DO NOT INVEST with SCOTT CARSON (We Close Notes) or Inverse Asset

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DO NOT INVEST with SCOTT CARSON (We Close Notes) or Inverse Asset

Gerry Cohen
Investor · Sanford, NC · Member since 2016 · 19 posts · 96 votes

I have been reluctant to broadcast this information to the note investment community, hoping not to "hang out my dirty laundry" with colleagues or the note investment community. However, it is time to speak out and address this reckless and unethical behavior of SCOTT CARSON! It must be STOPPED!

After attending SCOTT CARSON's (We Close Notes) seminars, Master Mind programs, and listening to his podcasts, I decided to invest as a passive investor (joint venture partner) with SCOTT CARSON (Inverse Asset Fund) to acquire a number of defaulted real estate notes. SCOTT CARSON and (Inverse Asset Fund) acting as the lead investment manager to secure the notes and properly disposition. Not so dissimilar from most note joint ventures agreements.

Once funds transferred the joint venture immediately transformed into a bad movie! SCOTT CARSON never followed up, never shared information on the status of the investment (notes) nor paid out interest income per the agreement. After more than 24 months, following the terms of the agreement I gave SCOTT CARSON (Inverse Asset Fund) the appropriate notice to dissolve the joint venture, return principal and interest owed to me. I am still waiting for proper disposition and return of principal.

Naively, I thought SCOTT CARSON (Inverse Asset Fund) would do the "right thing" and meet his obligation if treated like a professional. No such luck!

After several attempts to address this obligation directly through legal counsel, I instructed my attorney to secure a judgment against SCOTT CARSON and Inverse Asset Fund, If you take the time to research Travis County, Texas county records you should see my approved judgement as well as other judgments awarded to other passive investors. 

This is not how the "note investment business" works! In closing DO NOT INVEST with SCOTT CARSON (We Close Notes) and Inverse Asset Fund. 

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Adam Adams
Investor · Small Town, TX · Member since 2016 · 110 posts · 252 votes
7y

@Jay Hinrichs A lot of us learned from Scott. I can say that I probably wouldn't have started buying notes without his class. A few months into it, I started hearing the stories like Gerry's. We've revamped our business and did away with a lot of the things he taught us.

@Patrick Desjardins - There are a lot of similar stories. Most of them from his students. If you run a background check, you'll see some nasty stuff. And some of the guys he promotes are just as bad. I invested with one of his buddies. After I gave him my money, I learned that he was a disbarred attorney. He was suspended for mishandling client funds and disbarred for practicing while suspended. I was lucky and got my money back, but I know several folks that are in a bind because of him and will probably lose their investment.

Since I got involved with those two fellows, I always tell everyone who writes me or calls me to do a background check before giving anyone any money. There are a lot of services online that will do it for $10-$40. It's a cash business which means no one is screening these folks like they should. If it were a commercial deal with leverage involved, not one bank would give them a loan. Spend $10 on due diligence before giving someone $10,000.

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  • Mike Cavaggioni
    Real Estate Agent · Ewa Beach, HI · Member since 2020 · 46 posts · 20 votes
    2y

    Interesting thread here.  Scott just reached out to be on my podcast... Now I am wondering if I should say no, or say yes and ask him about his lawsuits... 

    1Reply
  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    2y
    Quote from @Mike Cavaggioni:

    Interesting thread here.  Scott just reached out to be on my podcast... Now I am wondering if I should say no, or say yes and ask him about his lawsuits... 

    I would love to hear how he skirts around those questions.  The last I heard he had 20+ judgments against him. 
    5Reply
  • Blaine Clark
    Cincinnati, OH · Member since 2016 · 3 posts · 3 votes
    2y
    Quote from @Mike Cavaggioni:

    Interesting thread here.  Scott just reached out to be on my podcast... Now I am wondering if I should say no, or say yes and ask him about his lawsuits... 


     I agree with Chad. Would you to hear his response to the people he defrauded and how the experience has impacted how he does business today.

