Paperstac Note Expo 2025

In this interview from Note Expo 2025, I sit down with Brett from Paperstac to talk about what is new in the note investing world — and one of the biggest topics right now is business notes. Most note investors are familiar with mortgage notes, seller financing, partials, and real estate-backed paper. But business notes are opening up a new debt vertical for investors who want to diversify beyond traditional real estate notes. Brett shares how Paperstac is working with business note originators, how these loans are being underwritten, what makes them attractive to investors, and why this could become a major opportunity going into 2026. We discuss how business notes are typically created, what kind of due diligence investors should look for, and why proper underwriting at the beginning is so important. The conversation also covers personal guarantees, UCC liens, servicing, buyback/recourse options, keyman life insurance policies, and how some business notes may even be collateralized with real estate. One of the biggest takeaways from this conversation is that business notes may give note investors another way to generate yield while diversifying outside of the traditional real estate market. As Brett explains, many of these notes are tied to small businesses where the borrower’s livelihood depends on that business, which can create a very different risk profile compared to other types of debt. We also talk about the “silver tsunami” of baby boomer business owners who are retiring and selling small businesses. Many of these businesses may need creative financing solutions, and seller financing could become a powerful tool in the business acquisition space — very similar to how owner financing works in real estate. If you are a real estate investor, mortgage note investor, private lender, business broker, commercial real estate broker, or someone looking for ways to build passive income through debt investing, this conversation will give you a look at where the note space may be heading next.