Need help continuing my learning

[George Frye]

I have been studying the note business for a few months now. I finished Jimmy Napiers book and also devoured calculator power. I dont want to get paralysis of analysis, however I want to make sure I understand how to review a note work it out and be able to know if it is a good buy or not. Can anybody recommend some ways I can get practice in learning and becoming better in note evaluation? Thanks in advance.

[Dion DePaoli]

@George Frye

I meant the actual security instrument for the state which will include a mortgage or deed of trust or deed of security along with the promissory note. You can even read through the riders and addendums to each.

What I think you may be referencing is a Uniform Residential Loan Application, Form 1003. It certainly will not hurt to understand what information is collected on that document but it is not much to read.

My underlying point is, when you purchase a loan or make a loan, the documents which create the agreement between the two parties are pretty darn important. I think many overlook actually reading some mortgages and attached notes as a method to increase an understanding of what those documents do and say. Since private folks can choose to use a non-uniform set of documents becoming familiar with FM/FM helps to discern features that may be different from document set to document set. I would not find it too weird to read through a privately originated note and for it to be missing some concepts. For instance, a loan on an investment property which carries no assignment of leases and rents. The absence doesn't invalidate the security instrument (in this case) but does impact the actions a mortgagee can take enforcing the remedies. The opposite is also true for the inclusion of features that may be considered not customary.

While you search for narrative things to read such as books, courses and such, don't forget to actually read some of the actual paperwork used in the industry.