Colonial Funding Group
Colonial Funding Group is a privately held, Texas-based principal buyer of performing and non-performing residential mortgage notes. It acquires individual notes, small pools (5–50 notes), and bulk institutional portfolios nationwide using its own discretionary capital, supported by a related note-investor training academy called NoteSchool.
- Company typePrivate
- Founded1980
- HeadquartersSouthlake, United States
- Headcount1–10
- GTM typeB2B and B2C
- OfferingServices
What Colonial Funding Group does
Colonial Funding Group, LLC is a privately held, Texas-based principal buyer of residential mortgage notes that has operated continuously since founder W. Eddie Speed entered the seller financing and non-performing note industry in 1980. The company acquires performing, re-performing, sub-performing, non-performing, and scratch-and-dent residential notes at a discount to par from three distinct seller segments: individual note holders (single notes often held by estates, trusts, or seller-financed investors), private investors and small fund managers (pools of 5–50 notes), and institutional sellers (banks, credit unions, private equity funds, and asset managers divesting bulk portfolios). Headquartered at 520 Silicon Dr STE 110 in Southlake, Texas, the firm operates nationwide and employs between 11 and 50 people.
The business is operationally simple and capital-intensive rather than technology-intensive. Colonial Funding Group uses its own discretionary capital for acquisitions, eliminating third-party financing contingencies and enabling certainty of close within 15–30 business days for individual deals and a 72-hour preliminary LOI for institutional pools. The principal technical assets are proprietary valuation models that price notes based on interest rate, remaining balance, borrower payment history, LTV ratio, and current market yield requirements, together with encrypted data rooms that protect borrower PII during the bidding process. NoteSchool, founded by Eddie Speed in 2006 as a related training academy operating from the same headquarters, doubles as a top-of-funnel pipeline for note sellers seeking a trusted exit partner.
Revenue is generated by realizing the discount between acquisition price and par over the life of monthly borrower payments or upon resolution of distressed assets through loan workout, foreclosure, or deed-in-lieu, with supplementary brokered note transaction fees. Go-to-market combines direct field sales for institutional mandates, inside sales and a web-based 'Get a Custom Quote' intake for individual and small pool sellers, and a referral channel from the NoteSchool ecosystem. The competitive positioning emphasizes direct principal buyer status (no broker commissions, no fees to sellers), ability to underwrite documentation-deficient and mixed-performing files, and a fully managed borrower transition including Notice of Assignment and legal notifications.
Colonial Funding Group firmographics
Firmographics- Name
- Colonial Funding Group
- Legal name
- Colonial Funding Group, LLC
- Website
- https://colonialfundinggroup.com
- Company type
- Private
- Founded year
- 1980
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Colonial Funding Group is a privately held, Texas-based principal buyer of performing and non-performing residential mortgage notes. It acquires individual notes, small pools (5–50 notes), and bulk institutional portfolios nationwide using its own discretionary capital, supported by a related note-investor training academy called NoteSchool.
- Ownership category
- akta.pro rank
Colonial Funding Group industry classification
Industry- Product category
- Mortgage Note Acquisition
- NAICS
- Real Estate Credit (522292), Mortgage and Nonmortgage Loan Brokers (522310)
- SIC
- Real Estate Dealers (For Their Own Account) (6532), Investors, Nec (6799)
- akta.pro primary industry
- Senior Secured Direct Lending (FSANADAA)
- akta.pro secondary industry
- Real Estate / Property-Backed Marketplace Lending (Non-mortgage) (FSAKAHAG)
Keywords
Where Colonial Funding Group is headquartered
LocationHeadquarters
- HQ city
- Southlake
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Colonial Funding Group business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales
Revenue model
- Discount Note Acquisition — Principal Buying: The company acquires residential mortgage notes (performing, re-performing, sub-performing, and non-performing) at a discount to par value. Revenue is generated as the discount is realized over time through monthly payments received from borrowers, or upon resolution of distressed assets (loan workout, foreclosure, deed-in-lieu). The company uses its own discretionary capital for acquisitions, making offers not contingent on outside financing.
- Brokered Note Transactions: The company also acts as a broker for discounted real estate secured notes, earning transaction fees on deals where it facilitates a sale between a note holder and a buyer without taking principal risk.
- NoteSchool Training (Related Entity): NoteSchool, a training academy founded by company founder Eddie Speed in 2006, provides note investing education and mentoring. While NoteSchool is a separate entity, it is closely tied to Colonial Funding Group's ecosystem and drives awareness and pipeline for note acquisition.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Individual Note Sale — Full or Partial Buy-Out |
| Transaction based/ take rate | Pay-as-you-go | Small Pool Sale (5–50 notes) — Blended Acquisition |
| Transaction based/ take rate | Pay-as-you-go | Institutional Pool Divestitures — Bulk Acquisition |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels5 records
Colonial Funding Group product offering
Product offeringCore offering
Colonial Funding Group is a direct principal buyer of residential mortgage notes that acquires performing, re-performing, sub-performing, and non-performing notes at a discount to par from individual note holders, small pool sellers (5-50 notes), and institutional sellers (banks, credit unions, PE funds, asset managers). The company uses its own discretionary capital to provide certainty of close without financing contingencies, delivers 72-hour preliminary valuations, and handles full or partial buy-outs plus notice-of-assignment transfer steps. It also brokers discounted real estate secured notes on a fee basis and is closely tied to NoteSchool, a related note-investing training academy.
