Welcome to another episode if you're new to the show, remember to subscribe because I would hate for you to miss a future episode of the content that we cover. We have passed the 300 episode mark over the last five-plus years. Yes, it's been five years. We are heard around the world in over 150 countries, but mostly in the US Canada, Great Britain, and Australia. That's the bulk of our market.

So anyway, today I wanted to talk about the predictable income that you can get from promissory note investments. Now, why am I talking about this? Well, recently I've been getting a lot of questions, even from seasoned and accredited investors about promissory notes. They have an understanding of what they are and how they work. But some of the questions that I've been getting have just led me to say, Hey, I've got to record an episode about this, so I'm not going to make it a long episode, but I want to give you some content about promissory notes and what they are and what they're not.

 

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And this was our sister company, Norada Capital Management has been offering throughout this year. And I think we're on our sixth or seventh round of offering note investments. That average out to be about 15% per year, paid monthly with auto-deposit into your bank account. So they've actually gone up to higher than that. I can't remember what the average was, but right now we have offerings that are going at a 16.7% average rate of return per year in terms of interest. And these are on three-year notes and I'm getting people asking me questions that seem to be coming up over and over again. So I thought, Oh, this is a good opportunity to record an episode on it. So let's just break it down and peel back the layers of the onion here. So what is a promissory note? Well, very simply put, it's just a written promise to repay a debt.



It's a contract, it's a paper instrument, a financial instrument where one party, who's the issuer also known as the maker of the note. They make a promise in writing to pay a fixed amount of money to the other party, which is the payee at some sort of agreed upon the future date, and with payment terms, that may be simple interest and it could be paid monthly. It could be paid quarterly annually in one lump sum at the maturity of the note, there are many ways to create a promissory note. So there's no standard one way, but if you're familiar with mortgages mortgage notes, then you'll understand that there's a monthly payment because the lender or the bank that gave you that mortgage, that loan on your property, they're requiring you to repay that each and every month with a payment. Now, in those cases, it's principal interest, but it doesn't have to be, it could be an interest-only note if you remember that from back in 2005, 2006, 2007, there were a lot of interest-only loans, and that's just one variation.

But the main feature of a promissory note is it's a written document. It contains a clear and unconditional promise to pay a specific sum to a specific person at a particular period of time or on a particular date. It's essentially clearly defined. It is typically drawn up and signed by the maker. The person issuing the note. So they're essentially selling quote-unquote, that note to you, the person who is the payee or the person funding that note. So the names need to be specific. Of course,