Investing Criteria

First Position

The lien position determines who gets paid first when a property is sold or foreclosed — making it one of the most critical risk factors in any note investment.

Performing and Non-Performing Notes

In mortgage note investing, not all loans look the same—and that’s a good thing. Notes can range from performing, where borrowers pay on time each month, to non-performing, where payments have stopped. Each status offers its own balance of risk, reward, and strategy.

Residential Notes

In private credit and mortgage note investing, the term collateral refers to the underlying asset that secures the loan. Notes can be backed by a wide range of collateral types, each with its own risk-return characteristics and operational considerations.

Various Security Instruments

Note investments are not limited to a single form of collateral or contract. They can be structured through various security instruments, each offering distinct risk and return profiles. Common types include: