There are an estimated 9 million non-performing loans in the U.S. today. Great news for note investors.


What if a property could be purchased for 20% of it's value? There might be pretty good potential for profit wouldn't you agree?

That's exactly the case with non-performing loans (NPL's for short). Our program allows you to tap into this massive and highly profitable segment of the real estate industry. Using our expertise and management, we buy notes at steep discounts and are able to generate above average returns for our lenders.

  • Security - "I'm not so concerned about the return on investment as the return of my principle," Warren Buffet. All notes are secured by the hard asset of the underlying real property with a 1st Trust Deed.
  • Discount - We control assets for pennies on the dollar.
  • Returns - Ask most financial planners and they say 8% is great. Great if you can get that year in year out but not likely these days. Our lenders enjoy interest in the 15-25% range.
  • Term - Shorter terms which can be as quick as 6 months and rarely longer than 36 months. Typical time frame, 12-24 months.
  • Options - Notes provide multiple exit strategies such as loan modification, deed in lieu, foreclosure or resale of the note. Multiple options to maximize profit.
  • Cash Flow - In some cases before the note investment exit has been reached, they will generate monthly cash flow from borrower mortgage payments or rental income.
  • Market - Realty Trac reported that more than 13% of all mortgages are under water. Commercial banks say they have $160 to $170 billion of distressed single-family assets on their books. Add in at least that much from FHA. The opportunity is very large.
  • Barriers - Unlike buying a traditional brick and mortar investment property, note acquisition is not as easily accomplished. The good news is, unlike the flipper rush of the last real estate boom that eventually lead to shrinking inventory and investor profits, the higher barriers to entry in the note market will protect it from the heard mentality.
  • Funding - Lenders can use funds from self-directed retirement accounts to grow their principal tax deferred or even tax free.



Investing in multiple notes to give you more cash event opportunities and lowered risk. That’s the advantages Silver Hammer Investments, LLC note funds give you. Each $250,000 fund typically has 6-10 notes with your investment securing a profit share in each one. Invest $25,000 and you receive a 10% profit share, $50,000 and 20% profit share and so on. Silver Hammer Investments, LLC note funds allow even smaller investors, minimum $10,000, to enjoy all the benefits of a large note portfolio.

Silver Hammer Investments, LLC is currently offering two investment fund types:

1) Mixed Fund of up to $250,000

  • Consisting of multiple, unrelated individual investors or entities contributing a minimum of $10,000.
  • Designed for smaller investors who’d like to take advantage of the opportunity in the note market but don’t have the funds to create their own private portfolio.
  • Investors receive a percentage share of profits of all the Notes in the fund based on their contribution percentage to the Mixed Fund pool.
  • Secured contractually by property first trust deeds.

2) Private Fund of $250,000 or more

  • Consisting of a single investor or related group of investors or entities contributing a minimum of $250,000.
  • Silver Hammer Investments buys, manages and sells notes exclusively for the Private Fund investors portfolio.
  • Secured by recorded property first trust deeds in the investors or investor entities names.


History has shown the annualized ROI on Non-Performing notes has ranged from 20% to 50% on average. The deciding factors on the ROI are generally how long it takes to get the note to generate cash, whether the note is sold as performing or is kept for long term cash flow, or if the property is foreclosed on and whether it’s sold wholesale or retail. We believe a conservative estimate of 20% annualized ROI puts expectations in the right place and allows for proper planning, but higher ROI’s are very likely.


Personal cash, investments through LLC, LP or Trust, foreign investment through Regulation “S” offering, and investments through self-directed IRA’s are all acceptable.

Very simple...earn 8-11% interest on fully collateralized direct loans.


Many times, potential home owners have plenty of cash but because of various circumstance, can't go the traditional lending route.

Our direct lending program, commonly known as Hard Money Lending, allows private individuals to safely lend money to borrowers while enjoying better rates of return on their capital as opposed to traditional investment opportunities.

