Buying and Selling Notes
Gladstone Funding Group offers individuals, private investors and institutions the ability to take advantage of “out of the box” real estate backed opportunities, by buying all or part of the real estate loans at a significant discount, which is backed by the underlying real estate.
We are asked this question quite often: What exactly is a “Note”?
Essentially, a “Note” is the promise to pay a debt and is commonly called a “Loan”. A “Note” backed by real estate means that the “Promissory Note” is secured by a mortgage or deed of trust and the real estate acts as collateral for the “promise to pay”. If the “promise to pay” is not being carried out to the agreed upon terms, then the Lender has a right to take back the real estate as “collateral”. This is commonly known as Foreclosure.