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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  • Kristin A.
    Real Estate Investor · Hampton Roads, VA · Member since 2012 · 32 posts · 3 votes
    7y

    @Gerry Cohen I had a similar experience with Scott back in 2012 and was successful in at least getting my investment back from him in 2014 after getting a judgement and going through the collection process.  I wish that I could've saved my time and effort, but I hope this will help someone else in the future from being taken advantage of when trying to learn and grow.

    3Reply
  • Ryan Snelson
    Investor · Austin, TX · Member since 2015 · 27 posts · 32 votes
    7y

    I also invested with Scott Carson at the end of 2017 in a joint venture agreement that was supposed to take 12-18 months to complete. My experience has been pretty similar to what most have posted. After taking some of his educational material, (which I thought was pretty good, and allowed me to invest in a few notes on my own) I decided to JV with him on 4 assets he was acquiring. Our JV agreement said he would do all the work out on the assets and provide monthly status updates, quarterly payments of any loans that became performing, an online page where I could see accounting for each asset, etc. In close to 2 years I have only received maybe 3-4 "updates", 1 payment (after several requests), and lots of emails from me that just went unanswered. Up until now I had given him the benefit of the doubt that he was just busy with his other ventures and that surely someone who had worked so hard to build his brand would not tarnish it by treating his JV investors poorly. I have asked him to terminate our agreement per its terms, and will update if he does make it right in the end.

    4Reply
  • Chuck Van Court
    Software Entrepreneur · Bellevue, WA · Member since 2015 · 27 posts · 14 votes
    7y

    I am sincerely sorry to hear that people have suffered the loss of time and money at the hands of Scott Carson. As a complete newbie in the real estate debt space I also took a free online note class with Scott in 2/2016. The class provided lots of valuable information and Scott was certainly energetic and knowledgeable, but he consistently came across as insincere and overbearing to me. Beyond that, I was totally turned off by Scott overtly teaching people with no experience how to get JV partners to fund their note deals. In particular, Scott Carson and Chase Thomson (assisting with Scott) suggested during the class that newbies represent glossies of other people's specific note results as "here are examples of the type of deals I do." I challenged them during the class that they were promoting very deceptive practices with potentially material financial consequences and they quickly shot me down saying it was just "salesmanship" and you have to get started somewhere. No, they never suggested that a person specifically say that these examples were deals they have done themselves, but … I wish people luck in making Scott accountable where appropriate and hope he has not created an army of mini-Scott's in the note business. We all must verify, manage and then trust until shown otherwise, not the other way around. People who have a current or prior relationship with Scott should get nothing more or nothing less.

    4Reply
  • Christopher Winkler
    Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    7y
    Originally posted by @Erin Lamb:

    I am so glad that this has finally all surfaced.  I have spent many days sitting on Bigger Pockets, wondering what to say and if it would only make things worse.  But since it's all out....

      Can anyone tell me how to get past the person that answers that phone?  Who do I ask for?   Do you have a name and/or extension?

    A detective might be the best place to start. Take a few minutes to compose a statement about everything and that should be a good start.

    0Reply
  • Chuck Van Court
    Software Entrepreneur · Bellevue, WA · Member since 2015 · 27 posts · 14 votes
    7y

    To clarify:  I am not suggesting that Chase is anything like Scott. I have found him to be a decent guy.  I have also met several other people who at one time or another had an association with Scott that I possibly would invest in after proper deal analysis and further personal vetting. There are no easy short cuts to proper DD for each new deal.

    1Reply
  • Corey Thompson
    Member since 2019 · 28 posts · 39 votes
    7y

    I was blocked on facebook for "bullying" scott.  Guess I'll take the fight to youtube and put it on a paid fb ad.

    6Reply
  • Shannon Atkinson
    Flipper · Allen park, MI · Member since 2017 · 6 posts · 1 vote
    7y

    How is this con  Artist still able to be a BiggerPockets and other  forums ? Why  hasn’t YouTube  taking down his videos .We all know  he reads every single remark on BiggerPockets And the  coward has not replied to not one remark. There’s a special place in hell for people like scott carson

    0Reply
  • Christopher Winkler
    Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    7y

    If enough people contact support at biggerpockets.com and let them know, it might happen...

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    @Christopher Winkler    @Mindy Jensen  Hey Mindy you following this ?  seems to be credible evidence that this Vendor should not be allowed on your site.. 

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    0Reply
  • Christopher Winkler
    Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    7y

    I remember they deleted Joe Gore's account when I first joined BP for being a joker broker & thinking he had a fake name. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Christopher Winkler:

    I remember they deleted Joe Gore's account when I first joined BP for being a joker broker & thinking he had a fake name. 

    there is precedent  they got rid of Morris  at least his pod cast.. not sure if he still has an account or not. 

    but maybe its good that this guy gets to see what is being said about him.. however from what I can see he could give a rip.

    when you let people take defaults on you .. that says something right there. 

