Join us as we talk with Derek Blades, an expert in real estate investing and owner financing, who has facilitated over 300 transactions. This discussion covers his unique model for helping renters become homeowners while offering investors solid returns, making this episode a masterclass in effective investment strategies. We also cover how to source inventory, underwrite deals for performance, and structure seller financing real estate options that protect both residents and capital. 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 beats renting—especially at scale
- 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
Derek Blades Official Website – https://www.derekblades.com
FOLLOWS
Oak IQ Investments – https://www.instagram.com/oakiq/
Own The Exit – https://www.instagram.com/owntheexit/
Aaron Investing – https://www.instagram.com/aaroninvesting/
Caleb Investing – https://www.instagram.com/calebinvesting/
Derek Blades– https://www.instagram.com/the.real.derek.blades/
CHAPTERS
00:00 - Introduction & Background
01:13 - Derek's journey from rentals to notes
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
EPISODE 121
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