A Key Resource for Due Diligence in Real Estate Note Investing

One of my most valuable resources is a key piece of due diligence, and this is called the Ownership and Encumbrance Report, or “O&E Report”.

It is a title report that gives you key information about the ownership, meaning your borrower, and anything that is an encumbrance against the property that is securing your invested dollars. This due diligence process is a KEY piece when evaluating notes to purchase.

The title company will pull recorded information from the county recorder’s office regarding the borrower and any recorded documents that deal with the actual property (the house), which is the secured collateral for your loan aka the note you are buying.

You will receive information, if available, about an alternative address for your borrower; mortgages; assignments of mortgages; property taxes; code violations, district utilities due; and liens and/or judgements that are against not only the borrower, but also the property.  You also receive copies of all these documents!  This is key information when evaluating a note.

There are many options regarding a company that can obtain and compile your O&E reports for you. TIf given the option to expedite the reports and receive them on the same day, I highly recommend you pay the extra fee,  as asset managers  don’t want to wait weeks on end to complete due diligence; especially for one note.

The advantage of requesting an O&E from a specialized title company, is that there is no need to go to the county and request all the information you need yourself. They will provide a comprehensive report and give you everything you need.

No matter what type of real estate investment you are making, consider learning and finding a reputable company for your O & E reports!


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Paige Panzarello is the “Cashflow Chick”. Having been a Real Estate investor and entrepreneur for almost 25 years, Paige has experienced many facets of real estate investing. Her experience includes founding and running her own Residential and Commercial Construction and Acquisition companies, Buy and Hold residential and commercial real estate investing, Tax Deeds/Liens Investing, Fix and Flip (Residential Remodeling), and other forms to name a few. She currently focuses on Non-Performing Notes that she purchases all across the United States. Whether in notes, residential or commercial real estate, in California, Arizona, or nationwide, Paige has been successful in completing over $150 million in real estate transactions to date.

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