Purchasing Real Estate Notes
Providing turn-key homes with properly originated and serviced notes to cash-flow investors
Frequently Asked Questions Regarding Notes
1. What are my responsibilities for the home if I hold the Note?
As a first lien-holder, you have no responsibility or liability in regards to the property. All maintenance for the home and the real estate taxes are the responsibility of the buyer.
2. Where are the homes located?
Wichita and the surrounding areas.
3. What is the condition of the homes?
Typically the homes are updated throughout. We go through the homes checking all electrical and plumbing. We paint, install new flooring, replace counter tops with granite, and install new windows. We make needed repairs; install new roofs, siding and HVACs as needed.
4. Who are typical tenant-buyers?
Our tenant-buyers are typically very eager to own their own home and excited about the opportunity to do so for less than market rent. In many cases they make additional improvements to the homes based on their vision to own it.
5. What are the terms of the Notes being offered?
The buyer is given a choice of 10, 15, 20, or 30 year terms.
6. What is my typical return on investment?
Returns are typically between 9% and 10%.
7. How are the buyers vetted?
Tenant - buyers agree to a 13 month lease with purchase option contract with Goshen Property Management. This allows us to get a minimum of a 13 month pay history on them before offering them permanent financing. In addition to this, they will apply through our RLMO (Residential Loan Mortgage Originator) before we will initiate permanent financing.
8. Can I see the tenant-buyers payment history?
Yes, we can provide that for you at any time.
9. How are the loans serviced?
We use Kansas Secured Title (KTS) as a third party servicer. They currently service over 2000 contracts a month in Kansas. KST collects the principle and interest payments, escrow fee, taxes and insurance and disperse the payments.
10. Will Kansas Secured Title provide tax documents?
Yes, they provide 1098 for the buyer & 1099 for the note holder.
11. Are loans originated in compliance with Dodd Frank?
Yes. We go through an RLMO as required by Dodd Frank. The RLMO checks the buyer’s finances, credit and criminal background. The RLMO also looks at the buyer’s rental history with Goshen Property Management.
(Our RLMO uses the Small Entity Compliance Guide to comply with The Safe Act, Dodd/Frank, Truth Lending, and RESPA as well as many other regulations.)
12. Who pays the closing costs?
Buyer pays for closing costs and escrow fee. Sometimes buyer prefers to add the cost of the closing fees to their mortgage price. If the note investor agrees to allow the buyer to roll the loan costs into the loan then the loan amount (note amount) increases by that much.
13. Where do I find the cash for a Note?
Most note buyers are cash buyers. Self Directed IRAs are a great option. We can recommend Self Directed IRAs with good service and low fees.
14. Can I purchase more than one Note at a time?
Absolutely. We usually have available notes posted on our website at www.investwichitaks.com.
15. What if my buyer misses a payment?
Goshen Property Management offers an optional warranty each year for $150. They monitor payments and engage delinquent payers on behalf of the note buyer.
16. Who is Goshen Property Management?
Goshen Property Management is a full service property management company serving passive cash flow investors. In addition to managing properties, our remodel teams have updated 60-80 homes a year for the last 4 years. Goshen manages around 450 rentals, employs 30 people, and has a large network of quality subs and vendors.
This is a GREAT OPPORTUNITY for your Self-Directed IRA
(Real Estate is not taxed and there is a lot less risk)
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