected] (760) 634-0492
Gordon Moss [email protected]
How Notes are Created
$100 k
Buyer
Seller
Junior “Bene” Buyout © BTi 2011
Program Basics - 1st and 2nd in default - Work with owners to sell house on a short sale - Looking to get a discount of at least nd 85-90% on 2
© BTi 2011
Purchase $100,000
note for $5,000 make
$30,000 © BTi 2011
Property value st ` 1 mortgage nd ` 2 mortgage
$300,000 $200,000 $100,000
buy 2nd mortgage
- $5,000
‘short sale’ property
+ $260,000
pay off 1st + closing costs $200,000 + $25,000
- $225,000
Your Profit!
$30,000 © BTi 2011
AITD Wraparound © BTi 2009
Wraparound Mortgage 2nd st 1
© BTi 2009
Wrap-Around Mortgage Program Basics
• Fully amortized, low-interest mortgage on property • Purchase property for zero $$ down, subject to existing loan • Sell property with higher interest rate and longer term financing © BTi 2009
Wrap-Around Mortgage Example
•
Purchase a $200,000 SFR
•
$0 down
•
Make $316.98/mo
© BTi 2009
Wrap-Around Mortgage How To Wrap It
• Buy ‘subject to existing’ for $0 • Current property value = $200K (monthly payments = $1,073.64 and 26 years of payments remain)
• Sell on a ‘wraparound mortgage’ for $200K • 40 years at 8%, $1,390.62/mo © BTi 2009
Wrap-Around Mortgage Pay Day
Collect your cash flow of $316.98/mo $1,390.62 - $1,073.64 (AITD income - existing note payment)
© BTi 2009
Wrap-Around Mortgage One More Thing…
Any principal paydown on the wrap is… Tax Free! © BTi 2009
Wrap-Around Mortgage OK, One Last Thing…
• After 26 years the 1st is paid off. The entire $1390.62/mo is yours! • Remaining AITD balance (now in 1st position) is $140,283 • If the buyer now refinances & pays you off, you get the entire $140,283 tax free!
© BTi 2009
Bill Tan Bill Tan Investments, Inc.
(760) 634-0492 [email protected] © BTi 2009
AITD/Wraparound Mortgage Hard Money Loan Example
Borrower needs $101,000. You want to “PUMP UP” your IRA. Create two loans: 1st - $100,000 supplied by investor 2nd - $1,000 from your IRA which “wraps” the first and creates a $101,000 note which benefits from “extra” interest on the underlying $100,000. © BTi 2009 • All Rights Reserved
AITD/Wraparound Mortgage Hard Money Loan Example
the 1st $100K · 1yr · 10% interest only from an investor
annual pymt = $10,000
© BTi 2009 • All Rights Reserved
AITD or Wraparound Mortgage Hard Money Loan Example
the 2nd $101K · 1yr · 11% int only the 1st
annual pymt = $11,110
© BTi 2009 • All Rights Reserved
AITD/Wraparound Mortgage Hard Money Loan Example
$101K - $100K = $1,000 investment from your IRA $11,110 - $10,000 = $1,110 annual payments on wrap $1,110 cash flow
© BTi 2009 • All Rights Reserved
AITD or Wraparound Mortgage Hard Money Loan Example
cash flow ÷ investment x 100% = yield $1,110 ÷ $1000 x 100% = 111%
that’s 111% return on investment! © BTi 2009 • All Rights Reserved
Agreement to Purchase Note
*
Last 12 Months Payment History (copy of deposit slips, copies of checks, etc.)
*
Name, Address & Social Security Number of the persons making payments on the note - Home phone number of persons making payments - Employment information on persons making payments - Work phone numbers of persons making payments
*
Credit Authorization
*
Photos of Property (3 full view: straight on, front-right & -left to include sides & street)
*
Square Footage of Building and Lot Dimensions
*
Location Map/Plat
*
Copy of Signed Note in Place
*
Copy of Recorded Deed of Trust/Mortgage
*
Copy of the Signed Closing Statement
*
Copy of Mortgagee Title Insurance Policy (If available)
*
Copy of the Current Hazard Insurance Policy
You will find most of the information in your property folder given to you at Closing In order for BTi to begin processing your note purchase in a timely fashion, we will need all these items to be included in your submission package. Upon receipt and satisfactory review of this information, we will order an appraisal, updated title insurance policy and credit report (All at OUR expense). We will then schedule a closing as soon as possible thereafter. ____________________________________ At Closing, we will need the Original Deed of Trust/Mortgage and Original Real Estate Lien Note (which will be endorsed at Closing). If you have any questions, please call us at (760) 634-0492. We look forward to working with you and getting cash to you as soon as possible.
BT Investments, Inc. (760) 634-0492 (760) 634-3456 fax [email protected]
BT Investments, Inc. AUTHORIZATION TO RECEIVE CONSUMER REPORTS
Debtor: ____________________________
Address: ____________________________
Social Sec #: ________________________
____________________________
Telephone: (
)_____________________
Zip Code: ___________________________
Debtor: ____________________________
Address: ____________________________
Social Sec #: ________________________
____________________________
Telephone: (
)_____________________
Zip Code: ___________________________
Security Instrument and Note Dated:__________________________________
In connection with the possible purchase by BT Investments, Inc., or assignee, of the Security Instrument and note given by the above named debtor (the "Debtor") on the date referred to above and held by me, I authorize BT Investments, Inc., or its assigns, to order, receive, and review on my behalf one or more consumer reports on any Debtor from one or more consumer reporting agencies, all as permitted by the federal Fair Credit Reporting Act and applicable state law.
Date:___________________
Secured Party:_____________________________
___________________
_____________________________
___________________
_____________________________
___________________
_____________________________
BT Investments, Inc. (760) 634-0492 (760) 634-3456 fax [email protected]
Note Submission Worksheet [email protected] Phone 760-634-0492 FAX 760-634-3456
Submitted By: _____________________________________________ Phone ______________________ Fax: ________________________ E-mail __________________________________________________
Property Information Property Type: SFR____ (OO____ NOO____ ) APT____ Land____ Commercial____ Mobile Home____ Other_______________ Address: ______________________________ City ______________ County ______________ State: ________________________ Property Description: _________________________________________________________________________________________ ___________________________________________________________________________________________________________ Sale Information Date of Sale: ________________ Sales Price: ________________ Down Pmt: ________________ Loan Amt: ________________ LTV: ________________
Position: 1st ____ 2nd ____ 3rd ____ Wrap ____ Other __________ Contract Type: TD____ Mortgage____ Land Contract____ Other_____ % of Sales Price ______ Paid: Cash ____ Trade ____ Other _______ Current Est. Value: $___________ by APP____ FMV____ SALE ____
Note/Encumbrance Information 1st (Verified By______) Private or Inst: ____________________ Date of Note: ____________________ Original Balance: ____________________ Term in Months: ____________________ Interest Rate: ____________________ Payment Amount: ____________________ ____________________ Date of 1st Pymt: Date of Next Pymt: ____________________ # Payments Made: ____________________ # Payments Left: ____________________ Balloon Date: ____________________ Balloon Amount: ____________________ Current Balance: ____________________ Collection (Who): ____________________
2nd (Verified By______) ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________
Payer/Co-Payer (Buyer/Co-Buyer) Information Name: ___________________________________ Street Address: ___________________________________ City, State, Zip: ___________________________________ Marital Status: ___________________________________ Social Security #: ___________________________________ Home Phone: ___________________________________ Work Phone: ___________________________________
3rd (Verified By______) ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________
___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________
Seller Information Name: ______________________________ Address: ___________________________________________________________________ Home Phone: _______________ Work Phone: _______________ Spouse Name: __________________ Best time to call: _____________ Motivation to Sell: ________________________________________________________________________________________________
Quote to Seller Buy Total Note Buy _____ pmts for Buy _____ pmts for Date of quote Closing costs paid by
$ ............................................... $ ............................................... $ ............................................... ................................................ ………………………………..
I have copies of the following: Yes Note Yes Security instrument Yes Title Yes Sales contract Yes Payor credit report Yes Closing statement Yes Bill of sale Yes Insurance Yes Prior mortgage info
No No No No No No No No No
Note/Paper Resources Books: 1) Broadbent, Bill - Owner Will Carry 2) Napier, Jim - Invest in Debt 3) Richards, Jon; Armstrong, Jeff - Every Single Profitable Note Marketing Idea In The World (Almost!) 4) Rickabaugh, Dawn - Seller Financing on Steroids 5) Speed, Eddie - Streetwise Seller Financing, Sell Your Property Up To 70% Faster 6) Stevens, Lorelei - Fast Cash, How I Made A Fortune By Buying Notes 7) Stevens, Lorelei - Lorelei's Legal Lessons, The Essential Guide For Successful Note Buyers 8) Coats, George - Smart Trust Deed Investing in California ****
Web sites: http://noteinvestor.com/ http://papersourceonline.com/ http://www.noteworthyusa.com/ Note Courses: Tracy Rewey - Personal Profit Series: Notes John Behle - The Paper Game Jon Richards - Profit$ in Discounted Notes **** Peter Fortunato - The Paper Course John Schaub - Investing in Paper **** out of print Speakers: Alan Noblitt Seascape Capital [email protected] (858) 672-4678
Quixote Ventures
Ellis San Jose The Note Guys [email protected] (310) 414-9757
Bill Tan BT Investments [email protected] (760) 634-0492
Gordon Moss [email protected]
How Notes are Created
$100 k
Buyer
Seller
Junior “Bene” Buyout © BTi 2011
Program Basics - 1st and 2nd in default - Work with owners to sell house on a short sale - Looking to get a discount of at least nd 85-90% on 2
© BTi 2011
Purchase $100,000
note for $5,000 make
$30,000 © BTi 2011
Property value st ` 1 mortgage nd ` 2 mortgage
$300,000 $200,000 $100,000
buy 2nd mortgage
- $5,000
‘short sale’ property
+ $260,000
pay off 1st + closing costs $200,000 + $25,000
- $225,000
Your Profit!
$30,000 © BTi 2011
AITD Wraparound © BTi 2009
Wraparound Mortgage 2nd st 1
© BTi 2009
Wrap-Around Mortgage Program Basics
• Fully amortized, low-interest mortgage on property • Purchase property for zero $$ down, subject to existing loan • Sell property with higher interest rate and longer term financing © BTi 2009
Wrap-Around Mortgage Example
•
Purchase a $200,000 SFR
•
$0 down
•
Make $316.98/mo
© BTi 2009
Wrap-Around Mortgage How To Wrap It
• Buy ‘subject to existing’ for $0 • Current property value = $200K (monthly payments = $1,073.64 and 26 years of payments remain)
• Sell on a ‘wraparound mortgage’ for $200K • 40 years at 8%, $1,390.62/mo © BTi 2009
Wrap-Around Mortgage Pay Day
Collect your cash flow of $316.98/mo $1,390.62 - $1,073.64 (AITD income - existing note payment)
© BTi 2009
Wrap-Around Mortgage One More Thing…
Any principal paydown on the wrap is… Tax Free! © BTi 2009
Wrap-Around Mortgage OK, One Last Thing…
• After 26 years the 1st is paid off. The entire $1390.62/mo is yours! • Remaining AITD balance (now in 1st position) is $140,283 • If the buyer now refinances & pays you off, you get the entire $140,283 tax free!
© BTi 2009
Bill Tan Bill Tan Investments, Inc.
(760) 634-0492 [email protected] © BTi 2009
AITD/Wraparound Mortgage Hard Money Loan Example
Borrower needs $101,000. You want to “PUMP UP” your IRA. Create two loans: 1st - $100,000 supplied by investor 2nd - $1,000 from your IRA which “wraps” the first and creates a $101,000 note which benefits from “extra” interest on the underlying $100,000. © BTi 2009 • All Rights Reserved
AITD/Wraparound Mortgage Hard Money Loan Example
the 1st $100K · 1yr · 10% interest only from an investor
annual pymt = $10,000
© BTi 2009 • All Rights Reserved
AITD or Wraparound Mortgage Hard Money Loan Example
the 2nd $101K · 1yr · 11% int only the 1st
annual pymt = $11,110
© BTi 2009 • All Rights Reserved
AITD/Wraparound Mortgage Hard Money Loan Example
$101K - $100K = $1,000 investment from your IRA $11,110 - $10,000 = $1,110 annual payments on wrap $1,110 cash flow
© BTi 2009 • All Rights Reserved
AITD or Wraparound Mortgage Hard Money Loan Example
cash flow ÷ investment x 100% = yield $1,110 ÷ $1000 x 100% = 111%
that’s 111% return on investment! © BTi 2009 • All Rights Reserved
