Last Updated on January 19, 2025 by T.J. Fitzgerald
In the world of note investing, not all deals are created equal. Today, I’m sharing three critical red flags that could save you from a costly mistake.
1. Payment History Issues
A spotty payment record is like a flashing warning sign. Look for:
- Frequent late payments
- Multiple missed payments
- Inconsistent payment amounts
Pro Tip: Request a detailed payment history report. It’s your financial crystal ball!
2. Unclear or Incomplete Documentation
When paperwork is messy, trouble often follows. Watch out for:
- Missing pages in contracts
- Unsigned documents
- Inconsistencies between different forms
Pro Tip: Create a document checklist and don’t proceed until every item is accounted for.
3. Legal or Title Complications
These can turn a promising deal into a legal nightmare. Be wary of:
- Liens on the property
- Unclear ownership history
- Pending legal actions
Pro Tip: Always, always, always get a professional title search.
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