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Overview of the Performing Note Tape
This tape consists of 4 performing mortgage notes (PN) on residential properties, packaged as a “4-pack” for sale. The notes are secured by single-family homes in diverse locations: two in California (Riverside and San Bernardino counties), one in South Carolina (Richland County), and one in Illinois (Cook County). All notes are classified as “performing,” meaning the borrowers are generally making payments, though with some minor historical delinquencies noted in the pay history (e.g., occasional late payments of 1-46 days). The data appears to be from US Mortgage Notes, Inc., and is marked as confidential.
Key aggregate metrics from the tape:

Total Current Unpaid Principal Balance (UPB): $247,655.10
Total Offer Price: $224,134.95 (average 90.5% of UPB, representing a discount of ~9.5%)
Total Tape Discount (TD) Fee: $4,700 ($1,175 per note; this may cover due diligence, transfer, or servicing setup costs)
Estimated Total Purchase Cost: $228,834.95 (offer + TD fee)
Average Interest Rate: 8.5% (weighted across notes)
Total Monthly P&I (Principal & Interest) Payments: $2,554.30
Total Monthly T&I (Taxes & Insurance) Escrow: $871.28 (if serviced, this could add to cashflow depending on setup)
Total Annual Income (P&I only): $30,651.60
Annual ROI (Return on Investment): 13.7% (based on annual P&I divided by offer price)
Average IRR (Internal Rate of Return): ~12.5% (ranges from 7.5% to 18.7% per note, factoring in cashflows, terms, and discounts)
Average Remaining Term: ~167 months (~14 years)
Diversification: Notes span multiple states, reducing geographic risk. ARV (likely After Repair Value or Appraised Rental Value) totals ~$987,000, providing solid collateral coverage (average LTV ~25% based on UPB/ARV).
Payment Status: All notes are current as of the data (days late: 0 for three notes, 46 for one). Next payments due between late August and early September 2025 (based on dates like 45839, which seem to be Julian or internal date codes; assuming current date is September 16, 2025).
Pay History: Provided as 24-month strings (e.g., “000000000000010011000000” indicates mostly on-time payments with isolated lates of 1 day). Minor delinquencies in 2-3 notes, but no chronic issues.

The tape is priced at a discount to UPB, making it attractive for investors seeking yield without direct property management. Total yield is driven by interest rates (7-10%) on discounted principal, amplifying returns.
Detailed Analysis per Note
Here’s a breakdown of each note, including key financials, borrower details, and risk/return highlights:

Note 1: 52211 Oasis Palms Ave, Coachella, CA 92236 (Riverside County)

Borrower: Vanessa Maria Rodriguez
Original Balance: $93,500 | Current UPB: $70,226.27 | Offer: $64,449 (91.8% of UPB)
Interest Rate: 8% | Monthly P&I: $686 | Monthly T&I: $97.87
Annual Income (P&I): $8,232 | ROI: 11.7% | IRR: 10.5%
Term/Remaining: 360/197 months | Maturity: ~16.4 years from now
ARV: $380,000 (strong collateral; LTV ~18.5%)
Payment Status: Current (0 days late); Pay history shows mostly on-time with a few minor 1-day lates.
Analysis: Solid California note with high ARV coverage. Higher population growth area could support property value appreciation, reducing default risk. Yield is moderate but reliable for cashflow.

Note 2: 11233 San Jacinto Street, Morongo Valley, CA 92256 (San Bernardino County)

Borrower: Cristian Fernando Macias
Original Balance: $89,000 | Current UPB: $63,221.41 | Offer: $56,899.27 (90% of UPB)
Interest Rate: 9% | Monthly P&I: $747 | Monthly T&I: $63.41
Annual Income (P&I): $8,964 | ROI: 14.2% | IRR: 11.3%
Term/Remaining: 300/135 months | Maturity: ~11.3 years from now
ARV: $240,000 (LTV ~26.3%)
Payment Status: Current (0 days late); Pay history mostly clean with isolated issues.
Analysis: Another CA note with a higher rate boosting yield. Shorter remaining term accelerates principal paydown. Rural-ish area but stable; good for mid-term cashflow with potential early payoff.

