Business Notes:  The Riskiest Investment Class with David Barnett

Business Notes: The Riskiest Investment Class with David Barnett

Author: Scott Carson October 16, 2025 Duration: 45:32

Thinking of diversifying into business note investing? This ain't your grandma's real estate note. David Barnett joins us to expose the real risks of buying paper backed by businesses. Forget passive income dreams; this is a hands-on (or hands-off-and-lose-everything) game. Buckle up, buttercup, because we're diving headfirst into the due diligence disasters and non-compete nightmares that await the unsuspecting note investor. We're serving up a healthy dose of reality – this episode will have you questioning every "opportunity" landing in your inbox.


  • Tangible vs. Ethereal Collateral: Real estate notes? Houses you can touch. Business notes? Goodwill...and maybe a delivery truck with a bank lien. See the difference?
  • Subordinate Liens = Subordinate Rights: Think you're calling the shots? An SBA loan ahead of you means you're just along for the ride.
  • Non-Compete Clauses: Worthless Paper? Learn why that non-compete might not be worth the paper it's printed on, and how a vengeful seller can still ruin your day.
  • Financial Statement Fantasies: Those P&Ls? Probably fiction. Discover the accounting shenanigans that can turn a profitable business into a money pit overnight.
  • The "Expert" Fallacy: Thinking of stepping in to run the business yourself? Unless you're an industry whisperer, prepare for a crash course in value destruction.
  • Until Death Do You Part: Business Notes are not all cashflow and dreams. David shares why buyers need to be wary of these types of investments unless they are familiar with the business and ready to step in and help.


Let's be honest: buying business notes is not for the faint of heart. It's a high-stakes gamble where the odds are often stacked against you. While there are opportunities to profit, they are buried beneath layers of risk, complexity, and potential deception. If you're not prepared to roll up your sleeves, get your hands dirty, and potentially lose it all, then walk away. Your portfolio (and your sanity) will thank you. Remember, note investing in all assets can be tough so get the right education and don't just take some "experts" advice!


Book a Call with David Barnett Here!


Watch the Original VIDEO 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:


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: 100

The Note Closers Show - The #1 Podcast for Note Investing
Podcast Episodes
Texas Foreclosures: Where Do You Find The List? [not-audio_url] [/not-audio_url]

Duration: 22:12
In this episode, we explore the Texas foreclosure market and provide actionable strategies for real estate investors. With foreclosure activity on the rise, Texas offers significant opportunities, but navigating this mar…
How to Find Private SDIRA Investors In Your County [not-audio_url] [/not-audio_url]

Duration: 52:06
Tired of begging banks for capital? Ready to tap into a hidden goldmine of private funding? This week, we're diving deep into the world of Self-Directed IRA (SDIRA) investors and revealing how you can easily connect with…
What Every New Note Investor Needs To Do Before 2026 [not-audio_url] [/not-audio_url]

Duration: 22:29
Howdy, investors! 🤠 Scott Carson here, ready to wrangle in some serious real estate success for 2026. Tired of New Year's resolutions that bite the dust by February? I'm spilling the beans on how to turn the last quarter…
What the Debt Markets Are Telling Us Real Estate Investors [not-audio_url] [/not-audio_url]

Duration: 23:11
Alright, Note Closers, brace yourselves! 🚀Scott Carson is here to give you a sneak peek into the future – and it ain't all sunshine and rainbows. According to the debt market tea leaves, a foreclosure wave is brewing, se…
88 Reverse Mortgage Notes: Death, Taxes, and Foreclosure Headaches [not-audio_url] [/not-audio_url]

Duration: 45:08
This week Scott reviews another tape of assets from a new provider. Buckle up your boot straps and hold on tight for this thrill ride of reverse mortgage notes. Scott dives into the map and spreadsheet, outlining the pos…
Deal or Dud:  When is a 13% ROI Performing Note a Dud? [not-audio_url] [/not-audio_url]

Duration: 17:30
Alright, Note Closers! Scott Carson's back with a cautionary tale of epic proportions. And for this episode, it's all about the duds.In this cautionary (and terrifying) case study, Scott dissects a Kentucky note "perform…