Financial Notes

Introduction
A financial note is a document for 'repayment of a loan at a certain interest rate' over a certain period of time. Some notes are secured while others aren't.  There are many different kinds of notes.  They are treasury, mortgage, convertible, bank,  and municipal notes.  There is also peer to peer lending.  You can make $ by buying or selling notes.

Note Security
Secured Note: The note is backed by collateral if the borrower defaults.  Mortgages and auto loans is an example of this.  If you don't pay your house note the bank will take your house.  If you don't pay your car note your car will be repossessed.

Unsecured Note: The note is note backed by collateral.  They have higher interest because of higher risk.

Different Kinds of Notes
Treasury-It is the debt of the US government.  It has a fixed interest rate and it matures in in 10 years or less. Interest is paid semiannually and they are less than 5%.  You only have to pay federal taxes on this.

Morgage-It is payment on a house loan.  The note determines the interest rate and when the borrower has to pay.  You can make a lot of money from this note.  You can buy them from a bank.  A real estate agent can give a buyer a loan for one of their house.  The buyer must pay them back in monthly installments.  This is called a real estate note.  The seller can hold or sell the note.  If the note is sold that buyer of the note will receive the monthly installments, and seller will get a large lump sum.      

Convertible-They are notes used by angel investors.  The angel investor gives a startup company a loan, which becomes equity after they get more funding.  Then th investor can buy shares at a discount.

Bank-These notes are $.  In the past, you were able to trade them for gold or silver in the bank.

Municipal-This is state or local debt.  It matures in a year or less.  It is free of most taxes.

Peer to Peer Leaning
This is crowdfunding loans.  Investors buy notes that are parts of loans.  The key here is diversification.  Peer to peer lending as been around since 2007.  There is a site lendingclub.com; they have almost 100 % success rate.  You are most likely to get a 5-8% return.

Notes vs Bonds
Similarities: They are both debt.  Financially they are the same.
Differences: Sometimes notes aren't securities.  Bonds always are securities.  Notes have shorter terms than bonds.

Conclusion
Notes are loan payments.  You make $ from the interest.  You get the principal on the maturity date for some them.  If you create a note you can sell it to someone.  Secured notes have collateral.  Unsecured notes don't, so they have higher interest.  They are many different kinds of notes.  Some are more profitable than others.  Peer to peer leaning is buying portions of a loan, and receiving portions of the payments.  Notes and bonds are same unless you're technical.  Now get into it and make some $!!!!!!!!!!!!!!!!!!!

References  
http://www.investopedia.com/
http://www.fool.com/knowledge-center/bond-vs-note-payable.aspx       
Note Security + IRA
Government Debt
Why buy mortgage notes?
C-Note
B-Note
Real Estate Note