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30 Years of Private Money Lending Lessons Learned with Doug Smith

30 Years of Private Money Lending Lessons Learned with Doug Smith

Author: Scott Carson August 11, 2026 Duration: 50:41
The Note Closers Show - The #1 Podcast for Note Investing
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Stop focusing strictly on collateral value and start underwriting for true repayment!

In this episode of The Note Closers Show, host Scott Carson sits down with 30-year credit banking veteran, note investor, and author of The Mad Lender’s Guide to Private Lending and Note Investing, Doug Smith. Doug—aka "The Mad Lender"—shares essential insights into how private investors can avoid devastating loss rates, properly assess borrower capacity, and navigate shifting real estate cycles.

Whether you are looking at non-performing notes, hard money loans, or commercial real estate opportunities, Doug breaks down why relying solely on property values can lead to severe pitfalls, how rising operating expenses impact cash flow, and why structured due diligence is non-negotiable.


Key Topics Covered:

  • The #1 Mistake Private Lenders Make: Why over-focusing on collateral value while ignoring borrower capacity, credit character, and primary repayment sources destroys returns.
  • The Three Cs of Underwriting: How capacity, character/credit, and conditions dictate loan performance far better than property valuation alone.
  • Commercial Real Estate & Multifamily Realities: Why rising insurance, taxes, and operating expenses are causing delinquencies and wipes-outs in syndications and commercial notes.
  • Mitigating Downside Risk ("Dougie Downers"): How identifying potential failure points in every deal upfront saves principal capital.
  • State-by-State Foreclosure Impact: Understanding judicial (e.g., Illinois, Florida) vs. non-judicial (e.g., Texas) timelines and factoring the time value of money into note pricing.
  • DSCR Loan Flaws: Why typical Debt Service Coverage Ratio underwriting skips key property reserve and vacancy expenses, creating hidden default risks.
  • Mentorship & Working with Professionals: Why self-servicing, skipping legal counsel, or taking advice from inexperienced instructors leads to costly legal and financial blunders.


Don't let market shifts catch you off guard without a solid risk management plan. Make sure to subscribe, leave a review, and visit themadlender.com to grab Doug’s book and learn more about his consulting services!


Watch the Original VIDEO HERE!


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Scott Carson brings his deep experience as a seasoned investor directly to you in The Note Closers Show-The #1 Podcast for Note Investing. This isn't about general real estate chatter; it's a focused dive into the specific, often overlooked niche of note investing. Each episode is built on the practical premise of acquiring control of real estate assets at significant discounts, not through traditional property management, but by understanding and investing in the debt behind them. You'll hear Scott break down complex strategies into actionable steps, sharing the nuances of evaluating, purchasing, and profiting from mortgage notes. The discussions are geared toward investors and entrepreneurs who are serious about expanding their portfolio options beyond conventional methods. Tune in for candid conversations about market trends, due diligence, risk assessment, and the real-world stories of deals that worked and those that didn't. This podcast serves as a direct line to advanced tactics and foundational knowledge, all aimed at building your confidence in this unique segment of the investment world. If you're looking to move past theory and into the practical mechanics of building wealth through notes, Scott Carson provides the roadmap in every episode.
Author: Language: en-us Episodes: 50

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The Note Closers Show - The #1 Podcast for Note Investing
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