Notes and Due Diligence

[Matt Waggoner]

Hey everyone.  I have been investing in options for years and want to expand into real-estate.  Note investing seems to fit my lifestyle the best.  As you can probably understand, I have many questions; but here is the one for now.

I get the discount rates, COC return, performing, sub-performing and NPN. I have a handle on arbitrage and will eventually use leverage to grow my business. Until I fully understand all the in's and out's, my deals will be mostly cash.

The question I have is:  What do you look for in a note while performing "due-diligence?"  Also, what is mean't by a, "conforming loan?"

Sorry if these are stupid questions, but I'm asking anyway!

Thanks!!