For note investors
You didn't originate these notes. You bought them, usually at a discount, sometimes a slice at a time. NoteHarbor services a bought book on what you actually paid: real basis, an honest yield, and tax figures your CPA can use.
Buying paper adds questions originators never ask. What's my true basis after a discounted purchase? What is this note actually yielding? How do I report a partial or a B-schedule slice, and what happens to the deferred gain when I sell? Generic servicing software answers none of them.
NoteHarbor is built around them. Record how you acquired each note and it unlocks basis tracking, a real yield figure computed from your cash flows, and a set of note-buyer tax cards, all from the price you paid, not the note's face value.
Investing in notes is a different job from originating them. These are the parts NoteHarbor was built to carry.
The problem
You bought at a discount, so the note's face value is the wrong basis for everything: yield, gain, and income.
Record the acquisition (Originated, Total, Partial, or B-Schedule) with the price you paid as your basis. Every loan then shows a Yield figure: Yield to Date while open, Realized Yield once closed. It's an annualized XIRR of the note's actual cash flows, honestly blank when it can't be computed rather than guessed.
The problem
You bought a slice, whether the next payments or a face-rate B-schedule, not the whole borrower stream.
Partial purchases get an investor-position ledger amortizing your basis at your own yield beside the payor's unchanged schedule. B-schedule purchases run a triple ledger, where the discount isn't recognized until payoff. Slice purchases are held out of the portfolio averages so they never distort them.
The problem
Come tax time, you owe your CPA clean numbers on gains, discount income, and installment sales.
A Schedule-D-shaped Capital Gains report classifies each disposition long- or short-term by holding period, an Ordinary Income statement separates interest, fee, and discount income from return of capital, and selling a seller-financed note recognizes the remaining IRC §453B deferred installment gain rather than booking it at face.
You buy a $120,000-face note for $92,000. In the wizard you mark it Purchased → Total, enter the date bought and the $92,000 you paid, and that price becomes your basis. From the first recorded payment, the loan page shows a Yield to Date figure and the Tax Tracking tab grows a Discount Accretion card that splits every principal dollar collected into return of capital and ordinary discount income by the ratio method.
A year in, an investor offers to buy the next $40,000 of principal. You use the guided partial sale: NoteHarbor closes the original as Sold, spawns the buyer's investor piece with the crossing payment prorated to the cent, and spawns your residual. The two schedules add back up to the original, row by row.
At year-end, the org-wide Capital Gains report and Ordinary Income statement roll every disposed and earning note into one view, and the CPA packet exports the closing statement, note, deed, and mortgage with a summary cover sheet. Your accountant gets facts, not a shoebox.
WAC, WAM, and basis-weighted WAY across your open book, plus a sortable per-note Yield Report with CSV export, including an honest coverage line for notes whose yield can't be computed.
Price a Full, Partial, or B-Schedule purchase before you commit, using the same math the position cards use afterward.
Move a portfolio over from Moneylender Pro, NoteSmith, or a generic spreadsheet: auto-mapped columns, a preview, and import at each note's current balance. CSV import is always free.
A 5-30 year forward view of your book's contractual schedule, with balloons in their months and rate steps applied, exportable to CSV.
Gross-profit %, contract price, excess mortgage over basis on wraps, and gain recognized per tax year as principal is collected.
Every payment, edit, sale, and status change logged with before-and-after values, the provenance a bought book needs.
Yes. A Partial purchase runs an investor-position ledger that amortizes your basis at your own yield beside the payor's unchanged schedule; a B-schedule purchase runs a triple ledger where the discount defers to payoff. Both are deliberately held out of the portfolio's weighted averages so a slice doesn't distort them.
It's an annualized XIRR (Actual/365) of the note's actual cash flows: what you paid versus every payment collected, with escrow excluded and a hypothetical par payoff of the current balance standing in for an open note's terminal flow. When a note has no solvable rate yet, the figure is left blank rather than showing a misleading number.
Selling a note through the guided sale recognizes the remaining IRC §453B deferred installment gain instead of booking it at face. The basis is the outstanding balance times (1 − gross-profit %). The figure feeds the Capital Gains report and your CPA's Schedule D / Form 6252; it's informational, not a filed number.
Yes. The Export CPA Packet bundles the closing statement, note, deed, and mortgage into a ZIP with a generated summary cover sheet that now includes the worked installment-sale figures. The org-wide Capital Gains report and Ordinary Income statement export to CSV alongside it.
Yes. The guided import wizard reads a CSV export from Moneylender Pro, NoteSmith, or a generic spreadsheet, auto-maps the columns it recognizes, previews what will be created, and imports at each note's current balance. CSV import is always free; PDF statements can be read with the optional Deep Analysis add-on.
Import a portfolio, record what you paid, and watch real basis and yield appear. A 30-day free trial, no card, and free CSV import from your current system.