<p><strong>Is your rental portfolio bleeding cash every month?</strong> In this episode, we sit down with <strong>Derek Blades</strong>, the "Kansas City Owner Financing Chief," who shares his raw and honest journey from owning 120 rental homes to nearly losing it all. After finding himself underwater by <strong>$15,000 per month</strong>, Derek discovered the power of note creation and seller financing to turn his business from deep red back into the black. </p><p><br></p><p>Whether you are a seasoned landlord feeling the "teeth kick" of property management or a new investor looking for a scalable model, Derek’s "Build-to-Finance" strategy and his mastery of <strong>Contract for Deeds</strong> in the Kansas market offer a masterclass in modern real estate investing. We dive into why he’s selling his 38-note portfolio, how he qualifies buyers without traditional banks, and why he’ll never go back to the traditional rental model. </p><p><br></p><h3><strong>Key Takeaways from This Episode:</strong></h3><ul><li><strong>The Rental Trap</strong>: Derek explains how he scaled to 120 houses using commercial lines of credit but ended up losing money due to high maintenance, vacancies, and ineffective property management. </li><li><strong>The Pivot to Paper</strong>: Why shifting from being a landlord to being the "bank" through seller financing eliminated the headaches of "flushed rubber duckies" and shifted repair responsibilities to the buyers. </li><li><strong>The "Build-to-Finance" Model</strong>: How Derek and his wife are building 3,000-square-foot custom homes for 75% of their value and seller-financing them to high-income earners who can't get traditional bank loans. </li><li><strong>Contract for Deed vs. Foreclosure</strong>: A deep dive into why Kansas law makes Contract for Deeds a superior tool for investors, allowing for a two-month cancellation process instead of a year-long foreclosure. </li><li><strong>Underwriting for Success</strong>: The importance of using RMLO (Residential Mortgage Loan Originators) and third-party underwriters to ensure "stay and pay" buyers. </li><li><strong>The 1% Rule Myth</strong>: Why the 1% rule is dead in flashy markets but thriving in the Midwest Rust Belt, where you can buy for $75,000 and rent (or finance) for $1,200. </li><li><strong>Exit Strategies</strong>: Insights into selling a portfolio of notes for 85 cents on the dollar and how to create an attractive yield for institutional and individual buyers. </li></ul><p><br></p><h3><strong>About Our Guest: Derek Blades</strong></h3><p>Derek is a Wichita-based investor who specializes in distressed debt, owner financing, and new construction. Along with his wife—the construction mastermind—he has built a pipeline of properties that move from acquisition to owner-financed in as little as three days. </p><p><br></p><p><strong>Connect with Derek:</strong></p><ul><li><strong>Website</strong>: ownercarrykansas.com </li><li><strong>Facebook</strong>: Follow Derek Blades for daily vlogs on his latest projects. </li></ul><p><br></p><p><strong>Don't forget to LIKE, SHARE, and SUBSCRIBE for more deep dives into note investing and real estate strategies!</strong></p><p>Take action today—because as Derek learned, sometimes you have to get "kicked in the sack" to find the strategy that actually builds wealth. 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