Introduction to Note Investing Training

Table of Contents

What is Note Investing Training?

Note investing training refers to the process of learning and acquiring the necessary skills and knowledge to invest in notes effectively. Notes, also known as promissory notes or mortgage notes, are legal documents that represent a borrower’s promise to repay a debt to a lender. Note investing training equips individuals with the tools and insights to navigate the complex world of note investing, enabling them to make informed decisions and optimize their investment returns.

Importance of Note Investing Training

Note investing can be a lucrative investment strategy, but it requires a deep understanding of the market, due diligence, risk management, and analysis. Without proper training, individuals may be vulnerable to making costly mistakes or falling victim to scams. Note investing training helps investors develop the necessary skills, knowledge, and strategies to mitigate risks, identify profitable opportunities, and navigate the intricacies of the market.

Benefits of Note Investing Training

Note investing training offers several key benefits that empower individuals to make informed investment decisions and maximize their returns.

1. Comprehensive Market Understanding

One of the primary benefits of note investing training is gaining a comprehensive understanding of the market. Through training, investors learn about the different types of notes available, the dynamics of the market, and the factors that influence note prices. This knowledge enables investors to identify lucrative investment opportunities and make well-informed decisions.

2. Enhanced Due Diligence Skills

Note investing training teaches individuals how to conduct thorough due diligence. This involves analyzing the borrower’s financial history, assessing the collateral securing the note, and evaluating the overall risk associated with the investment. By honing their due diligence skills, investors can identify potential red flags, mitigate risks, and protect their investments.

3. Custom Investment Strategies

Each investor has unique financial goals and risk tolerance. Note investing training equips individuals with the ability to develop personalized investment strategies tailored to their needs. Whether an investor prefers a conservative or aggressive approach, note investing training provides the tools to create an investment plan that aligns with their goals.

4. Diversification Opportunities

Note investing training highlights the importance of diversification within a portfolio. By investing in different types of notes across various industries and geographical locations, investors can spread their risk and potentially increase their returns. Training helps investors identify suitable notes to add to their portfolios, ensuring diversification and reducing vulnerability to market fluctuations.

5. Long-Term Wealth Building Potential

Investing in notes can be a long-term wealth-building strategy. Note investing training exposes individuals to various investment techniques and strategies that can generate consistent cash flow and build wealth over time. By learning how to identify distressed notes, analyze opportunities, and manage risk effectively, investors can position themselves for long-term financial success.

Different Types of Notes in the Market

The note investing market offers a variety of options for investors. Here are some common types of notes:

1. Mortgage Notes

Mortgage notes are perhaps the most well-known type of note in the market. These notes represent loans made to individuals or businesses for the purpose of purchasing real estate. Investors can purchase mortgage notes at a discounted price and collect interest payments as the borrowers repay the loan.

2. Business Notes

Business notes are promissory notes issued by companies to raise capital. These notes typically offer fixed interest rates and maturities ranging from a few months to several years. Investing in business notes allows investors to support businesses while earning a fixed income.

3. Student Loan Notes

With the soaring costs of higher education, student loan notes have become an attractive investment option. These notes represent loans made to students for educational purposes. Investors can purchase these notes from financial institutions and earn interest as students repay their loans.

4. Auto Loan Notes

Auto loan notes are another type of note available for investment. These notes represent loans made to individuals purchasing vehicles. Investors can purchase auto loan notes and earn interest as borrowers make their monthly repayments.

5. Personal Loan Notes

Personal loan notes involve loans made to individuals for various purposes, such as debt consolidation or financing a major purchase. Investors can purchase personal loan notes and earn interest as borrowers repay their loans.

Finding and Analyzing Distressed Notes

Investing in distressed notes can offer substantial returns, but it also carries higher risks. Therefore, finding and analyzing distressed notes requires careful research and analysis. Here are some steps to consider:

1. Identifying Sources of Distressed Notes

Distressed notes can be found through various sources, including banks, financial institutions, online platforms, and note brokers. Engaging with these sources and building relationships can provide access to a wide range of distressed notes.

2. Conducting Due Diligence

Thorough due diligence is essential when analyzing distressed notes. This includes assessing the borrower’s financial position, evaluating the collateral securing the note, and understanding any potential legal or regulatory issues. Professional note investors understand the importance of conducting detailed due diligence to make informed investment decisions.

