Founder, Damen Capital
Private lender and direct land note buyer serving land investors in 40 states. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →
Two ways to invest in debt secured by vacant land. Buy a seller financed land note from us, or fund a share of a first lien land loan we originate and earn a flat 10%, paid monthly. Either way, your position is recorded with the county and you decide deal by deal.
Land notes we sell, and land loans we originate. You pick the ones you want, one at a time.
We buy seller financed land notes and create our own when we sell land with seller financing. You can buy a note from us and collect on it as the holder.
You buy a recorded assignment of part of a specific first lien land loan, in the share you choose. We keep at least 20% of every loan, and our share takes any loss first.
With a note you own the whole position. When you co-lend, you own part of a loan and we stay in it with you.
| Buy a Land Note | Co-Lend on a Loan | |
|---|---|---|
| What you own | The note and the first lien | Your share of one first lien loan |
| Where it comes from | Seller financed land sales | Land loans we originate |
| How it is recorded | Assignment of the mortgage or deed of trust | Assignment of your share |
| What you earn | Depends on the note and its price | Flat 10% a year, interest only |
| Our money in it | No, it is yours once you buy | Yes, at least 20%, and first loss |
On the county record. Your position is not a line in our spreadsheet or a unit in a fund. It is a recorded assignment tied to one piece of land, in your name.
You see the note, the land, and the numbers first. If you say yes, the note is assigned to you.
Land notes are what we do every day. The notes we buy have to clear our note buying criteria: promissory notes only, never land contracts, with legal access and no wetlands or flood zone. When a note is available, you get the note, the property, our valuation, the payment history, and the price. The note is endorsed to you with an allonge, and an assignment of the mortgage or deed of trust is recorded with the county. New to this? Start with what a land note is.
You get a list of available loans, each with a due diligence folder, and you pick the loans and the share you want.
You see the land, our value, the loan, and what the borrower has in it. Here is what a deal looks like if you fund $100,000 of it.
| Our as is value | $300,000 |
| Purchase price | $200,000 |
| Loan (50% of value) | $150,000 |
| Borrower's cash in the deal | $50,000 |
| Damen Capital keeps (33%) | $50,000 |
| You fund (67%) | $100,000 |
| Your interest, every month | $833 |
| Your interest if the loan runs 12 months | $10,000 |
| At payoff, the title company pays you | $100,000 |
This is an illustration to show the format, not a real loan or an offer. Payments are not guaranteed.
A flat 10% a year on the money you fund, paid monthly. Loans run up to 2 years, and most pay off early.
Simple interest at 10% a year on your funded amount. An estimate, not a promise. For co-lending only. Interest is paid only when the borrower pays.
Seven steps, and you fund nothing until you have picked a deal and read every document.
Three requirements. All three are needed.
You are an accredited investor. We verify it before your first investment.
Our loans close in as little as 7 days, so your money needs to be ready to wire.
You are willing to take part. You review each deal and make your own decision on it.
Low leverage, a borrower with real cash in the land, our money at risk first, and your share recorded in your name.
Buying a note is different. You hold the lien yourself and our money is not in it, so your protection is the land, the buyer's cash in the deal, and your own review before you buy.
On a co-lent loan, we foreclose on the first lien with your approval, and our share takes any loss first.
The property can sell at the foreclosure sale for more than the loan balance, because the loan was 65% of value or less on day one, and the debt is paid off with interest. When no bidder shows, we take title to the land. Foreclosed acreage is not a problem asset to a land company, it is inventory. We sell it outright, wholesale it to our network of land investors, or sell it with seller financing and create a note, which is our core business. Past results are not a guarantee on the next loan. If you own a whole note, you are the holder, and the note and the recorded lien set out your rights. See our state foreclosure timelines for how long it takes.
We buy seller financed land notes and create our own when we sell land with seller financing. When a note is available, you see the note, the property, our valuation, the payment history, and the price. If you say yes, the note is assigned to you.
The note and the first lien behind it. The note is endorsed to you with an allonge, and an assignment of the mortgage or deed of trust is recorded with the county.
It depends on the note and its price. Each note is priced on its own, so you see the numbers before you decide.
You buy a recorded assignment of part of one specific first lien land loan, in the share you choose. We always keep at least 20% of the loan. A loan is never split among several investors, and a co-lender agreement spells out the terms.
A flat 10% a year on the money you fund, interest only. Borrowers pay monthly by ACH to our in house servicing, and we send your interest by ACH when the borrower pays. The first payment comes one month after closing.
Principal and payments are split by ownership, except that we keep the interest above 10% on your share and all loan and exit fees. In exchange, we do the origination and servicing work and our share takes any loss first.
Accredited investors who are willing to take part, meaning you review each deal and make your own decision on it. We verify accredited status before your first investment.
Yes. The custodian holds the position and the payments go to that account. Custodians have their own paperwork and timing, so tell us early.
Not easily. There is no secondary market for a loan position. Loans run up to 2 years and most pay off early, but plan on the full term. Do not invest money you may need inside two years.
More answers in the investor FAQ →
Important. Land notes and co-lending interests are offered only to accredited investors, and accredited status is verified before any investment. This page is a summary. Any offer is made only through written offering and co-lender or note sale documents, which control. Payments are not guaranteed. Any loan or note can default, and any investor can lose money, including all of the money invested. Our results on past loans, including loans that resolved through foreclosure, do not guarantee the outcome of any future loan. A loan or note position is not liquid. Do your own review, read every document, and talk to your own attorney or advisor before investing. See our Terms of Use.
The next step is a call, not a wire. We do not post performance numbers on a public page, but loan count, dollar volume, and default history are yours for the asking before a first investment.
Prefer to talk? 302-526-0200 or eric@damencapital.com
Private lender and direct land note buyer serving land investors in 40 states. Featured on REtipster, Legends of Land, and Land Investing Online. LinkedIn →
Already have an offer on your land note? Send it over and we'll give you ours within 24 hours. How it works →