Are you a real estate investor with a small self-directed IRA or limited savings, wondering how to get started in note investing? Stop chasing overpriced second liens! In this episode, Scott Carson breaks down Deal #2 of our "50 Note Deals in 50 Days" series, showcasing a phenomenal-performing small-balance first lien right in the heart of San Antonio, Texas.
Discover why low-balance first liens offer incredible security, massive equity protection, and sky-high ROIs (we’re talking 28%!) without the extreme risk of second positions. If you want to learn how to make your small money work like a powerhouse, this case study is exactly what you need.
🎯 What You’ll Learn in This Episode:
- The Second Lien Trap: Why chasing second liens is a mistake for small IRAs and how small-balance first liens give you better security.
- Asset Breakdown: Deep dive into a 2-bed, 1-bath owner-occupied property in San Antonio with strong pride of ownership (and a 20-year resident history!).
- The Numbers & 28% ROI: How an $8,740 total investment yields $233.51/month in P&I, netting a massive return on investment.
- The Ultimate Collateral: Why a $10,300 payoff on a $157,000 property means you are investing at under 10% of the fair market value.
- Texas Foreclosure Laws: How Texas's investor-friendly, fast foreclosure timeline protects your capital if a borrower stops paying ("No Pay, No Stay").
- Borrower Motivation: Spotting the signs of a great performing note, including lump-sum prepayments and high equity motivation.
💰 The Deal Breakdown By The Numbers:
- Property Value: ~$157,000
- Note Payoff Balance: $10,300 (Only 6.6% of Fair Market Value!)
- Purchase Price (80% of Payoff + Fee): $8,740
- Monthly P&I Payment: $233.51 (4.76% Interest Rate)
- Remaining Term: 58 Months
- Estimated ROI: ~28% (After servicing fees!)
💥 Take Action & Connect With Scott:
Don't just watch from the sidelines—get skin in the game! Whether you want to buy your first note or scale a massive portfolio, we are here to help you succeed.
- 📧 Email Scott Directly: scott@weclosenotes.com
- 📅 Book a 1-on-1 Strategy Call: TalkWithScottCarson.com (Schedule a free 30-minute Zoom/Phone call)
- 🏫 Attend the Next 2-Day Virtual Workshop: NoteBuyingForDummies.com (August 29th & 30th – Grab your 2-day ticket + replays for just $99!)
📌 Conclusion
Small balance notes are the ultimate gateway for everyday investors to generate true passive wealth. By focusing on asset security, strong borrower equity, and investor-friendly states like Texas, you can easily outpace Wall Street returns. Make sure to like, comment, and subscribe to follow the rest of our 50 Note Deals in 50 Days series. Go out there, take some action, and we’ll see you at the top!
Watch the Original VIDEO HERE!
Got Questions? Book a Call With Scott HERE!
Connect with Scott on LinkedIn here!
Use Scott's AI Clone HERE!
