Investing in real estate secured notes is basically lending a certain amount of money to a person or an entity
. In this case, the loan is guaranteed and backed by real estate. The note states the terms and obligations by the borrower to the investor, the dates of payments, the agreed interest rate, maturity date, and any provision in case of default. In cases of default, the note, may authorize the investor to foreclose on the property and sell it at a profit to recover the initial investment and any interest or cost of money involved.