Exciting changes are coming to the Note industry in the form of monetizing the buying and selling of Notes. With these changes, you will be able to buy and sell your notes as easily as you buy stock with E-Trade! |
Background
In the financial industry, there have been significant changes in how people buy and sell investment products. In the past with stocks, you would need to call your broker to get company information and provide buy or sell orders. This process has been replaced with a completely transparent process where you can see all company information as it is released and then enter your buy or sell orders online with no middleman.
Within the real estate community, the buying and selling process has not significantly changed in years. For every transaction, full documentation is required and there is zero standardization. Every transaction goes through multiple steps and often numerous professionals (agents, brokers, title, lawyer etc) are required.
Standardization of Information
During the presentation, Cade Thompson detailed the development of efforts of his team at Rocktop in making some radical changes to the buying and selling process in the real estate environment and specifically about Notes. With the introduction of AI technology and block chain, he is working on introducing transparency to note trading. Today, all documents are different and require individual review and interpretation. Using these new technologies, he has been able to review multiple documents and produce a level of standardization unseen in the industry.
Speeding up the Selling Process
The second step in their efforts is to open the buying and selling process. Today, both buyer and seller must be individuals, taking time to find each other and then working through the details with phone calls, more paperwork and specialized professionals. By standardizing the information, there is a new level of transparency that will eliminate the discovery potion of a transaction. But putting this information online, buyers and sellers can now see all information real time and decide to move forward with the transaction, think of “E-Trade for notes”.
Accessing the Liquidity of Notes
Rocktop is taking this concept ever further by using block chain. They are hoping to monetize the note (meaning that if you only have $5K to invest, you can buy a portion of a $100K note). You will be able to put your note up for sale online, and then investors can purchase pieces of the note. If after a few months, a buyer can sell their portion of the note or could go online and purchase even more of the same note. By setting your criteria, you could find notes that meet your investment goals, purchase online and hold until you want or when the note is paid off.
Summary
Cade and his team at Rocktop are attempting a seismic shift in the buying and selling of notes. With the transparency of all information, an online marketplace will be introduced to bring buyers and sellers together. By using technology, this marketplace will be able to support buying and selling of portions of notes, opening the market for more investors, both small and large. So, get ready for some dramatic changes coming to the note investing marketplace!
Rocktop has been working on a proof of concept and will be working with outside investors in early 2026 to demonstrate the technology for actual use.
Presenter-Cade Thompson
Cade Thompson is the Co President and Chief Growth Officer of Rocktop, a Solutions-as-a-Service company that empowers institutional investors, asset managers, and other holders of risk in the fixed-income and mortgage markets to improve yields. The firm’s innovative solutions—harnessing data science, practical Al, and digital ledger technology- are helping investors to achieve best execution.
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Connect with Peak Notes Why not set up a meeting with a Peak Notes specialist to discuss this exciting presentation from Note Expo 25! Meetings are brief, cost nothing and can give you more insight into how you can maximize your investment potential! If your property is located in Florida, please click on this link and set up a meeting with John (https://peaknotes.zohobookings.com/#/talkaboutyournote). If your property is located outside of Florida, please click on this link and set up a meeting with Karen (https://calendly.com/karenw-peak-notes/30Min). |