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
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