How to Create Structured Notes Part 2

Episode 174:


For over 10 years Rick Allen has been an active investor. As the Co-Founder and fund manager of Cloud Capital Management and the Co- Founder of Paperstac, he has conducted transactions with large A-list institutions.

Rick has expert experience in investment strategies of the real estate sector, with a primary focus on discounted Acquisitions and distressed assets. He has participated in the purchase of over 400 single family homes with a purchase price of $25,000,000.00 and a market value of $45,000,000.00.

Since 2014 he’s been actively working on a new way for note investors to purchase and sell mortgage notes. Now that their platform is live, they’ve been actively growing and expanding the market to bring the opportunity of mortgage notes to a larger audience.

What you’ll learn about in this episode:

  • How Cloud Capital was started and why they got into structured notes
  • Buying non-performing notes vs. creating notes from scratch
  • Getting your notes as close to institutionalized paper as possible
  • Hiring an RLMO from the beginning to set your notes upright (and why there’s no going back and fixing them if they’re set up wrong)
  • How Rick and TJ make the most money on notes by buying beat up notes, cleaning them up, and selling them for a profit
  • Some of the most common issues that need to be cleared up with notes
  • Assignment verification: a process Rick and TJ use to follow who has been assigned the note and when (and why not all notes need to follow this process)
  • Why the laws around notes are different in different states and why you should pick a small set of states to work in
  • Why wholesaling is a great place to start out in real estate and the course Rick and TJ are offering for you to learn what you need to know
  • What a perfect note looks like


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