🧾 The Note
A written promise to repay debt, including principal, interest, and timelines.
Foundations
How a note works in real estate finance
A note is a promise to pay. In real estate, that promise is secured by a mortgage or deed of trust, creating collateral-backed protection for lenders and investors.
🏠 Secured by Collateral
The mortgage or deed of trust ties the note to real property and outlines lender remedies.
🏦 You Become the Bank
When you acquire a note, you step into the lender's position and receive payments.
📉 Discounted Entry
Buying below unpaid principal balance can increase yield and improve downside protection.
🥇 Lien Priority
First and second lien notes provide priority in the capital stack and clearer exit paths.
🛡️ Risk Controls
Collateral value, payment priority, and workout rights reduce risk versus unsecured debt.