• What is a real estate-backed note, and how does it differ from traditional real estate investment?

  • A real estate-backed note, or mortgage note, is an investment in a loan secured by real estate. Unlike traditional real estate investments where you own property directly, note investing allows you to act as the lender, earning interest on the loan rather than rental income. With real estate-backed notes, you benefit from passive income secured by first-position liens on the property without the responsibilities of property management.

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• How is my investment secured?

  • Your investment is secured by a first-position lien on the property, meaning you have a priority claim on the asset if the borrower defaults. Additionally, borrowers provide a personal guarantee to repay the loan, adding an extra layer of protection. This security structure helps protect your investment and minimizes risk.

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• What happens if a borrower defaults?

  • In the event of a default, as the first-lien holder, you have the right to foreclose on the property to recover your investment. Our team conducts rigorous due diligence on all borrowers and properties to reduce default risk. While defaults are rare, we have procedures in place to manage them effectively and safeguard investor capital.

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• When and how will I receive returns on my investment?

  • You will receive monthly interest payments, providing steady passive income. At the end of the loan term (typically 6-12 months), you’ll receive your principal back when the borrower completes the exit strategy, such as selling or refinancing the property. This structure gives you regular income along with a predictable return of principal.

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• Can I withdraw my investment early if needed?

  • Real estate-backed notes are typically illiquid, meaning your funds are committed for the duration of the loan term (usually 6-12 months). Because the investment is tied to a specific property and project, early withdrawal is generally not possible. We recommend this investment for those who can commit their funds for the full term.

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• What are the risks involved in real estate-backed note investing?

  • While real estate-backed notes offer security through liens and personal guarantees, they still carry some risk. These risks may include market fluctuations, changes in property value, or borrower performance. However, our investment structure and due diligence process are designed to minimize these risks, making it a lower-volatility investment option compared to traditional stocks.

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• Who qualifies as an accredited investor, and how is eligibility verified?

  • Accredited investors are individuals with an annual income of $200,000 (or $300,000 with a spouse) for the past two years, or a net worth of $1 million (excluding their primary residence). We verify accredited investor status through documentation, such as income statements or verification from a CPA, attorney, or financial advisor, to ensure eligibility.

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• What is the tax treatment for returns on real estate-backed notes?

  • Returns from real estate-backed notes are generally considered interest income, which may be taxed at ordinary income rates. Since tax situations vary, we recommend consulting a tax advisor to understand the specific tax implications for your investment.

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• Can I reinvest my principal once a loan term is complete?

  • Yes, once the loan term ends and you receive your principal back, you have the option to reinvest in new mortgage note opportunities. This allows you to continue earning passive income and build your portfolio with our available investment options.

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• What kind of properties and projects are included in these investments?

  • Our investment opportunities focus on high-demand residential properties, including single-family homes and renovation projects. We primarily target markets in Louisiana, Texas, and Florida, where we have strong expertise and high investor demand, allowing us to provide quality investments with defined exit strategies.