How It Works
The investor journey, stage by stage.
From the first conversation to the return of principal — what happens, who does it, and when.
- 01
Initial Conversation
The process begins with a direct conversation. IHIG confirms accredited investor suitability, explains how balloon mortgage notes are structured, and walks through term length, the fixed rate, the payment schedule and what happens at maturity. Nothing is committed at this stage — the objective is that the investor understands the instrument before any opportunity is presented.
- 02
Documentation Review
The investor reviews the documentation set for a specific opportunity: the investment agreement, the loan note and mortgage instruments, the independent appraisal, title verification and insurance confirmation. Questions are answered before signature, and terms — amount, rate, term length and payment dates — are agreed in writing rather than by understanding.
- 03
Property Selection
Each opportunity is tied to one identified South Florida residential property. The licensed lending company completes independent appraisal, verifies the title is free of prior liens and mortgages, vets the borrower, and confirms catastrophic-event insurance — all at a maximum 20% loan-to-value. Because opportunities are specific transactions rather than a pooled fund, the investor knows precisely which collateral secures their capital.
- 04
Closing
Capital is positioned for deployment three days in advance of the closing date. On the closing date, IHIG channels funds to the licensed lending company that originates the note; documents are signed, notarized and immediately sent to each participant; and the borrower receives the funds. From that moment the note and mortgage are running for their 8–14 month term, typically 12–14 months.
- 05
Monthly Interest Payments
Fixed interest is paid monthly during the term. Payment dates follow signing dates: documents signed between the 1st and the 15th are paid on the 1st of every month, and documents signed between the 16th and the last day of the month are paid on the 15th. The rate does not float, so each payment is the same amount for the life of the note.
- 06
Principal Return
At maturity the borrower repays the loan in a single balloon payment and the investor receives 100% of the original principal. Nothing was amortized during the term, so the full amount worked at the full rate for the full period. Investors who wish to continue may then review the next available opportunity as a new, separately documented transaction.
12-Month Illustration
Capital in, income monthly, capital returned.
Day 1
Capital In
Months 1–11
Monthly Interest Payments
Month 12
Capital Returned
Documents signed between the 1st and 15th of the month receive their monthly payment on the 1st of every month. Documents signed between the 16th and the last day of the month receive their monthly payment on the 15th of every month.
Roles & Responsibilities
Who does what in each transaction.
What The Investor Does
Confirms suitability, reviews the documentation set for a specific opportunity, agrees the amount, rate, term and payment date in writing, signs at closing, and receives monthly interest until principal is returned at maturity.
What The Licensed Lender Does
Underwrites the borrower, commissions the independent appraisal, verifies the title is free of prior liens and mortgages, confirms catastrophic-event insurance, originates the note and mortgage, and services payments for the life of the loan.
What IHIG Does
Sources capital from accredited investors, positions funds for deployment three days before closing, channels them to the licensed lending company, and oversees compliance and documentation throughout the term of the note.
What Happens At Maturity
The borrower repays the loan in a single balloon payment and the investor receives 100% of the original principal. Continuing investors review the next available opportunity as a new, separately documented transaction.
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