Is a Promissory Note Secured By Real Estate a Security

I take the position, and this is not a black and white, if you get one person lending you money, giving them a promise, they lend you money, and it’s secured in first position, that is not going to be a security. That’s my position. Now, if you start fractionalizing that, like if you get two or three investors that are lending you money to go buy a piece of property or whatever, that starts to look like an investment contract, which is a security. But if you’re acquiring a piece of property, you get a loan from somebody and you secure it in first position, I’m pretty confident that’s not going to be secured. I think that strongly resembles number two.

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