The ugly truth.
IOU investment is not as easy to stock market investment. When you can see the master's recommendations, while sitting in your easy chair to invest in the stock, and make your decision, place your order and then sit down and hope for the best. You are a passive investor. You are not driving the bus, you are a passenger.
However, investment in the promissory note requirements, your role as an active investor. Your time is required. Your own personal investigation, assessment and decision-making is required.
Demanding since become an active investor, you may think, "Why should I choose to do extra work, extra time and additional learning what? For me is a return?
The short answer is yes, is your reward. Benefits are:
• better control of their own money
• fewer people will pay the fee and commission income from your investment
• You will have more money to reinvest as you see fit
• Less external events (uncontrollable event) will affect your investment
In short, you will be driving the bus, not a passenger was taken for a ride.
Investment guidelines, to avoid the four errors.
Now if you are still reading you clearly understand, can be an excellent investment opportunity to invest in promissory notes. In addition, you want to learn what IOU investment criteria is the safety and success of your investment. We will focus on those who will continue to trouble you, and enhance your investment income. Important to remember that only one investment mistakes can wipe the savings of many years. Failure to follow these rules, you risk your life savings.
Guidelines # 1 personal inspection of property.
Would you buy a car, did not check? Would you buy a house you plan to live does not check? If you submit your money, did not check the collateral promissory note investments (real estate), is like buying a car without checking.
Why the importance of a personal check, you ask? Because, if you want foreclosure property, thus becoming an employer, you have just bought a property, you do not check! You have unnecessary to venture capital.
Further, when you check your property will be observed external conditions, indoor, basement, garage, garden, and any buildings. This will clear the property is how much functionality, its condition, its age.
In addition, you will see the neighboring properties and the severity of their illnesses. Collateral for a bad neighbor, property devaluation. In addition, to remind drivers and property, to pay attention to the following: road transport services, shopping facilities, parks and recreational facilities, and general appearance and neighborhood impression.
Remember, when you buy from a promissory note, the collateral that you can buy - if you really want to buy it or not, you may become the proud owner.
Guidelines # 2 --- Make sure the collateral property legal description.
This is a serious mistake to take the property owners and property legal description, liens against. False or inaccurate information can be an innocent mistake, or the results of a deliberate lie, but, either way, you noteholders in jeopardy. You need to know the legal conditions of property ownership. Always get a new title insurance policy. This process should be mandatory, routine steps. Often, however, is that this simple program error. Wary of doing so is correct.
Adhere to the principle of # 3 to obtain the lender's title insurance policy.
The homeowner policy or fire insurance policy to ensure that property from losses caused by fire and other hazards. Owners title insurance policy to ensure that title defects caused economic losses on property owners. For owners title insurance policy a modest additional premium, the lender's title insurance policy can be obtained. You guarantee, lenders, title defects and senior lien or encumbrance to your loan, the losses caused by property of unknown origin. It ensures that your first mortgage in first position on the law.
Adhere to the principle of # 4 --- get flood insurance, if appropriate.
Homeowner's insurance policy does not include surface water damage flood.
Need a flood insurance surveys, completed by the end. We all know that many people have mortgage investment in private promissory notes in 2005, New Orleans or Biloxi. We now know that after Hurricane Katrina, these investors, the number of flood insurance? There are huge insurance losses. These losses are unnecessary, they may have to avoid a flood insurance policy.
Another aspect of the flood problem is that sometimes, the property at the edge of the flood zone, only a professional survey can determine the flood damage risk. The elevation certificate issued by a professional surveyor, a survey shows that homeowners can save some money, federal flood insurance and protect your investment. Elevation certificate, help to measure the exact risk of a particular flood zone. If the property is in the flood zone of the federal government to ensure that the property covered by federal flood insurance.
If the property requires flood insurance, be sure to get it, you pay attention to the insured loss payee; you should be named as loss payee homeowner's policy.
Conclusion
If you do not understand, do not invest in it!
• The risks from not know what you are doing.
• investment risk from the things you do not know.
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