Why can secured notes be a good investment for its investors?
Our Note Investments can provide a predictability of income from the payments generated by rents from the underlying property/properties. In the case of land banking or development deals, income is paid from an option contract, ground lease, or general account funded at the outset. In addition, the notes are secured by hard assets such as real property or shares in the entity that owns the property.
Investors most often buy into a note offering with discretionary cash. However, since there is typically no Unrelated Business Taxable Income generated, investors may find that notes can be suitable for qualified plans and other retirement accounts.