How Note Investing Works

When someone buys a house with a mortgage, they sign a promissory note. We buy those notes and collect the payments — so you don't have to.

The 60-Second Explanation

When a borrower gets a mortgage, they sign two documents:

  1. The Note — your promise to repay the loan
  2. The Mortgage — ties that promise to the property as collateral

Banks sell these notes all the time. When you buy one, you step into the bank's shoes. The homeowner's monthly payment now goes to you.

Here's what makes our fund different:

  • We do all the work. Our team finds, underwrites, purchases, and manages every note.
  • You stay completely passive. No paperwork, no borrower calls, no decisions to make.
  • You just collect returns. We handle the complexity; you receive the income.

If a borrower stops paying? We handle it — loan modifications, workouts, foreclosures. The property is always there as collateral, and you never have to lift a finger.

💡 Think of it like this: You invest, we operate, and the real estate secures everything. That's truly passive income.

How Our Fund Works

Four steps from your investment to your monthly income.

1

You Invest Capital

Your investment joins our fund. Minimum is $50,000. Most investors use self-directed IRAs for tax advantages, but taxable accounts work too.

2

We Acquire Notes

We purchase mortgage notes secured by residential real estate. Every note goes through rigorous underwriting — property value, borrower history, documentation review.

3

Servicer Collects Payments

A third-party loan servicer handles all borrower interactions — collecting payments, sending statements, managing escrow. You never talk to borrowers.

4

You Receive Distributions

Monthly distributions are deposited directly to your account or SDIRA. You receive quarterly reports showing exactly how the portfolio is performing.

What Protects Your Investment

Real Estate Collateral

Every note is secured by physical property. If the borrower stops paying, we can foreclose and recover from the property sale.

Equity Cushion

We buy notes at a discount and require significant borrower equity. This cushion protects against property value fluctuations.

Rigorous Underwriting

Every note is evaluated: property value, borrower history, title review, documentation. We pass on far more deals than we buy.

Common Questions

What happens if a borrower stops paying?

We have options: loan modification to get them back on track, foreclosure to recover the property, or selling the note to another investor. The property collateral protects your downside in all scenarios.

How liquid is this investment?

This is not a liquid investment like stocks. We offer quarterly redemption windows with 90-day notice. This is designed for investors with a 3-5 year horizon who don't need immediate access to funds.

Can I use my IRA or 401(k)?

Yes — about 70% of our investors use self-directed IRAs. Returns compound tax-deferred (traditional) or tax-free (Roth). We can introduce you to custodians who specialize in alternative investments.

How do you make money?

We charge a management fee and take a performance allocation after investors receive their preferred return. Our interests are aligned — we do well when you do well.

What's the minimum investment?

$50,000 minimum. After your initial investment, you can add additional capital at any time with no minimum. This is open to accredited investors only.

See What You Could Earn

Use our calculator to see what your savings could generate in monthly passive income.