Unlocking the World of Note Investing with Scott Carson
In this episode of the REI Hacker podcast, Benson Juarez talks with Scott Carson, a Texas native who’s become one of the most recognized names in note investing. With more than a billion dollars in distressed debt behind him, Scott shares how he built his business around buying and selling non-performing notes — and why this niche might be one of real estate’s best-kept secrets.
The Basics of Note Investing
Scott breaks it down simply: note investing means buying non-performing mortgages at a discount. Investors essentially become the bank, stepping into the lender’s role without ever taking title to the property.
“We make our money by buying that debt at a discount and then working it out with the homeowner,” Scott explains. It’s a strategy that generates strong returns while giving families a second chance to stay in their homes.
Strategy and Market Insights
For Scott, success in note investing starts with focus. He recommends new investors “zero in on three to five states” and learn those markets inside out. Understanding local foreclosure laws and market cycles, he says, can make or break a deal.
He also challenges the assumption that foreclosing is the best outcome. “Seven out of ten times, the bigger win is keeping the borrower in the property,” Scott says. The result? Steadier cash flow and stronger community ties.
Balancing Profit and Purpose
While his business revolves around numbers, Scott never loses sight of the people behind the payments. He recalls helping a single mother keep her home — a deal that delivered both financial and personal rewards.
“We make money most of the time by really helping people stay in their houses,” he says. Those moments, Scott adds, are what make the work meaningful.
Opportunities and Challenges
Note investing isn’t a hands-off game. Scott points out that success requires persistence, legal know-how, and solid relationships with banks. “Every bank sells their debt — you just gotta know who to talk to,” he says.
He cautions against diving into second liens too early, noting the added risk and complexity. For those willing to put in the work, though, the rewards can be substantial — both financially and personally.
Scott Carson’s approach to note investing blends profit with purpose. By turning distressed debt into opportunity, he helps investors build wealth while helping homeowners rebuild stability.
To dig deeper into his strategies, Scott offers free resources and classes at WeCloseNotes.com.
Notable Quotes:
“We turn problem properties into profitable solutions.”
“Focus on three to five states when you’re starting off.”
“The bigger bang for the buck is to keep the borrower in the property.”
“Every bank sells their debt, you just gotta know who to talk to.”
Subscribe to the REI Hacker podcast for more insights from industry leaders like Scott Carson — and learn how creative investing strategies can turn challenges into wins.
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How Investors Can Profit from Non-Performing Notes & What to Consider When Investing→ Read Here
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