What is Real Estate Note Investing?

When we find a note or equity partnership opportunity under market value, we give our private lenders an opportunity to fund the purchase and collect the cash flow. Lenders can also earn high-interest rates - generally double what you can get in bank CDs and other Traditional Investment Plans.

Few banks lend on vacant land. This limited capital pool creates a huge demand for our services. And that demand allows us to cherry-pick deals with quality borrowers at rates that outperform "traditional" real estate assets.

We prefer to work with our payors to restructure payment plans that help them get back on track and preserve our investment and projected returns. When that is not possible, we can exercise our right to repossess the property.

We buy notes at a discount deep enough to ensure better-than-average returns in traditional markets. So when inflation rises, your cash flow still maintains its purchasing power. We also prefer to invest in shorter-term investments to minimize our exposure to inflation risk over long periods of time.

We currently pay twice what a typical bank CD is paying. Our rates will fluctuate depending on the quality of the deal presented. Most of our lenders are paid between 10%-12%.

The hold time will depend on the terms of the note. Most are set up for 5-10 years. And a portion of your funds will be returned with each regular payment. However, when we use your money for land development projects, we typically need the capital for only 12-24 months.

No. There is no government-backed guarantee on these privately held real estate notes. You’re deriving protection from the equity in the real estate that backs the note. If at any time we were to default on the note, you have the legal right to take the property. We plan for the worst, and the notes we buy are secured by thousands of dollars of equity in the property.

Even when we use your funds to purchase notes that have a professional loan servicer, we ensure that the borrower pays those fees. So the price and yield we quote you is your true net.

Yes, these are established tax guidelines, and it is completely legal. However, we always recommend the services of a custodian to invest retirement funds tax deferred or tax-free.

It is our policy to pay for all the closing costs so that your entire investment goes to work for you. While we collect a fee for our services, the price and yield we quote you is your true net.