Passive note investing is what we provide to our investors. As a lender, we invest money into an asset with the expectation of generating income. It’s a passive investment because 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, means investing both capital and time into an asset to generate income, such as being a landlord or rehabbing a home. Active real estate investors are responsible for finding the properties, getting financing, overseeing renovations, and/or managing tenants.

1. Select a note to invest in and notify our Investor Relations team.
2. We send a due diligence package along with the Loan Purchase & Servicing Agreement via DocuSign to you.
   You wire in the loan amount & we provide an Assignment & Allonge.
   
   

Aloha services the loan on your behalf and delivers monthly interest payments into your bank account by the 25th of the month. Ex: January interest is due from the borrower on February 1st, and paid to the investor by or before February 25th. 

The note you choose shows the length and maturity date. Most of the notes presented on the Aloha Passive Note Platform are 6 months or 12 months in duration. 

The notes do not have a pre-payment penalty, so the borrower could pay them off early. 

In some cases, the borrower may be unable to finish the property in the allotted term length. For this situation, Aloha Capital, as servicer, provides 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 you, the note investor.

We are currently selling whole notes, of various size, ranging from $50K to $500K. 

Starting in April 2023, we will be offering fractional ownership of notes with a minimum $25K investment.

We prefer that investors acquiring whole or passive notes from the Aloha Passive Note Platform be accredited. 

Like any investment, there are risks involved with investing in real estate notes. There are also mitigating factors to help mitigate the downside risks.

For example, the market value of the property could be decreasing.  Our loans are short-term in nature (6-12 months), which reduce the likelihood that a significant value decrease will occur while the note is outstanding.  In addition, we underwrite the borrowers profit upon sale as well as the cash flow of the property if the borrower wants or needs to hold it as a rental.  


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.

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