Glossary

Collateral - Income Streams
All the collateral-based income streams have one thing in common: they all represent future payments secured by something tangible, such as a house, boat, or mobile home. If you are receiving these types of payments, they can be sold for current cash.

Automobile Note & Portfolio
An Automobile Note is a promissory note signed by the owner of an automobile, promising to make specified payments to the holder over a specified period of time. Repayment is secured or collateralized by a lien against the title to the automobile. A Portfolio is a whole group or pool of similar notes.

Business Note
A Business Note is a purchase money promissory note signed by the purchaser of a business, promising to make specified payments to the seller over a specified period fo time. Repayment is secured or collateralized by a lien against the assets of the business.

Business Vehicle Note
A Business Vehicle Note is a promissory note signed by the owner of an business vehicle, promising to make specified payments to the holder over a specified period of time. Repayment is secured or collateralized by a lien against the title to the business vehicle.

Mobile Home Note
A Mobile Home Note is a purchase money promissory note signed by the purchase of a mobile home, promising to repay the note amount, with due dates and dollar amount of payments specified. Repayment is secured or collateralized by a mortgage, which generally encumbers the mobile home and real estate on which it is situated.

Mortgage Note
A Mortgage Note is usually a purchase money promissory note signed by the purchaser of real estate, promising to make specified payments to the seller over a specified period of time.

Tax Lien and Tax Certificate
A Tax Lien or Tax Certificate is a lien issued by the county or other taxing entity against a real property resulting from the owner being delinquent in payment of real estate taxes.

Aircraft Note
An aircraft note is a purchase money promissory note signed by the purchaser of an aircraft, promising to make specified payments to the seller over a specified period of time. Repayment is secured or collateralized by a lien against the aircraft title.

Collectibles Note
A Collectibles Note is a purchase money promissory note signed by the purchaser of high priced collectible object(s) or art, promising to make specified payments to the seller over a specified period of time. Repayment is secured by a lien against the purchased item(s).

Condominium Assessment
A Condominium Assessment is a fee owed by each unit owner/member of a condominium association, usually assessed annually, and payable either in one lump payment or in installments. The fee can vary from year to year and is used to cover the expenses of the association for the repair, improvement, upkeep and administration of the common shared areas and amenities of the property.

Developer Paper
Developer Paper is Mortgage Note(s) held by a real estate developer. Repayment is secured or collateralized by a mortgage encumbering the property developed (usually lot by lot) by the developer and sold to individuals. See also Mortgage Note.

Distressed Property
A Distressed Property note is a Mortgage Note secured or collateralized by real property that is in a state of disrepair. See Mortgage Note.

Equipment Note
An Equipment Note is a promissory note signed by the owner of a piece of equipment, promising to make specified payments to the holder over a specified period of time. Repayment is secured or collateralized by a lien against the (title to, if applicable) the equipment.

Foreclosures


Homeowner Association Assessment
A Homeowner Association Assessment is a fee owed by each owner of a property located in a development that has a Homeowner Association, usually assessed annually, and payable either in one lump payment or in installments. The fee can vary from year to year and is used to cover the expenses of the association for the repair, improvement, upkeep and administration of the common shared areas and amenities of the association property.

Land Note
A Land Note is a Mortgage Note, repayment of which is secured or collateralized by a mortgage against land (undeveloped real property). See also Mortgage Note.

Marine Note
A Marine Note is a promissory note signed by the owner of a watercraft, promising to make specified payments to the holder over a specified period of time. Repayment is secured or collateralized by a lien against the title to the watercraft, or in some cases by a marine mortgage.

Motor Home Note
A Motor Home Note is a promissory note signed by the owner of a motor home, promising to make specified payments to the holder over a specified period of time. Repayment is secured or collateralized by a lien against the title to the motor home.

Real Estate Lease Options


RV Notes
An RV Note is a promissory note signed by the owner of a Recreational Vehicle, promising to make specified payments to the holder over a specified period of time. Repayment is secured or collateralized by a lien against the title to the RV.

Tax Deed
A Tax Deed is the instrument used in some states to convey real estate to the party that pays delinquent real estate taxes on a property, and usually the original property owner is entitled to redeem the property within a specified time period.