Allonge gives accredited investors fractional ownership of performing residential loans — bought below face value, paid monthly.
Private investments involve risk, including possible loss of principal. Available only to eligible investors. Full terms are provided in the official offering documents.
Investor Notice: Allonge is currently available to accredited investors through private offerings. Investments are not bank deposits, are not FDIC insured, may be illiquid, and involve risk, including possible loss of principal. Full terms are provided in the official offering documents.
Monthly distributions from residential mortgage cash flows, backed by real residential property.
Performing loans that lenders struggle to resell, called scratch-and-dent, sourced and offered to investors below face value.
Every loan vetted for borrower performance, collateral, and the nature of the defect before acquisition.
A MESSAGE FROM OUR CEO
Two minutes on what we're building, why now, and what makes the closed beta worth your time.
ASSET CLASS
Scratch-and-dent mortgages are residential loans that may be harder to sell through standard channels — not because the borrower is in trouble, but because of administrative, documentation, underwriting, or eligibility issues at the loan level. Most are performing loans, with borrowers making payments on time.
Because fewer buyers can process these loans efficiently, they often trade at a discount to face value. That discount is the source of the yield premium for our investors. The opportunity isn't a riskier borrower — it's an inefficient market that pushes paperwork issues into a price discount we can pass along. The discount improves the investment economics, but it does not eliminate risk.
Common defect types we acquire:
ILLUSTRATIVE EXAMPLES
Because investors subscribe at a discount to the loan's face value, the same dollar of monthly interest produces a higher effective yield on your invested capital — and additional return accrues at payoff as the discount pulls to par. This discount mechanic is the core of how Allonge's return profile works. The subscription prices below are illustrative; actual offerings will price differently based on each loan's characteristics, defect type, and acquisition discount.
Illustrative Examples — For Educational Purposes Only. Not Actual Investments. IRR projections assume a 5-year average hold and full return of UPB at payoff; actual hold periods and returns will vary based on borrower performance, prepayment timing, servicing costs, and the specific terms of each offering.
RETURNS & FEES
No hidden mechanics. Here's exactly how money moves and what we charge.
Investors subscribe at a discount to each loan's unpaid principal balance — typically meaningfully below face value, with the exact subscription price varying by deal. Because you're buying below face, your effective yield exceeds the note coupon. Current offerings target 8–11% gross annual yield depending on the specific loan, with additional return potential at payoff as the discount pulls to par.
Allonge charges a 25 basis point (0.25%) processing fee on each monthly interest distribution. There is no annual management fee during the beta period. Acquisition costs are negotiated with the seller of each loan and are not passed to investors.
Beta participants pay no management fee for the life of their beta-era investments. They also receive first purchase option on new acquisitions before they're opened to the broader platform. This is how we compensate early investors for backing us before we're fully scaled.
Interest distributions are made monthly, interest only, directly to your Allonge wallet in the app. From there, withdraw to your bank or reinvest into new offerings. Principal is returned when the underlying loan pays off, or when you sell your position after the 12-month lock-up period.
Allonge generates revenue from the spread between our acquisition price and the subscription price offered to investors. We acquire loans at a deeper discount than we offer on the platform — investors still subscribe at a meaningful discount to face value, which is the source of the yield premium. Our incentives are aligned: investors and Allonge both need the underlying loan to perform.
PLATFORM
Our team brings 32+ years of combined mortgage industry experience to a market where sourcing, underwriting, servicing, documentation, and execution matter. Allonge focuses on performing residential mortgage assets that may be available at a discount due to administrative, documentation, underwriting, or eligibility issues.
Start with $5,000 instead of committing hundreds of thousands of dollars to a single mortgage investment.
Allonge sources and reviews performing scratch-and-dent mortgage opportunities from a broad lender network.
Investors may receive their share of borrower payments if and when distributions are made according to offering terms.
Manage investment activity, documents, reporting, and updates through the Allonge platform.