  • Cash Flow - Need a regular revenue stream from your capital? Hard money loans pay interest payments back to lender every month.
  • Security - Lender principle is not only fully collaterized by real property with a 1st Trust Deed. Loan to value is typically 50-70% with the borrower providing the difference in cash to acquire the property.
  • Underwriting - all New Notes are fully underwritten by loan officers with borrowers screened and verified, property inspected and appraised, and title checked and insured through escrow.
  • Returns - Overall returns are generally 8-11%.
  • Term - Shorter terms which can be as quick as 6 months and rarely longer than 36 months. Typical time frame, 12-24 months.
  • Funding - Lenders can use funds from self-directed retirement accounts to grow their principal tax deferred or even tax free.



Up and down stock market, measly savings returns, where do you put your IRA funds to get a great rate of return without the downside risks? Notes secured by real property may be your answer. We’ve worked with many major self-directed IRA trust companies to help our investors unlock the potential of notes for their IRA accounts and we can help you too.

Contact us to find out more info on how you can use your IRA funds to invest in notes.

Questions on Selling Mortgage Notes

Wondering how this whole note buying process works?  Get answers to frequently asked questions including:

Why Would I Sell My Mortgage Note?

How Do Note Buyers Decide on a Value?

What Can I Do to Make My Note Worth More?

Here are straight forward answers to the most common questions on selling mortgage notes.  We also invite you to visit our learning center filled with helpful articles and tips for creating and selling trust deeds, land contracts, and mortgage notes.

Why Owner Financing?

Owner financing is on the rise with more sellers agreeing to accept payments from buyers. There are many reasons people agree to take back a note, deed of trust, mortgage or contract including:

  • Quick sale of the property
  • Monthly income from the note
  • No hassles of bank financing (fees, delays, and strict underwriting)
  • More qualified buyers
  • Property is hard to finance

Why would I sell my mortgage note?

Circumstances change and many sellers would prefer cash today rather than small payments that trickle in each month. Here are just a few reasons people have sold their note payments for cash:

  • Retirement
  • Taxes
  • Investment Opportunity
  • Expensive Medical Care
  • Vacation
  • College Tuition
  • Unexpected Financial Changes
  • Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
  • Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

What is a note appraisal?

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property.  It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.

We recommend you have your note evaluated once a year as pricing may change based on market conditions

How do I maintain the value of my note?

Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:

  • keep good records and copies of the payments received,
  • obtain a copy of the property insurance policy from the buyer each year; and
  • verify the property taxes are paid  when they come due (usually twice a year).

This will help maintain the value of your important asset and avoid any unpleasant surprises.

Can I sell all or part of my note?

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

How is the value of a note determined?

The value of a note is affected by the down payment, interest rate, payment amount, and term as well as the buyer’s credit rating and payment history. The type, condition, and value of the property also impact the value of your note.

The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

How will selling my note affect the payer?

The payer experiences no change in the way the payments are structured. The only change will be the address where the payments are mailed.

How do I get started?

The first step is to obtain a quote using our online form or by calling us at (512) 4617868. We also request copies of the documents relating to your transaction:

  • Note and Mortgage (Deed of Trust or Contract)
  • Closing statement
  • Buyer information
  • Pay history and current balance
  • Previous title insurance policy
  • Current hazard insurance policy

We will then provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 working days.

How will I be paid if I decide to sell my note?

The purchase price is paid in guaranteed funds (cashier’s check or wire transfer) upon receipt of the final transfer package and original documents.

We are happy to wire funds to the title company so you may exchange your original documents for the proceeds, assuring the safe and secure transfer of your valuable asset.

Why should I work with You?

We pride ourselves on:

  • Quick closings
  • Excellent customer service
  • Competitive quotes
  • Providing customized options
  • Strong financial backing
  • Flexibility on all note purchases
  • Confidentiality with all transactions
  • Credibility in the industry

Contact us if we can assist you!