Borrower-dependent notes secured by real estate are the backbone of today’s Crowdfunding industry. Here’s a diagram showing one possible structure. There are others, but I like this best in most situations.

Caveat #1:  A diagram can’t address these critical issues:

• Broker-dealer registration
• The terms of the Notes and the Indenture
• The terms of the Trust
• The assignment of collateral
• State lending laws

Caveat #2:  This structure doesn’t work for Title III or Title IV. More on that later.

Questions? Let me know.