We are specializing in non-performing notes (NPN). A non-performing note is a mortgage loan where the borrower has not made his or her scheduled payments for at least 90 days.
A nonperforming loan is either in default or close to being in default. RealNote Investment invests in NPNs where the borrower has not made payments for a minimum of 1 year, typically longer.
This allows us to acquire the debt (the actual note itself) as a substantial discount and work with the borrower using one of the five specific exist strategies to either get the investment re-performing or acquire the asset. It is because of this substantial discount that we reduce our investment risk to nearly zero.
Investing in a non-performing note generally has a time horizon of 12-18 months, and typically returns between 8-12% or higher to the investor depending upon the exit strategy employed.