Real Estate Investment

Archive for February, 2008

Second Private Mortgages

When a private mortgage investor finds a second mortgage, he or she should be aware that second Mortgages are often much smaller than the first Mortgages and second Mortgages are often sold at discount. So, as a private mortgage investor, you will get less money from finding second Private Mortgages.

When you have found enough private mortgage notes lenders information

When you have found about 20 – 25 private mortgage notes lender information, it is enough to start with and you can leave the Land records office of the county courthouse for the day. At the end of your day research, you will have all the information on prospective private mortgage notes lenders but not their phone numbers.

Find the contact numbers for private mortgage notes lenders

You can look in the white pages and the phone books to find the phone numbers for these prospective private mortgage notes lenders. Or, you can try the Directory Assistance. Some internet websites also help you find phone numbers.

Once a mortgage (private mortgage or otherwise) is filed with the county, the mortgage information becomes public record. You can view all these mortgage records during office hours.

Some counties still have their records including land records on paper so a private mortgage investor will have to browse through tons of paper records. Other counties have them on microfiche. Some counties, although not too many, have them on computer and some even put them on the Internet (rare).

What to look for in finding Private Mortgages?

While browsing these land records in an efforts to find Private Mortgages, a private mortgage investor should look for the mortgage issuer or mortgage holder.

Ignore the big mortgage lenders

In many cases, a private mortgage investor will find names such as Countrywide, Household Finance, GMAC mortgage, Chase mortgage, Bank of America mortgage. Ignore these Mortgages and keep looking for Private Mortgages. Occasionally, a private mortgage investor will come across privately held Mortgages with name of the private mortgage issuer or private mortgage lender such as John D. Public.

Once a private mortgage notes lender is spotted

Once a private mortgage investor found a private mortgage notes lender, write down:

• the name of the private mortgage provider
• address of property listed in the mortgage
• amount of the total Real Estate purchase
• down payment for the Real Estate purchase
• total amount financed by the private mortgage
• interest rate of the private mortgage
• amount of payments of private mortgage

Most of the Private Mortgages the private mortgage investor will find are probably first Mortgages. But sometimes second Private Mortgages are found.