3. Evaluating Investment Potential

When analyzing distressed notes, investors must evaluate the potential for a successful resolution. This involves considering factors such as the borrower’s willingness and ability to repay the debt, the market value of the collateral, and potential exit strategies. By assessing these factors, investors can determine whether the investment aligns with their risk appetite and financial goals.

4. Assessing Risks and Rewards

Investing in distressed notes carries inherent risks, such as borrower defaults or legal complications. It is crucial for note investors to carefully evaluate these risks and weigh them against potential rewards. Proper training equips investors with the skills to identify and manage risks effectively.

5. Building a Network

Building a network of industry professionals, including note brokers, attorneys, and real estate agents, can provide valuable insights and opportunities when investing in distressed notes. Joining relevant forums and attending industry events can also foster connections and facilitate access to potential investments.

Due Diligence in Note Investing

Performing due diligence is a critical component of note investing to ensure investors make informed decisions and protect their investments. Here are key aspects to consider during the due diligence process:

1. Reviewing the Note and Collateral Documentation

Observing the necessary legal formalities is essential in note investing. Investors should review the note and collateral documentation to ensure there are no irregularities or potential legal issues. This includes verifying the authenticity of signatures, confirming proper lien positions, and assessing the enforceability of the note.

2. Assessing the Borrower’s Financial Position

Understanding the borrower’s financial position is crucial for evaluating the likelihood of loan repayment. Analyzing the borrower’s credit history, income, and financial statements can provide insights into their ability to fulfill their obligations.

3. Evaluating the Collateral

The collateral securing the note is an essential factor in assessing the investment’s security. Investors must evaluate the market value and condition of the collateral, such as real estate or vehicles. This evaluation helps determine the potential for recovering the investment in case of default.

4. Analyzing the Terms and Conditions

Investors should thoroughly analyze the terms and conditions of the note, including interest rates, maturity dates, payment schedules, and any applicable penalties. Understanding these terms helps investors assess the profitability and risks associated with the investment.

5. Seeking Professional Advice

Note investing can be complex, and seeking professional advice from attorneys, financial advisors, or note investment experts is highly recommended. These professionals can provide guidance on legal matters, financial analysis, and risk mitigation.

Creating an Investment Strategy for Note Investing

Building a solid investment strategy is crucial in note investing to optimize returns and achieve financial goals. Here are steps to create an effective investment strategy:

1. Define Investment Goals

Clarify your investment goals, whether it’s generating passive income, achieving long-term capital appreciation, or diversifying your portfolio. Defining clear objectives will help shape your investment strategy and guide your decision-making process.

2. Determine Risk Tolerance

Evaluate your risk tolerance based on factors such as your financial situation, investment experience, and personal preferences. Understanding your risk tolerance will influence the types of notes you invest in and the level of risk you are willing to undertake.

3. Choose Note Categories

Consider the various note categories available, such as mortgage notes, business notes, student loan notes, auto loan notes, or personal loan notes. Assess their risk and return profiles to determine which categories align with your investment goals and risk tolerance.

4. Establish Investment Criteria

Define specific criteria for selecting notes based on factors such as credit quality, collateral type, note value, and desired return on investment. This ensures that your investment decisions are based on objective criteria rather than emotions or market trends.

5. Develop a Diversification Strategy

Diversification is essential in minimizing risk and optimizing returns. Determine the allocation of your investments across different note categories, geographic locations, and risk profiles. This ensures that potential losses from one investment are offset by gains from others in your portfolio.

6. Monitor and Review Your Portfolio

Regularly monitor and review your note investments to ensure they align with your investment strategy and goals. Adjustments may be necessary based on changing market conditions, the performance of individual notes, or personal circumstances.

7. Seek Ongoing Education and Training

Note investing is a dynamic field, and it is essential to stay updated with industry trends, regulations, and strategies. Seek ongoing education and training through workshops, webinars, and networking events to enhance your knowledge and adapt to evolving market conditions.

