Tired of being shut out of the most rewarding investment opportunities? Accessing alternative investments for non-accredited investors is hard. In fact, less than 10% of private real estate deals are accessible to non-accredited investors. Access—not intelligence or capability—is the key differentiator. Smart investors start where they are and build relationships over time.

As a conservative, accredited investor, you're tired of market swings, Wall Street jargon, and hidden fees. You want clarity. You want control. And above all, you want cash flow backed by real assets. That’s where mortgage note investing comes in.Through Blue Bay Fund I, you can invest in mortgage loans based on bank statements and other secured structures—offering transparency, risk mitigation, and steady income. This is not speculation. This is investing in notes and mortgages with integrity and vision.

UBIT is a hefty tax that can penalize up to 37% of your investment account on business income! There must be two hurdles that your SDIRA investment must overcome to be exempt from paying UBIT. First hurdle: Is the income passive? I know that you may have heard a sponsor or GP claim that their investment is passive, that you, as an investor, do not have to “do anything,” i.e., passive. While that may be true of your personal time, energy, or effort, UBIT does not consider you; it considers the SDIRA. Is the invested capital “doing anything”? That’s the question.

For accredited investors seeking secure and consistent returns, private debt funds are an excellent option. They offer predictable cash flows with the added benefit of being backed by valuable assets. Private debt funds lend capital to borrowers in exchange for fixed interest rates. These loans are often secured by real estate or other tangible assets, providing an added layer of protection for investors. In return, investors receive regular interest payments, creating a steady income stream.

Debt is also very well known by every investor. Most investors see debt as a way to leverage their existing equity. For example, if an investor has $1,000,000 in equity, they could generally leverage that equity 4x. So, in this case, someone could get a loan for $4,000,000, put down their $1M, and buy a $5M property. Simplistic, but the point is made.

I believe that education is critical. Knowledge and awareness of these 5 categories will go a long way in helping you truly diversify your investments, stay ahead of the investing cycles, and be able to pivot when one strategy or market begins to turn. Over the next five blogs, I will deep-dive into each category (to the best of my ability) and lay some groundwork for you so that you can elevate your investing game, make wiser, more informed decisions, and truly become sophisticated with your investments.

Investing in private mortgage notes through Blue Bay Fund can be an attractive option for investors seeking diversity, simplicity, passive income, and monthly cash flow. My user-friendly platform, combined with the reduced risk and exposure associated with mortgage-backed investments, makes it a compelling choice for those looking to diversify their investment portfolio while enjoying the benefits of consistent cash flow.