The Best Of Scott Carson - Mastering the Art of Note Investing

While most investors are stuck fighting over the same limited inventory of physical properties, the real wealth is often found in the paperwork. In this episode, I join the Commercial Real Estate Blueprint podcast to reveal the "cheat codes" for finding opportunities that Wall Street ignores. From my early days of facing foreclosure to managing a portfolio of over a billion dollars in distressed debt, I share how you can "be the bank" and generate double-digit returns without the headaches of traditional property management. If you’re ready to move beyond the physical asset and master the secondary mortgage market, this deep dive is for you.

• From Financial Crisis to Note Expert: How getting laid off and nearly losing my own home led to a 20-year career in the distressed debt space.
• Buying the Debt, Not the Dirt: Understanding why owning the mortgage note is often more flexible and profitable than owning the physical real estate.
• The Small Balance Sweet Spot: Why commercial notes under $5 million offer the most significant opportunities for individual investors today.
• LinkedIn Prospecting Strategies: How to identify and contact the specific decision-makers at banks, such as Special Asset Managers and Chief Credit Risk Officers.
• Leveraging Foreclosure Lists: Why the best way to find deals is to target the banks and attorneys behind the filings rather than the properties themselves.
• Real Deal Breakdowns: Inside looks at a 20-unit multifamily note in Bastrop and an 11% interest residential deal in San Antonio.
• The "Rehab the Borrower" Strategy: Why helping a homeowner reinstate their loan can lead to a 14% to 18% cash-on-cash return.
• Infinite Returns through Arbitrage: How to use private investor capital or self-directed IRAs to fund note purchases and keep the spread.
• Consistency in Branding: The importance of follow-up and how 1,100+ podcast episodes have fueled long-term deal flow.

Note investing provides a scalable way to build a portfolio by solving the "problem children" issues of regional banks. Whether you are looking for a side hustle or a full-time investment strategy, remember that success comes down to systems and the persistence to follow up until you close the deal. Don't just work for your money—start owning the debt that generates it.

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

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Are you tired of the "hustle" of traditional real estate? While most investors are fighting over the same fixer-uppers and dealing with the headaches of tenants, toilets, and termites, a select group of experts is playing a different game. In this episode of the Rip and Flip Podcast, I sit down with Al Blocker to reveal the high-profit world of note investing. We’re moving past the "dirt" and focusing on the "paper"—showing you exactly how to step into the shoes of the bank to control assets, help homeowners, and secure incredible returns.

If you’ve ever wondered how banks handle defaulted mortgages or how you can acquire a property for a fraction of its value without ever stepping foot at a foreclosure auction, this is the episode for you. We break down the mindset shift required to move from $15-an-hour activities to high-level wealth building. Whether you're a seasoned flipper looking for a new lane or a beginner wanting to build real wealth, it’s time to stop chasing houses and start buying the debt.

• The Shift from Landlord to Lienholder: We explain the fundamental difference between owning physical real estate and owning the mortgage note. Learn why "being the bank" offers more flexibility, less liability, and a cleaner path to passive income.
• Buying the "Broken" Paper: A deep dive into non-performing loans (NPLs). I share how we buy defaulted mortgages from banks at steep discounts—often 30 to 50 cents on the dollar—and the strategies we use to turn those "bad" debts into performing assets.
• The "Win-Win" Exit Strategy: Discover how note investors can be the "good guys" by helping distressed homeowners stay in their homes through loan modifications, while still securing a significant profit for the investor.
• Bypassing the Competition: Why you should stop competing at crowded foreclosure auctions. I reveal how to go directly to the source—bank asset managers—to see inventory before it ever hits the public market.
• The 80/20 of Real Estate Success: We discuss the essential mindset shift from "doing the work" to "owning the system." If you want a $1,000-an-hour bank account, you have to stop focusing on $15-an-hour tasks.

Conclusion Note investing is the "hidden lane" of the real estate industry that allows you to scale faster with fewer moving parts. As I shared with Al, the goal isn't just to make a quick buck; it's to build a lifestyle where your money works harder for you than you do for it. Don't let the complexity of the "paper" scare you off—once you understand the mechanics, the sky is the limit.

