ANATOMY of a NOTE INVESTMENT with SCOTT CARSON and INVERSE ASSET FUND.
I invested $100,000 with Scott Carson in Summer of 2017, to partner with him in the purchase of six (6) Non Performing Contracts for Deed (Notes).
The JV agreement called for quarterly updates. As of December of 2019, I have received 2.
The JV agreement called for a basecamp account to be set up for accounting. That never happened.
Communication grew CLOUDY and RARE.
As time went on, I heard from him less and less, and it became increasingly rare that he would ever answer my phone calls, emails, or texts. When he did call me back, instead of updates, he was instead very evasive, and said things like “We’re going to make plenty of money”. He would say very nebulous things like “They are in various stages of foreclosure.” He would say “foreclosure” even though they were contracts for deed, and subject to cancellation, and NOT foreclosure
Scott Carson asks for EVEN MORE money.
In Spring of 2019, after hearing that dozens of investors were also not getting response, and certainly not getting their money back, I asked Scott if he would consider turning the assets over to me. He said I would have to pay him another $21,000 to have my assets back – assets that he hadn’t been able to work out and liquidate in almost 2 years! He said his reasoning was that he was selling them at 70% of UPB, and he was splitting the difference with me. I wondered why, if he was selling them at 70% of UPB, why he didn’t just sell them, and pay my principal back, and split any remaining profits with me, as per the JV agreement.
Scott Carson sells one of the Assets, and Breaches the Contract AGAIN.
In Early Summer of 2019, I discovered that he had sold one of the assets he had partnered with me on, to another of his students, ironically a student that had attended Scott’s Fast Track with me. Of course, Scott FAILED to INFORM ME of the sale!
According to the JV agreement, Scott wasn’t allowed to sell ANY of the assets without DISCUSSING it with me first! Of course, he did NOT. Also, as per the JV agreement, Scott was supposed to pay me back principal from the sale of that asset. Of course, he didn’t. I tried to contact Scott about the sale of this asset, but he was non-responsive.
Negative Posts about SCOTT CARSON, INVERST ASSET FUND and INVERSE INVESTMENTS on Bigger Pockets.
In Fall of 2019, Scott appeared to be more humbled by all of the bad press on Bigger Pockets and Notes and Bolts, and managed to send me most of the money from selling a 2nd assets of mine, that was performing, and the borrower just paid it off. That amounted to $33,900. While I appreciated getting part of my money back, I have heard MANY stories, and read MANY of the lawsuits (See Court Cases tab), where people have received a percentage of their money back, only to have Scott go completely dark on them after that. So, needless to say, I was wary that this was the last money Scott ever planned to pay me.
Scott says he’s going to sell the remaining assets, and MAKE ME WHOLE.
Throughout all of this, I continued to try to contact Scott Carson via calls, emails and texts. At one point, he said he was going to sell the four remaining assets, and make me whole. He sent me offer prices he had supposedly received on them, and told me how he was going to counter offer all of them. I emailed him and asked him to PLEASE accept the offers, as they added up to almost the principal amount I had put in. He didn’t respond.
Scott says he wants to turn over the remaining 4 assets to me.
Again, with the changing climate, he seemed to be somewhat more reasonable, and told me now, that he would turn over the remaining 4 assets. Gee, what happened to the cash offers he had for the assets? Scott Carson made no mention of the previous cash offers from other investors for the assets.
When I looked into the assets, which Scott had purchased about 2½ years previously I found that he had failed to pay ANY property taxes on the 4 assets. Of course, other investors had bought the tax liens, and some of the properties were in danger to being lost to tax deeds. HOW COULD THIS HAPPEN? How could Scott Carson, a supposedly Savvy note and lien investor be about to lose the assets to TAX LIENS? If I were to have taken back the assets, I would have had to pay over $14,000 in property taxes on them, and $2,600 in code enforcement fines, for a total of over $16,000! And I don’t even KNOW how much he still owes the lawyers, or other professionals for working out these assets!
Requested Principal and Interest Back as per the JV Contract
The JV Contract I signed with Scott Carson allows for the “termination” of each individual asset if a year passes without Scott Carson disposing of the assets, and for Scott Carson to return the principal and 12% interest annualized yearly to the investor (in this case, me). On October 16, 2019, I requested Scott Carson terminate my remaining 4 assets, and return my principal and interest as the contract specifies. Scott Carson has FAILED to RETURN any of my emails, phone calls or texts since then, and it’s been over 60 days as of this writing. I have not had a single communication from him since I requested the assets be terminated, and haven’t received a dime.
Again, I must ask, does Scott Carson know anything about working out Non Performing Notes, or any other Notes for that matter?
If I were considering paying for training from Scott Carson, I would certainly consider that question. If Scott Carson knew the note business, why would he be consistently unwilling or unable to pay back his investors.