If you know of a potential note for sale that is secured by commercial real property or by a luxury, high-end, exquisite owner-occupied home, then please provide some details at the bottom of this page. Include in the text area any URL links for the property data sheet or offering memorandum, and phone numbers.

We buy promissory notes that are secured by 1st or 2nd position liens on luxury, high-end, owner-occupied homes and on quality performing commercial real estate. We can purchase both performing (1st and 2nd position) and non-performing (1st position only) notes. The underlying collateral must fit our requirements for collateral below in the event that we must foreclose on the collateral.

Our current preference for property types as collateral for notes is:

  • Class “C” or class “B” multifamily (apartment) properties for working class tenants. (No luxury, timeshare, resort, or hotel/motel properties.)
  • Busted condominium projects where the entire completed project is offered, and the property can be reversed into an apartment building or complex (more than 4 dwelling units per tax parcel). We want to buy out the existing owners at a discount in addition to the unsold units.
  • Luxury, high-end, exquisite owner-occupied single-family homes.
  • We will also look at mobile home communities, but so far we haven’t found anything that works for financing or location, with a good exit strategy for redeeming our investment. Maybe you’ll find the right collateral property for us?

We specifically exclude properties:

  • Serious declared flood zones and any zone that was seriously flooded in the last 20 years.
  • Serious weather zones (tornado alley, hurricane alley, tsunami alley, asteroid alley, etc.).
  • Serious earthquake or seismic activity zones. (No volcanoes, please!)
  • Expansive or contaminated soil.
  • Blighted or war zone areas.
  • Well or river water, or septic tank. (Must have city water and sewer.)
  • Way way way out in the boondocks, rural or mountains. (A little bit outside a medium or big city is alright, but you know what we’re talking about.)
  • Anything else that is very weird or very outside the norm. (Just a little weird that can be repositioned to not-so-weird may be alright.)
  • Multi-family residential parcels with less than 5 dwelling units.
  • Marijuana properties.
  • Projects outside of the continental United States.

Note Payor (this is not all-inclusive):

  • Must have combined net worth of at least 1.5 times their total amount of debt, not including the subject property. We can be lenient on this for an awesome project, provided that our power team qualifies the asset.
  • For commercial property, must have at least two years of management experience or retain a professional management company with at least five years experience.
  • For commercial renovation projects, the general contractor (GC) must be vetted for proper licensing, insurance and bonding, and experience. We must approve the “scope of work” with cost estimates and the draw schedule. All construction, renovation, and repairs funds are escrowed and disbursed on a draw schedule.
  • We may work with a mortgage broker to peek at Payor credit, to be sure that Payor is not a deadbeat that never pays bills. However, the subject property, Payor’s power team, and the business plan for the commercial property is the primary qualifier.
  • For notes secured by exquisite owner-occupied homes (the homes must be “move-in ready”), then we look at Payor’s Ability to Repay (ATR) by the trailing 24 months of bank statements plus the schedule of Real Estate Owned or stocks, bonds, or cash equivalents. We don’t care how Payor earns income, only that there is verifiable proof of income.

We can offer referral fees only when we close a deal that you specifically referred to us, and we did not already know about it through other channels and the other party informs us that you referred the deal to us. Please don’t send “the phonebook” and hope that we’ll somehow filter through it and find a deal to fund. We don’t want a “tape” of potential deals. We want you to look first at the deal to determine whether it has merit before sending it to us. The more often you send crap to us, the more likely we’ll redirect your emails to the junk folder.

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