How to Find Distressed Apartment Notes for Apartment Syndication with Scott Carson: Multifamily Investor Nation

Scott Carson joins the Multifamily Investor Nation group to discuss how to find distressed apartments by looking for nonperforming commercial mortgages from banks and commercial real estate lenders.

Distressed apartment notes (mortgages in default) offer a unique multifamily investment. Whitney Elkins-Pettner & Scott Carson reveal how to find & profit from these.

Scott's Background: Carson transitioned to note investing during the 2008 recession, buying distressed debt. Distressed debt means mortgages on properties where borrowers stopped paying. Banks foreclose after 90+ days of non-payment.

Why Invest? Multifamily is often overpriced. Foreclosures are up! Owning debt = control. Banks want to avoid owning real estate & are flexible w/ note buyers. Buy cheap, profit via modification/foreclosure.

Finding Notes:

• Call bank special asset departments.
• Use LinkedIn: search "special asset manager," etc., at banks.
• Track job openings (more debt = more hiring).
• BauerFinancial.com lists banks, distress ratios.
• Credit IQ tracks commercial servicers.
• MBA ranks mortgage servicers.

Due Diligence/Risks:

• You don't own the property initially!
• Thoroughly check property, borrower, collateral.
• Understand state foreclosure laws.
• Avoid deals you wouldn't want to take back.

Conclusion: Distressed notes offer opportunity if you build relationships, do due diligence, & understand risks.