Labrador Lending
Passive Investors
A Mortgage Note Fund for Accredited Passive Investors
Helping you Find Financial Success through note funds
Have more money than time? Backed by the experience of Labrador Lending, our note funds offer ways to diversify your portfolio. To receive updates on our current and future offerings, please fill out the form below:
Invest With UsIncome-Focused Investing, Backed by Real Estate
Accredited passive investors can pursue 10% targeted annual returns on investments of $100K+ and 8% targeted on $25K–$100K, with monthly distributions and a 12-month minimum commitment. Returns are targets, not guarantees.
Integrity Income Fund
We’re excited to announce an exclusive opportunity for accredited passive investors to accelerate their passive income with the Integrity Income Fund!
Passive Income Through Mortgage Notes
The Integrity Income Fund is tailored for accredited investors seeking an investment opportunity for stable passive income through mortgage notes. This fund focuses on mitigating risks while maximizing returns, making it a compelling choice in today’s financial market.
At-a-Glance
A quick snapshot of what matters most.
10%
Targeted Annual Preferred Return at $100K+
8%
Targeted Annual Preferred Return at $25K–$100K
Backed
By Residential Real Estate Collateral
12-Month
Minimum Commitment
3+ Years
Of Consistent Monthly Distributions with Zero Missed Payments
Distributions have been made each month since inception. Past performance is not a guarantee of future results.
Structure Details
Capital Stack
The Integrity Income Fund participates at the Senior Debt layer—seeking income and downside protection through primarily first-lien residential mortgage notes. Investors receive an annual preferred return (targeted 8–10%); a preferred return means investors are paid before the manager participates in profits. Targets are not guarantees.
How We Mitigate Risk
Multiple layers of protection designed for consistent income and capital preservation.
First-Lien Focus
We primarily hold first-lien mortgage notes—providing the strongest legal claim on the property if a borrower defaults.
Short Commitment = Flexibility
12-month minimum commitment provides flexibility and reduces exposure to long multi-year cycles.
Diversified Exposure
Investments are spread across multiple notes and regions to reduce concentration risk.
- No fund-level leverage policy helps limit downside.
- Acquire at discounts to unpaid balances for additional equity cushion.
- Rigorous due diligence on borrowers, collateral, and workout paths.
- Experienced fund & asset management—we manage vendors (licensed servicers, attorneys, etc.).
- Borrower-first workouts when possible (e.g., modifications) to keep families in homes and protect value.
Benefits of Our 1st-Lien Mortgage Note Fund — The Integrity Income Fund
For accredited investors comparing options like REITs, direct real estate, or private credit, our senior-debt mortgage note fund stands out for income, collateral strength, and a short commitment period.
Monthly Distributions
Predictable monthly cash flow that aligns with budgeting, lifestyle needs, or reinvestment strategies.
Proven Track Record
Since inception, the Fund has maintained zero missed investor distributions over 3+ years. Past performance is not a guarantee of future results.
Collateral Protection (First-Lien Priority)
Investments are secured by a first-position lien on residential real estate, providing priority claims if a borrower defaults and anchoring protection in tangible collateral.
Tax-Advantaged Investing
Pairs well with tax-advantaged retirement accounts. Invest via self-directed IRAs or Solo 401(k)s — traditional (tax-deferred) or Roth (tax-free) — to pursue tax-deferred or tax-free compounding. Consult your tax advisor.
Attractive, Predictable Yields
Accredited investors can pursue a targeted 8–10% annual preferred return, with monthly distributions — 10% at $100K+ and 8% at $25K–$100K. A preferred return means investors are paid before the manager participates in profits. Targets are not guarantees.
Lower Volatility vs. Public Markets
Private, collateralized notes offer steadier, contractual cash flows and less sensitivity to daily market swings than equities-focused strategies.
Hands-Off, Compliance-First
No property management hassles. We handle fund and asset management, including working with licensed servicers, attorneys, and other vendors — so you don’t have to.
Borrower-Friendly Workouts
Whenever possible, we work with borrowers on modifications or workouts to help them stay in their homes, while protecting investor capital.
Diversified Exposure
Holdings span many notes and regions to reduce concentration risk.
Liquidity Advantage
12-month minimum commitment provides flexibility versus multi-year private funds that often lock up capital for 5–10 years.
Downside Risk Mitigation
Notes are often acquired at a discount and backed by real estate, creating multiple paths to preserve value—such as borrower workouts/modifications, sale, deed-in-lieu, or foreclosure if necessary.
Inflation Hedge
As property values rise and loan balances amortize, collateral coverage strengthens. This dynamic creates expanding equity protection and helps yields keep pace with inflation better than traditional bonds.
Track Record
The Integrity Income Fund hasn’t missed a monthly investor distribution at the targeted preferred return rate since inception, with zero missed investor distributions in 3+ years.
Past performance is not a guarantee of future results.
Disclaimers
Targets are not guarantees. This material is for accredited investors and informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. Consult your legal, tax, and financial advisors.
Who This May Be Right For
The Integrity Income Fund is designed with the needs of accredited passive investors who want reliable, steady passive income — without the hassle of managing tenants or unpredictable market swings.
Busy Professionals
Physicians, attorneys, executives, and business owners seeking stable returns without adding more to their already full schedules.
Retirement-Focused Investors
Those looking for consistent monthly income to support their retirement lifestyle or to diversify away from stock market volatility.
Portfolio Diversifiers
Accredited investors aiming to add real estate–backed assets to complement existing stock, bond, or REIT holdings.
Hands-Off Passive Investors
Individuals who value income and security but prefer not to actively manage properties, tenants, or complex operations.
