The memorandum is a blunt instrument of extortion and is treated that way by the court.

We set up a debt instrument with the investor and pay them a fixed return over a period of time...24-48 months depending upon their needs...and then we pool that money with our money and other investor money to lend out. 10% is right at what we normally pay out to the investor and then we mark up the deal a little bit when we lend it out for our operating costs and profit.

Do you do fractional interest in the debt instrument for club members that want to invest in a particular loan..

These properties behave similarly to fixed income instruments as far as the inverse relationship between price and yield.

They do this because they want to know you can really qualify but also tend to sell you a bill of goods knowing their mortgage guy will try to use a debt instrument to make the deal look better than it is at the cap rate the seller is trying to sell at.

I consider it investing in real estate as that is what is backed by and the stock is just the investment instrument - some may invest in debt instruments like bonds and other shares.

And like I said with instruments before to @Ken M.   

In fact, merely adds additional operating expenses to the business.First, if the investor were to finance their properties (which most do), there will be a signature line on a recorded public instrument that contains that individuals name.

Unless deployed thoughtfully, cash may end up in the dead money pool where it losses its value every day or is horridly invested in an instrument that may go south.

Google fannie mae note and security instruments.