Episode -195: How Scott Carson Makes Millions Buying Distressed Mortgage Notes

What if you could buy distressed mortgage debt at a discount, help homeowners stay in their homes, and generate strong cash flow without dealing with tenants or major rehab projects?

In this episode of Eat, Sleep, Invest, Brian Driscoll talks with note investing expert Scott Carson about how buying performing and non-performing mortgage notes has become one of the most overlooked strategies in real estate investing. Scott shares his journey from mortgage broker to becoming widely known as "The Note Guy," with experience in buying billions in distressed debt.

Scott breaks down how note investing works, how investors acquire mortgage debt directly from banks at deep discounts, and why many borrowers are able to remain in their homes through loan modifications and structured payment plans. He also shares insights from his first note deal, how he raises capital using self-directed IRAs, and common mistakes new investors make when entering the space.

The conversation also explores foreclosure timelines, due diligence, tax considerations, first-position vs second-position notes, and why note investing can generate strong returns without owning physical property. If you want to understand how banks offload bad debt and how investors profit from it, this episode delivers practical, real-world insights.

00:00 – Intro to Scott Carson and note investing 02:12 – Scott's journey from mortgage broker to note investor 05:03 – What note investing actually is 09:14 – How banks sell distressed mortgage debt 13:08 – Working with distressed homeowners 17:25 – Scott's first note deal in Phoenix 24:30 – Why banks sell loans at deep discounts 29:11 – Who note investing is best for 35:44 – Rentals vs note investing comparison 41:08 – Raising capital with self-directed IRAs 45:02 – Risks and due diligence in note investing 50:27 – First-position vs second-position notes 54:10 – Scott's favorite investing book 57:18 – Where to learn more

Connect with Scott Carson: Website: weclosenotes.com Free Training: noteweek.com

—

Go to https://go.ml-leads.com/yt and:

💸 Get high-quality, motivated seller leads

💸 Claim your area

💸 Stop wasting your money

💸 Take your marketing to the next level

—

Follow us on social media:

👉 LinkedIn: https://www.linkedin.com/company/motivated-leads/

👉 Instagram: https://www.instagram.com/motivated_leads/

👉 Facebook: https://www.facebook.com/motivatedlead/

👉 TikTok: https://www.tiktok.com/@motivatedleads

—

Follow the Eat, Sleep, Invest podcast:

💸 YouTube: @MotivatedLeads

💸 Apple Podcasts: https://apple.co/43uYD0p

💸 Spotify: https://open.spotify.com/show/77k7PYSfYOtkws31bYgE2d

—

Eat, Sleep, Invest is a podcast dedicated to real estate investors who want to take their marketing to the next level and generate high-quality seller leads.

This podcast is powered by Motivated Leads: https://go.ml-leads.com/yt

Don't forget to follow so you never miss an episode!

If you're looking for Motivated Seller leads: visit motivatedleads.com

Listen to more episodes of Eat, Sleep, Invest for real estate investing insights, marketing strategies, and deal-making conversations.