FAQs - A1 Secured Notes

FAQs

What is a Note?
A Note is a promise to pay. It is a written IOU from the borrower to the lender. This important document contains details of the terms and the agreements between the borrower & lender. There are 2 broad categories of Notes...Collateralized and Non-Collateralized. A collateralized Note provides security to the lender because the borrower pledges to give the lender something of value (house, car, 1st born child, etc.) if the borrower fails to repay the debt.
Where Do Notes Come From?
Notes are created when people borrow money and sign a document detailing the repayment agreement.
Why do banks sell the Mortgage?
Banks sell Mortgages for a variety of reasons. Quite often they sell the Mortgage when the borrower has stopped making payments. These non-performing mortgages are packaged up in "bundles" and the entire bundle is sold at a deep discount in order to raise cash. Banks also sell performing Mortgages to raise cash. These are typically sold after the bank has collected interest for a number of years and simply wants to do something else with their capital. Performing Notes are sometimes sold at slightly discounted prices to other Banks, Mortgage Lenders and Investment Firms seeking cash flow.
What if I want to sell my Note in order to do something different with my capital?
Much like stocks, bonds and real estate, Mortgage Notes are traded everyday. There is a vibrant marketplace where institutional Investors buy & sell Mortgage Notes secured by every type of real estate. The process is fast and easy. Here at the A1securednotes, we buy and sell Mortgage Notes for our own account as well as for our clients every day. If you are looking to purchase Notes for your portfolio please feel free to reach out.
How do I get the money to buy a note?
Many note buyers get money through equity lines of credit on properties, cash savings and retirement accounts/self directed IRA’s, HSA’s and CESA. We have also seen people form small partnerships with friends and relatives to buy Notes.
Are notes a secure investment?
We believe that Mortgages Notes are more secure than the stock market or even owning the physical property. We sell Notes that have strong collateral to back them up. Our Notes are offered at discounted prices below the unpaid balance due on the Note and thereby they have a built-in "buffer" to minimize the risk of loss.
How is my money secured?
Your investment dollars are secured by the real estate pledged as collateral. We suggest to never pay more for a Note than the market value of the real estate which serves as collateral.
How can I use Notes to create passive income for myself and my family?
A1securednotes provides Investors with secured Notes that pay interest every month. These are called Performing Notes. These Notes often provide a more reliable stream of income than rental properties without the headaches of being a landlord.
I am interested. What is the next step?
If you want to get started, simply call us at (937) 234-7409 and ask to speak with David Frazier, our Note Investment Strategist. We will help you develop an action plan based on your specific situation. It's a free consultation and there is no obligation to invest with or through A1securednotes.
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