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    1Reply
  • John Burtle
    Real Estate Broker · IL · Member since 2016 · 284 posts · 178 votes
    7y

    @Adam Adams

    Any suggestions on a good place/link for complete background checks?

    Thanks

    0Reply
  • Adam Adams
    Investor · Small Town, TX · Member since 2016 · 110 posts · 252 votes
    7y

    @John Burtle - I don't know what I can name on here as far as products for fear of getting this very active post shut down. I sent you a message. There are several systems out there. The one I use has a monthly subscription for $5 a month and I can pull 20 searches. The results will get me a general search. It will give me phone numbers, addresses, next of kin and such. Or I can search by phone number or address. Nice to be able to see who is using that house as a residence and such. For criminal, traffic, legal and such, I'll get a flag count. For example, here are the flag counts for the following people we've been talking about.

    Scott Carson - criminal:8, traffic:2, financial:6, properties:5, legal:13, licences:0

    Jay Tenanbaum - criminal:21, traffic:2, financial:1, properties:4, legal:4, licences:2

    Adam Adams - criminal:0, traffic: 0, financial:0, properties: 3, legal:0, licences:0

    It doesn't show my properties in my companies, so I am assuming it does not show legal actions against the companies. I'm not positive about that. I am also assuming that any legal action would be against me and my company and not just my company.

    So looking at these results (for $4.99 a month), I do not need to spend any more money on the detailed background check. Why would I invest with anyone with 21 criminal records. Maybe a few can be explained. Maybe a couple folks I invest with have had a BK or Foreclosure back in the 2008 crash. I'm OK with that. Maybe that 1 legal action is my dog bit my neighbor's dog and the neighbor is suing for damages. Or maybe it is a million-dollar lawsuit.  So if I get a count that everything looks good except for 1 or 2 flags, then I might pay the extra for the detailed report. 13 Legal records? I don't need a detailed report. Financial records would be things like Foreclosure, IRS liens, etc. Criminal could be anything like public intoxication to a full-blown felony.

    If anyone wants to know what system I use, just shoot me a PM and I'll tell you.


    5Reply
  • John Burtle
    Real Estate Broker · IL · Member since 2016 · 284 posts · 178 votes
    7y
    Originally posted by @Adam Adams:

    @John Burtle - I don't know what I can name on here as far as products for fear of getting this very active post shut down. I sent you a message. There are several systems out there. The one I use has a monthly subscription for $5 a month and I can pull 20 searches. The results will get me a general search. It will give me phone numbers, addresses, next of kin and such. Or I can search by phone number or address. Nice to be able to see who is using that house as a residence and such. For criminal, traffic, legal and such, I'll get a flag count. For example, here are the flag counts for the following people we've been talking about.

    Scott Carson - criminal:8, traffic:2, financial:6, properties:5, legal:13, licences:0

    Jay Tenanbaum - criminal:21, traffic:2, financial:1, properties:4, legal:4, licences:2

    Adam Adams - criminal:0, traffic: 0, financial:0, properties: 3, legal:0, licences:0

    It doesn't show my properties in my companies, so I am assuming it does not show legal actions against the companies. I'm not positive about that. I am also assuming that any legal action would be against me and my company and not just my company.

    So looking at these results (for $4.99 a month), I do not need to spend any more money on the detailed background check. Why would I invest with anyone with 21 criminal records. Maybe a few can be explained. Maybe a couple folks I invest with have had a BK or Foreclosure back in the 2008 crash. I'm OK with that. Maybe that 1 legal action is my dog bit my neighbor's dog and the neighbor is suing for damages. Or maybe it is a million-dollar lawsuit.  So if I get a count that everything looks good except for 1 or 2 flags, then I might pay the extra for the detailed report. 13 Legal records? I don't need a detailed report. Financial records would be things like Foreclosure, IRS liens, etc. Criminal could be anything like public intoxication to a full-blown felony.

    If anyone wants to know what system I use, just shoot me a PM and I'll tell you.


    Thank you very much!

    Sorry guys. Wasn’t trying to derail.  

    0Reply
  • Linda HastingsPro Member
    Rental Property Investor · Stockdale, TX · Member since 2017 · 285 posts · 202 votes
    7y
    Originally posted by @Adam Adams:

    Jay Tenanbaum - criminal:21, traffic:2, financial:1, properties:4, legal:4, licences:2

    Yikes! I did a JV with Jay on an NPN a couple of years ago. Returns weren't quite what was projected, but we did make a profit, and I did get paid. Guess I was one of the lucky ones. Lesson learned to do a better job of vetting potential business associates.