Ready to jumpstart your note journey? Head over to noteweekend.com for a free introductory course on how to find, fund, and flip these deals. You can also explore over 1,100 episodes of my show at weclosenotes.com.

If this episode opened up a new lane for you, please leave a five-star review and subscribe for more strategies on building real wealth!

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Welcome back to another high-value episode! This week, we’re switching things up as I sit down with Lynn Smargis to pull back the curtain on my journey from a small-town hardware store in Ingleside, Texas, to becoming a nationally recognized authority in note investing. If you’ve ever felt the "landlord burnout" from dealing with tenants, toilets, and termites, or if you’re looking for a way to scale your real estate portfolio without the traditional headaches, this conversation is for you.

We dive deep into why I shifted from being a mortgage banker to buying the "broken" mortgages themselves. Note investing allows you to step into the shoes of the bank, giving you the power to help homeowners stay in their houses while securing double-digit returns for your portfolio. We also discuss the "secret sauce" behind my 20-year career: using consistent content marketing and social media to find deals and attract capital. Whether you are a brand-new investor or a seasoned pro, these insights will help you look at real estate through a completely different lens.

• The Entrepreneurial Foundation: I share lessons learned from working in my family's hardware store and how those early experiences with hard work and customer service shaped my approach to high-stakes finance at Citigroup and Chase.
• Why Note Investing is the "Ultimate" Strategy: We compare traditional real estate (rentals/flips) to note investing, explaining how buying the debt allows you to control the asset with more flexibility and fewer management headaches.
• Finding the Deals (The "Direct to Bank" Method): An inside look at how I bypass the "middlemen" and foreclosure auctions by building direct relationships with asset managers at local and regional banks to buy non-performing loans.
• The Power of Content Marketing: How hosting over 1,100 episodes of The Note Closers Show and utilizing LinkedIn has become my #1 tool for raising capital and staying "top of mind" in the real estate industry.
• The "Win-Win" Philosophy: Why my favorite exit strategy is a loan modification—helping distressed homeowners stay in their homes with a payment they can afford, while the investor secures a performing, cash-flowing asset.

Real estate investing is a marathon, not a sprint, and the most successful investors are those who learn how to adapt. Transitioning from a traditional landlord to a note investor was the best move I ever made, and I hope this episode inspires you to think bigger about how you can put your capital to work. Remember, you don't have to own the dirt to own the deal—sometimes, being the bank is the most profitable place to be.

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

Watch the Original Video Here!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Introduction

Are you tired of the "three Ts" of traditional real estate—tenants, toilets, and termites? Most investors get into real estate for freedom, only to find themselves managing a second full-time job. But what if you could step into the shoes of the lender and "become the bank"? In this episode, Scott Carson breaks down the high-velocity world of mortgage note investing. Learn how to buy non-performing debt at deep discounts, help homeowners stay in their houses, and generate consistent cash flow without ever having to pick up a paintbrush or a plunger.

5 Key Topics Covered in This Episode

• The "Banker" Mindset: Note investing allows you to move from being the owner of the physical property to being the owner of the debt. As the bank, you collect monthly payments (principal and interest) while the homeowner remains responsible for taxes, insurance, and maintenance.
• Buying at a Massive Discount: Unlike traditional real estate where you might get a 10-20% discount, mortgage notes—especially non-performing ones—are often purchased at 30% to 50% of the property's value. This built-in equity provides a significant safety margin and paves the way for double-digit returns.
• The Win-Win-Win Scenario: Scott explains how note investors can help borrowers who are months behind on their payments. By modifying the loan or creating a repayment plan, the investor gets a performing asset, the homeowner keeps their house, and the neighborhood avoids a vacant foreclosure.
• Diversification and Scalability: Note investing is "location independent." Because you don't need to physically visit properties to manage them, you can easily own a portfolio of notes across multiple states, spreading your risk across different markets and property types.
• Multiple Exit Strategies: If a borrower can't or won't pay, the note holder has several options: a deed-in-lieu of foreclosure, a short sale, or taking the property back through foreclosure to sell it or turn it into a rental. This flexibility ensures that you have a "Plan B" (and C) to protect your investment.

