How to Purchase Real Estate Notes

This video will show you how to submit a real estate note investment request in the Entrust Client Portal.

Real estate notes are promissory notes secured by a mortgage or deed of trust. They are legal documents that represent a loan to a borrower for the purchase of real estate. These notes include details about the loan, such as the amount, interest rate, repayment schedule, and the property’s collateral.

Self-directed IRA (SDIRA) holders may find real estate notes an attractive investment for their predictable cash flow, asset diversification, and collateral security.

In this article, find step-by-step instructions for submitting a real estate note investment request through the Entrust Client Portal:

1. Initiate the Real Estate Note Investment: After logging in to the Entrust Client Portal, navigate to the Dashboard. Scroll down to the "Quick Links" box and click on "Make an Investment." Select "Real Estate Notes" and click "Next."
2. Select Your Account and Review Request Type: Choose the account you want to use for the investment. Select the review request type: 
   • Normal: Typically takes three to five business days.
   • Expedited: Requires a $150 fee to process in one to two business days.
3. Enter Closing Agent Information: Provide the closing agent's company name. If your company is not listed, use the drop-down option to add it. Enter the closing agent's information.
4. Provide Property Information: Enter the property details, including parcel number or lot block number. Provide borrower information. If there are multiple borrowers, use the "Add Borrower" button.
5. Specify Collateral and Note Details: Specify the collateral type (e.g., note secured by deed of trust or mortgage). Select the note type: new note, existing note, or seller carryback note. Enter the note amount by pressing zero until the correct dollar figure is displayed. Indicate if the note is discounted and provide the necessary agreement.
6. Loan Position and Servicing: Specify the loan position (first, second, third, or other). If you have a loan servicer, provide the details; otherwise, leave it as "No."
7. Payment Instructions: Choose the method for sending funds: wire ($30 fee), check ($10 fee), or cashier's check ($30 fee). Select the mailing option for the check: regular mail or overnight ($30 fee).
8. Upload Required Documents: Upload the promissory note signed by the borrower. Upload the deed of trust or mortgage signed and notarized by the borrower. Provide the lender title commitment showing the IRA as the vested party. 
   1. If necessary, upload additional documents (wiring instructions, loan servicing agreement).
9. Review Expenses and Submit: Review the expenses: $175 asset purchase fee plus any check or wire fees. Choose the payment method: cash balance in the account or a credit card on file. Check the acknowledgement boxes and click "Submit."

After submission, you can add more documents or edit existing information if necessary. If any corrections are needed, click "Edit," make the changes, and resubmit.

By following these steps, you can successfully submit a real estate note investment request through the Entrust Client Portal.