Promissory Notes Explained

[@RealEstateFinanceAcademy]

What lessons or concepts would you like me to teach you? Tell me below! - Trevor

[@geraldmurphy6912]

Thank You, That is very helpful information , you made the topic very easy to understand

[@RealEstateFinanceAcademy]

Happy to help!

[@pacific_blue_homes]

Question, if I am in California and loaning money to someone to buy property in Michigan and I will be in 1st position on the property. What State should the note be drafted in, California or Michigan? Also if I am loaning money to someone in Florida, with no security, same question? Just trying to see what states the notes need to be drafted in. I have been told California as that is where the money is coming from and been told the state the money is being loaned in.

[@RealEstateFinanceAcademy]

Great question. The answer is, it depends on a number of factors. You definitely do NOT want to do any private lending on your own without the help of an attorney and a title & escrow company. I recommend you speak with an attorney first. Hope this helps. - Trevor

[@pacific_blue_homes]

Thank you, I did and they all suggested CA since that is the state the money is coming from.

[@BHungry-n1d]

Freddie Mac just monetized my promissory note by giving the note amount to my mortgage lender Rocket Mortgage. If my promissory note is legal tender and now used to pay the loan off by Freddie Mac with an exchange of promissory note for Emergency Federal Reserve Notes, the loan is now paid in full using my note. Why am I still making payments? Thank you.

[@RealEstateFinanceAcademy]

Great question. Per the Assignment clause in your note, the loan (and accompanying security instrument aka mortgage) can be sold to another lender, and all rights are transferred to the new lender. Your ‘loan servicer’ could be a third party company that handles the payment processing on behalf of the lender, too. Just make your payments and you’ll be fine.

[@BHungry-n1d]

@@RealEstateFinanceAcademy Thank you for your response. Would you care to address the "no public record" transaction by the Federal Reserve Agent (Freddie Mac) and why my Promisory Note exchange for Federal Reserve Notes would not suffice for a loan payoff per the Bank Law of 1933?

[@COOful3]

We the People are the LENDERS. The bankers are the BORROWERS. Read “The Borrower Should Repay The Lender” by Tom Schauf

[@julioilarraza3173]

You the best your explain that In PR language En Arroz Con Habichuela / With Raíces & Bean 👏👏👏

[@danielpalos]

I am learning charting and retail trading so I can work remotely from home. What do you suggest would be good terms for an unsecured promissory note for a lender? I am looking into opening a margin account and need enough for a computer workstation and for the margin account and to cover payments payments on the note until I am profitable and can repay the note.

[@rolandotorres7112]

What happens if I sign the promissory note and walk out on the bank? Since their insurance kicks in after 91 days the loan would be paid for.

[@RealEstateFinanceAcademy]

If you walk away from paying the debt, the lender will foreclose and seize the collateral you pledged as security, and possibly sue the guarantor for any deficiency not covered by the collateral.

[@tinaromano8713]

Not sure what the difference is between the promissory note vs a standard Term Loan

[@RealEstateFinanceAcademy]

The promissory note is the contract used to create the standard term loan or any other loan.