When evaluating seasoned non-performing notes, thorough due diligence is the ultimate line of defense. Welcome back to The Note Closers Show! In this episode, host Scott Carson breaks down a fascinating case study involving a defaulted Debt Service Coverage Ratio (DSCR) investor loan in Houston, Texas. What initially appeared to be a standard non-performing note with an underwater balance quickly turned into a masterclass in uncovering potential deed fraud and unauthorized subject-to transfers.

Scott walks you step-by-step through the property metrics, initial DSCR valuation drops, and the exact red flags he spotted while auditing county tax and deed records. Learn how to examine suspicious general warranty deeds, detect copy-pasted PDF signatures, spot out-of-state notary discrepancies, and identify improper legal language like lis pendens in non-judicial foreclosure states like Texas. Plus, Scott outlines his exact bidding strategy—offering $194,000 (65% of as-is value) on a $300,000 property—and details how to leverage cash-for-keys or legal pressure to resolve title defects and capture a projected 25% annualized return.

Key Topics Covered:

• DSCR Note Profile: A 4-bedroom, 2-bath, 1,518 sq. ft. Houston property refinanced into a DSCR investor loan in late 2025 at $395,000, now sitting 8–9 months delinquent.
• Market Correction Math: Analyzing value drops from $395,000 down to a realistic $298,000–$300,000 market value against an unpaid principal balance (UPB) of $293,000.
• Uncovering Potential Deed Fraud: How auditing Harris County tax and deed records revealed a suspicious transfer to a new LLC using copy-pasted signatures and out-of-state Florida notary stamps.
• Red Flags in Title Records: Identifying improper legal terms (such as Florida lis pendens clauses used in Texas filings) and handling unauthorized "subject-to" takeovers.
• 65% As-Is Bidding Strategy: Why Scott capped his bid at $194,000 (~65% of current market value) rather than bidding off the inflated $320,000 legal balance.
• Resolution & Exit Strategies: Budgeting $5,000 for attorney/foreclosure costs, offering cash-for-keys, or completing a non-judicial foreclosure to net a projected $52,000 profit (25% ROI).

Connect & Learn More:

• Book a 1-on-1 Strategy Call with Scott: talkwithscottcarson.com
• Register for the Virtual Note Buying Workshop: notebuyingfordummies.com
• Join the WCN Membership Community: noteumbrella.com

Don't let title complications scare you away from high-yield deals—learn how to spot the red flags and profit from problem properties! Subscribe, rate, and share this episode today!

Watch the Original VIDEO HERE!

Got Questions? Book a Call With Scott HERE!

Connect with Scott on LinkedIn here!

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Looking for real-world case studies on non-performing notes with massive equity? Welcome back to The Note Closers Show! In this episode, host Scott Carson breaks down a high-equity, low-LTV non-performing note deal in Conroe, Texas. Scott walks you through the initial evaluation, bidding numbers, foreclosure returns, and the exact exit strategies considered for this $90,000 cash-out refi first lien.

Scott breaks down the math on a 四-bedroom, 3,600 sq. ft. home valued around $500,000 with an unpaid principal balance under $89,000 (roughly 18% LTV). He explains why an 80% UPB bid ($71,100) made mathematical sense, how foreclosure or hard-money refinance options would yield a 33%+ annualized return, and what happens to your yield if a borrower files Chapter 13 bankruptcy or enters a loan modification. Scott also shares why he ultimately lost the deal to a whole-tape buyer and outlines the key lessons every investor should know when bidding on multi-state asset pools.

Key Topics Covered:

• Conroe, Texas Asset Profile: A four-bedroom, five-bath, 3,600 sq. ft. property valued near $500,000 with an Unpaid Principal Balance (UPB) of just $88,900 (~18% LTV).
• Loan Details: 30-year cash-out refi first lien at a 6.625% interest rate with monthly payments under $600, sitting 12 months delinquent.
• Bidding Strategy at 80% UPB: Offering $71,100 for the note to target a $24,000 gross foreclosure profit, creating an annualized return above 33% within 90 to 120 days.
• Chapter 13 Bankruptcy Math: Analyzing the conservative downside risk if a borrower files a 5-year repayment plan—yielding an $8,352 annual cash flow (~11.76% ROI).
• Single Asset vs. Whole Tape Bids: Why seller preference for full-pool buyers led to a whole-tape bid at 85% UPB across 7 states, including slow-foreclosure jurisdictions like New York, Maryland, and Pennsylvania.
• MLS & Foreclosure Signals: Tracking active listings on HAR/Zillow and recognizing when a pulled listing indicates loan modifications, forbearance agreements, or impending auction dates.

Connect & Learn More:

• Book a 1-on-1 Strategy Call with Scott: talkwithscottcarson.com
• Register for the Virtual Note Buying Workshop: notebuyingfordummies.com
• Join the WCN Membership Community: noteumbrella.com

Don't miss out on valuable market breakdown episodes—subscribe, rate, review, and share this video with a fellow investor today!

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!

Happy Halloween season, real estate investors! In this special, fun, and eerie episode of The Note Closers Show, host Scott Carson takes a break from standard market metrics to dive into the dark, weird, and macabre side of buying distressed property. Having evaluated thousands of defaulted notes, HECM reverse mortgages, probate estates, and vacant REO properties over his 25 years in real estate, Scott has seen—and felt—some truly unbelievable things.

Join Scott as he recounts hair-raising due diligence stories from across the country. From catching a clear shadow figure on camera during a walkthrough in Corsicana, Texas, to discovering deceased borrowers, abandoned military homes, and hidden storm shelters in Oklahoma, this episode covers the eerie reality of stepping into properties left untouched for years. Scott also breaks down his favorite ghost-hunting apps (like the Ovilus and Deadline app) and shares personal paranormal encounters while traveling to famous haunted hotspots like the Omni Parker House in Boston, the Stanley Hotel in Colorado, the Andrew Jackson Hotel in New Orleans, and the Whaley House in San Diego.

Key Topics Covered:

· The Reality of Distressed Real Estate: How buying non-performing debt, HECM reverse mortgages, and probate properties naturally leads investors into vacant, spooky, and untouched homes.

· The Corsicana Shadow Figure: A chilling story of a student conducting a daytime walkthrough in Texas who caught a distinct shadow figure on camera after feeling a sudden burst of wind.

· Eerie Discoveries During Due Diligence: Uncovering deceased borrowers during lock-changes in Ohio, abandoned military keepsakes in Oklahoma City, and mysterious underground rooms in Sapulpa.

· Paranormal Tech on Property Walks: Utilizing tools like EMF meters, the Ovilus app, and the Deadline app to track energy, names, and responses on property inspections and cemetery visits.

· Haunted Hotel & Ghost Tour Encounters: Scott’s firsthand experiences at famous historic sites, including hair-touching incidents at the Stanley Hotel, missing boots at the Andrew Jackson Hotel, and sink anomalies at the Amelia Earhart Tavern.

· Upcoming Investigation Preview: An insider look at Scott's upcoming overnight ghost investigation on the unfinished 2nd floor of the historic Magnolia Hotel in Seguin, Texas.

Do you have a spooky real estate story or an eerie experience on a walkthrough? Drop a comment or reach out directly to share your haunting tales—and make sure to subscribe and leave a 5-star review!

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!