Your promissory note is secured by a first position mortgage.
The LTV (Loan to Value) does not exceed 80% of the value of the property.
These loans were fully underwritten by a licensed Mortgage Originator between 1-3 years ago. They have "seasoned" (borrower has proven consistent payment) and are being sold at a discount.
Your interest rate is usually 14% or more even though the stated rates are 9.50% to 10.50%. The borrower may be paying 10% interest on a $60K loan, but if you only pay $50K for that Note, your interest rate is much higher than 10%.
Set it and Forget it. Receive stress-free passive cash flow for the next 25-30 years.