    1Reply
  • Steve HodgdonPro Member
    Investor · Novato, CA · Member since 2015 · 433 posts · 321 votes
    2y

    As we know, there's a low barrier to entry in the notes world. No regulation, no licensing, no database. I can't match the offers I see because we run a clean shop and take care of everybody along the way. Including the borrower. Our goal is to help people pay off their houses. And make a decent return for the work. 

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Blaine Clark:
    Quote from @Mike Cavaggioni:

    Interesting thread here.  Scott just reached out to be on my podcast... Now I am wondering if I should say no, or say yes and ask him about his lawsuits... 


     I agree with Chad. Would you to hear his response to the people he defrauded and how the experience has impacted how he does business today.


     My understanding it was always someone elses fault, investor wanted money out too early... That does not explain though not paying your attorney bills or servicers. If someone was making $250k including in your first year in notes then you would think they would have had the funds to pay some bills and invoices. 

    I am all in agreement that deals can go bad, but I have never heard anyone ever have a good deal with someone and the sponsor takes no accountability thats problemmatic.

    We are also starting to see the other shoes drop with people associated in these inner circles now have exited the space or are in financial/legal trouble.  The "big names" from 5-6 years ago are thankfully mostly gone from this business or hanging on by a thread. 

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  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y

    For those who have collected money from Carson, how did you did? I won a judgement years ago, have ben in line with multiple receivers and still....nothing.  I don't want to throw good money after bad and I am infamiliar with criminal cases but it feels like may be better suited for criminal law. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Dana Yobst:

    For those who have collected money from Carson, how did you did? I won a judgement years ago, have ben in line with multiple receivers and still....nothing.  I don't want to throw good money after bad and I am infamiliar with criminal cases but it feels like may be better suited for criminal law. 


     Have you talked to the receivers and asked them where you are in line? I know it was a pretty lengthy list of people who had judgments against him (and many who just gave up). 

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  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y

    Yes, I am allegedly next.  But the receiver apparently retired (or gave up) and the payments were so slow and sporadic that it appears to be years before I come up.  I welcome any direction! 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Dana Yobst

    I thought his wages were being garnished ? He is still extremely active on YouTube with his note stuff.

    Have you spoken to a different attorney on ways to recover ?

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  • Steve HodgdonPro Member
    Investor · Novato, CA · Member since 2015 · 433 posts · 321 votes
    2y
    Quote from @Dana Yobst:

    For those who have collected money from Carson, how did you did? I won a judgement years ago, have ben in line with multiple receivers and still....nothing.  I don't want to throw good money after bad and I am infamiliar with criminal cases but it feels like may be better suited for criminal law. 


     I used to own collection agencies. Where is the judgment entered? State? here in CA judgments expire after 10 years. But you can renew at 8 1/2 years. Interest gets added to principal and you have another 10 years. You can domesticate to where he is. You can attach income streams. There there's a thing called an order of examination. I liked with "subpoena duces tecum" thats records. I was taught to ask for bank statements, pay stubs, utility bills on and on. People would give in and pay. You're going to have to do the digging. It's not profitable for a contingency collector to take on a debtor like this. Likely he has more experience at this as the note business guru. BTW bought my first note years ago from one of his students. An expensive "seminar". 

    1Reply
  • Steve HodgdonPro Member
    Investor · Novato, CA · Member since 2015 · 433 posts · 321 votes
    2y
    Quote from @Chris Seveney:

    @Dana Yobst

    I thought his wages were being garnished ? He is still extremely active on YouTube with his note stuff.

    Have you spoken to a different attorney on ways to recover ?

    Garnishments have a max amount that you can take from a W-2. Commissions are fully attachable. Experienced debtors play games with different entities, bank accounts, straw man owners. If he or company is in bankruptcy you may be at the mercy of the trustee. Claims normally paid prorata with priority to secured lenders. Debtors can go in and out of bankruptcy and add years of debt avoidance. 

    0Reply
  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y
    Quote from @Chris Seveney:

    @Dana Yobst

    I thought his wages were being garnished ? He is still extremely active on YouTube with his note stuff.

    Have you spoken to a different attorney on ways to recover ?


