One thing that separates my business from almost every seller-finance operator in the country is simple:
I price my homes fairly, transparently, and based on real numbers — not emotion.

Buyers deserve that. Investors deserve that. And honesty keeps this entire model sustainable for the long run.

Here’s the exact formula I use to calculate the seller-financed price of every property I sell in Wichita and the surrounding areas.

I Always Start With the ARV (After-Repair Value)

When I evaluate a property, I don’t look at the “as-is” price.
That number is usually meaningless because it only reflects today’s condition, not the long-term value.

I start with the ARV — After Repair Value — the true market value once the home is fully repaired and livable.

This gives me a fair baseline that reflects what the property should be worth when it’s brought back to its highest potential.

I Subtract ONLY the Material Costs — Not Labor

Most investors subtract full retail labor estimates from the price.
I don’t do that because my buyers do the work themselves They want sweat equity. They want a discount. They want control over the remodel and they typically have the skills to do the work themselves . So I subtract only the material costs required to bring the home back to livable condition:

Paint

Flooring

Fixtures

Cabinets

Lumber & supplies

Roofing materials

Electrical/plumbing parts

HVAC components

Any required appliances

No labor.
No inflated repair lists.
No “contractor pricing.”

Just real materials at real numbers.

I Do NOT Add a Markup for Owner Financing

A lot of seller-finance operators raise the price simply because they’re offering financing.
I don’t believe that's fair to the buyer and it creates an over leveraged loan.

I price at top of market value, and that number is typically supported by a third-party appraisal.

If the appraisal confirms the top-of-market ARV, that becomes the benchmark.

I don’t add extra fees.
I don’t inflate the price.
I don’t take advantage of the buyer just because banks won’t lend to them.

The value of the home stands on its own — not the financing terms.

Down Payment Requirements Depend on the Condition of the Home

My down payment strategy is simple:

The more work a house needs, the lower the down payment

The more finished or turnkey a home is, the higher the down payment

For fully remodeled homes, down payments can range from $20,000 to $50,000.
For homes needing more work, the down payment can be much smaller to reflect the buyer’s upfront renovation costs.

This system ensures:

Buyers aren’t overloaded

Investors are protected

Each loan starts out strong

How I Determine the Final Sale Price: The Rent-Equivalent Formula

This is the foundation of my pricing system — and it’s unlike anything most operators do.

I start with what a normal family would pay in rent for a home of that size and condition.

From that rent amount, I subtract:

Property taxes

Home insurance

Note servicer escrow fee

Whatever number is left represents the principal + interest payment the buyer can comfortably afford.

Then I take that P&I number and plug it into a 30-year amortization calculator at 9.5% interest.

That gives me the maximum financed amount the buyer can afford.

Then:

**Financed amount + Down payment = Final sale price**

This creates a payment structure that is:

Predictable

Affordable

Sustainable

Based on real market rents

I do NOT push people beyond what a normal family budget can handle.
This is why my default rate is low. Buyers can actually afford the homes they’re getting.

It really comes down to one core belief. This is the core belief in our business and we see this over and over again.

A PERSON WOULD RATHER OWN THAN RENT.

This is why we make it an obvious choice to buy a home from us rather than rent a home for the same monthly expense.

Example Deal Breakdown

Here’s a simple illustration:

Local rent for similar home: $1,300/month

Taxes + insurance + escrow fee: $300

Affordable P&I payment: $1,000

Using a 30-year term at 9.5% interest, $1,000/mo supports roughly $126,000 financed.

If I want a $15,000 down payment:

$126,000 financed

$15,000 down
= $141,000 sale price

This is how I keep everything affordable, fair, and grounded in real numbers — not wishful thinking.

Why My Pricing System Works So Well

My method protects:

Buyers

Affordable payments

True sweat equity

Clear expectations

A chance at homeownership that banks won’t give them

Investors

Strong down payments

Real equity positions

Market-supported values

Predictable note performance

My Business (Blades Capital)

Consistency

Transparency

Compliance

High trust

Low default rates

It’s a model that works because it’s built on math, not hype.

I’ve been doing this in Wichita for years.
I’m born and raised here.
I know these neighborhoods.
I know the buyers.
I know the numbers.

And this pricing system is a major part of why my buyers succeed and why my investors trust me with millions of dollars in private capital.