Building a Portfolio of Notes

Building a diversified portfolio of notes is crucial for long-term success in note investing. Here are steps to consider when building your note portfolio:

1. Identify Your Investment Objectives

Clarify your investment objectives and identify the purpose of your note portfolio. Whether it’s generating consistent cash flow, achieving capital appreciation, or diversifying your investments, understanding your objectives will guide your portfolio construction.

2. Allocate Your Capital

Allocate your investment capital across different note categories and risk profiles based on your investment goals and risk tolerance. Consider factors such as the potential returns, risk factors, and correlation between different note investments.

3. Balance Risk and Return

Ensure a balance between risk and return in your portfolio. Higher-risk notes may offer potentially higher returns, but they also carry greater uncertainty and volatility. Consider diversifying your portfolio with a mix of low, medium, and high-risk notes to achieve a balanced risk-reward profile.

4. Monitor and Manage Your Portfolio

Regularly monitor the performance of your note investments and assess whether they align with your investment objectives and risk tolerance. Understanding the market conditions, evaluating individual note performance, and staying aware of any potential risks or opportunities are crucial for effective portfolio management.

5. Rebalance as Necessary

Periodically review and rebalance your note portfolio to ensure it remains aligned with your investment objectives and risk appetite. Rebalancing involves adjusting the allocation of your investments to maintain the desired risk profile, taking into account market conditions and changing investment goals.

Risk Management in Note Investing

Risk management is crucial in note investing to protect investments and minimize potential losses. Here are key strategies for managing risks in note investing:

1. Thorough Due Diligence

Conducting thorough due diligence is the foundation of effective risk management. Carefully analyze the borrower’s financial position, collateral value, and legal considerations. This helps identify potential risks and make informed investment decisions.

2. Diversification

Diversify your note investments across different categories, maturities, and geographical locations to minimize the impact of individual note defaults or market fluctuations. Spreading your investments reduces the risk of significant losses in case of adverse events.

3. Assessing Collateral Quality

Evaluate the quality and market value of the collateral securing the note. High-quality collateral mitigates the risk of default and provides a better chance of recovering your investment if necessary.

4. Regular Portfolio Monitoring

Regularly monitor your note investments to stay aware of any potential risks or issues. This includes evaluating borrower repayments, market conditions, and any changes in collateral value. Identifying and addressing risks promptly can help minimize their impact.

5. Stay Informed and Adapt

Stay informed about market trends, regulatory changes, and economic indicators that may impact your note investments. Be prepared to adapt your investment strategy and portfolio allocation based on changing circumstances.

Selling and Exiting Note Investments

Selling and exiting note investments can be a crucial step in maximizing returns or managing financial circumstances. Here are some considerations for selling and exiting note investments:

1. Determine Exit Strategy

Before investing in a note, identify your exit strategy. Whether it’s selling the note after a specific period, holding until maturity, or refinancing, knowing your exit strategy helps you assess potential returns and plan accordingly.

2. Monitor Market Conditions

Regularly monitor market conditions and interest rate trends. Evaluating prevailing market conditions helps you time your exit strategy to maximize returns or manage potential risks.

3. Seek Buyers and Market Listing

If you decide to sell your note investment, seek potential buyers through brokers, online platforms, or direct marketing. Consider listing your note investment on relevant marketplaces to expand your selling opportunities.

4. Consult Professionals

Consulting with professionals such as note brokers, real estate agents, or attorneys can provide valuable insights and assistance during the selling and exiting process. These experts can help ensure a smooth and legally compliant transaction.

5. Evaluate Tax Consequences

Understand the potential tax implications of selling your note investment. Consulting with a tax professional can help you navigate any tax liabilities and optimize your financial outcomes.

Resources and Further Education for Note Investors

Continual learning and staying informed are vital aspects of note investing. Here are some resources and further education options for note investors:

1. Online Courses and Training Programs

Many online platforms offer specialized courses and training programs focused on note investing. These courses cover various aspects of note investing, including finding distressed notes, due diligence, investment strategies, and risk management.

2. Books and Publications

There are numerous books and publications available that delve into the intricacies of note investing. Investing in these educational resources can provide valuable insights, strategies, and case studies to enhance your understanding and knowledge.

3. Networking and Industry Events

Joining note investing associations and attending industry events can facilitate networking opportunities and provide access to professionals and experienced investors. Engaging with like-minded individuals can help expand your knowledge and gain valuable insights from industry experts.

