Our process

Nine things happen before a dollar moves.

Most of note investing is discipline. We review far more paper than we purchase, and the standards that decide which notes we keep are the most useful thing we can show you.

01

Sourcing

Ongoing

Notes reach us through Indiana wholesale relationships and private sellers who financed a house themselves and now want cash instead of payments.

02

Tape review

Same day

A tape is a spreadsheet of notes for sale. We filter fast: first position, performing, single-family, owner-occupied, geography we know. That first pass settles most of a tape in minutes.

03

Underwriting the borrower

2–4 days

Pay history first — we want eleven or twelve payments a year, not a perfect calendar. A late month that carries the servicer's fee isn't a red flag. Then rate, remaining term, escrow, and whether the payment fits the household.

04

Valuing the collateral

3–7 days

A broker price opinion with comparable sales, photographs, and condition notes. The number that matters is investment-to-value — the equity cushion standing behind the position.

05

Title and lien position

5–10 days

A title search confirms we're actually in first position. Taxes, insurance, HOA, judgments, and whether the mortgage was properly recorded at all. Clean paperwork decides more note deals than borrower credit does.

06

Bid

Same day

We price backward from the yield the deal has to produce, not forward from what the seller is asking — and we're comfortable being outbid.

07

Closing and the collateral file

2–3 weeks

Assignment of mortgage recorded at the county. Original note endorsed and delivered. The collateral file — note, allonge, recorded mortgage, title policy, pay history — is what makes this an asset you can verify. Every document in hand before funds release.

08

Boarding the servicer

2–4 weeks

The loan is boarded with a licensed third-party servicer, who takes the payment, handles escrow, and produces the monthly statement. Where we keep the existing servicer, the homeowner's routine never changes.

09

Monthly reporting — and hands-on support

Ongoing

If a payment is late, you hear it from us that month. Our first move is a conversation and, where it makes sense, a modification. Keeping a homeowner in the house and paying is the best outcome available — for them and for you.

Where we focus. Performing paper, bought to hold. First liens only. States we know on the ground, with eyes on the property. And funding released only once the collateral file is complete.

After you fund

Why experience matters.

A note investment isn't finished when you fund it. That's when our work begins.

  • Your investment is structured around collateral.

    An obligation of Blalock & Co., backed by pledged collateral we evaluate first — the note, the pay history, the property, the valuation, the protective equity. The collateral should support the obligation, not just the promise.

  • We monitor performance.

    A licensed servicer gives us a clear view of payment activity. One late month tells you little; the pattern tells you everything, and we read it early.

  • We verify the collateral.

    We document the property's value before buying a note, and weigh it against the outstanding balance.

  • We structure for the long term.

    Notes are held through their expected term. Principal may return sooner if the homeowner sells or refinances, and we'll work to place an early exit where we can.

  • We know how to navigate the unexpected.

    Any note held to term eventually needs attention. When it does, we bring in the right servicing, accounting and legal help and keep things moving.

  • You know who is responsible.

    We're small on purpose. We know the notes we own by name, and stay directly involved for the life of your investment.

Ten notes. Seven years. One family.