     I am working with a second, more aggressive attorney.  Should I find another one? I have no experience with that. 

    0Reply
  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y
    Quote from @Steve Hodgdon:
    Quote from @Dana Yobst:

    For those who have collected money from Carson, how did you did? I won a judgement years ago, have ben in line with multiple receivers and still....nothing.  I don't want to throw good money after bad and I am infamiliar with criminal cases but it feels like may be better suited for criminal law. 


     I used to own collection agencies. Where is the judgment entered? State? here in CA judgments expire after 10 years. But you can renew at 8 1/2 years. Interest gets added to principal and you have another 10 years. You can domesticate to where he is. You can attach income streams. There there's a thing called an order of examination. I liked with "subpoena duces tecum" thats records. I was taught to ask for bank statements, pay stubs, utility bills on and on. People would give in and pay. You're going to have to do the digging. It's not profitable for a contingency collector to take on a debtor like this. Likely he has more experience at this as the note business guru. BTW bought my first note years ago from one of his students. An expensive "seminar". 

     @Steve Hodgdon the judgement is is travis count, Texas from 2021.  When you say I'm going to need to do the digging...what do you recommend?  I'm happy to put in more work but am not sure where to start. 

    0Reply
  • Steve HodgdonPro Member
    Investor · Novato, CA · Member since 2015 · 433 posts · 321 votes
    2y

    @Dana Yobst  I use TLO, which is now a TransUnion product. I don't think they do one off searches. You can get public record like criminal and civil actions.  He's still in business?  Looks like you can pay $49/monthly for education. If I did that with a bank transfer I'd know at least one bank account to attach. The Order of Examination process is lengthy because of court backlogs. Failure to provide requested documents can result in a contempt of court citation. That was helpful when I ran the agencies. Likely he's crossing state lines, so you could turn this into a federal judgment. That makes it easier to attach assets in multiple states. Otherwise it's more paperwork for each attempt. You're obviously not alone. So if an asset is already attached you can't jump ahead. If all the entities are held by others, then it gets even harder. You have to follow the "debtor of my debtor" theory.  Maybe a few of you get together and hire a private investigator? But only after you've zeroed in on where he is. If you can serve him with a subpoena for records then you have some leads to chase. Remember, he's better at hiding than you we are at finding. 

    0Reply
  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y

    My lawyer contacted the person in front of me who was not interested in joining forces.  I am apparently second in line.  The receiver is not having any success and says he is going to ask the judge to 'close things'.   

    Scott has not made payments in months. There has been arbitration against him. He hasn’t had counsel in those situations. The receiver is embarrassed (wrapping up his practice). He feels like he cant do anything helpful.

    The people with the judgment ahead of us dont seem interested in teaming up to do discovery....

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Dana Yobst

    Ask your attorney if you buy one of his courses $99 courses then track what bank account the money goes to. Then see if you can garnish $ from that account.

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    2y

    From an appearance on Youtube 4 months ago: 

    "Imagine transforming a financial crisis into a beacon of hope. That's the journey of Scott Carson, our remarkable guest this week, who invites us into his world of distressed debt investing. Scott, affectionately known as the note guy, shares his transformative leap from mortgage broker to an industry titan post-2008 financial crisis. His billion-dollar success is not just about the numbers; it's about the lives changed through his commitment to keeping families in their homes and guiding investors toward financial independence. We get personal with Scott and unearth the compassion that fuels his business, making profits while making a difference."

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Jamie Bateman:

    From an appearance on Youtube 4 months ago: 

    "Imagine transforming a financial crisis into a beacon of hope. That's the journey of Scott Carson, our remarkable guest this week, who invites us into his world of distressed debt investing. Scott, affectionately known as the note guy, shares his transformative leap from mortgage broker to an industry titan post-2008 financial crisis. His billion-dollar success is not just about the numbers; it's about the lives changed through his commitment to keeping families in their homes and guiding investors toward financial independence. We get personal with Scott and unearth the compassion that fuels his business, making profits while making a difference."


    LOL !
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  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y
    Quote from @Chris Seveney:

    @Dana Yobst

    Ask your attorney if you buy one of his courses $99 courses then track what bank account the money goes to. Then see if you can garnish $ from that account.

