Invest in High-Return Real Estate Mortgage Notes with Covenant Fund I
Invest in High-Return Real Estate Mortgage Notes
$25,000
Minimum Investment
Min 5 Years
Investment term
The Asset
Collateralized Assets
Quarterly
Interest Payment
Our Interest Rate and Fund Returns
12% Covenant Fund I
Class A
12.0%
Per Annum
$1,000,000+
Min Investment
Quarterly Distributions
10% Covenant Fund I
Class B
10.0%
Per Annum
$150,000+
Min Investment
Quarterly Distributions
9% Covenant Fund I
Class C
9.0%
Per Annum
$75,000+
Min Investment
Quarterly Distributions
8% Covenant Fund I
Class D
8.0%
Per Annum
$25,000+
Min Investment
Quarterly Distributions
- Invest in quality 1st and 2nd lien performing and distressed mortgage notes.
- Quarterly high yield return per annum based on the capital invested.
- Upon end of term, 100% of the capital invested is returned to the investor or investment entity.
- At end of term Investors receive 50% of the profits (prorate) of the fund.
Investment Types
Second-Position Mortgage Notes
- Performing & Non-Performing, Residential & Commercial.
Short-Term Loans
- Residential and Commercial Projects (25% of raised funds).
Our Interest Rate and Fund Returns
12% Covenant Fund I
Class A
12.0%
Per Annum
$1,000,000+
Min Investment
Quarterly Distributions
10% Covenant Fund I
Class B
10.0%
Per Annum
$150,000+
Min Investment
Quarterly Distributions
9% Covenant Fund I
Class C
9.0%
Per Annum
$75,000+
Min Investment
Quarterly Distributions
8% Covenant Fund I
Class D
8.0%
Per Annum
$25,000+
Min Investment
Quarterly Distributions
Fund’s Investment Strategy
Thorough Due Diligence
Target “A” grade mortgage notes by focusing on property valuation, borrower creditworthiness, and legal documentation to assess risks and opportunities.
Diversified Portfolio Strategy
Invest in mortgage notes across different regions, property types, and risk profiles to minimize risk and optimize returns.
Value-Add Opportunities
Identify distressed notes for potential value creation through loan modification, foreclosure, or property repositioning.
Active Portfolio Management
Regularly monitor performance, manage delinquent loans, and explore loan workouts or refinancing to mitigate default risks.
Exit
Strategies
Identified distressed notes for disposition through loan mod, early payoff, foreclosure or property reposition.
How Does The Fund Work?
SIMPLICITY | SECURITY | ABOVE AVERAGE RETURNS
Invest in Quality Mortgage Notes
The fund focuses on acquiring high value 1st and 2nd lien performing and non-performing mortgage notes. This diversified strategy helps manage risk while aiming for strong, consistent returns.
Earn Quarterly High-Yield Returns
Your capital works for you, generating high-yield returns on a quarterly basis. These returns are based on the performance of the notes and the capital invested, providing a steady income stream.
Return of 100% Capital at End of Term
At the end of the investment term, you’ll receive 100% of your initial capital investment back. This ensures both the growth of your wealth during the term and the preservation of your original investment.
Receive 50% of The Profits
At end of term Investors receive 50% of the profits (prorate) of the fund.
Why Mortgage Notes Investing?
Wealth Creation!
Legacies for Generations!
You’ve likely heard the saying:
“What you don’t know can cost you.”
“What you don’t know can cost you.”
That couldn’t be more true in the world of investing. Many people, even seasoned investors, aren’t aware of the powerful potential of Mortgage Note Investing.
And unfortunately, this overlooked strategy could be the key to financial freedom for countless middle-class Americans.
Why Choose??
Investing in mortgage notes lets you earn cash flow without the stress of managing rental properties. As a lender, you collect income while someone else takes care of the property.
Say goodbye to the headaches of repairs! When you invest in mortgage notes, all maintenance is the homeowner's responsibility, so you can avoid those costly surprises.
Forget about the worry of vacancies and tenant issues. Homeowners must continue paying their mortgage, and if they don’t, you have the right to foreclose and reclaim the property.
Mortgage notes are secured by real estate, giving you peace of mind. If a borrower defaults, you have the right to foreclose and take back the property.
With proper underwriting, mortgage notes can provide one of the most passive income streams available, allowing you to enjoy reliable "mailbox money."
The active secondary mortgage market means you can sell your notes easily, giving you liquidity without incurring high selling costs or the opportunity costs associated with traditional real estate.
One of the biggest advantages of mortgage notes investing is the ability to buy at a discount. This strategy leads to higher yields, greater profits when paid off, and added capital protection.
Track Record
Real Results, Real Investments
McLean, Va (Faith Fund I)
Portfolio – NPN 2nd
Purchase Price
$9500
FMV
272,000
UPB+Total Owed
$38000
Equity
$145,000
Collected
$58,000
COC
511% 13 months
Harned, KY (Faith Fund I)
Portfolio – NPN 2nd
Purchase Price
$1300
FMV
$200000
UPB+Total Owed
$3200+$2225
Equity
$100618
Collected
$5425
COC
417.3%
(less than 60 days)
Mortgage Statistics 2024
- Americans owe $12.52 trillion on 85.35 million mortgages.
- Americans owe $380 billion on 13.1 million home equity lines of credit (HELOCs).
- The average interest rate for a 30-year, fixed mortgage in 2024 is 6.79%.
- Americans originated $780 billion in new mortgage debt in the first two quarters of 2024.
- 3.35% of mortgages were delinquent by at least 30 days as of the second quarter of 2024, up from 2.56% as of the second quarter of 2023.
- In the first half of 2024, there were 91,360 consumers in the U.S. with a new foreclosure on their credit report.
Meet Our Team
Jerry Sanders
Founder/CEO
MBA in Finance, Wharton School of Business. Former Chairman of Baltimore City Pension. Real World Real Estate Experience with single family homes, mobile home parks, land & real estate development. Expert in Mortgage Note acquisition, Mortgage Note Creation, Asset Management, including Foreclosure Note Resolution, & Fund Management. Established relations with Wall Street, Hedge Funds & Industry Institutions.
Kim Brown
Partner / COO
30+ years in a Fortune 50 Company holding several senior positions in Operations, and Subject Matter Expert in Compliance and Security. Kim also adds experience in the banking industry, as a Real Estate Agent, and as a Mortgage Loan Originator. Her real-world real estate expertise spans fix and flip SFRs, mobile home rehabs, and land development. Today she specializes in Mortgage Note acquisition, Mortgage Note Due Diligence, Asset Management, Foreclosure Resolution, and Mortgage Note Investing Strategies.
Rahman K. Harmon
Partner/Asset Manager
Rahman K. Harmon is a seasoned professional with over 30 years of experience in operations management, quality assurance, and compliance. His MLS License # 2654197.
As a Certified Residential Appraiser and licensed Realtor in Maryland, Pennsylvania, and Delaware, Rahman combines his deep industry
knowledge with an MBA and Lean Six Sigma development.
His career spans leadership roles as a Contracting Officer and Procurement Analyst with the US Defense Logistics Agency.
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