TECHNOLOGY
Allonge uses tokenization as infrastructure — the technology that lets us divide a mortgage into fractional shares, track ownership, and distribute monthly payments efficiently at scale. It's how we can offer a $5,000 minimum in a market historically reserved for institutional buyers with hundreds of thousands of dollars to commit.
This is not crypto. It's not speculation. The investment thesis is built on residential mortgage cash flows — real borrowers making real payments on real properties. Blockchain is plumbing: it lowers operational costs, streamlines ownership transfer, and makes distributions more efficient than traditional fund structures.
If your concern is crypto volatility, that's not what you're buying here. You're buying a fractional interest in a performing mortgage, with a digital wrapper that makes the whole thing operationally feasible at this scale.
BY THE NUMBERS
Target returns are not guaranteed. Actual results depend on the specific offering, borrower performance, expenses, servicing, fees, prepayments, defaults, and other risk factors.
HOW IT COMPARES
Fixed income investors typically choose between yield, liquidity, minimum investment, and asset backing. Allonge occupies a position that's hard to find elsewhere.
| Asset Class | Typical Yield | Min. Investment | Liquidity | Real Asset Backing |
|---|---|---|---|---|
| U.S. Treasury (10-yr) | ~4.5% | $100 | Daily | — |
| Investment-Grade Corporate Bonds | 4.5–6.0% | Varies | Daily | — |
| High-Yield Bonds | 6.5–8.5% | Varies | Daily | — |
| Public REITs | 3.5–5.5% | ~$50 | Daily | Yes (equity) |
| Private Credit Funds | 8–12% | $250,000+ | Quarterly / Annual | — |
| Allonge S&D Mortgages | 8–11%* | $5,000 | 12-mo lock-up | Yes |
*Gross yield on subscription price. Net of fees. Subject to borrower performance and offering terms. Past performance does not guarantee future results.
Allonge occupies an unusual position: yield comparable to private credit, backed by real residential property, at a minimum investment that doesn't require institutional scale.
KNOW THE RISKS
Sophisticated investors expect honest risk disclosure. We name the risks plainly because hiding them serves no one.
If a borrower stops making monthly payments, interest distributions may be reduced or suspended. Allonge evaluates each borrower's payment history, collateral, and loan characteristics before acquisition — but past payment performance does not guarantee future payments.
Your investment is subject to a 12-month lock-up period. After that period, you may request to sell your position, but there is no guarantee of a buyer at your preferred price. Do not invest capital you may need access to in the near term.
Investing in a single loan ties your returns to one borrower. Allonge recommends spreading across multiple offerings to reduce single-loan exposure. The 12-month lock-up applies per investment, not per portfolio.
Allonge is an early-stage company in private beta. If operations were disrupted, your investment would be governed by the terms of the offering documents and applicable law. We believe in being transparent about this risk given where we are in our development.
Target yields of 8–11% annually reflect projected returns based on current acquisition prices, note coupons, and our subscription pricing model. Actual returns depend on borrower performance, loan prepayment timing, servicing costs, fees, and the specific offering terms of each investment. Members of our team have experience managing S&D portfolios that have produced double-digit returns under levered structures — these projections reflect an unlevered, individual-investor position and are not directly comparable. Past fund performance does not guarantee future results.
GET STARTED
A structured, transparent process designed for serious investors.
Create your account and complete the required profile information.
The closed beta is intended for accredited investors. Verification may include identity and accreditation checks.
Before investing, review the offering terms, risks, fees, and available loan-level or pool-level information.
Subscribe through the platform and fund your investment according to the offering instructions.
Track your investment and receive distributions if and when made according to offering terms.
DUE DILIGENCE
Before funding any investment, eligible investors should expect to review offering materials that may include:
INVESTOR PACKET
Get the full overview of how Allonge works, what scratch-and-dent mortgages are, the risks to consider, and how to get started as a closed beta investor.
FIT
FAQ
Allonge is in private beta for accredited investors. Review the investor packet, then decide.
Private investments involve risk, including possible loss of principal. Full terms are provided in the official offering documents.