Welcome to the new era of real estate investing. If you’ve been following the market lately, you know the old rules are changing. Values are shifting, mortgage defaults are ticking upward, and traditional "fix-and-flip" or rental strategies are becoming harder to scale. I’m Scott Carson from WeCloseNotes.com, and I’ve spent years helping thousands of investors transition from the headaches of physical property management to the high-yield world of note investing. In 2026, the biggest opportunity isn’t in owning the dirt—it’s in owning the debt. It’s time to stop being a landlord and start being the bank.

5 Key Insights from the 2026 Note Investing Outlook

• Escape the "Three Ts" of Landlording: Traditional real estate often comes with "Toilets, Trash, and Tenants". Note investors avoid these by owning the mortgage rather than the physical property, meaning you never have to deal with broken ACs or midnight repairs.
• The Power of the Discount: One of the greatest advantages is buying notes at a significant discount from banks. For example, you might buy a $100,000 debt for $70,000, giving you immediate equity and higher yields than traditional rentals.
• Capitalizing on Market Chaos: With mortgage defaults increasing and values dropping in some areas, banks are eager to move "non-performing" notes off their books. This creates a massive "secondary market" where savvy investors can find high-potential deals.
• Passive Income without Property Managers: Because the borrower is responsible for the property's upkeep, taxes, and insurance, your role is purely financial. You collect the monthly principal and interest just like a major bank would.
• Superior Position in the Market: As a note holder, you hold a superior legal position compared to a landlord. If a tenant doesn't pay a landlord, the landlord loses income; if a borrower doesn't pay a note holder, you have the right to foreclose and take the property itself, often for much less than it’s worth.

The window of opportunity in 2026 is wide open, but it won't stay that way forever. Whether you’re a tired landlord, a frustrated flipper, or a new investor overwhelmed by the current market, note investing offers a path to truly passive wealth. Don’t let another year go by dealing with the same old headaches. It’s time to level up your strategy and start making offers that make sense in today's economy. If you’re ready to take the next step, visit NoteBuyingForDummies.com and let’s turn 2026 into your most successful year yet. Let’s go out there and kick some ass!

Watch the Original VIDEO HERE!

Got Questions? Book a Call With Scott HERE!

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Texas real estate investing is defined by its lack of state income tax, which shifts the financial burden to an aggressive property tax system. Understanding these mechanics is the first step in ensuring your portfolio remains profitable.

• Property Tax Reality: Expect to pay between 2% and 3.5% of a property's value annually in property taxes. Because there is no state income tax, local governments rely on these funds for schools and services.

• Protesting is Mandatory: Every May, owners can protest their appraised values at the County Appraisal District (CAD). Most successful investors hire professional firms to handle this automatically to ensure they aren't overpaying.

• Asset Protection: Utilizing a Series LLC is highly recommended in Texas. This allows you to separate multiple properties into different "cells" under one umbrella, protecting your personal assets without the cost of 30 separate LLCs.

• The Homestead Limit: You cannot claim a homestead exemption on an investment property; this benefit is strictly for your primary residence.
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• The Texas Triangle: The region between Dallas-Fort Worth, Houston, and San Antonio contains 70% of the state’s population and is considered the safest bet for long-term demand.

• Secondary Markets: With prices rising in major metros, many 2026 investors are looking toward secondary markets like Killeen, Temple, or New Braunfels for better entry points.

• Foundation Concerns: Due to expansive clay soil, foundation issues are common. Always ask if a foundation has been leveled and if there is a transferable warranty.

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• The 1% Rule Shift: In 2026, the traditional 1% rule (where rent equals 1% of purchase price) is difficult to find in Texas. Many investors are now targeting 0.7% to 0.8%, though sticking closer to 1% is still preferred to avoid overpaying.

• DSCR Loans: Debt Service Coverage Ratio (DSCR) loans are popular because they qualify based on the property’s rent rather than the investor's personal income. These typically require a 20% down payment.

• Fast Evictions: Texas is a landlord-friendly state where the eviction process typically takes only 30 to 45 days from the initial notice to the writ of possession.

Success in Texas often comes down to what you don't do. One of the biggest pitfalls for new investors is "over-rehabbing" a property. While it’s tempting to install custom finishes, sticking to simple updates like paint, carpet, and standard GE or LG appliances ensures you don't eat into your cash flow. Additionally, be wary of HOA "trapdoors" by verifying if there are rental caps in the neighborhood before you buy.

Texas remains the "best place to buy, own, and invest," but it requires a disciplined approach to the math and a deep respect for the local laws. Whether you are navigating the high-heat summers that drive up HVAC costs or calculating your tax redemption periods, being informed is your greatest asset. Stay smart, don't over-rehab, and keep your eye on the cash flow.

Watch the original VIDEO HERE!

Got Questions? Book a Call With Scott HERE!

Connect with Scott on LinkedIn here!

Use Scott's AI Clone HERE!