Notes investing, including promissory notes, private credit, short-term debt, and structured notes, is one of the fastest-growing areas of alternative investing. These investments can offer attractive yields and provide diversification away from traditional stocks and bonds. Essentially, notes involve lending capital in exchange for regular interest payments and the return of principal at maturity. They carry different risk and liquidity profiles compared to publicly traded securities. When done thoughtfully, note investing can deliver compelling total returns and add balance to a portfolio.
This list highlights five top platforms where investors, particularly those with Self-Directed IRAs, can access high-quality note and alternative debt opportunities. These platforms are evaluated based on fees, reputation, offerings, performance, and investor requirements.
1. Willow Wealth (formerly Yieldstreet)
Best for: Broad alternative exposure, including short-term notes and private credit
Willow Wealth allows accredited and certain non-accredited investors to explore a wide range of alternative investments, including real estate, private credit, legal finance, and structured notes. While many offerings are available only to accredited investors, the Alternative Income Fund provides access to a broader investor base. Investors receive interest over defined terms through diversified credit-backed investments.
Why it stands out: Offers a broad selection of assets and liquidity options in certain offerings
Considerations: Many deals have higher minimums and varying levels of risk
2. Percent
Best for: Private credit and blended note portfolios
Percent specializes in private credit deals, such as small business loans, consumer loans, and trade receivables. It offers both individual note investments and Blended Notes, which are diversified portfolios of loans that spread risk. Fees are typically a percentage of yield rather than high fixed management fees.
Why it stands out: A note-focused platform with flexible investment structures
Considerations: Available only to accredited investors; strong due diligence is important
3. EquityMultiple
Best for: Real estate debt and short-term real estate notes
EquityMultiple is a real estate crowdfunding platform offering short-term note-like investments tied to commercial real estate financing, usually ranging from three to nine months. Accredited investors can also access senior debt and income funds for reliable interest cash flow.
Why it stands out: Focused on real estate credit and short-term notes
Considerations: Accredited investors only; exposure limited to real estate
4. iCapital
Best for: Institutional-grade alternative debt and structured note access
iCapital is a scalable alternative investment marketplace used by financial advisors and high-net-worth investors. It offers private credit, real assets, structured note products, and other non-traditional debt strategies, while streamlining subscription and reporting processes.
Why it stands out: Institutional infrastructure with broad access to note and debt products
Considerations: Typically geared toward advisors and high-net-worth clients
5. Structured Note Products (via Crestvale Assets and Banks)
Best for: Customized yield strategies tied to market performance
Structured notes are hybrid debt securities with returns linked to underlying indices or assets. Platforms like Crestvale Assets and many major banks offer structured note products with defined terms and potential downside protection. Unlike straightforward promissory notes, structured notes can target income, growth, or hedged strategies.
Why it stands out: Tailored payoffs with potential principal protection
Considerations: Complex and may have limited secondary market liquidity
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What Note Investing Really Is
Notes are essentially debt obligations, meaning the borrower promises to repay principal plus interest at maturity. They come in several forms:
- Promissory notes: Private loan agreements often used in real estate or private lending.
- Short-term notes: Notes with defined short durations, commonly used for working capital or credit funds.
- Structured notes: Market-linked debt instruments with tailored risk and return profiles.
Note investments can generate steady income and diversify a portfolio because they behave differently than stocks and bonds.
Why This Alternative Asset Class Matters
- Diversification and income: Notes can add uncorrelated yield to a portfolio, often performing differently than equities or bonds.
- Potential for enhanced returns: Certain private credit and real estate notes have historically offered high single-digit to double-digit interest rates.
- Role in retirement portfolios: Notes inside a retirement account can compound tax-deferred in a Traditional IRA or tax-free in a Roth IRA. Even modest yields can grow meaningfully over time.
Who Should Consider Note Investing
Best suited for:
- Investors with a medium- to long-term horizon
- Those seeking income and portfolio diversification
- Accredited investors (for many platforms)
- Experienced investors who conduct proper due diligence
Not ideal for:
- Investors needing high liquidity
- Beginners without professional guidance
- Individuals uncomfortable with private asset risk
Risks and Considerations
- Illiquidity: Many note investments have fixed durations and limited secondary markets.
- Default risk: Borrowers may fail to pay interest or principal.
- Platform risk: Alternative platforms vary in fees, transparency, and deal quality, so due diligence is essential.
- Self-Directed IRA rules: The IRS imposes strict guidelines. Prohibited transactions can trigger penalties, so professional guidance is recommended.
Why Use a Self-Directed IRA for Notes
A Self-Directed IRA allows you to hold non-traditional assets, including notes, within your retirement account. This provides:
- Tax-advantaged growth, either deferred or tax-free
- Access to alternative assets not available through traditional brokerage IRAs
- Greater portfolio control and diversification
Self-Directed IRAs require careful compliance with IRS rules and thoughtful investment selection.
At IRA Financial, you can invest in alternative assets like notes within a Self-Directed Traditional, Roth, SEP, or Solo 401(k). Whether you are buying a short-term mortgage note, private credit obligation, or other debt instrument, your IRA funds can work tax advantaged. IRA Financial provides administrative support and compliance guidance to help you safely manage these alternative investments.
About the Author
Adam Bergman is a tax attorney and the founder of IRA Financial, one of the largest Self-Directed IRA platforms in the United States. He has helped more than 27,000 clients take control of their retirement savings, overseeing over $5 billion in retirement assets. Adam is also the author of nine books focused on helping investors understand and confidently manage their retirement strategies.
This article is provided for informational purposes only and does not constitute investment, tax, or legal advice. Any rankings, ratings, or opinions expressed reflect the views of IRA Financial based on internal research, listed criteria, and publicly available data at the time of publication. Rankings are subjective and may not be suitable for all investors. Readers should independently evaluate all options and consult with qualified advisors prior to making financial decisions.
FAQ About Note Investing
Can I invest in notes inside an IRA?
Yes. A Self-Directed IRA allows you to hold promissory notes and other private debt investments tax-advantaged, as long as IRS rules are followed.
Are notes safer than stocks?
Not necessarily. Notes can be less volatile, but they carry credit and liquidity risk.
Do I need to be accredited?
Some platforms require accredited status, while others provide access to certain funds or notes for non-accredited investors.
