- For Accredited Investors
Investor FAQs
Answers to common questions about private note investments, returns, risks, and the investment process.
Investment Basics
What is a private note investment?
A private note investment allows you to participate in loans secured by real estate. As an investor, you essentially become the lender, earning interest on your capital while the loan is secured by a first-lien position on real property.
What is a first-lien position?
A first-lien position means you have the primary claim on the collateral (the property) if the borrower defaults. This is the most senior position in the capital stack, providing the highest level of security for your investment.
What are typical investment returns?
Target annual yields range from 10-12%. Returns vary based on the specific investment opportunity, risk profile, and market conditions. We present detailed return expectations with each opportunity. Contact our investor relations team for current offering details.
How long are typical investment terms?
Most private note investments have terms of 12-24 months, aligned with the underlying bridge loan terms. This provides relatively short duration compared to many fixed-income alternatives.
Eligibility & Minimums
Do I need to be an accredited investor?
Yes, Titan Funding investment opportunities are currently available only to accredited investors as defined by SEC regulations. This generally means having a net worth over $1 million (excluding primary residence) or annual income exceeding $200,000 ($300,000 with spouse).
What is the minimum investment?
Minimum investments start at $100,000. Contact our team for current investment opportunities.
Can I invest through my IRA or self-directed retirement account?
Yes, we work with investors who use self-directed IRAs (SDIRAs) and other retirement accounts. You’ll need a custodian that allows alternative investments. We can provide guidance on the process.
Eligibility & Minimums
Do I need to be an accredited investor?
Yes, Titan Funding investment opportunities are currently available only to accredited investors as defined by SEC regulations. This generally means having a net worth over $1 million (excluding primary residence) or annual income exceeding $200,000 ($300,000 with spouse).
What is the minimum investment?
Minimum investments start at $100,000. Contact our team for current investment opportunities.
Can I invest through my IRA or self-directed retirement account?
Yes, we work with investors who use self-directed IRAs (SDIRAs) and other retirement accounts. You’ll need a custodian that allows alternative investments. We can provide guidance on the process.
Process & Distributions
How do I get started?
Complete our investor inquiry form or contact our investor relations team. We’ll schedule a consultation to discuss your investment goals, review current opportunities, and answer your questions. If you decide to proceed, we’ll guide you through the documentation and funding process.
When do I receive distributions?
Interest is typically distributed monthly. You’ll receive your proportional share of interest payments made by the borrower. Principal is returned when the underlying loan matures or is paid off.
How will I receive updates on my investment?
Investors receive regular reporting on loan status, payment history, and any material developments. We believe in transparency and keep you informed throughout the investment term.
What happens at loan maturity?
When the underlying loan matures (typically through sale or refinance by the borrower), your principal is returned along with any final interest payment. We communicate expected payoff dates and any extensions in advance.
Risks & Protections
What are the risks of investing?
Like all investments, private notes carry risks including potential loss of principal. Key risks include borrower default, property value decline, and market conditions affecting exit. We mitigate risks through conservative underwriting, but no investment is guaranteed.
How do you protect investor capital?
We employ multiple risk management strategies: conservative LTV ratios (typically 65-75%), rigorous underwriting, first-lien security, active loan monitoring, and experienced asset management. Our team has deep experience in real estate and lending.
What happens if a borrower defaults?
In case of default, we work to resolve the situation through workout negotiations or, if necessary, foreclosure. As a first-lien holder, you have priority claim on the property. Our conservative LTV ratios are designed to provide an equity cushion protecting your investment.
Are investments insured or guaranteed?
No, private note investments are not FDIC insured or otherwise guaranteed. They are secured by real property, but all investments carry risk. Please review offering documents carefully and consult your financial advisor.
Tax & Legal
What are the tax implications?
Interest income from private notes is generally taxed as ordinary income. You’ll receive tax documentation (typically a 1099) annually. We recommend consulting with your tax advisor for guidance specific to your situation.
Can I invest through an LLC or entity?
Yes, many investors choose to invest through LLCs or other entities for liability protection or estate planning purposes. Discuss with your legal and tax advisors to determine the best structure for your situation.
This information is for educational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security. Investment opportunities are available only to accredited investors. All investments involve risk, including potential loss of principal.
Ready to Learn More?
Schedule a consultation with our investor relations team to discuss current opportunities.