It's a short term debt instrument.

In real estate, the bank does not hold equity on in property, they have a lien against your property and have sold you a debt instrument.

Like I've mentioned in an earlier post, the organizer of our group has been doing another online group for his business for about a year, which he mentioned was instrumental in seeing substantial growth in his business, hence why he wanted to start one for RE. 

For example, it allows them to defer capital gains tax and instead take payments to create a higher rate of return than whatever instrument they would be using for the funds they receive otherwise.

@Ainere Acanda I guess my first question for you is, why do you want to invest in tax instruments?

Thank you - you and your team have been instrumental in our success!

Yes, the promissory note, secured by a deed of trust is the instrument I would use to secure the loan.

In cases where the investor simply wants a fixed return for a fixed period, we'll usually do a simple debt instrument to us, but when we're both participating in the upside and downside, we always create an LLC.

Martin pointed out these rates are tied to Prime (instrument the Feds have been using (raising) to fight inflation) and has moved up quite a bit over the last year and half.

Then of course the "fun" -- the actual closing.Search/exam fees... these fees are for the title search (often through a third party) as well as the attorney exam of searches and surveys to determine all the steps necessary to get to the table as well as in many cases resolving defects.Doc prep fees ... these fees would be for preparing the deed and any other instruments required.