Is a luxury beachfront property with massive rental income always a slam-dunk deal for a note investor? Welcome back to another episode of 50 Note Deals in 50 Days!
In today's episode, real estate investor Scott Carson takes you down to sunny Galveston, Texas, to analyze a high-end, waterfront short-term rental (STR) facing foreclosure. Featured on a popular wedding show on Netflix and operating as a premier event venue and Airbnb, this three-story coastal property boasts incredible ocean views and high-ticket revenue potential. However, behind the beautiful listing photos lies a 20-month default, a listing price disconnect, and a hedge fund seller eager to offload the paper off their balance sheet.
Scott walks step-by-step through the numbers, comparing property values against the debt balance, evaluating foreclosure mechanics in Texas, and revealing why lenders often prefer selling the note over acquiring an REO asset on the water.
Key Topics Covered:
- Property Overview & High-End Asset Profiling: Examining a three-story, waterfront short-term rental and luxury wedding venue featured on Netflix.
- The Default Timeline: Unpacking a 20-month payment default and analyzing why the borrower listed the home for sale during the foreclosure process.
- Sourcing Hedge Fund Tapes: How this asset was identified out of an 86-note tape direct from a institutional seller (and 1 of only 5 Texas assets in the pool).
- Valuation vs. Debt Exposure: Comparing current active listing prices, comparative market analysis (CMA) data, and the actual underlying mortgage debt.
- Foreclosure vs. REO Risk: Why lenders prefer to sell non-performing paper to note investors rather than taking back coastal real estate and managing property operations.
- Texas Foreclosure Advantage: Leveraging Texas’ fast non-judicial foreclosure timeline to take control of defaulted assets quickly.
- Bidding & Exit Strategies: Determining maximum bid thresholds, workout opportunities with existing operators, and foreclosure execution plans.
Whether you're looking to acquire paper on coastal real estate or just want to see how pros evaluate complex non-performing notes, this episode provides actionable due diligence strategies you can use in your own portfolio!
If you want to submit an offer, partner on deals, or have questions about distressed paper, book a call directly at talkwithscottcarson.com or email Scott at scott@weclosenotes.com. Ready to master note investing? Join our upcoming Virtual Note Buying Workshop by registering at notebuyingfordummies.com!
Watch the Original Video of this Episode HERE!
Book a Call With Scott HERE!
Sign up for the next FREE One-Day Note Class HERE!
Sign up for the WCN Membership HERE!
Sign up for the next Note Buying For Dummies Workshop HERE!
Love the show? Subscribe, rate, review, and share!
Join the Note Closers Show community today:
