Looking for a stable investment with a high yield? This partial note investment is secured by a mortgage on the property. Great for an IRA, 401k, or a buy and hold investment. Invest in real estate like a bank, without the headaches of landlording!
Items Available for your Review:
Note
Mortgage
Buyer Information
Property Information
Partial Purchase Agreement
Amortization Schedule showing the calculation of the annual yield
Interested in Learning More?
If this is your first partial purchase, we will ask you to sign an NDA due to the confidential information involved in the transaction. Then we will schedule a call to discuss the asset, review all of the due diligence documents, and review the contract. Overall, partials are easy to purchase and require no ongoing effort from the buyer. The loan will be held in your name during the partial ownership period, and you are encouraged to consult with an attorney during the process.
The Warranty and How it Works:
Payor’s Default. Should the Note and Security Instrument be in default (ninety (90) days or more past due), the Buyer will notify Seller via written notice of such default. Under no circumstances will buyer initiate negotiations and/or legal or loss mitigation efforts or foreclosure against Payor unless approved by Seller in writing.
Once the Seller has been notified in writing of the Payor’s default as outlined above, the Seller shall do one (1) of the following at Seller’s choosing:
(A) repurchase Buyer’s interest in the applicable Note and Security Instrument within thirty (30) days of written notice by payment to Buyer of an amount equal to the sum of Buyer’s currently outstanding principal balance. This will be calculated using the principal balance on “Exhibit B.” If this option is chosen, Buyer agrees to assign the Note and Security Instrument to Seller, including full ownership and all rights to collect outstanding balances and payments.
(B) Within thirty (30) days of said notice, make payment to Buyer of any amounts then in default and undertake in writing to make future scheduled payments to Buyer to the extent that the Payor might fail to do so. If this option is chosen, Buyer agrees to assign the Note to Seller, including full ownership and all rights to collect outstanding balances and payments.
(C) Within thirty (30) days replace the Note and Security Instrument with a new note and security instrument acceptable to Buyer. If this option is chosen, Buyer agrees to assign the Note to Seller, including full ownership and all rights to collect outstanding balances and payments.
Seller shall choose which of the three (3) options above to use as remedy in event of Payor’s default. A replacement note will only be used if Buyer is agreeable to the replacement.
Interested in more information? Email me at eric@damencapital.com