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  • Writer's pictureJohn Casmon

Become a Lien Lord with Scott Carson, Episode 71

“Everybody’s in the paper game, most are just on the wrong side of the payments,” states Scott Carson. He's been in the mortgage, finance, and banking industry since 2001 and actively buying notes since 2005. Nicknamed, “The Note Guy,” Scott has closed on over half a billion of assets and teaches others how to become lien lords instead of landlords. On this episode he explains why he focuses on buying non-performing notes, where to buy, and key differences with commercial notes.

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Key Market Insights

  • Inspired by HGTV, Scott Carson started with flips, but they flopped

  • Flips flopped because he over-renovated the properties

  • He became a mortgage banker and practiced creative financing

  • Focused on notes by cold calling 100 asset managers and bankers daily

  • A 30-day trip across the country ended up being a 3-year trip

  • Teaches others to become a lien lord, not a landlord

  • Currently, 1 in 10 Americans are 30 days behind on their mortgage

  • Focuses on 1st position, non-performing notes (6-12 months in default)

  • Key is to get the borrower to start making payments

  • Looks for occupied properties where there is pride of ownership, have realtors drive by the property

  • After 12 months of performance, the note can then be sold again

  • Get the servicing records, call logs, collateral file, call the county to confirm taxes, utilities, pull comps on the property

  • Ensure you can get the right contact info for outreach within first 30 days

  • Where to look when buying notes: Look for inventory,

  • Avoids California, New York, New Jersey, Cook County and rural markets

  • Recommends starting out with 1 or 2 states

  • Commercial properties require more work to figure out the rents, leases, occupancy, etc.

  • Every commercial note has the right to collect rents if borrower defaults

Bull’s Eye Tips:

Winning Your Market: To find distressed notes, go to LinkedIn and search for “Special Asset Manager” or “Secondary Marketing Manager”

Tracking Market Changes: Constantly checking mortgage periodicals, websites and default rates

Daily Habit: Work Out Daily During Lunch


Best Business Books:

Outwitting the Devil by Napoleon Hill and Sharon Lechter

Digital Resources

Tweet This:

Become a lien lord, not a landlord

When buying 1st position, non-performing notes, you need to actively reach out to the borrower to get them to start paying

Places to Grab a Bite:

Connect with Scott:



Text: Text “Notes” to 72000 for Note Night in America Replay and Powerpoint

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