Forcing Appreciation and Leverage: Slocomb Reed's Framework for Scaling

Slocomb walks through four real deals to show the framework in action, including one where he borrowed the full amount for purchase, rehab, and six months of mortgage payments and closed with no cash out of pocket.

What the episode covers

• The two components: forcing appreciation through rehab and CapEx, then using leverage to pull capital back out through a refinance or resale.
• A cottage financed entirely with debt: purchase, rehab, and six months of payments, all borrowed via cross-collateral, then sold for a profit.
• A sale-leaseback: a deal sourced from a wholesaler, where Slocomb left the closing table with a check and a house, then later did a rate-and-term refinance to lock in fixed debt.
• A 50/50 house with a cash partner: purchased and rehabbed with the partner's capital, then split 50/50 after the partner is repaid.
• Scaling the playbook: how a process Slocomb had run many times on one or two buildings scaled up to several buildings at once.
• The bonus component: other people's money only works once you are repeating a proven playbook, and does not suit branching into something new.

Listen

Stream Episode 19 on Spotify or Apple Podcasts. To see the flip side of this framework in practice, read why we flip starter homes.