    2Reply
  • Edward B.
    Investor · Midlothian, VA · Member since 2015 · 980 posts · 823 votes
    7y

    Wow...just, wow. I hate to see someone blow up like this. I hate to see investors get hurt even more, though. I have recommended Scott's training on a number of occasions because he puts out a ton of free content that has some good information on the note industry. I did take one of his virtual bootcamp courses a while ago as well but was underwhelmed. Again lots of good information, but it wasn't anything you couldn't find from his free offerings. Furthermore it was not particularly well organized. They had no program of instruction and just kind of muddled their way through a variety of topics. Definitely not a blueprint for success in my opinion. 

    That combined with my natural aversion to shameless self-promoters led me to never invest with Scott, although I did consider it based off of his reputation. As I recall I even looked into it but it was either too sketchy, too complicated, or he just never got back to me. Dodged a bullet there. 

    I will say that I know a lot of the people who have commented on this post and have even invested with a few. So far I have nothing but good experiences. So do your due diligence and don't let this set back knock you out of investing. Debit cash, credit experience. 

    4Reply
  • Vina Real
    Alexandria, VA · Member since 2016 · 111 posts · 164 votes
    7y

    I also attended his note camp last year for 50% discount but was not impressed with the content. It was mostly from his sponsors promoting their products. It was confusing and topics were not clear and disorganized. I wouldn't have done this if there was no discount.

    Vina

    3Reply
  • Mike Justice
    Rental Property Investor · Location Kentucky and USA · Member since 2019 · 18 posts · 4 votes
    7y

    Everything on the Internet is true!

    ~ Abraham Lincoln

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @Mike Justice

    Welcome to BP (I see you joined last week). I would love to connect and chat with you as I see you are a note broker. I agree you need to be careful of what you see on the internet. In regards to this thread, you can find a lot of information at
    https://www.traviscountytx.gov/district-clerk/online-case-information and  http://deed.co.travis.tx.us/ords/f?p=105:10:0::NO:::



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  • Christopher Winkler
    Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    7y
    Originally posted by @Chris Seveney:

     you can find a lot of information at

    https://www.traviscountytx.gov/district-clerk/online-case-information and  http://deed.co.travis.tx.us/ords/f?p=105:10:0::NO:::


     Wow! 7 pending cases since August against that POS Carson... When will he be in prison?

    1Reply
  • Ethan G.
    Attorney · Katy, TX · Member since 2014 · 397 posts · 215 votes
    7y

    Financial crime is really under prosecuted in this country.  I wish that would change.  We've got a decent number of fraudsters running around in Houston doing deals, borrowing (stealing) money, scamming people for many years and are somehow not in a ditch.

    2Reply
  • Gar Parries
    Member since 2019 · 1 post · 1 vote
    7y

    Gerry,

    You are not alone.

    Scott organized a banking blitz about a year ago. He had a group of his people calling banks for NPN'S. He ask for a $500.00 deposit, which he would return after you completed all the calls. He took all the deals that came in and he stated that he would share the profit among everyone that worked on the call blitz.

    A. Scott Carson never refunded the $500 deposit. All emails and phone calls requesting refund were ignored.

    B. Profit from the deals were never shared.

    A complaint against Scott Carson was also filed with the District Attorney of that county.

    I agree, Do Not Invest with Scott Carson (We close Notes)

    G. Parries

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @Gar Parries

    Sounds similar to his book deal where he had 50 investors contribute $600 to have a chapter in a book. I don’t believe the book was ever published.

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  • Christopher Winkler
    Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
    7y
    Originally posted by @Gar Parries:

    Gerry,

    You are not alone.

    Scott organized a banking blitz about a year ago. He had a group of his people calling banks for NPN'S. He ask for a $500.00 deposit, which he would return after you completed all the calls. He took all the deals that came in and he stated that he would share the profit among everyone that worked on the call blitz.

    A. Scott Carson never refunded the $500 deposit. All emails and phone calls requesting refund were ignored.

    B. Profit from the deals were never shared

    He has been doing that for years, and when I was first learning the note business in 2014, he did the same thing over @ Marc Golds office and I knew the same thing, all the work would benefit him & no one else, so I refused to help.

    0Reply
  • Todd LaPierre
    Flipper · Clermont, FL · Member since 2015 · 6 posts · 30 votes
    7y

    I also have the same story of a disappointing JV deal with Scott. Read my story here.

    https://www.biggerpockets.com/forums/70/topics/757247-another-victim-of-scott-carson-we-close-notes-and-inverse-assets

    1Reply
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