by Delbert Ashby
If you have planned and implemented your NEGOTIATION STRATEGY well, you will reach an approximate agreement as to the price, terms and conditions under which you will buy the cash flow note. It’s now time to get that agreement committed to paper and signed by ALL PARTIES to the note ownership. This can be done at a one-on-one meeting or by fax, the mail, etc. Either way, it’s time to collect and evaluate some more documents.
If it is a personal meeting, I ask the seller to bring their entire file. I get the agreement signed and a COPY of everything they have in the file. I take two copies of my documentation checklist so that we can check off what he has given me and what he still owes me. If he doesn’t have a recent credit report on the payor, he needs to provide me the name, social security number, address, and hopefully the date of birth of the payor. This is so that I can run a credit report of my own.
Various note buyers have different views on the legality of doing a credit check. (Editor’s Note: See “Can You Order A Credit Report On A Note Payor Without His Consent?”at the Cash Flow Dollar Store www.cashflows.org).
Delbert Ashby is a veteran note investor and broker and the author of the book Make Money Trading Mortgages. For information: http://store.papersourceonline.com/best-beginner-book/
