Notes
Own nothing. Control everything.
Real estate notes represent one of the most specialized areas of real estate investing. Whether a note is performing or non-performing, residential or commercial, first position or junior lien, each asset requires an understanding of structure, timing, and the parties involved.
Our role is to help connect, organize, and support transactions involving real estate–secured debt by providing clarity, process, and informed guidance.
What Are Real Estate Notes?
A real estate note represents the debt secured by property, not the physical property itself. Ownership of a note includes the right to receive payments and, when necessary, to enforce the terms of the loan under applicable state and federal laws.
Common note types include:
Each category carries different timelines, risks, and strategic considerations.
Our Focus
We work with a broad range of real estate backed debt instruments. Our approach is asset specific and strategy driven.
Performing Notes
Income-oriented investments with consistent cash flow
Non-Performing Notes
Resolution-oriented opportunities for value recovery
Residential & Commercial
Coverage across diverse real estate asset classes
Seller-Financed Notes
Including land contracts and contracts for deed
First & Junior Liens
Strategic positioning across the capital stack
Distressed Exits
Select distressed real estate tied to note resolution
The Note Ecosystem
Successful note transactions involve multiple specialized parties. Understanding each role is essential.
Note Holders
Banks, funds, private lenders, or individuals who own the debt
Note Buyers / Investors
Parties acquiring notes for cash flow, resolution, or resale
Loan Servicers
Licensed companies managing payments and borrower communication
Special Servicers
Firms handling non-performing loans, defaults, and workouts
Foreclosure Attorneys
State-specific counsel managing legal enforcement
Trustees or Sheriffs
Officials overseeing foreclosure sales by state law
Collection Agencies
Regulated entities assisting with borrower contact
Title & Escrow
Third parties handling assignments and fund disbursement
Advisors & Intermediaries
Professionals coordinating and supporting transactions
Each party plays a distinct role, and coordination between them is critical to successful outcomes.
Foreclosure Paths
Deeds of Trust (DOTs) & Mortgages
Real estate notes are enforced based on state law, not just what the loan is called.
Many states use a Deed of Trust (DOT) instead of a traditional mortgage. A DOT involves three parties:
The Borrower
The Lender
A Neutral Trustee
Who holds legal title for the purpose of enforcing the debt
Because of this structure, DOT states often allow for non-judicial foreclosure, where the trustee can enforce the debt outside of court. Other states require judicial foreclosure, meaning enforcement must go through the court system.
Enforcement must go through the court system
Trustee can enforce the debt outside of court
This distinction matters because foreclosure structure directly impacts timelines, costs, leverage, and available exit strategies.
This is why notes aren't "paper real estate" — they're a separate asset class. Understanding DOTs, foreclosure paths, and how note closings work allows investors to better evaluate:
When approached correctly, note investing can offer more control, leverage, and downside protection than traditional property ownership — without relying solely on appreciation.
The Note Advantage
Buying a note is fundamentally different from buying property.
When you buy real estate, you're purchasing the physical asset.
When you buy a note, you're acquiring debt secured by real estate.
In a typical note transaction, what transfers is:
The Promissory Note
The written promise to repay the debt
Assignment of Mortgage or Deed of Trust
Recorded in public records
Supporting Collateral & Servicing Information
All relevant loan documentation
This assignment legally transfers the lender's rights — the right to collect payments, negotiate terms, or enforce the debt. It does not transfer ownership of the property itself.
That means:
You step into the lender's position, not the homeowner's
Value comes from cash flow, enforcement rights, or debt resolution
There is no traditional property closing, title transfer, or property management on day one
Notes are a financial asset first. The real estate is the collateral.
How We Add Value
We act as an advisor and transaction facilitator, not a lender and not a principal investor unless clearly disclosed.
Our involvement may include:
- Identifying and positioning note opportunities
- Organizing asset information and documentation
- Coordinating introductions between buyers and sellers
- Supporting due diligence and transaction flow
- Assisting with expectations around timing, structure, and exits
Market Awareness & Timing
Note opportunities tend to emerge in cycles influenced by interest rates, credit conditions, borrower behavior, and broader real estate trends.
Understanding when an asset enters the market, why it is being sold, and how it fits within current conditions is often as important as pricing itself. Our approach emphasizes awareness and adaptability rather than speculation.
Risk, Compliance & Responsibility
Note investing is governed by federal and state regulations. All parties must comply with applicable laws.
State Foreclosure Laws
Judicial vs. non-judicial processes
Debt Collection Regulations
Federal and state compliance
Consumer Protection
Protecting borrower rights
Servicing Requirements
Communication standards
Recording & Assignment
Proper documentation
We emphasize lawful, ethical, and transparent practices throughout the transaction process.
Common Exit Strategies
Depending on the asset and circumstances, outcomes may include:
Loan Reinstatement or Modification
Discounted Payoff or Settlement
Sale to Another Investor
Foreclosure Where Applicable
Property Sale Following Resolution
Refinance or Restructuring
Long-term Cash Flow Holding
Each asset follows its own path.
Who We Work With
We value alignment, professionalism, and long-term relationships.
Private Note Holders
Institutional Sellers
Funds and Hedge Funds
Family Trust
Accredited Investors
Engagement Is Key
Conversations often start with:
From there, we determine whether engagement makes sense.
Start a ConversationOur Philosophy
In this space, the most productive opportunities tend to begin with informed conversations rather than rushed decisions. When alignment exists, structure and execution follow naturally.
We believe effective note transactions are built on: