Passive Note Platform

Invest in real estate - without the hassle or expense of managing the property!

Investing in residential real estate as the lender means you get a personal guarantee of payment from a credit worthy borrower instead of signing one yourself!

Your investment in a real estate backed note is protected by the profit and equity in the property along with personal finances of the underlying borrower. All of which is underwritten and verified by the Aloha Capital team.   

Aloha offers 4 types of notes: Whole Notes, Partial Notes, Protected Notes, Subordinated Notes that range in annualized return (interest income) from 8% to 20%. Learn more about note investing.   




Project Type & Feasibility

The typical project is a property that has significant deferred maintenance that the underlying real estate investor is acquiring to renovate and sell as a primary residence or renovate to hold as a rental property. 

We analyze the detailed renovation budget to ensure it will cover the cost to fully renovate the property. For heavy rehab projects (>$150K), we typically have a 3rd party  (CFSI) feasibility study completed.


Guarantor Experience

Each borrower & guarantor provides  a detailed schedule of real estate investing experience including  purchase date, renovate/construction cost, exit value or current rent on each property they own or have previously owned. 

We verify these details to confirm the accuracy of past experience and experience is relevant for the project(s) we are financing.


Financial Stability

Each borrower & guarantor that has substantial ownership in the borrower entity has an in-depth review of their background and tri-merge credit check reports. This includes review of payment history, current total debt, past/current liens, judgements, foreclosures and criminal activity. 

We also collect bank statements to ensure appropriate liquidity to service the debt and advance construction costs before our loan provides reimbursement.


Property Valuation

Each property we finance has an independent appraisal or similar 3rd party valuation of the as-is value and subject-to-completion value based on the detailed renovation budget and narrative of the changes & finishes that will occur.

We check for any notes of deferred maintenance, mold, etc. in the valuation report and pictures and ensure their is a renovation line item to rectify. 

We analyze the sales comps to ensure the gross/net adjustments are <10%, and that a sale comp is within 1 mile and sold in the past 3-12 months. 



Profit & Cash Flow

We analyze the borrowers profit at sale and/or the cash flow of the property upon completion of the project and refinance at prevailing rates.

For Fix & Flip projects, using the total project cost and the appraised exit value, we calculate borrower profit amount and cash on cash return. 

For Fix & Rent projects, we use market rent data to access the cash flow of the property to ensure the bridge loan qualifies for a refinance into Aloha's 30 year rental property loan. 


Strength of the Market

We analyze the market, neighborhood and street of each property using several data sources including Zillow, Propstream, and US Census Bureau.

We review population density, home value trend (ZHVI), median home price, rent trends, and days on market to access the strengths or weakness of the market.

We also virtually walk each neighborhood to compare the subject property to the neighborhood.

I am an emergency department physician and have been invested with Aloha since they were established. The interest income I earn has given me the opportunity to work less shifts that I have in the past.

Randy Bensen

Investing in Real Estate as the lender means you get a personal guarantee of payment instead of signing one!

Kevin Hill

I love that I get to select the underlying investment property, borrower and project type. Earning double digit annual return and receiving monthly interest income directly into my bank account is amazing!

Steve Sapourn



Unlike other investment platforms, Aloha Capital does not sources its underlying investments from third parties.

Aloha has underwritten over 20,000 residential real estate transactions since 2015, and has originated over 4,000 loans totaling $600+ Million that met our strict criteria.  

We have been vetted by some of the world’s largest investment management firm’s who have acquired over $250 million in notes from Aloha Capital.

We offer whole notes with values ranging from $75,000 to over $1 million. 


We also provide the option to invest in partial notes, beginning with a minimum investment of $25,000. This strategy simplifies the process of establishing a diversified loan portfolio.  Our expert team is on hand to assist you with selections, portfolio design, and any other inquiries you may have.

Aloha provides four types of short term notes that are collateralized loans on residential real estate.


