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

Our guest today at 7am was Scott Carson, aka “the Note Guy, and he has been an active real estate investor since 2002 and solely focused on the note industry since 2008 where he buys and sells non-performing mortgages on residential and commercial real estate directly from banks and hedge funds. His common sense approach to note investing has helped thousands of new and experienced real estate investors add notes to their portfolios. Scott is the CEO of WeCloseNotes.com and the creator of the Note Buying for Dummies workshop that focuses on the 3 F’s of Note buying…The Find, Fund and Flip. He has purchased over half a billion dollars in distressed debt for his own portfolio and purchases assets in over 30 states across the United States. He is a highly sought after speaker on distressed debt and was the 2014 Note Educator of the Year winner from the 28th Annual Noteworthy Convention. He has also been featured in numerous newspapers including Investor’s Business Daily, The Wall Street Journal, and Inc.com. He has also spoken at the National Association of Realtors National Convention, The National REIA Cruise and real estate investment clubs all across the country. Jamie and Scott share a great discussion on the ins and outs of note buying and Jamie is somewhat familiar with the market because it is related to REO homes which is what happens eventually to a distressed note when the borrower does not pay the mortgage. Scott shares with us some of the numbers on what is going on behind the scenes with the servicers and their mortgage pools and talks about the exit strategies and ROIs they are looking for on a typical note or portfolio. The market is tricky to navigate he says, you just have to know people to buy from, there is no central exchange or database to go for note buying. He is a speaker and trainer too so if you are interested in learning more, head over to www.weclosenotes.com to find out about his programs!

We did a live recording at the Lifestyles Unlimited event in Houston, TX.

While we’re here working, make sure you get out and network with other real estate investors in your market.

Surround yourself with other people that are investing time in improving their businesses.

Chase is putting together an e-mail marketing case study to show you how simple changes to his e-mail template lead to a 500% increase in our click thru rate. This is something for you to look at if your running the marketing for your company on your own, and want to see an example of what one of our successful templates looks like.

Today’s main focus is on answering questions that we received over the past week.

Cody Cox wrote in and asked:

What we look for during due diligence when the collateral file is on your desk?

How we determine our offer prices when we are looking to purchase assets?

One thing we hit on is the importance of having someone like Richmond Monroe or CSC to handle the recording of all the outstanding assignments.

Sharon Halloway wrote in asked:

What do we look for regarding taxes when doing due diligence and how do we get the information?

We pulled Scott Carson away from a PowerPoint presentation he was putting together to help answer Sharon’s second question:

How do I know if I’m talking to a Joker Broker or a legitimate seller?

There’s no easy street on the way to the city of success.

As always send you questions to [email protected].

Listen to this week’s show and learn:

-What We Look For During Due Diligence With The Collateral File On Hand

-Where We Send Our Files To Handle Assignment Recording

-How To Determine Offer Price

-Taxes As Part Of Your Due Diligence

-Are You Dealing With A Joker Broker

-Scott Carson Drops In

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!

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Ready to escape the hassles of toilets and tenants? In this episode of the FlipNerd podcast, Mike Hambright interviews Scott Carson, The Note Guy, about the ins and outs of note investing. Discover how to become the bank, generate consistent cash flow, and unlock opportunities in the distressed debt market.

Here's what you'll discover:

• Introduction to Note Investing: What notes are and why they're becoming more mainstream.
• Note Investing vs. Traditional Real Estate: The advantages of buying notes compared to fix and flips.
• Historical Perspective: The resurgence of note buying after the 2008 financial crisis.
• Becoming the Bank: Shifting from REO buyer to note holder for long-term cash flow.
• The Note Investor's Role: Creating your own economy as a note investor.
• Scott Carson's Journey: Learn how Scott transitioned from the mortgage industry to full-time note investing.
• The Basics of a Mortgage Note: How mortgages are created, packaged, and sold on the secondary market.
• Distressed Debt Market: How economic events create opportunities in distressed mortgages.
• Underwater Homeowners: Learn how underwater homes in 2008 became an opportunity to invest in discounted mortgages.
• What Makes A Note Go into Default? The common issues, that will lead a homeowner into a note.
• Profitability in Notes: Learn how even a default can become a profit for an investor.
• Hedge Fund Dynamics: Why hedge funds are key players in the note market.
• Special Asset Departments: Understanding the roles of "special asset" or "secondary market" departments in banks.
• Targeting Smaller Banks: Focus on mid-sized and regional banks for accessible deals.
• Phone Call Strategy: How To stand out when calling and securing note deals.
• First Lien vs. Second Lien Notes: Discussing the difference between first and second lean positions.
• Raising Capital: How the lien position effects your ability to raise capital.
• Build a Portfolio: How to start small, avoid rookie mistakes, and expand your note portfolio.

Conclusion:

Ready to get started in the world of note investing? Tune in and learn the strategies you need to become the bank and generate consistent cash flow. Check the links below for resources and information on note investing!

Scott Carson is a nationally recognized distressed note investor & a leading educational authority in the niche of teaching how to investing in defaulted paper assets. Scott began his professional career back in 2001 working in the mortgage industry and has been an active real estate investor since 2002. Scott’s first brush with being a real estate investor didn’t come too easily and within a few short years his first few prized real estate purchases went belly up and back to the bank. Left with bad credit and no money, Scott began working odd jobs (bartending and other various work) to stay afloat.

Fast forward a few years; Scott knew at heart that he wanted to be a full-time real estate investor and knew that the crash in the real estate market would bring incredible opportunities for those who were armed with the wherewithal and knowledge to act on  them. Scott began learning all he could about investing in the default note buying business and within 2 years had built the foundation of his company inverse investments, which has grown into a multi-million dollar buyer of distressed mortgage notes.

In this interview, Scott walks us step by step through how he has built a small empire by carefully and methodically investing in distressed notes. Scott opened my eyes to multiple things I never knew about the note buying business and I’m positive that you’ll also gain a vast amount of powerful knowledge from this interview as well.

In this interview with Scott you’re going to learn:

·         Why he feels the next couple of years will be a tremendous opportunity to buy distressed notes

·         How to analyze opportunities using a few quick proven strategies

·         How he created constant deal flow from hedge fund and portfolio managers

·         How to find all the funding necessary to finance the acquisitions in your note buying business

·         With only a staff of 4, how he was able to purchase 50 million of distressed notes in the past 18 months

·         And much more…