Loan Documentation & Default Risk

About this course

Documentation is the difference between a secured loan and an expensive lesson. Review the promissory note, mortgage or deed of trust, personal guarantees, title insurance and hazard insurance, then walk through workouts and foreclosure.

What you will learn

• Review key clauses in notes and security instruments
• Verify title and lender's insurance coverage
• Recognize early warning signs of default
• Compare workout, forbearance and foreclosure options

1. Module 1

   Introduction

   2 lessons
   • Welcome to Loan Documentation & Default RiskVideo · 11 min · Free preview
   • Course Roadmap and Completion RequirementsWritten lesson · 7 min · Free preview

2. Module 2

   Core Principles

   2 lessons
   • How Private Lending Generates ReturnsVideo · 11 min
   • First Position, Second Position and Lending FundsWritten lesson · 7 min

3. Module 3

   Loan Structure

   2 lessons
   • Interest-Only vs Amortizing LoansVideo · 11 min
   • Rehab Loans and Draw SchedulesWritten lesson · 7 min

4. Module 4

   Financial Analysis

   2 lessons
   • Calculating Lender YieldVideo · 11 min
   • Borrower Analysis: Experience, Credit and LiquidityWritten lesson · 7 min

5. Module 5

   Risk Management

   2 lessons
   • Documentation That Protects PrincipalVideo · 11 min
   • Recognizing Early Default SignalsWritten lesson · 7 min

6. Module 6

   Real-World Examples

   1 lessons
   • Example: A Conservative First-Position LoanVideo · 11 min

7. Module 7

   Case Study

   1 lessons
   • Case Study: First-Position Rehab LoanCase study · 12 min

8. Module 8

   Final Assessment

   2 lessons
   • Final AssessmentQuiz · 5 min
   • Applied AssignmentAssignment · 9 min

Member reviews

• “Great instructor. I rebuilt my underwriting model after the financial analysis module.”

  JYJamie Yates · May 12, 2026