Due to the high demand for real estate notes, we receive dozens of calls per day requesting information on the notes we create. Our focus is always to provide the best investment opportunity to as many people as possible. Toward that end, our team spends much of our time working hard to create and service the best notes on the market.

Our number one most frequently asked question is “Do you have Notes available now?” We take that as a great sign that we are doing something right, and we work hard to produce the highest quality notes as quickly as possible.

Before filling out the Investor’s Form, please take a moment to review our Frequently Asked Questions

*Click the question to see the answer

What is the minimum investment needed to purchase a note?

$70,000. Most of the notes produced by The Note Factory are in the $70,000 to $110,000 range.

Can I purchase a partial note to reduce my minimum investment?


What is The Note Factory?

We are a real estate investment firm that purchases and renovates distressed properties and then sells the properties to qualified buyers with financing terms.

What are the terms of a typical Note Factory note?

20-30 year amortization with a fixed interest rate typically in the range of 10% to 11.5%.

What is the typical down payment?

Our typical buyer has to bring approximately 10% of the purchase price to close on the transaction. This is a combination of down payment and closing costs.

Do you escrow for taxes and insurance?

Yes. Buyers of our homes are required to pay the entire annual property insurance premium in full at the time of purchase and then property taxes and property insurance are collected monthly along with the principal and interest.

Do you close all of your transactions at a title company?


Is your paperwork Dodd-Frank compliant?

Yes. We work with a third party mortgage company to produce all of our loan documents to insure compliance with all current mortgage laws.

Do you teach other investors to produce their own notes?

Yes. We offer a video education course, which outlines our business model. Learn more about the course at

Where are you located?

Our corporate office is located in San Antonio, Texas. All notes are produced in the great state of Texas.

Do you have notes available now?

Our typical wait time to acquire a Note Factory note is 30 to 60 days. Due to popular demand we operate on a first come first serve basis.

Why are your interest rates so high?

Most of our buyers do not fit into the typical “mortgage box” and cannot qualify for a traditional mortgage. Our rates are higher than a traditional mortgage but our buyers appreciate the long term fixed rate financing and there are no balloon payments and they can refinance without a prepayment penalty at any time.

Do you handle all of the servicing?

Yes. We offer to service all notes produced by The Note Factory for a flat fee of $25.00 per month.

How do I get my monthly payments?

We wire the payments to the account of your choice twice a month.

What happens if a buyer stops making payments?

We have a collection department second to none. We work closely with all of our borrowers and pursue all legal collection methods to hopefully avoid a foreclosure.

What happens if there is a foreclosure?

Texas is a non-judicial foreclosure state. The process is relatively fast and inexpensive. We shepherd the entire process and will also resell the home for an additional fee.

What is your default rate?

Our current default rate is below 4%.

Are you licensed?

We are a licensed Texas Real Estate Brokerage firm and also a bonded loan servicer and licensed Mortgage Loan Originator. Can I talk to some other investors that have purchased notes from you? Yes. Contact our office and speak with Erik Saengerhausen or Mike Arch and we will put you in contact with some of our other investors.

What’s so special about The Note Factory?

We create a personal relationship with every home buyer we sell to. We know everything about the buyer and the home we sold. This gives us a huge advantage over investors that just buy paper and no nothing about the underlying asset or borrower. If there is ever a payment problem, we are able to peacefully resolve the issue the vast majority of the time due to the personal relationship we developed during the buying process.

Can we meet?

Yes! We would be happy to meet with you personally. Fill out the Investor’s Form and request a meeting with Erik Saengerhausen or Mike Arch.

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