How does investing with Highclere Group work?
There are two ways of investing in mortgage notes with Highclere.
(1) You can purchase a note from Highclere and become the owner of the note, and simply collect the payments on it until its maturity; or
(2) Become an investor in the Highclere group of funds and receive a distribution. Investors have to be “accredited” to be able to invest in the fund. To be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount in the current year. Click here for Highclere’s latest offering.
Owning A Note
When you own a note, you become the lender and collect mortgage payments from the borrower - the home owner; you have no direct responsibility for the property. In contrast, a landlord owns the property and collects rent; he has unforeseen expenses, not to mention liabilities, and has a “hands-on” investment that he has to manage, and he pays a mortgage.
A licensed third-party servicer usually collects the mortgage payment on your behalf and deposits it directly into your account. The servicer also keeps an eye on the timeliness of your payment from the borrower. If the borrower’s payment is late, the servicer will follow up with the borrower – there is no involvement on your part.
Moreover, notes on residential properties are a collateralized investment; in other words, in the event the borrower stops making payments, you can repossess the collateral (the property) through a foreclosure process and recover your investment.
Generally speaking, notes have the potential to earn returns higher than traditional investments or a bank CD. Yields of 8% are attainable from investing in notes.
Investing in mortgage notes is a great way to receive passive income. It is also an ideal way to build your retirement account tax free. Contact us and we will show you how to set up a retirement account if you have not already done so.
Why Highclere Group?
We at Highclere Group carry an inventory of notes that you can select from. We can also provide you with a customized portfolio depending on your investment goals.
For even smaller and relatively secure investments, you can purchase a “partial” or part of a note. This means that you buy the rights to receive the front-end payments, and temporarily own the note for that period. Upon fulfillment of those payments, the note contractually reverts back to us. Because we have a vested interest in the back-end of the note, we will step in to assist you in the event of a default during your ownership. This “safety net” is in addition to the first position lien that you have on the note.
If mortgage note investing is new to you and wish to learn more, please contact us and we will be happy to discuss strategies that suit your needs.