High-Yield Borrower Dependent Notes (BDN)

We regularly update the individual deal descriptions as the project progresses. These updates are also emailed to you.

When investors invest in notes issued by the Residential Bridge Note Fund, they’re also investing in a portfolio of whole mortgages and BDNs. Occasionally, RBNF may also extend a line of credit to FTF Lending, LLC to pre-fund mortgages. The mortgages and BDNs that RBNF holds are representative of the entire book of business. This allows investors to effectively invest in our entire book of business with one investment. Learn more here.

RBNF has a fixed interest rate and fixed maturity date, so you have greater certainty of repayment a loan maturity.

None.

There is risk inherent with any investment. Read more about our approach to underwriting, what happens in the case of our insolvency, and how we’re audited, here.

No. We currently do not offer a secondary market for selling purchased notes.

Yes. When your RBNF is approaching its maturity date, you will receive emails giving you the notification to rollover your balance or have the money paid to your bank account. Rolling over your balance into a new RBNF, PFNF, or BDN allows you to instantly invest in another product without waiting for funds to settle.

Like any investment, there are risks involved with investing in real estate debt. There are also mitigating factors to help cushion those debts.

For example. the market value of the property could drop significantly, reducing opportunity for the developer to make a profit. However, the property is most likely located in a stable market and was purchased at a discount providing downside protection in a falling-price environment.

Or the developer may be unable to finish the property in the allotted term length. For this situation, Upright builds in an optional 3-month extension, approved only if the project is advancing at a satisfactory pace. The extension corresponds with an additional fee to be shared on a pro-rata basis with investors.

Prior to investing, you should fully diligence each deal,  as well as consult your investment, tax and legal advisors prior to investing. Additional risks for each deal will be outlined with the Offering Materials.

Passive real estate investing is what our lenders do: They invest money into an asset with the expectation of generating income. It’s the traditional definition of an investment. The lender’s time is not required to manage or operate that real estate asset. The asset (like a distressed home) is backed by a note and a first-position lien.

On the flip side, active real estate investing, or what our borrowers do, means investing both equity and time into an asset to generate income, such as being a landlord or rehabbing a home. Active real estate investors are responsible for any of the following: Sourcing properties for acquisition, getting financing, overseeing construction and contractor teams, and/or managing tenants.

Accredited investors must meet this criteria:A net worth of at least $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person's primary residence), orEarned an income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, or A Series 7, 65, or 82 license in good standing.Read More Here.