Trust deed investing with a HML

[Account Closed]

I came across note investing in the book a perfect storm by Jay Hinrichs and David Newton and recently got into a position to buy notes. I've looked into a few companies and during due diligence found out that some HMLs aren't licensed but sell loans anyway which my attorney said is a huge red flag.

Other than checking that a company is licensed and checking places such as Google and the BBB does anyone have any tips on evaluating trust deed investments? Of course I would be looking at properties and borrowers on the actual loan if I went ahead but I haven't got that far yet.