Every client below kept their note, kept their income, and got the cash they needed. Here's how.
A seasoned real estate investor held a $350,000 mortgage note earning 7% interest. He spotted a house flip opportunity and needed $200,000 to move fast.
Selling the note to a buyer demanding a 12% yield would have netted just $205,000 after the market discount and capital gains taxes, destroying $145,000 of his wealth.
We provided $200,000 against his note at 12% interest. He funded the flip, earned a 50% return, and paid us off in just 13 months with no prepayment penalty.
After repaying us, he still owns his $350K note earning $2,968/mo, plus he pocketed roughly $100K in flip profits. Total cost of our loan: $32,870. Total cost of selling: $144,909.
“I kept my note, funded my flip, and still have both income streams working for me.”
Anonymized client, Florida
A note holder carried a $272,000 mortgage note at 5.5% interest, a note he'd been collecting on for over 12 years. He had a chance to start a new business but needed $100,000.
Selling through a broker at an 11% yield, plus a 1.5% broker fee and capital gains taxes, would have left him with just $147,000. That's $125,000 of his wealth gone.
We lent him $100,000 for 18 months. He launched his business, it took off, and he repaid us without issue, all while his original note kept paying him every month.
His note still pays him $1,987/mo. Our interest payment was just $1,000/mo, leaving him cash-flow positive the entire time. Total cost of our loan: $21,870. Total cost of selling: $124,845.
“I didn't want to give up 12 years of payments just to start something new. Now I have both.”
Anonymized client, Texas
A retiree held a $414,000 mortgage note at 6% interest with a 10-year balloon, his primary income source in retirement, paying him $2,698 every month.
When a medical emergency required $150,000, his only option seemed to be selling. A buyer at a 10% yield would have paid $358,000, but after taxes, he'd net just $287,000 and lose his income stream forever.
We provided $150,000 for 12 months. His note's monthly payment ($2,698) more than covered our monthly interest ($1,500), so he kept $1,198/mo in excess cash flow the entire time.
He covered his medical bills, kept his $2,698/mo income stream, and still had $1,198/mo in excess cash flow after our payment. Total cost of our loan: $23,370. Total cost of selling: $127,426.
“I never lost a single month of income. That's what mattered most to me.”
Anonymized client, Florida
All case studies are based on actual transactions. Client names, locations, and certain details have been modified to protect privacy. Past results do not guarantee future performance. First Note Capital, LLC is not a bank and does not provide tax or legal advice.
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