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Whole Note Passive Real Estate Investing

February 5, 2019

I remember as a boy when my Grandmother Anna lived off her bank CDs. She earned a fair interest rate back then while enjoying predictable monthly payments.

Those days seem to be long past, but if you are looking for a low risk secured investment with predictable monthly payouts similar Grandma Anna’s CDs, perhaps becoming a Whole Note Passive Real Estate investor is your solution.

If you are like me, you may have never heard of Whole Note Passive Investing.  Several years ago, I learned and wish I had would have had this knowledge in my twenties when I was just starting out.

What is whole note passive investing?   First, a private money lender is a non-institutional (non-bank) individual or company that loans money. Generally secured by a note and deed of trust for the purpose of funding a real estate transaction.  The borrower is typically an experienced flipper or landlord leveraging money.  The private lender collects monthly payments from the borrower, files the required documents, and holds first position on the property.  The whole Note Passive Investor is simply purchasing the promissory note from the private lending company. An assignment of mortgage is transferred to the Passive Investor and the Passive Investor now becomes the first position on public record, with the same security instruments the Private Lending Institution implemented.

The borrower willingly pays a higher interest rate for money from a private lender than from a traditional bank. Many times, the property the borrower is seeking to fund is considered a “flip” and is distressed at the time of purchase, therefore, a traditional bank typically is not willing to fund this property due to the current condition of the property itself.

A good Private Lender will have solid lending guidelines.  Before lending to the borrower, they should be vetted, experienced and considered a desirable borrower. The Private Lender should also make a careful and critical examination of the property itself.  This gives the Private Lender security and in turn, secures the Whole Note Passive Investor.

Once the money is lent to the borrower, the borrower begins making monthly payments through a third-party servicer, and the Whole Note Passive Investor receives interest payments each month.  Once the borrower fixes up the asset and stabilizes it, they can sell the property for a profit.  At this point the Whole Note Passive Investor is paid back their original investment capital, and may purchase another whole note or chose not to if they wish.

Several years ago, I became a whole note investor. This investment has proven itself over the years, consistently paying out predictable monthly interest payments to my family. Whether the market is up or down, our payments come in each month, providing a secure return my wife and I can budget on.

The opportunity of Whole Note Passive Investing made so much sense that I came out of retirement and became VP of Portfolio Management with a prominent company which aligns itself with whole note investing. In today’s technology driven world of information, it is easy to get confused.  One can easily make short sighted investment decisions with long term adverse effects.

My recommendation is to keep your investment profoundly simple for you to understand. Take time to be sure it is secured with a collateral position to protect your money invested.  Approaching investing in this way, your returns are predictable, and you don’t spend your time worrying about losing that hard-earned retirement money that took years to accumulate.

I calculate my interest earnings for each month in two simple steps.


  • $50,000.00 x 8% interest = $4,000.00 annualized
  • $4,000.00 divided by 12 months equals my monthly interest payment of $333.33 from my whole note investment.

There are passive real estate opportunities available for most investors.  An investor with as little as $10,000.00 could earn a predictable return of 6% in annualized interest returns.  Additional capital opportunities of 8% and even double-digit returns are possible.

You can generate substantial wealth with your Self-Directed IRA Fund and trust you are well on your way. But remember you don’t need a million dollars today in your account to earn fair returns on your IRA money. It’s not necessary to pay high broker fees and take risky investments to achieve above average returns.

My wife and I became students of Whole Note Investing when we started.  One book we recommend is The Blue Print to Secured Real Estate Lending.  If you have an interest in reading this, email me and I will share a copy with you.

In the words of Dave Ramsey: “You Must gain control over your money or the lack of it will forever control you.”

The process of purchasing a Whole Note can be quite simple, the math is easy to understand, and many offer strong equity positions with predictable returns, in return giving you more control of your earnings and retirement.

Lastly, I believe if it’s not a win, win, win, I have no business being in that deal.

Whole Note Investing has proven for me to be a win for all involved. The borrower, the Private Lender and the Passive Investor can all walk away with a positive profitable investing experience.

Much success to you as you invest with your NuView Self Directed IRA account.  If I can assist in any way, please don’t hesitate to reach out.

It’s going to be a fantastic 2019!


Steve Landaal





*This site contains educational content provided by third parties.  NuView Trust does not endorse, recommend or approve any of the companies or individuals or investment vehicles or strategies that may be discussed.  NuView Trust encourages clients to seek legal or tax advice as necessary and to perform their own due diligence before engaging in any investment vehicle or strategy.