A fair number of our students have asked us to put up some posts on the basics of paper, notes and real estate investing, so over the next several months, we’ll be posting a lot of information about the basics, in addition to all the other cool stuff we share with you.
This first post is going to help define the very thing we spend so much time working with… Paper.
So… What Is Paper?
Throughout the nation, the term paper is generally defined as any kind of debt instrument where one party is obligated to pay another.
Paper comes in may forms, many of which we won’t deal with in this course such as, structured annuities, lottery winnings, viatacals, company receivables, etc.
For our purposes, paper is defined as any debt instrument secured by real estate and may also be referred to as a note in some cases.
All of the following terms are applicable, including some not mentioned here:
- Mortgage
- Deed Of Trust (AITD)
- Land Contract
- Land Installment Contract
- Contract For Deed
- Agreement For Deed
- Real Estate Contract
- Bond For Deed
- Wraparound Mortgage
- Lien
- Judgment
See, now that wasn’t so bad was it? In our next “BASICS” post, we’ll talk about how to define “Discounted Paper.”
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