Product overview
Colonial Funding Group operates as a direct principal buyer of residential mortgage notes, offering three interconnected acquisition services: Individual Mortgage Note Sales for single-note holders seeking liquidity, Small Note Pool Sales for mini-pools of 5-50 notes, and Institutional Note Pool Divestitures for large-scale portfolio divestitures. The company also operates NoteSchool, a training academy for note investing education. Together, these products form a comprehensive suite covering the full spectrum of mortgage note selling options from individual sellers to institutional funds.
Differentiator
Problem solved
Functional benefit
Products and services
- Individual Mortgage Note Sales
Quantifiable outcome
- Individual note sales typically close within 15–30 business days
- +2 more outcomes
Companies that use Colonial Funding Group
Customer profileSegments3 records
Ideal customer profiles3 records
Colonial Funding Group technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature2 records
Colonial Funding Group partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Licensed National ServicerscoreColonial Funding Group has established relationships with licensed national servicers who handle the post-acquisition boarding process for assets acquired servicing-released. These servicer partners ensure compliant and professional transition of borrower payment handling after the note acquisition closes. Specific servicer company names are not disclosed.
Scale indicators3 records
Recent moves6 records
Expansion highlights5 records
Colonial Funding Group competitors and assessment
Company assessmentDirect peers
- Lima One Capital: Direct private lender and buyer of residential mortgage notes and real estate-secured debt. Comparable to Colonial Funding Group in originating and acquiring performing and non-performing first-lien mortgage notes, with similar institutional and individual seller channels.
- Dominion Financial: Private lender specializing in residential mortgage note acquisition and real estate-backed lending. Comparable to Colonial Funding Group in buying notes at discount from individuals and small funds, with overlapping focus on performing and non-performing residential paper.
- Amerinote Xchange: Online marketplace and direct buyer of performing and non-performing mortgage notes. Comparable to Colonial Funding Group in acquiring residential notes from individual holders and small investors, with similar pricing based on LTV and payment history.
- NoteBuyer.com: Direct online buyer of performing and non-performing residential mortgage notes. Comparable to Colonial Funding Group in serving individual sellers and small portfolio holders with direct-acquisition pricing and streamlined closings.
- We Buy Mortgage Notes: Direct principal buyer of residential and commercial mortgage notes. Comparable to Colonial Funding Group in serving individual note holders and small pool sellers with a no-broker, direct-acquisition model.
- JLM Direct Funding: Direct buyer of mortgage notes including performing, sub-performing, and non-performing paper. Comparable to Colonial Funding Group in providing liquidity to note holders and pricing distressed asset files with proprietary valuation approaches.
Broad incumbents
- Oaktree Capital Management: Global investment manager with significant mortgage and real estate debt investment activities. Comparable in acquiring distressed and performing residential and commercial real estate debt, but operates as a broad-based fund manager rather than a focused note buyer.
- Bayview Asset Management: Large-scale mortgage investment firm and acquirer of residential mortgage portfolios. Comparable to Colonial Funding Group in note acquisition activity, but operates broadly across mortgage credit, servicing, and structured products at institutional scale.
- Pretium Partners: Large institutional buyer and servicer of residential non-performing loans and re-performing mortgages. Comparable to Colonial Funding Group in acquiring NPL portfolios, but at much greater scale with institutional capital and full servicing capabilities.
Emerging players
- NoteRadar: Online note listing and trading platform for individual and institutional mortgage note investors. Comparable to Colonial Funding Group as a participant in the same secondary mortgage note market, though operating more as a marketplace than a principal buyer.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat5 records
Key risks6 records
Key highlights6 records
Customer concentration
Colonial Funding Group social profiles
Digital presenceColonial Funding Group financial estimates
Financial estimateRevenue estimate
Valuation estimate
Colonial Funding Group leadership team
Management profileNumber of profiles
Profiles7 records
Colonial Funding Group funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Colonial Funding Group M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Colonial Funding Group
What does Colonial Funding Group do?
Colonial Funding Group is a direct principal buyer of residential mortgage notes that acquires performing, re-performing, sub-performing, and non-performing notes at a discount to par from individual note holders, small pool sellers (5-50 notes), and institutional sellers (banks, credit unions, PE funds, asset managers). The company uses its own discretionary capital to provide certainty of close without financing contingencies, delivers 72-hour preliminary valuations, and handles full or partial buy-outs plus notice-of-assignment transfer steps. It also brokers discounted real estate secured notes on a fee basis and is closely tied to NoteSchool, a related note-investing training academy.
Is Colonial Funding Group a public or private company?
Colonial Funding Group is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Colonial Funding Group founded?
Colonial Funding Group was founded in 1980. It employs 1 to 10 people.
Where is Colonial Funding Group based?
Colonial Funding Group is headquartered in Southlake, United States, in the North America region.
How does Colonial Funding Group make money?
Three revenue lines are on record. Discount Note Acquisition — Principal Buying is the primary driver. The others are brokered Note Transactions and noteSchool Training (Related Entity).
Who are Colonial Funding Group's main competitors?
Direct peers on record are Lima One Capital, Dominion Financial, Amerinote Xchange, NoteBuyer.com, We Buy Mortgage Notes and JLM Direct Funding. Broad incumbents are Oaktree Capital Management, Bayview Asset Management and Pretium Partners. NoteRadar is listed as an emerging player.
Does Colonial Funding Group have an API?
No public API is recorded for Colonial Funding Group.
What industry is Colonial Funding Group in?
Colonial Funding Group's product category is Mortgage Note Acquisition. Its primary akta.pro industry code is FSANADAA, Senior Secured Direct Lending, with a secondary code of FSAKAHAG, Real Estate / Property-Backed Marketplace Lending (Non-mortgage). Its NAICS code is 522292 and its SIC code is 6532.