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Slow Flip Financing: Why Slow Flips Beat Fast Flips
Everyone loves the HGTV version of real estate: buy it, fix it, flip it fast. But here’s the truth: fast flips create jobs, not wealth.
That’s why investors like Scott Jelinek teach slow flips — buying cheap homes, seller-financing them to end buyers, and letting time do the work.
Unlike a traditional flip, a slow flip creates:
- Ongoing monthly cash flow
- Long-term appreciation
- Passive income once notes are paid off
As Kris Haskins says: “The real wealth isn’t in flipping paper… it’s in holding paper.”
How Slow Flip Financing Works
Instead of flipping a house in 90 days, you:
- Buy a low-cost property (usually under $100k).
- Resell it with seller financing to an end buyer.
- Collect monthly payments — for years.
The magic? You’re creating a note that pays you like a bank.
How I Structure My Slow Flip Loans
My terms are different than most, because I want investors to scale and repeat slow flips.
Here’s how I set them up:
- 100% Purchase + Closing Paid – I cover the property and closing costs.
- 10% Down + Personal Guarantee – Secures the note and makes it easier to resell to institutional buyers.
- Scalability Through Note Liquidation – We can sell notes and recycle capital into more flips.
- 30% Equity Stake – I take equity once the property is re-sold with seller financing.
- Deferred Equity Participation – My 30% only kicks in after the first-position note is paid off.
- Cash Flow Split – After payoff, income is split 70/30 (you 70%, me 30% net of expenses).
- Exit Flexibility – Agreements for buyouts or exits are built in.
- Legal Documentation – Everything is drafted by attorneys and closed with title companies.
This model allows investors to scale slow flips without getting stuck in one property.
Real-Life North Carolina Example: Turning $45k Into a Long-Term ATM
An investor in Greensboro, NC bought a small 2-bed house for $45,000.
- I funded 100% of purchase and closing.
- Investor put 10% down = $4,500.
- Property was sold with seller financing at $79,000 to an end buyer.
- Buyer’s monthly payment: $850.
- After first note is paid off, cash flow splits 70/30.
Over 10 years, the investor not only recoups cash flow but builds long-term wealth when my equity participation kicks in.
As Larry Goins often says: “Don’t sell houses… sell payments.” That’s exactly what this structure does.
Why Slow Flips Work for Today’s Market
- Affordable housing shortage – Buyers can’t qualify for traditional loans.
- Passive wealth – Instead of chasing deals, you let notes work for you.
- Scalability – Selling notes lets you rinse and repeat.
- Flexibility – Perfect for investors who don’t want rehabs or tenants.
As Cameron Burke puts it: “Slow flips are how you build a portfolio without banks or tenants calling you at 2am.”
Risks & Challenges (Where We Help)
- Default risk – Seller-financed buyers sometimes stop paying.
- Liquidity – Notes can be illiquid unless structured properly.
- Legal complexity – Seller financing laws differ by state.
Our Solution: We provide funding, equity structuring, and legal documentation so investors can scale slow flips safely and profitably.
FAQs About Slow Flip Financing
Q: What’s the difference between a slow flip and a regular flip?
A regular flip makes you a lump sum once. A slow flip pays you monthly like a bank.
Q: Do I need cash to start a slow flip?
Not with our structure — we fund 100% of purchase and closing. You provide 10% down.
Q: What happens if the end buyer stops paying?
The property reverts back, and we can resell it with financing again.
Q: Is this strategy legal everywhere?
Yes, but seller-financing laws differ by state. Always close with an attorney.
Q: Does your company offer slow flip financing?
Yes — we provide the funding and structure deals so you can scale slow flips.
