Good morning everybody, Chris Seveney with 7E investments and co-host of the good deeds note investing podcast. Hope you’re doing well today on my morning drive. They wanted to do a quick video this morning on expectations when you close on a note. I recently I’ve seen some posts from people who have closed on a note and think after a week or two payments start coming in and collateral files and everything immediately get turned over to them.
That will be great in a utopian world. But the reality of it in this business is a few closed on a note, let’s say December 15th, uh, you know, and sent the money. Realistically that loan isn’t going to get bored with your servicer probably till 30 to 45 days after that. So expect between sometime in mid January, that loan gets boarded. Now during that time, payments probably going to be made to the old servicer and it’ll take time for those get transferred over.
But don’t expect that first payment to be in the door in a few weeks if it’s a performing note. It takes time to get bored and go through the process. The other thing is the collateral files after you close, you know, you had a soft copy, but the transfer of hard collateral files, I typically, if I get them within 30 days, I’m ecstatic. It’s not something that happens in a few days or a week.
Some sellers are good like that, but for the most part it will take, uh, you know, again, probably 30 to 45 days before you see that collateral. It’s not something that worried about, uh, it’s, you know, you have a loan sale agreement and I’m assuming you bought from a reputable seller, but it’s something that does take time and something you should stay on top of. But I just want to make sure people that when you buy a note, it’s not instant gratification where at the snap of a finger and everything pops up into, you know, it’s now yours in the systems and the loan was transferred.
There is that waiting period. So you have that rush, rush, rush. You go through only to sit and wait. So thanks for watching and look forward to providing you more great content. Thank you.