Hello! J Happy New Year! I hope you a wonderful holiday season!

Over the last 4 months, we started to look at the different property types that notes are secured by, different situations and the additional information that would be nice to know for the funding source to initially give you accurate pricing.

Situations & Information Needed – Part 5

Land

As you are talking to the note holder you will come across many types of properties and situations. Following are some good questions to ask and answers to get in addition to the information on your mortgage worksheet. We have covered Residential, Mobile Homes with land, Condominiums and Commercial properties. This month we will cover some additional questions to ask the note holder when the note is secured by a land.

Land Property Types - Improved Land (where 30% of the land value must be in improvements or upgrades) AND Undeveloped & Raw Land

A. What is the highest and best use?

B. What is the zoning?

C. What must be done to the property to develop it to its highest and best use? What is the cost?

D. Has the property been platted and if so what are the conditions?

E. What is the history of the property?

a. Floods – flood zone

b. Toxic waste

c. Previous sales and dollar amounts of sales

F. How many like properties are for sale or have been sold in the area, and what is the asking price or sales price of such property?

G. Why would there be a market for the property?

H. What permits for development have been obtained?

I. What additional permits are needed for construction and from whom?

J. What improvements have been completed to date? (Roads, paving, curbs, sidewalks, water, sewer systems, power, etc.)

K. What is the total number of lots (if applicable) in the subdivision and how many have been sold?

L. How many lots have been built on and what types of structures were erected?

M. Are there building moratoriums or zoning problems?

N. Approximate age of subdivision? When approved? When Completed?

O. Personally or corporately signed for?

P. What is around it? Adjacent? Front? Behind it?

Keep in mind, what you are trying to do while completing the worksheet is to get the story behind the note. The more information we get up front the more likely the prices we get from the funding sources will not be cut later on down the road during the due diligence process. You will save yourself and the funding source lots of time and wasted effort by just asking a few pointed questions. Next Month we will look at some key questions to ask when the property was sold with no down payment.

Keep on marketing, it’s going to work! Hope this helps!

Happy New Year! J

Jeff

Armstrong Capital
800-845-3055
fax 818-865-2323
PO BOX 6517
Westlake Village, CA 91359
visit our website at www.armstrongcapital.com

Jeff is also the Editor of the Noteworthy Newsletter, a printed monthly publication. If you are new or experienced in the Cash Flow Industry I encourage you to check out and subscribe to the Noteworthy Newsletter, an indispensable newsletter for Note Brokers, Note Buyers and Real Estate Investors.

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Jeff Armstrong is president of Armstrong Capital and Editor of the NoteWorthy Newsletter, www.noteworthyusa.com. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, and the author of three best selling books. He can be reached by calling 800-845-3055, faxing 818-865-2323, e-mail jeff@armstrongcapital.com, or visit www.armstrongcapital.com and click on "Note Brokers" for questions and information about his Master Broker services, Mentorship program how Armstrong Capital can help you succeed.

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