Note investing is the "hidden" side of real estate that the big banks have used for decades to build massive wealth. By shifting your focus from the "dirt" to the "paper," you can achieve higher returns with significantly less operational overhead. Whether you are looking to supplement your retirement or build a full-scale investment business, becoming the bank is a proven path to financial freedom. It’s time to stop working for your properties and start making your money work for you.

For more information on how to get started in note investing or to join our next workshop, visit WeCloseNotes.com.

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

Watch the Original Video Here!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Ever wonder what it’s actually like the first time you step into the spotlight to share your passion with the world? In this episode, we’re taking a trip down memory lane to the very first time I stepped on a stage to talk about note investing. It wasn't about being polished or having the perfect slides; it was about the raw "hustle" and the determination to turn a specialized niche into a career. We’re diving deep into the mindset of a beginner, the importance of just "taking the leap," and how those early, unrefined moments paved the way for everything we do today at We Close Notes. Whether you’re terrified of public speaking or just looking for the spark to start your own investing journey, this look back at "Stage One" is the reality check and the motivation you’ve been waiting for.

• The Power of the First Step: Why your first presentation or "stage" doesn't have to be perfect to be effective.
• Overcoming Public Speaking Anxiety: Practical reflections on dealing with the nerves of sharing your expertise for the first time.
• Authenticity Over Polish: How being real and relatable to your audience builds more trust than a high-production sales pitch.
• The Evolution of a Note Investor: Comparing the early days of "the hustle" to the scaled systems we use now.
• Building Your Platform: Why getting your message out there is the fastest way to attract funding and deals.
• Lessons from the Archive: Analyzing what worked (and what didn't) in those early industry presentations.
• The Importance of Mentorship: How watching others lead inspired the transition from student to teacher.

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Building real estate wealth doesn’t always start with momentum, capital, or clarity. Sometimes it starts with getting knocked flat on your face. In this episode, Scott Carson shares what it actually looked like to build a real estate business while working long hours, learning on the fly, and doing whatever it took to stay afloat. Before becoming a nationally recognized note investing expert, Scott went through layoffs, rental property stress, and years of grinding behind the scenes — all while educating himself nights and weekends.

This conversation is a blueprint for high-income earners and business owners who want to invest in real estate without quitting their job too early.

How Scott Carson Built His Real Estate Skill Set While Working Full-Time 🛠️📚

Scott bought his first rental property in 2001 and quickly learned how fragile early investing can be. After getting laid off — and having tenants lose their jobs — he went from investor to distressed borrower almost overnight. Instead of quitting, he rebuilt by starting a mortgage company and traveling nationwide doing loans for real estate investors.

While working full-time, Scott treated education like a second job. He attended conferences, learned from experienced investors, brought manuals home, and studied constantly. He turned his car into a classroom with books, tapes, and CDs, using every spare moment to understand how real estate truly works.

Key Takeaways for High-Income Earners and Business Owners Investing on the Side 🎯💡

One of Scott’s biggest breakthroughs was realizing that lack of capital wasn’t the real obstacle. Like many professionals, he believed he needed his own money to do deals. That changed once he learned how private money works.

Scott shared that roughly 95% of the deals he’s done over the last 15 years were funded using other people’s money, including retirement accounts and idle capital. That realization removed the ceiling many working professionals unknowingly place on themselves and allowed him to make more offers without being limited by personal savings.

Why Note Investing Became Scott Carson’s Focus 🧾🏘️

Scott was introduced to the note business through mentors in the mortgage industry who taught him creative financing and how notes are structured. While many investors focus on owner financing, Scott went deeper and learned how to buy non-performing notes — loans where borrowers haven’t paid for six months or longer.

By calling banks and lenders directly, Scott began receiving lists of distressed residential and multifamily debt. Instead of chasing properties, he focused on buying the debt tied to them, which let him see opportunities earlier than traditional investors — especially during downturns.

Rules of Thumb for Balancing Business and Life ⚖️🗓️

Scott doesn’t sugarcoat the early years. While learning the business, he worked full-time, waited tables, traveled to conferences, and built investor relationships. His wife supported the journey, and real estate became a shared long-term goal.

