Real estate notes refer to a type of investment vehicle that is secured by real property. These are essentially promissory notes, which represent loans made to individuals or companies for the purpose of purchasing, improving or refinancing real estate properties. The note represents the borrower's promise to repay the loan, along with interest and fees, according to the terms specified in the note. Investors can purchase these notes as a way to earn passive income from the interest payments made by the borrowers, while also having the security of being backed by real estate collateral.