Becoming the Bank: Scott Carson on Distressed Debt & Real Estate Notes

Scott Carson on Becoming the Bank: Distressed Note Investing, Strategy, and Opportunities in 2026Tony Stern, co-founder of PropertyOnion.com, interviews Scott Carson, CEO of weclosenotes.com and widely known as “the note guy,” about distressed mortgage debt, note investing, and what it really means to “become the bank.”Scott explains why he transitioned from traditional banking and landlording into buying distressed notes, how investors can source deals from smaller lenders, and where he sees major opportunities in 2026 as defaults continue to rise.They discuss foreclosure timelines, due diligence, working with servicers and attorneys, using LinkedIn and AI to source deals, and why note investing can offer a more scalable alternative to traditional real estate investing.Scott also shares insights into passive investing opportunities, common mistakes new investors make, and the upcoming PropertyOnion Academy masterclass focused on distressed debt and note investing.00:00 Welcome to Property Unpeeled01:00 Meet Scott Carson02:11 Hardware Store Lessons04:07 From Small Town to Big Banks07:52 Going Entrepreneur Full Time09:27 Why Notes Beat Rentals12:28 Negotiating With Banks14:29 Solo Investor Playbook17:44 Best Markets for 202620:06 2008 Crash Note Deals22:00 Building Your Vendor Team24:46 Due Diligence on New States25:54 Weirdest Notes Stories26:34 Shocking Property Stories27:31 Helping Borrowers Stay Home28:05 Forbearance And Forgiveness29:51 How Investors Work With Us31:13 Passive Partners And Funds32:39 Why Small Banks Win33:25 Academy Masterclass Plans34:32 Analyze Notes Like A Bank37:49 Avoid Bad Note Deals39:22 How Competitive Is Notes41:49 Networking And Associations43:32 LinkedIn And AI Outreach44:54 Software For Note Portfolios45:51 Next Steps And Free Training47:01 Closing Thanks And OutroWhy Note Investing is the Ultimate Real Estate Strategy for 2026As the 2026 real estate market shifts, distressed note investing has emerged as a lucrative, scalable alternative to traditional landlording. When you buy a non-performing mortgage note, you "become the bank," managing the financial asset instead of dealing with tenants and maintenance. In this episode of Property Unpeeled, Tony Stern and Scott Carson break down how rising default rates create unique opportunities to buy distressed debt from regional banks at a steep discount. Sourcing these high-yield deals requires modern strategies, from AI outreach and LinkedIn networking to navigating foreclosure timelines and executing state-specific due diligence.Notes vs. Rentals: Why mortgage debt beats traditional physical real estate for cash flow.Sourcing Distressed Debt: How to target small local lenders to bypass institutional competition.Real Estate Due Diligence: Analyzing non-performing loans (NPLs) and auditing mortgage files.AI & LinkedIn Sourcing: Modern digital tools for automated outreach and building a vendor team.Passive Note Investing: Leveraging note funds and joint ventures for hands-off wealth.Ready to transition from landlord to lienholder? Check out the upcoming PropertyOnion Academy Masterclass on advanced distressed debt strategies. Subscribe to Property Unpeeled on Apple Podcasts, Spotify, or YouTube, and learn more at PropertyOnion.com.