Liquidity-Minded Investors
Accredited investors who want reliable income without tying up capital for 5–10 years. Our 12-month minimum commitment provides flexibility and quicker access to funds.
Income-Focused Investors
Those who value monthly distributions to align with household budgeting, lifestyle needs, or reinvestment strategies — consistent cash flow they can count on.
Exclusive Passive Investment Opportunity
Passive Investment Comparison: Accredited Investor Options
How the Integrity Income Fund compares with Public REITs/ETFs, Direct Real Estate/Syndications, and Private Credit.
| Criteria |
Integrity Income Fund (Labrador Lending Mortgage Note Fund) |
Public REITs / Real Estate ETFs | Direct Real Estate / Syndications | Private Credit (Corporate / Private) |
|---|---|---|---|---|
| Backing / Security |
Core Primarily first-lien mortgage notes secured by residential real estate. Fund owns the notes; investors own shares in the fund. |
Indirect real-estate exposure via tradable shares; no deed ownership. | Hard assets, but risk sits at the property/project level (often single asset). | Collateral varies; many strategies are unsecured or subordinated. |
| Yield (Targeted / Typical) | Targeted annual preferred return: 10% (≥ $100K) • 8% ($25K–$100K) | ~3–6% dividends, plus market price swings. | 12–20%+ potential; outcome/exit-dependent and often lumpy. | ~8–15% depending on strategy and risk (bridge, mezzanine, specialty finance, etc.). |
| Distributions | Monthly (3+ years of consistent distributions) | Dividends; cadence and amounts vary. | Often delayed until capital events/exit (~3–7 yrs). | Monthly or quarterly; manager-dependent. |
| Liquidity / Commitment | 12-month minimum commitment | High (daily tradable on exchanges) | Very low liquidity (multi-year lockups common) | Moderate (1–3 year commitments typical) |
| Risk / Volatility |
Low to moderate; asset-backed and low volatility. Less sensitive to interest-rate swings than property equity. |
High; moves with broader stock market and rate expectations. | Property-cycle & leverage risk; interest-rate sensitivity; single-asset concentration. | Borrower default risk; credit-market sensitivity; structure quality matters. |
| Diversification | Across borrowers & geographies; not concentrated in one property. | Broad across many properties/sectors. | Concentrated in a single property/project (high concentration risk). | Varies by manager; loan pools or single-name exposure. |
| Hands-Off Management | Yes | Yes | Yes — passive for LPs; sponsor/GP manages the asset. | Varies; typically hands-off for investors. |
| Tax Treatment (General) | Ordinary income; eligible with SDIRAs/401(k)s. | Ordinary dividends. | Depreciation benefits (K-1); passive-loss rules apply. | Ordinary income; deal/fund-specific nuances. |
| Manager Alignment | Managers co-invest alongside investors. | Large institutions; fee-driven. | Varies by sponsor quality & incentives. | Varies; incentive fees common. |
Disclaimer: Target returns are objectives, not guarantees. Distributions and liquidity depend on fund documents and market conditions. Past performance is not a guarantee of future results.
Key Reasons to Consider the Integrity Income Fund
What sets a first-lien mortgage note fund apart for accredited, income-focused investors.
No Leverage
Strategy designed to operate without fund-level borrowing for simpler risk management.
Monthly Distributions
Investors receive predictable monthly cash flow that aligns with budgeting and income needs.
Track Record
The Fund hasn’t missed a monthly distribution since inception—over 3+ years of consistent performance.
Diversified Portfolio
Exposure across borrowers, geographies, and property types—beyond what most individuals achieve directly.
Experienced Team
Extensive track record in both performing and non-performing note management and workouts.
Aligned Interests
Managers invest alongside clients—clear alignment on income and capital preservation.
Lower Volatility
Not tied to daily market swings; income is driven by loan performance, not headlines.
Investor-Friendly Terms
Open-ended structure and a short 12-month minimum commitment.
Collateral Protection
Investments are secured primarily by first-position liens on residential real estate, giving investors priority claims if a borrower defaults.
Targets are objectives, not guarantees.
Integrity Income Fund
Income Fund for Accredited Passive Investors
Integrity Income Fund · Mortgage Note Fund for Accredited Passive Investors
Target distributions have been met each month since inception. Past performance is not a guarantee of future results.
Fund Frequently Asked Questions
What are the targeted returns?
Current targets are 10% annually for investments of $100K+ and 8% annually for $25K–$100K, typically paid monthly. Targets are objectives, not guarantees. See offering documents for risks and details.
What is the minimum commitment?
12 months. Shorter than many private funds with multi-year lockups.
Who can invest?
The fund is available to accredited investors only. Accreditation is verified during onboarding.
Is the fund levered?
No. The strategy is designed to operate without leverage, focusing on income generation and capital preservation through first-lien mortgage notes.
What is your fund track record?
The Integrity Income Fund hasn’t missed an investor distribution at the targeted preferred return rate since inception (3+ years).
common questions
FAQ
We are here to help you 7 days a week and respond within 24 hours. Plus, you can find most answers to your questions right on this page.
Sure! Here is a short video that helps to explain what note investing is. And here is a blog post about it.
See the above video and feel free to reach out for more information.
Absolutely! This is one of the best ways to invest in notes, whether it be through a Roth IRA or traditional IRA.
One of the nice things about this niche is the inherent flexibility to it. Investing in notes can be very passive or quite active.
Here are some pros:
your investment is backed up by collateral (real estate)
control (many exit strategies)
discounted pricing (non-performing notes can normally be purchased for pennies on the dollar)
Here are some cons:
could require a more hands-on approach
less liquid than stocks, bonds, or mutual funds