Be the Bank: How to Invest in the "Sexy Side" of Real Estate with Scott Carson: Wealth Independence Podcast

## Be the Bank: How to Invest in the "Sexy Side" of Real Estate with Scott Carson Welcome back to another episode of the **Wealth Independence Podcast**, where **Freedom Leads and Real Wealth Follows**! In this exciting episode—our very first guest interview—hosts Dustin Bailey and Adam Penn sit down with **Scott Carson**, a professional real estate investor, educator, and the principal of WeCloseNotes.com Inc. Known throughout the industry as **"The Note Guy,"** Scott has bought over $1 billion in residential and commercial distressed debt from banks and hedge funds since launching his specialized strategy. If you have ever wanted to invest in real estate without dealing with tenants, toilets, or trash outs, this episode is your golden ticket. Scott pulls back the curtain on the power of paper, explaining how individual investors can step directly into the bank's shoes to generate incredible double-digit returns. ### Key Topics Covered in This Episode: - **Introduction to Note Investing:** How Scott transitioned from traditional real estate into buying distressed mortgages, commercial notes, and small-balance commercial debt. - **Why Banks Sell Debt at a Discount:** The regulatory and financial reasons why traditional lenders prefer to take a "haircut" and sell non-performing loans off their balance sheets rather than endure lengthy foreclosure processes. - **The Math Behind the Yield:** A breakdown of how buying a note at a steep discount (e.g., paying $50,000 for a $100,000 face-value note) drastically accelerates your effective cash-on-cash return when the borrower resumes payments. - **Rehab the Borrower, Not the Property:** Scott’s core philosophy on performing due diligence, reading the "tea leaves" of loan servicing files, and successfully modifying terms to keep 70% of residential borrowers in their homes. - **The Power of Legal Clauses:** How utilizing tools like the "right to collect rents" can completely shift the motivation of a defaulting commercial borrower. - **Tax Advantages of the Debt Side:** A look at how debt forgiveness ($10.99-ing a borrower) can impact taxes, contrasted with the traditional tax implications of equity real estate. - **Unlocking Self-Directed IRAs:** How to safely deploy dormant retirement funds into real estate notes using third-party custodians, while strictly adhering to crucial "arm's length" IRS rules. - **Defining True Independence:** Scott shares his approach to reverse-engineering financial goals to build a lifestyle focused on happiness and freedom rather than just accumulating a random net worth number. ### Final Thoughts & Connect with Scott As Scott reminds us, if you are currently paying a mortgage, a car note, or student loans, you are already in the note business—you are just on the wrong side of the payment stream. It’s time to flip the script, take control of your financial future, and become the lender. To learn the absolute basics of how to find, flip, fund, and flow real estate notes, head over to **NoteWeekend.com** to grab Scott's completely free, comprehensive two-hour introductory video class. You can also explore his primary platform and student resources at **WeCloseNotes.com**. If you enjoyed learning about the passive power of note investing, please take a moment to **hit the subscribe button, leave a five-star review, and share this episode with a friend**! Your support helps us bring more incredible financial pioneers onto the show. Until next time: Where freedom leads, real wealth follows! Watch The Original Video Here! 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! CHECK OUT OUR #1 YOUTUBE CHANNEL HERE!