  1. Whole Note: These have a single investor that acquires the note from Aloha Capital with a servicing agreement in place for Aloha to continue servicing and asset management of the note.
  2. Partial Note: These notes can have several investors participating in the income of the underlying note with a minimum of $25,000.00 USD. Aloha owns & services the note and provides monthly reporting and interest distributions.
  3. Protected Note: Similar to a Partial Note with Aloha Capital or its affiliates holding a 10% first loss position on the loan. This further reduces the downside protection to the participation investors in the note.   
  4. Subordinated Note: These are participations in notes that are not the senior lien holder on the underlying property. This may include a 1st loss (B-piece of the senior note) or a second position note on a property that Aloha or another lender holds the senior position.    

With whole note investments, the investor transfers the complete loan amount and is the sole owner of the 1st position on the loan.


In contrast, partial note investors invest in a portion of the loan’s yield, with no single investor holding a priority position over others. Furthermore, whole note investments benefit from an additional 0.5% annualized yield and are entitled to a share of any extension fees charged to the borrower.

  1. Select the note you wish to invest in and inform our Investor Relations team. They are readily available to address any of your questions.
  2. We will send you a due diligence package, accompanied by the Loan Purchase and Servicing Agreement, via DocuSign.
  3. Wire your loan amount.
  4. Once we confirm receipt of both the signed DocuSign and the wire transfer, your investment is initiated and you start accruing passive interest.

The loans we offer are fixed rate, and the platform displays the annual interest rate of each individual note.

Due to reduced servicing costs, investors in whole notes enjoy a 0.50% higher return compared to those investing in partial notes.

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. 

Each note specifies its term length and maturity date, the majority on the Aloha Passive Note Platform having durations of either 6 or 12 months.

The borrower can pay off the loan at any time.  This is a good thing, indicating another successful investment. You can reinvest in another note seamlessly, without missing a day of interest.


Aloha offers borrowers a 3-month extension, so long as the project is progressing at a satisfactory pace and all payments have been made as scheduled.  Whole note investors participate in 50% of the extension fee which is typically 1%.

When the borrower pays off the loan, whether through refinance or sale of the property, we notify you and give the option to re-invest or have the proceeds wired to your bank account. 


The re-investment process is easy, whether into another whole or partial note or our Aloha LTD Income Fund (available to accredited investors).

No. Notes and participations are not securities and do not require accredited status.

Notes on properties in certain states may the investor to invest via an entity, trust, IRA or another entity vehicle. 

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 on the platform.

At 30 days late we send a notice of default (NOD) and our asset management team accesses the situation. Workout options include forbearance, foreclosure or deed in lieu of foreclosure. If it’s mid rehab we access their capacity to complete the rehab. 

If it’s a whole note investment, we notify the investor our findings and suggested next steps. If it’s a multiple investor note, we notify all parties of the action we are taking. 

If legal fees for workout are expected, we notify investors and request funds within 15 days (pro rata) based on retainer. Legal fees add to outstanding debt due from borrower. 

In the unlikely case of foreclosure while partial investors are involved, we take the most likely path to full principal and interest recovery subject to the time value of money. We finish rehab if needed and sell the property. 

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

A promissory note is a document between the lender and the borrower in which the borrower promises to pay back the lender, it is a separate contract from the mortgage. The mortgage is a legal document that ties or “secures” a piece of real estate to an obligation to repay money.


The mortgage itself does not obligate anyone to repay money.  Even if a person’s name is on the mortgage, that person may not be required to repay the loan. The mortgage does not create personal liability. The promissory note determines who is obligated to repay the loan and at what terms.


Aloha Capital makes it easy to invest in high yield notes collateralized by real estate.


Aloha Capital focuses 100% on financing residential properties being purchased, renovated or built by experienced, active real estate investors. Aloha has underwritten over 20,000 residential real estate transactions since 2015, and has originated over 4,000 loans totaling $600+ Million that met our strict criteria.  


We do all of the heavy lifting, so that you can be a truly passive real estate investor. We identify, underwrite, originate, service and oversee each loan offered to our passive note investors.

Nate Agnini, Investor Relations

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