No More Tenant Troubles with Seller Financed Note Expert Derek Blades
In this episode, we sit down with Derek Blades—an operator who's redefined what it means to own real estate. After losing $15K/month on rentals, Derek flipped the script with a seller-financed note model that not only protects capital but turns renters into homeowners. If you're tired of clogged sewer lines, broken furnaces, and negative cash flow, this episode is your next playbook.
We unpack how Derek built a system that closes in 3 days, pays 8–10% fixed to investors, and avoids the headaches of traditional rentals. From creating equitable deals to maintaining investor confidence, he walks us through his lean, scalable, SEAL Team 6-style operation. Plus—how he’s now building new construction to fuel even more opportunity.
TAKEAWAYS
- Why seller financing can be better than renting
- How Derek structures 45K margin deals with zero repairs
- What contract-for-deed offers that lease-options don’t
- The truth about foreclosure risk and how he mitigates it
- Using private capital to secure first lien positions for investors
- Scaling a note business with no property managers
- New construction + seller financing = vertical dominance
RESOURCES MENTIONED
FOLLOWS
CHAPTERS
00:00 Losing $15K/month: The breaking point
03:52 Shifting to seller finance and notes
06:48 How the contract-for-deed model works
08:39 The investor pitch: 8-10% fixed, 1st lien
11:10 What happens if the buyer defaults?
13:24 Selling 50 deals a year vs. 100-unit apartments
15:31 Why he doesn’t use property managers
17:05 Building a business that closes in 3 days
18:50 How the website fuels sales velocity
20:32 New construction + seller finance = vertical integration
23:44 Raising capital SEAL Team-style
25:12 Caleb and Aaron rapid fire questions
KEYWORDS
seller financing, contract for deed, real estate notes, passive income, note investing, private lending, Wichita real estate, real estate cash flow, fixed income real estate, alternative investments, investor yield, housing affordability, exit strategy, rent to own alternatives, private real estate lending, downside protection, real estate underwriting, financial freedom real estate, note investing strategy, capital raising, real estate business model, investing without tenants, new construction investing
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