What You’ll Learn From This Episode:
- How to find a greater return on investment
- How to become 'the bank' when you buy a debt
- Finding opportunities anywhere
Related Links and Resources:
We teach a one-day class called "Note Weekend" normally it's $49, it's kind of a "cliff note" version of note investor. If you're interested in dipping your toes in the water, then go to www.noteweekend.com and type in the word "Bill" and we'll count you in for FREE.
Scott Carson is a nationally syndicated radio and podcast host of the popular Note Closers Show Podcast with millions of listeners each month. He has been an active real estate investor and entrepreneur since 2002, focused on the niche of distressed mortgage investing. For the past ten years he has been helping real estate investors and entrepreneurs create wealth through his teachings and strategies.
He is a highly sought-after speaker and podcast guest with thousands of speaking appearances at events across the country. He has also been featured in many media outlets including Investor’s Business Daily, The Wall Street Journal and Inc.com. He spends his free time traveling to new places and making memories. He calls Austin, Texas home.
Here are the highlights of this episode:
1:50 Scott’s ideal Client: Somebody who is 35 and above is usually what we see. Somebody who's been an entrepreneur, business owner, maybe self-employed and high professional attorneys, doctors, dentist, or things like that. But they're looking for more freedom in what they're doing. So, we deal with a lot of existing investors, either in real estate or passive investors. People looking for a good return of investments besides putting their money to a COD or "Certificate of Disappointment" as we say. Or they are looking for a higher return of their 41K that has dropped down to 101K.
2:40 Problem Scott helps solve: The biggest thing is we help them find a greater return on investment for the retirement funds would be the number one thing. And help them identify and find deals where other investors aren’t seeing things such as small or kind of a niche space. If you watch "The Big Short" or "Two Big to Fail" then it will give you an idea of what we do.
3:22 Typical symptoms that clients do before reaching out to Scott: A lot of people are tired of trying to do "fix-and-flip", they're tired of being a landlord. A lot of entrepreneurs are obviously in the real estate space or some sort. They're really tired of that, so they're looking for something that's more passivity. Something that they don't need so many hands-on, and that's what we do. We really teach people how to buy debt, whether it's performing or not, performing direct from banks, so that they can turn it into a cashflow. To help them achieve their goals faster without having to do all manual labor that people get into.
4:12 What are some of the common mistakes that folks make before finding Scott and his solution: Not understanding that buying and mortgage is completely different than buying a piece of property. There's a lot of different due diligence and evaluations. You are becoming 'the bank' literally when you buy the debt. It's a whole different mindset, it's a beautiful thing because there's a lot more options, higher returns. You just have to know that it's a different ball game than what's on flip-this-house.
4:47 Scott’s Valuable Free Action (VFA): When you look at the market of what' going on right now, one out of every 12 borrowers is likely to fall. There's a lot of banks out there, billions and billions of dollars in debt that your regional banks or smaller banks have on their books. So, if you are looking for an investment thing, start looking and educating yourself on this huge wave of wealth that has been passed over a couple of years. If you understand how to become a bank, you're literally holding the keys to the kingdom.
5:27 Scott’s Valuable Free Resource (VFR): We teach a one-day class called "Note Weekend" normally it's $49, it's kind of a "cliff note" version of note investor. If you're interested in dipping your toes in the water, then go to noteweekend.com and type in the word "Bill" we'll count you in for FREE. It's only a one-day online class.
6:07 Where can we find opportunities out there? Everybody's in a debt space; most people don't realize that they are in a mortgage. If you got a mortgage on cars, student loans, credit card debt, medical bills, you're in that debt space. You just got money going out the wrong path versus money coming in. You got to realize that there are opportunities out there at every end of the base. There's so much opportunities out there if you understand it and you are literally 6 or 12 months ahead of everybody else out there that calls themselves "real estate investor" by becoming the bank. We have a tremendous amount of opportunities right now for the next 6, 12, 24 or 36 months. If you really want to overcome obstacles or the mistakes that you made no matter how really burnout on what your 9 to 5 might be. This might be an opportunity for you to implement some of the great things and actually make capital money on your deal.
The thing is, you got so many entrepreneurs out there that are business owners. Besides buying debt and investing in real estate whether it's a single-family home, you can do the same in businesses. There's a lot of business debt out there, businesses that you can pick-up, they are expecting over 50% of small businesses to fail and there's a lot of debt behind that and opportunities out there. It's even worse hit in the minority; 67% of minority business owners expect to fail. You can pick-up this opportunity, huge discounts will be able to add businesses, downline or upline, or a parallel business to your portfolio at a huge discount by either coming in and taking it over and bringing a little cash to the table. Distressed debt is more than just a real estate; it's actually business.
“Buying distressed debt is more than just a real estate; it's actually business” – Scott Carson