One of the questions I get most often from new investors is “What happens if a buyer stops making payments?”

It’s probably the most important question when it comes to protecting capital and one that separates amateurs from professionals in the owner-financing world.

The truth is, defaults are part of the business. But when your systems are built right, they don’t have to be scary or costly.

At Blades Capital, I’ve structured my entire operation to protect investors, recover quickly, and continue generating income — even when a buyer falls behind. It starts with professional servicing. Every loan I originate is handled by a third-party servicing company run by Laney Blades.

Laney spent several years working for directly for my company before launching her own independent firm. She’s highly trained in managing payments, tracking balances, and staying compliant with all federal and state lending requirements.

Using a licensed third-party servicer ensures that:

- Every payment is properly recorded and documented.

- Buyers receive accurate statements and escrow reporting.

- We stay in full compliance with Dodd-Frank and RESPA regulations.

That professional layer protects both the borrower and the investor — and it keeps everything transparent and auditable.

Quick, efficient recovery when defaults happen

If a buyer misses payments, the servicer immediately begins outreach and documentation. Most issues are resolved with communication, but when necessary, I move swiftly to recover and regain possession of the property — typically within 90 days.

Because I live and work here in Wichita, I can take action quickly. I know the local attorneys, courts, and processes — and I handle each default efficiently and respectfully.

The key difference is this: I’m not waiting months or years to resolve a problem property. My process gets the home back on track fast, protecting the investor’s position and minimizing downtime.

Investors keep getting paid

Here’s what makes Blades Capital different — and why investors love working with me.

Even during a default, I continue paying my private investors their scheduled returns.

That’s right — your income doesn’t stop just because a buyer does.

I personally carry that short-term cost, because I believe in honoring investor commitments first. Then, when I recover and resell the property, I recoup the lost revenue through the new buyer’s down payment — often between $5,000 and $25,000, depending on the home.

That model keeps investor income consistent and predictable, no matter what happens on the borrower side.

Turning challenges into new opportunities

Defaults aren’t failures — they’re part of a cycle that can actually make a deal stronger.

Here’s what typically happens:

I recover the property.

I perform light maintenance or upgrades as needed.

I resell it to a new, qualified buyer — often at a higher price point.

I collect a fresh down payment and restart the note.

The result? Investors stay paid, the property keeps working, and Blades Capital generates new income from the recycled asset.

Every time that happens, we create another layer of security and profit — all without taking unnecessary risk.

Why investors trust this system

My investors know that I’ve built a complete, hands-on process for managing both income and risk:

Independent loan servicing for compliance and transparency.

Rapid recovery within 90 days when defaults occur.

Continued investor payments regardless of buyer performance.

Revenue recovery through down payments on resale.

This isn’t theory — it’s how I’ve operated for years here in Wichita, and it’s one of the main reasons investors keep coming back.

When your capital is tied to a secured note, managed by a local operator with real systems, you don’t have to worry about surprises.

Every investment carries risk. But with the right structure, communication, and recovery systems, that risk becomes manageable — and even profitable.

At Blades Capital, I’ve built my business on one promise:

Investors get paid first. Always.

That’s the foundation of everything I do — and it’s why my investors continue to trust me with their capital year after year.