No, I am not talking about a Drive by Shooting – I am talking about a Drive By Inspection of the property you sold and are holding a note on.
It is your buyer’s duty to protect the value of the property you sold until your note is fully paid off. Note terms should specify that your buyer is required to notify you if the property is used in any way that would lessen its value, or, if he intends to remove, change or demolish any building or improvement that would diminish its value.
So, if you live in the area, it might be a good idea to drive by the property occasionally to see for yourself how the property is being maintained. If you have moved out of the area, have someone you know do this for you. Poor maintenance or any fundamental change can diminish the value of your note, while improvements on the property such as a new roof, new landscaping, adding a swimming pool, etc. will probably ensure prompt note payments from your buyer and thereby enhance the value of your note.