4. Webinars and Podcasts

Webinars and podcasts offer convenient ways to learn about note investing. These resources often feature experts sharing their experiences, strategies, and market insights. Listening to webinars and podcasts can provide valuable updates and practical tips for note investors.

5. Mentorship and Coaching

Seeking mentorship or coaching from experienced note investors can accelerate your learning curve and provide personalized guidance. Mentors can help you avoid common pitfalls, share real-world experiences, and offer invaluable advice tailored to your specific goals and circumstances.


Note investing training is crucial for individuals looking to enter the note investing market or enhance their existing investment strategies. By gaining a comprehensive understanding of note investing, honing due diligence skills, and developing a sound investment strategy, investors can increase their chances of success and optimize their returns. Furthermore, managing risks, staying informed, and continuously learning through resources and further education contribute to long-term growth and financial prosperity in the note investing arena.


  1. What is note investing training?
    Note investing training refers to the process of learning and acquiring the necessary skills and knowledge to invest in notes effectively. Through training, individuals gain insights into market dynamics, due diligence practices, risk management, and investment strategies.

  2. Why is note investing training important?
    Note investing can be complex and carries risks. Proper training equips individuals with the knowledge and tools to make informed decisions, navigate the market, and optimize their investment returns.

  3. What are the different types of notes in the market?
    The note investing market offers various types of notes, including mortgage notes, business notes, student loan notes, auto loan notes, and personal loan notes. Each type has its own characteristics and potential returns.

  4. How can I find and analyze distressed notes?
    Finding distressed notes involves establishing relationships with banks, financial institutions, brokers, and online platforms. Analyzing distressed notes requires thorough due diligence, including assessing the borrower’s financial position, collateral value, and potential risks.

  5. Where can I find further education and resources for note investors?
    Further education and resources for note investors can be found through online courses, books, industry events, webinars, podcasts, networking, and mentorship. These resources provide valuable insights and strategies to enhance note investing knowledge and success.

Mortgage Note Investing: Transforming Lives and Communities

YouTube video

In this interview, Dr. Jason Engerman, a portfolio manager and note investor, discusses how mortgage note investing can change lives and communities. Dr. Engerman shares his personal journey and the reasons he transitioned from a career in education to note investing. He highlights the unique opportunities and benefits of investing in real estate notes, particularly in communities of color.

Dr. Engerman’s background in learning design and technology equipped him with the skills to build systems and learning environments. However, he felt constrained by the limitations of the educational infrastructures and sought a more impactful way to influence communities. He discovered note investing as a means to understand and address the economic factors affecting communities, especially communities of color.

After exploring various investment options, including stocks, crypto, and real estate, Dr. Engerman found that note investing offered a unique opportunity to make a significant impact. He recognized that owning the note and the legal rights associated with it gave him control over the financial aspect, making him an independent player in the industry. This realization led him to fully dive into note investing and leave his tenure track position in education.

Dr. Engerman recognizes that education is an essential part of his journey as he now educates his clients and business partners about investing in alternative assets, specifically note investing. He values the relationships he builds in this new role, finding fulfillment in collaborating with like-minded individuals. Being able to define his own boundaries and enjoy the freedom to prioritize his family and personal life are significant benefits for Dr. Engerman.

Although note investing requires hard work and taking on multiple roles, Dr. Engerman believes that the rewards outweigh the challenges. The sense of pride that comes from achieving personal goals and the faith in building solid relationships contribute to his overall satisfaction in this field. The newfound freedom to pursue his own interests and growth has positively impacted Dr. Engerman’s personal life, making him a better person, father, and husband.

For both Dr. Engerman and the interviewer, the freedom that comes with note investing is a driving force behind their decision to pursue this industry. It transcends mere financial gain and empowers individuals to live life on their own terms. The interview concludes with a reminder that investing in mortgage notes is not just a financial strategy but a means to transform lives and communities.

In summary, Dr. Jason Engerman’s experience in mortgage note investing showcases the immense potential of this industry to create positive change. By understanding the economic impact on communities, particularly those of color, note investors can play a pivotal role in revitalization and empowerment. With the freedom to define their own path and make a meaningful impact, note investors like Dr. Engerman can transform both their own lives and the lives of others.