    I like that idea! 


    1Reply
  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y
    Quote from @Jamie Bateman:

    From an appearance on Youtube 4 months ago: 

    "Imagine transforming a financial crisis into a beacon of hope. That's the journey of Scott Carson, our remarkable guest this week, who invites us into his world of distressed debt investing. Scott, affectionately known as the note guy, shares his transformative leap from mortgage broker to an industry titan post-2008 financial crisis. His billion-dollar success is not just about the numbers; it's about the lives changed through his commitment to keeping families in their homes and guiding investors toward financial independence. We get personal with Scott and unearth the compassion that fuels his business, making profits while making a difference."


     That makes me want to vomit. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Jamie Bateman:

    From an appearance on Youtube 4 months ago: 

    "Imagine transforming a financial crisis into a beacon of hope. That's the journey of Scott Carson, our remarkable guest this week, who invites us into his world of distressed debt investing. Scott, affectionately known as the note guy, shares his transformative leap from mortgage broker to an industry titan post-2008 financial crisis. His billion-dollar success is not just about the numbers; it's about the lives changed through his commitment to keeping families in their homes and guiding investors toward financial independence. We get personal with Scott and unearth the compassion that fuels his business, making profits while making a difference."


     His own financial crisis, the ones he put investors in, or 2008? Which crisis were they referring too?

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y
    Quote from @Chris Seveney:
    Quote from @Jamie Bateman:

    From an appearance on Youtube 4 months ago: 

    "Imagine transforming a financial crisis into a beacon of hope. That's the journey of Scott Carson, our remarkable guest this week, who invites us into his world of distressed debt investing. Scott, affectionately known as the note guy, shares his transformative leap from mortgage broker to an industry titan post-2008 financial crisis. His billion-dollar success is not just about the numbers; it's about the lives changed through his commitment to keeping families in their homes and guiding investors toward financial independence. We get personal with Scott and unearth the compassion that fuels his business, making profits while making a difference."


     His own financial crisis, the ones he put investors in, or 2008? Which crisis were they referring too?

    Sounds like he’s not only a financial genius but Mother Theresa too!
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Don Konipol:
    Quote from @Chris Seveney:
    Quote from @Jamie Bateman:

    From an appearance on Youtube 4 months ago: 

    "Imagine transforming a financial crisis into a beacon of hope. That's the journey of Scott Carson, our remarkable guest this week, who invites us into his world of distressed debt investing. Scott, affectionately known as the note guy, shares his transformative leap from mortgage broker to an industry titan post-2008 financial crisis. His billion-dollar success is not just about the numbers; it's about the lives changed through his commitment to keeping families in their homes and guiding investors toward financial independence. We get personal with Scott and unearth the compassion that fuels his business, making profits while making a difference."


     His own financial crisis, the ones he put investors in, or 2008? Which crisis were they referring too?

    Sounds like he’s not only a financial genius but Mother Theresa too!

     hey if you want to learn notes, he is life on youtube right now teaching people...

    Virtual Note Buying Workshop - Flipping Notes - Day Three PM (youtube.com)

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  • Dana Yobst
    Investor · Member since 2019 · 28 posts · 9 votes
    2y
    Quote from @Ronald Rohde:
    Originally posted by @Jay Hinrichs:

    Gerry are you saying you actually brought legal action and was awarded a money judgement ?? 

    most of these JV's I see don't guarantee returns.. as that would be a REG A filing. most of them disclose the 50 ways you can lose your money.. ? just curious..

    Yes, cause nos. D-1-GN-19-001705, D-1-GN-19-001694

    received a default on 7/23

    Another default  D-1-GN-19-001295, received judgment in May 2019.

    PLAINTIFFASSOCIATE IN REAL ESTATE HOLDINGS LTD
    7/23/2019ORD:JUDGMENT

    @Ronald Rohde i see that you are also an attorney in Texas.  Were you able to recover your money? 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Dana Yobst

    No investment will ever guarantee a return - if they do then run for the hills.

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