Ideally, the Borrower would make a single payment like they are used to and my Investor has security based on the hypothecated Note.Or, must/should I have Investor in 1st position with a Security Instrument and Note based on agreed to terms and then create a Note Rider for a Wrap Loan between my LLC and Borrower spelling out those agreed to terms along with a 2nd Security Instrument in 2ndposition.Example:Borrower Pays: 12% and 3 PointsInvestor gets; 8% and 2 points (spelled out in a Note)LLC gets: 4% and 1 pointPerhaps there are a number of ways to skin this cat but I’m looking for a simple, yet protective, approach for both Investor and LLC.Thanks,Steve

Many people forget that all a mortgage or deed of trust is is a security instrument.

I wouldn't look that deep into it to be honest, if your buying headphones for your work station you don't need to document when your listening to music and when your on zoom.

The intention of this instrument was to avoid the probate courts and to provide for step-up basis when he passes.  

To legally bypass having to pay the suit on his behalf, since the only instrument "forcing my hand" if you will was the nortgage note.

I have family in the local arts and music community, family in the medical community, family who work in shipping and industry, and family who work in the downtown business district.

I've seen this music before.

My household income allows me to save $20k post tax dollars a year and ~40k pretax dollars per year for allocation to real estate rather than stocks/bonds & speculative instruments. 

When I run companies,we work off "revolvers" or basically lines of credit.... so if the "conventional" mortgage was such a great debt instrument,why do you think the smartest folks in business don't use them?  

The statutory definition of securities is as follows:The term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.