All About Notes FAQ

Notes FAQIs note buying something new or a fad?

The selling and buying of notes has been around as long as real estate has been bought and sold. When you purchased your home, how long was it before you received the letter that said that you loan had been sold and to send you next payment to the new lender?

Lending institutions and banks always have and still do this every day. It frees up their capital so that they can make new loans.

Is there risk in investing in notes?

There is risk in ANY investment you make. I do not know of anything that is guaranteed in life except taxes and death!!

CFR tries to minimize the risk in the notes that we sell by making sure that there is plenty of equity between the purchase price of the note and the fair market value of the home that is being used as collateral against that note. As in any investment that you make, we recommend that you fully understand the investment and the risk involved.

How much do I need to purchase a note?

There is no set amount and it varies on each note depending on several factors. You do not need tens of thousands of dollars to get started. CFR has sold partial notes for as little as $5000.00.

Do I need to be in the same state as the note I purchase?

NO, CFR is based in NC and we purchase notes across the United States.

Does the borrower pay me direct?

They can but we do not recommend it. CFR does not collect any payments from our borrowers, We have a third party servicer set up that is licensed and can handle all of the federal and state regulations concerning the monthly payment to include the escrow portion of the payment (Property taxes and Insurance). When you invest in a note from CFR, it will already be set up with a servicer and all we have to do is let them know that they need to send you the monthly payment instead of us.

Can I use my IRA to Invest in notes?

YES, YES, YES. Notes are a great investment tool for an IRA, Roth and HSA. Your custodian needs to understand the process, if they do not, we can recommend a couple that know the inside and out of using your IRA for note investing.

Does it cost money to change from my current IRA custodian to a new one?

In most cases no. BUT Capital Financial Resources is not a CPA ( Nor do we play one on TV). Please check with your CPA / Accountant, they will be able to point you in the direction that is best for you. There should not be any cost to just changing custodians.

How do I get started investing in notes?

Please feel free to reach out to us. There is a short questionnaire box to fill out in the INVESTMENT section on the home page under “Purchasing Direct from CFR”. I look forward to talking with you and answering all of your questions.