Flipping Houses vs The Note Business
I just spent 3 days (7 hours a day) at a big real estate event and hereās what hit me. They broke the whole game down into 3 roles: Finder The dog on the bone. Calling homeowners, chasing FSBOs, digging through every crack in the market trying to find real deals at 60 cents on the dollar. Their job is to feed the Operator. Operator The flipper. The one in the chaos. Hiring contractors, buying materials, lining up the money, paying everybody, dealing with inspectors, buyers, lenders, drama, delays, all the shit that has to be handled just to get one house sold. Funder The money. Private lender comes in, looks at the numbers, decides yes or no, wires the funds, and then goes back to their life while the Operator sweats it out. When the deal closes, they get paid and look for the next one. Everyone in that roomāattendees and coachesākept pointing to the same āendgameā: š Be the Funder Be the Funder Be the Funder And Iām sitting there thinking: Iāve been doing a version of this for 20 years⦠but louder. Because the note business is the Funder on steroids. Weāre not funding one or two flips, getting cashed out, then letting our money sit around hoping for the next āgood dealā to come along. It's also a race to the bottom. The operator is always looking for the cheapest money. Why borrow at 12% when I can get it for 7 or 8 or 6. Those are crap numbers. As note investors, we buy the paper. We buy groups of deals. We control the income stream. We work them out, restructure, modify, foreclose when we have to, and get paid from multiple directions. Some notes pay my retirement accounts for 20 years tax free! My family business can comfortably work 5ā6 deals at the same time. Any more than that and yeah, we start to go a little bonkersābut in a good way. Thatās leverage. Thatās control. Thatās being the Funder with way more options than a one-off flip. If youāre tired of only swinging a hammer or chasing leads and you want to see how the āFunder on steroidsā side really works, drop a š„ in the comments or message me āNOTESā and Iāll walk you through how this model actually builds long-term cash flow.