Mortgage Income Notes

As a private lender, we offer Mortgage Income Notes (MINs) as a unique investment opportunity for individuals seeking regular income and a secured investment. Our MINs provide a competitive interest rate and a steady stream of income, backed by a mortgage on a real estate property.

What Are Mortgage Income Notes?

Mortgage Income Notes are investment instruments that represent ownership in performing real estate debt. When you purchase these notes, you effectively become the lender, receiving monthly principal and interest payments from borrowers. These asset-backed securities offer predictable returns secured by tangible property, creating a unique blend of income stability and real estate exposure.

How Do Mortgage Income Notes Work?

Investment: You invest in a Mortgage Income Note, which represents a loan to a borrower.

Mortgage Collateral: The loan is secured by a mortgage on a real estate property, providing a level of security for your investment.

Regular Income: You receive regular interest payments, typically monthly or quarterly, based on the interest rate and terms of the note.

Return of Principal: At the end of the loan term, you receive the return of your principal investment.

Why Investors Choose Mortgage Income Notes

Reliable Passive Income

Predictable Cash Flow: Earn 6-10% annual yields from borrower payments
Payment Consistency: Performing notes have 95%+ on-time payment history
Inflation Hedge: Returns typically outpace inflation by 3-5%

Reduced Volatility

Low Market Correlation: Real estate debt doesn’t swing with stock markets
Collateral Protection: Notes secured by physical property (average 30-50% equity cushions)
Foreclosure Rights: Legal recourse if borrowers default

Capital Efficiency

Lower Entry Costs: Invest from $25K vs. $500K+ for physical property
Zero Landlord Hassles: No maintenance, tenants, or vacancies
Tax Advantages: Deductible expenses and potential capital gains treatment

Investment Comparison Table:

Asset Class	Avg. Yield	Volatility	Management	Liquidity
Mortgage Notes	6-10%	Low	Minimal	Moderate
Dividend Stocks	3-5%	High	None	High
Rental Property	4-7%	Medium	Intensive	Low
Corporate Bonds	3-6%	Medium	None	Medium

How Mortgage Income Notes Help All Parties Win!

For Investors (Note Buyers)

Portfolio Diversification: Add real estate exposure without physical assets
Compound Growth: Reinvest payments for exponential returns
Inflation Protection: Fixed-rate notes gain value as dollars weaken
Estate Planning: Create multi-generational income streams
Benefits for Investors
- Regular Income: Earn regular interest payments, providing a steady stream of income.
- Secured Investment: The mortgage collateral provides a level of security for your investment, reducing the risk of default.
- Competitive Interest Rates: Earn competitive interest rates, typically higher than traditional savings accounts or bonds.
- Diversification: Mortgage Income Notes can provide a diversification benefit, as they are secured by real estate and not correlated with other asset classes.

For Note Sellers (Original Lenders)

Instant Capital Unlock: Convert illiquid loans to cash for new opportunities
Risk Mitigation: Transfer default exposure while maintaining servicing fees
Balance Sheet Optimization: Free up lending capacity immediately
For Borrowers
Loan Stability: Terms remain unchanged after note sale
Flexible Solutions: Private investors often work with borrowers facing hardships
Potential Discounts: Opportunity for early payoff negotiations
Avoid Institutional Rigidity: More personalized servicing

Our Investment Process

Source: We acquire premium performing notes from private lenders

Vet: Rigorous 7-point due diligence

Property valuation & inspection
Title verification
Equity position assessment
Payment history review
Legal documentation audit
Local market evaluation