Opportunity

At this point, you may be wondering how to get started investing in this asset class. There are several ways investors can enter the world of mortgage note investing.

Both performing and non-performing notes are actively traded on the secondary mortgage market. Investors can source notes through a variety of channels. Although direct outreach to banks might not work, building relationships with hedge funds and brokers, and developing a personal network of individual sellers are great options. For simplicity, many beginners start by purchasing notes through online exchanges.

While online platforms are a convenient entry point, they typically come with higher purchase prices. More experienced note investors often rely on established networks to source better opportunities, though building these relationships requires significant time, effort, and focus.

Individual investors can also choose to purchase and manage notes on their own. However, this approach comes with a steep learning curve. We strongly recommend additional education, as successful note investing requires thorough upfront due diligence, including legal compliance and ongoing asset management.

To simplify this journey for you, Sanders and Co. makes our note investor community available to every client we work with, as well as millions of dollars worth of inventory each month.

Advisory

But how can investors be sure they're investing in the "right" notes?

That's were Sanders and Co. comes in. We provide investors with the ability to choose the market, price, and projected rate of return from notes in our inventory. The only choice that is solely made by Sanders and Co. is the decision to ONLY participate in the purchasing of first-lien position notes. We will NEVER present you with nor advise you on the purchasing of a second-lien position note.

Sanders and Co. vets every borrower and note investment opportunity with institutional grade due diligence. Every note undergoes our rigorous process. This includes comprehensive borrower credit and income verification, professional property appraisals and market analysis, title insurance and legal documentation review, and exit strategy validation for each investment.

Attractive Risk-Adjusted Returns

Unlike stocks, bond, or other paper assets, note investments are secured by recorded first-lien positions on real property, providing tangible collateral with built-in equity protection.

Target yields on performing notes typically range between 10-16% annually (equivalent to 16-24%+ inside an IRA with 30% tax savings) while many non-performing notes regularly exceed 50-80% ROI.

Ready to Explore Private Lending?

A short introductory call can help you understand how mortgage note investing works and whether it aligns with your goals.