There wasn’t balance early on — there was commitment. Scott treated this phase as temporary, knowing short-term sacrifice was required to create long-term opportunity. For professionals starting today, the lesson is clear: progress often comes before comfort.

The Breakthrough That Created Real Momentum 📞🔥

Scott’s first major traction point came from direct action. After leaving the mortgage business, he began calling asset managers daily — often making 50 to 100 calls. He tracked conversations, learned his conversion ratios, and treated outreach like a skill to improve.

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Stop shouting into the void and start owning the conversation! In this high-octane episode of the eForged podcast, host Corey Long sits down with the "Note Ninja" himself, Scott Carson, to dissect why traditional marketing is dying and how AI is rewriting the rules of visibility. If you’ve ever felt like your business is the best-kept secret in your industry, this is your wake-up call to evolve before you’re left behind in 2026.

• The "Carpet Bomb" Marketing Strategy: Scott breaks down his "napalm marketing" philosophy—being everywhere at once so AI can’t help but recognize you as a credible authority. He shares how he leverages a "marketing-first" mentality to ensure his brand is the first thing investors see across every major platform.

• A Content Machine in 3 Hours a Week: Think you don't have time for social media? Scott reveals his system for turning three long-form videos into a blizzard of 20–30 short clips, blog posts, newsletters, and social updates. Learn how to use tools like Restream and OpusClip to automate your visibility while you sleep.

• Why SEO is Dead and AI Search is King: The game has shifted from chasing page-one rankings to becoming the cited source for AI models like Gemini and ChatGPT. Scott discusses how organic content stacking—not expensive pay-per-click—is now the primary way high-value leads and major banks are finding his business.

• The Note Investing Advantage: As a veteran real estate educator, Scott dives into the current state of distressed debt and note investing. He explains how a clear "buy box" allows him to slice through massive spreadsheets of 4,000+ notes to find the gold that others miss.

• Adapting for Survival in 2026: If your traffic is down, it’s not just the economy—it’s an visibility crisis. Scott and Corey discuss why businesses that fail to integrate AI and consistent content creation will likely cease to exist by 2026, and what you can do today to secure your legacy.

Don’t let the future pass you by while you're still playing by 2020's rules. Whether you’re a real estate pro or a local boutique owner, the principles of authority and AI visibility are your only path to long-term growth. Tune in now to learn how to forge a business that AI can't ignore!

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

In this episode of the Know Your Why Podcast, Dr. Jason Balara sits down with Scott Carson to unpack the world of distressed debt and mortgage note investing within today’s real estate market. Scott shares how he built a business around buying distressed mortgages, raising capital, and creating investment opportunities that balance strong investor returns with empathy for borrowers in difficult situations. He explains how distressed debt investing works, why understanding market trends matters, and how creative financial strategies can often rehabilitate borrowers instead of forcing foreclosure. Throughout the conversation, Scott highlights the human side of investing, showing how compassion, clear communication, and flexible solutions can lead to better outcomes for both borrowers and investors while still delivering consistent returns.

Key Highlights:

• Distressed debt investing focuses on mortgage notes that are 90 days or more delinquent

• Real estate investing through mortgage notes creates unique opportunities outside traditional property ownership

• Empathy in investing can lead to borrower rehabilitation rather than displacement

• A large percentage of borrowers can stay in their homes with the right financial strategies

• Due diligence and negotiation are critical when purchasing distressed mortgages

• Market trends suggest increasing opportunities in distressed debt as cycles shift

• Capital raising is essential for scaling note investing and expanding deal flow

• Strategic marketing, including LinkedIn and targeted email outreach, drives investor and deal awareness

• Investor returns in distressed debt can remain attractive when risk is managed properly

• Creative problem-solving is often the difference between loss mitigation and win-win outcomes

This conversation reinforces that distressed debt investing is not just about numbers, but about understanding people, market cycles, and long-term value creation. By combining financial literacy, empathy, and disciplined real estate strategies, Scott Carson demonstrates how investors can generate solid returns while positively impacting borrowers and communities.

