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What is Mortgage Note Investing?
Mortgage note investing is a strategy where you invest in secured loans for real estate properties. These loans, or "notes," are backed by a first-position lien, giving you a priority claim on the property if the borrower defaults. With typical investment durations of 6-12 months, mortgage notes offer a short-term commitment while providing consistent returns, often ranging from 7-12%. This makes them an attractive option for those seeking secure, high-yield opportunities in real estate.
How it Works
Step 1: Fund High-Demand Real Estate Projects
With a minimum investment of $50,000, you can fund mortgage notes that drive short-term real estate projects, such as fix-and-flip renovations and bridge loans. Invest in a full or fractional note, allowing you to diversify across multiple properties and maximize your portfolio’s potential. Each project is structured with a clear exit strategy—through either property sale or refinancing—so you can expect returns within a defined timeframe.
Step 2: Enjoy Enhanced Investment Security
Your investment is protected with a first-position lien on each property, giving you top priority in the event of repayment issues. Additionally, all borrowers provide a personal guarantee, offering added assurance that your funds are secure.
Step 3: Receive Consistent, Passive Income
As borrowers make payments, you earn steady, high-yield returns through regular interest payments. With typical loan terms ranging from 6-12 months, you’ll enjoy predictable cash flow without a long-term commitment.
Step 4: Exit or Reinvest for Ongoing Growth
At the end of the loan term, your principal is returned as the borrower exits through property sale or refinancing. You can choose to reinvest in new mortgage note opportunities, allowing you to build continuous, high-yield returns with CCG’s expert guidance.
Key Benefits of
Investing with CCG
Consistent, High-Yield Returns
Investing in mortgage notes puts you on the lender’s side, allowing you to earn steady interest income rather than paying it. With our proven track record in real estate lending, you benefit from reliable returns with a low default rate, adding consistency to your investment portfolio
Enhanced Security with Real Estate Collateral
Your investment is protected by a first-position lien on residential properties and personal guarantees from creditworthy borrowers. This level of security ensures your investment is backed by real assets and responsible borrowers committed to repayment.
Flexible, Short-Term Investments
Our mortgage notes are designed with short terms, typically between 6 to 12 months, providing more flexibility than traditional real estate ownership. This short-term structure offers high liquidity, allowing you to see returns faster without long-term commitments.
Quick Access to Investment Opportunities
Start earning quickly by choosing from our diverse selection of secured mortgage notes. With options to invest in full or fractional notes, you can diversify your portfolio right away, putting your capital to work in high-quality real estate-backed loans.
Passive Monthly Income
Enjoy the benefits of real estate investment without the hassle. Receive monthly or quarterly interest payments directly to your account, allowing you to build passive income without property management or maintenance headaches.
Why Real Estate-Backed Notes?
Real estate-backed notes offer a unique combination of stability and predictability, making them an attractive choice for those seeking consistent, passive income. Unlike more volatile investments, these notes are secured by tangible real estate assets, providing a strong layer of protection. With structured loan terms and defined exit strategies, such as property sales or refinancing, investors can enjoy steady returns over a predictable timeline.
This approach allows you to earn reliable income through interest payments without the typical fluctuations of traditional markets, making it an ideal addition to a balanced portfolio. The security of real estate collateral, combined with the straightforward nature of mortgage note investments, provides peace of mind and dependable growth, even in uncertain economic climates.
Feature | Real Estate Backed Notes | Stocks | Mutual Funds | ETFs | Real Estate Direct Ownership |
|---|---|---|---|---|---|
Steady Income | ✅ Monthly interest payments provide predictable passive income | ❌ Income depends on market fluctuations and dividends | ❌ Depends on fund performance and dividends | ❌ Variable income, no fixed returns | ✅ Rental income, but can vary with tenant turnover |
Security | ✅ Secured by first-position liens on real estate assets; borrower personal guarantees | ❌ No asset-backed security; value depends on company performance | ❌ Not directly asset-backed; relies on market performance | ❌ Market-dependent, no collateral | ✅ Tangible asset, property value can fluctuate with the market |
Volatility | ✅ Low volatility with defined terms and exit strategies | ❌ High volatility, impacted by market and economic changes | ❌ Moderate volatility, varies by fund type | ❌ Market-dependent, can be volatile | ❌ Moderate volatility depending on market conditions |
Investment Duration | ✅ Short-term (6-12 months), with principal returned upon property payoff | ❌ Variable, can require long-term commitment for gains | ❌ Long-term, typically 5+ years recommended | ❌ Variable, may require long-term for growth | ❌ Long-term commitment, typically 5-10 years; harder to liquidate quickly |
Liquidity | ❌ Limited liquidity; funds are tied up until property payoff (6-12 months) | ✅ Highly liquid; can be bought and sold freely | ❌ Moderate liquidity; early withdrawals may incur fees | ✅ Highly liquid, can be traded like stocks | ❌ Low liquidity; typically requires property sale to cash out |
Potential Returns | ✅ Higher potential returns (7-12%) in short-term loans | ✅ Average 8-10% annually, but with higher risk | ✅ Average 6-9% annually, dependent on market | ✅ Average 7-9% annually, market-dependent | ✅ Potentially high returns, typically 6-12% but with high maintenance and costs |
Investment Overview & Eligibility
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Minimum Investment: $50,000
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Investment Options: Choose from full note or fractional note participation, allowing for portfolio diversification.
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Eligibility: Accredited Investor Verification and Investor Profile Assessment required.
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Investment Duration: Typically 6-12 months, varying with loan terms.
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Target Returns: Projected annual returns of 7-12%, depending on specific loan details.
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Payment Schedule: Monthly interest payments with principal returned upon property payoff.
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Security: Investments are backed by first-position liens and personal guarantees from borrowers, though all investments carry some risk.
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Tax Considerations: Returns are generally treated as interest income; consult your tax advisor for personalized guidance.
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Reinvestment Option: Option to reinvest principal into new mortgage notes upon project completion.
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Market Focus: Investments in high-demand markets in Louisiana, Texas, and Florida.