Note 3: 1821 Chandler Ave, Columbia, SC 29210 (Richland County)

Borrower: Karen & Daniel Johnson
Original Balance: $103,744.36 | Current UPB: $96,083.58 | Offer: $86,475.22 (90% of UPB)
Interest Rate: 7% | Monthly P&I: $847.50 | Monthly T&I: $524.50
Annual Income (P&I): $10,170 | ROI: 10.6% | IRR: 7.5%
Term/Remaining: 391/163 months | Maturity: ~13.6 years from now
ARV: $200,000 (LTV ~48%)
Payment Status: 46 days late (monitor closely); Pay history shows more variability (e.g., lates of 1-12 days).
Analysis: Largest note by UPB, with the lowest rate but highest monthly payment. SC market is affordable and growing; higher T&I suggests escrowed stability. Slight delinquency risk, but overall performing—could be a value play if brought current.

Note 4: 5406 S Damen Ave, Chicago, IL 60609 (Cook County)

Borrower: Gill Jr. Roy A
Original Balance: $31,200 | Current UPB: $18,123.84 | Offer: $16,311.46 (90% of UPB)
Interest Rate: 10% | Monthly P&I: $273.80 | Monthly T&I: $185.50
Annual Income (P&I): $3,285.60 | ROI: 18.1% | IRR: 18.7%
Term/Remaining: 355/171 months | Maturity: ~14.3 years from now
ARV: $167,000 (LTV ~10.9%)
Payment Status: Current (0 days late); Pay history mostly clean with some minor lates.
Analysis: Smallest note but highest yield due to 10% rate and deep discount. Urban Chicago location with strong ARV coverage; ideal for high-ROI cashflow without large capital outlay.

Overall Risk and Performance Assessment

Strengths: All notes are performing with minimal delinquencies (average days late <12). Discounts to UPB (90-92%) amplify yields beyond the stated rates. Collateral is robust (total ARV ~4x total UPB), providing downside protection in case of default/foreclosure. Diversified across states/economies: CA (growth-oriented), SC (stable/southern), IL (urban/midwest).
Risks: Minor historical lates (e.g., Note 3 at 46 days) could signal borrower stress; monitor via servicing. Interest rates are fixed, so no inflation hedge, but terms are mid-length (11-16 years remaining), allowing for reinvestment. No major red flags like chronic non-payment or low ARV.
Yield Breakdown: The 13.7% annual ROI is calculated on P&I alone; including T&I (if collected via escrow) could push monthly cashflow to ~$3,425.58, boosting ROI to ~18% on total cost (offer + TD fee). IRR accounts for principal amortization, making this a strong compounding play.
Market Context: In a 2025 environment with potentially higher interest rates, these sub-10% notes bought at discount offer better yields than many bonds or CDs (assuming ~4-5% risk-free rates). Performing notes like these typically trade at 85-95% of UPB, so this tape is competitively priced.

Benefits of Owning This Tape for Cashflow
Owning this 4-pack of performing notes is a powerhouse for generating passive, predictable cashflow—perfect for investors looking to build wealth without the headaches of landlording or flipping. Here’s why it’s a standout opportunity to pitch at your masterclass:

Immediate Passive Income Stream: From day one, you’ll collect ~$2,554/month in P&I payments (potentially +$871 in T&I if serviced), totaling over $30,000 annually. That’s hands-off money hitting your account monthly, backed by real estate collateral—no tenants, repairs, or evictions to deal with.
High Yield on Discounted Purchase: Buying at 90.5% of UPB supercharges your returns—13.7% ROI beats most traditional investments like stocks (historical ~7-10%) or rentals (after expenses, often 5-8%). The highest-yield note (10% rate) delivers 18.1% ROI, turning a $16k investment into ~$3,286/year.
Compounding Through Amortization: As borrowers pay down principal, your equity builds automatically. IRR averages 12.5%, factoring in this “forced savings” effect—over 14 years, you could recoup your full $228k investment plus profits, all while enjoying monthly checks.
Low-Risk Cashflow Stability: These are performing notes with clean(ish) histories and strong ARV coverage (properties worth ~$987k vs. $248k UPB). Diversification across states minimizes regional downturns, and fixed payments provide inflation-resistant predictability in uncertain times.
Tax Advantages and Scalability: Interest income is often tax-efficient (consult a pro), and notes can be held in IRAs/SD-IRAs for retirement cashflow. At your masterclass, emphasize how this tape is a “starter pack” for scaling: Buy, collect, reinvest payoffs into more notes for exponential growth.
Exit Flexibility: If needed, resell individual notes or the tape on secondary markets for liquidity. With yields like this, it’s easy to hold long-term for mailbox money or flip for quick gains.

In summary, this tape delivers reliable, high-yield cashflow with built-in safety nets—ideal for teaching your students how to create financial freedom through note investing. At ~$228k total cost, it’s an accessible entry point for serious investors ready to level up their portfolio.