Discover how note hypothecation lets you earn 8–10% annualized returns — secured by tangible real estate assets, without the headaches of property ownership.
Annualized Returns
Conservative LTV
Minimum Investment
Investment Term
A clear walkthrough of the investment structure, your protections, and what to expect.
A time-tested strategy that allows investors to earn passive income secured by real estate notes — without owning or managing property.
Note hypothecation is straightforward. When a borrower takes out a loan to purchase real estate, that loan is documented through a promissory note secured by a deed of trust. The note holder — in this case, Prospera Advisory Group — pledges that note as collateral to you, the investor.
You provide capital, and in return, you receive a secured interest in the underlying note. The borrower's monthly payments generate the cash flow that funds your returns. Your investment is backed by the note itself and the real property behind it.
It's not equity. It's debt. You sit in a creditor position — which means you get paid before equity holders, and your returns don't fluctuate with market values.
Imagine a bank lends money for a home purchase. That bank holds the note. Now, the bank uses that same note as collateral to borrow money from another institution. That second institution earns interest while the note secures their capital. In this model, you are that second institution — earning returns secured by a performing real estate note.
Your capital is secured by one specific promissory note tied to a single real estate asset. You know exactly which property backs your investment, the borrower's payment history, and the property's appraised value. Ideal for investors who prefer transparency and direct asset-level visibility.
Your capital is secured by a pool of multiple performing notes spread across several properties. This diversifies your collateral base — reducing risk from any single borrower or asset. Ideal for investors who prioritize risk mitigation through diversification while maintaining the same return structure.
From initial conversation to first payment — here's exactly what to expect.
We start with a one-on-one conversation to understand your investment goals, risk tolerance, and timeline. We'll walk you through the hypothecation model and answer every question you have.
Prospera presents one or more qualified notes for your review. You'll receive the borrower's payment history, the property appraisal, title information, and LTV analysis. For pooled investments, you'll receive a portfolio summary with aggregate data.
Once you approve, we execute a hypothecation agreement — a legally binding document that pledges the note(s) as collateral securing your investment. This is typically accompanied by a collateral assignment recorded with the county.
You transfer your capital (minimum $50,000) to the designated escrow or trust account. Your collateral interest is secured and perfected before funds are deployed.
Once active, you receive consistent monthly interest payments at your agreed-upon rate (8–10% annualized) directly to your account. Payments are generated from the borrower's underlying note payments.
At the end of the 60-month term, your full principal is returned. You'll have the option to reinvest into a new note or exit completely.
Multiple layers of security ensure your investment is backed by tangible, enforceable assets.
Every note is secured by a deed of trust on real property. Your investment is ultimately backed by a physical asset with appraised value — not a promise or projection.
We maintain loan-to-value ratios at 70–75%, meaning there's a 25–30% equity cushion protecting your position. Even in a market downturn, this buffer absorbs significant depreciation before your principal is at risk.
Your security interest is documented through a collateral assignment, creating a legal lien on the note. This is a perfected security interest — giving you enforceable rights to the collateral.
As a secured creditor, you occupy a priority position. In any liquidation or recovery scenario, debt holders are paid before equity holders — putting you at the front of the line.
Predictable, passive income with full principal return at maturity.
Minimum Investment
Investment Term
Payment Frequency
Defaults are uncommon — but even when they occur, your capital has multiple paths to recovery.
If a borrower stops making payments, you are protected at multiple levels. The note is secured by a deed of trust, giving the note holder the right to foreclose on the property. Because your hypothecation agreement assigns you a secured interest in that note, you have enforceable rights to the collateral.
Your investment has a defined 60-month term with a clear path to full principal return. Here's how capital comes back to you:
This opportunity is available exclusively to accredited investors — individuals who meet SEC income or net worth requirements. It's designed for investors seeking predictable, passive income backed by real assets, without the management burden of direct property ownership.
Unlike a REIT, your investment is secured by a specific note (or pool of notes) with a direct collateral assignment. Unlike rental property, there are no tenants, repairs, or management responsibilities. You earn fixed interest as a secured creditor — not variable equity returns.
The investment is structured as a 60-month commitment. However, we understand circumstances change. Early exit options may be available depending on the specific note and market conditions. We discuss all terms transparently during the onboarding process.
Your rate is agreed upon at the start and remains fixed for the life of the investment. There are no surprises — the return you're quoted is the return you'll receive, paid monthly.
Prospera earns the spread between the rate the borrower pays on the underlying note and the rate paid to you as the investor. Our interests are aligned — we only profit when the notes perform.
Schedule a confidential discovery call with the Prospera team. We'll walk you through the current inventory, answer your questions, and help you determine if this strategy aligns with your portfolio goals.
Schedule Your Discovery Call →No commitment required. Calls are typically 20–30 minutes.