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Today's episode features an exceptional guest, Scott Carson—better known as "The Note Guy"—who has been at the forefront of note investing for nearly two decades. With a background in finance as a top mortgage banker and a successful transition into note investing, Scott Carson has built a reputation for turning distressed mortgage debt into powerful wealth-building opportunities. Having purchased and managed over a billion dollars in debt across residential and commercial properties, Scott's expertise provides unique insider access to a strategy favored by high-net-worth investors but still under the radar for many.

In this episode, Dave Wolcott dives deep with Scott Carson to break down the world of note investing in a simple, actionable way. Whether you're seeking passive income, exploring new investment strategies, or just curious about how banks, hedge funds, and investors handle mortgage debt, this episode offers a clear roadmap. Scott shares not only the mechanics of the note business but also candid lessons learned, the importance of taking action, and how to sidestep common pitfalls.

Listeners will discover that you don't need millions to get started, that education and careful due diligence are key, and that note investing can be tailored for either passive cash flow or more active wealth creation. Scott's passion for helping others learn and succeed shines through, making this episode a must for anyone interested in alternative investments and financial freedom.

In this episode, we discuss:

• The basics of note investing and how the business works
• Differences between residential and commercial notes
• Active vs. passive note investment strategies
• Key risks, due diligence, and tips for getting started

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!

Scott Carson here, ready to pour you a strong shot of real estate investing insight. I recently had the pleasure of being introduced on the fantastic Real Estate Espresso Podcast, where we brewed up a lively discussion about the current market climate. My host (who, thankfully, wasn't battling the flu like I was while recording!) gave me a proper Texas-sized welcome to talk about how distressed notes, market shifts, and understanding the end of "extend and pretend" are creating incredible opportunities for savvy investors in 2026. If your portfolio needs a jolt, grab your favorite brew because we're about to dive deep into turning market chaos into profitable cash flow!

If you thought the market was just taking a breather, think again! We're seeing a flood of distressed assets – residential and commercial notes – hitting our desks, signaling a massive opportunity for savvy investors. From Austin's "correction" to a 4,200-note bonanza, the banks are finally clearing their books, and it’s time to talk strategy. This isn't a crash; it's a call to action for those ready to turn problem properties into profitable solutions!

Here’s your playbook for profiting in the shifting 2026 market:

• Become the Bank, Not the Landlord: Scott's core philosophy: buy distressed first-lien mortgage debt at a discount, work with borrowers to restore cash flow, and then sell the reperforming note for profit – all without the headaches of owning the actual real estate (unless you have to, of course!).
• The "Extend & Pretend" Era Ends: A Flood of Distressed Notes: Discover why 2026 is seeing an unprecedented surge in non-performing residential and commercial notes. Banks can no longer kick the can down the road, with lists like the recent 4,200-note residential pool signaling major shifts and ripe opportunities across the US.
• Beyond Bricks & Mortar: Note Due Diligence Decoded: Learn how note investing due diligence goes deeper than traditional property analysis. You'll assess the property, and the collateral file, and the borrower's creditworthiness (often a "dequalification package"), ensuring you have the legal right and multiple exit strategies.
• Crafting Your Exit Strategy: Cash Flow or Foreclosure? Explore the dual-pronged approach: work with occupied borrowers for cash flow (even a modified payment can be profitable when bought at a discount!) or be prepared to foreclose on vacant assets (like non-performing reverse mortgages) for profit, always with state-specific timelines in mind.
• Hotspots & Smart Moves: Where (and How) to Invest: Get insights on focusing your efforts on 3-5 investor-friendly states (avoiding "two to three years to foreclose" nightmares like NY/NJ) and the value of leveraging self-directed IRAs or syndications for larger acquisitions.

The market is shifting, but for note investors, that's music to our ears. This isn't about drama; it's about strategic action in a market finally ready to deal. Stop guessing and start learning how to profit from distressed debt. Connect with Scott at WeCloseNotes.com or book a call at TalkWithScottCarson.com to chew the fat and turn this correction into your next goldmine. Go make some great things happen – because the sexy side of real estate is waiting!

If you love what you are listening to, then make sure to check out the #1 podcast for note investors by listening to The Note Closers Show!

LISTEN HERE!

CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!