THE LENDING FLYWHEEL: HOW ONE DEAL SHOWS THE POWER OF SPEED, STRUCTURE, AND SCALE

Hey Everyone,

The Real Reason Private Lending Works — For Everyone Involved

One of my favorite deals this year just hit the finish line — and it’s the perfect example of why I believe private lending, done right, is one of the greatest business models in the world.

The Deal (At a Glance)

Loan Amount: $332,000

Funded: April 24

Scheduled Closing: June 30

Total Hold Time: 68 days

Sale Price: $480,000

Borrower Net Profit: ~$107,000

42 Solutions Gross Income: $11,455 (interest + fees)

And now they’re coming back to us for the next deal.

💼 Why This Is a Great Business Model

Let’s zoom out and look at what this actually means for 42 Solutions — and why I’ve gone all-in on building this machine.

1. Limited Downside, Strong Collateral

This loan was backed by a real asset, at a conservative loan-to-cost. The borrower had skin in the game, a plan to add value, and a track record. Our worst-case scenario? Take back a well-located property with significant equity. But they executed — fast.

2. Predictable, Front-Loaded Revenue

Before the first hammer swung, we collected:

1% origination

$995 processing

$500 doc prep

And monthly interest at 12%

That’s a $4,800+ head start, before a single monthly payment hit.

3. High Velocity of Capital

Because the loan turned over in just 68 days, that capital is already cycling into the next loan.

The fees and interest earned on each deal don’t just sit — they get reinvested, helping me compound internally without raising outside capital.

The more loans we turn, the faster that internal flywheel spins.

4. We Help Our Borrowers Win

This borrower made $107K in under 10 weeks — after all fees, costs, and interest.

Why?

Because we moved quickly, structured the deal for their reality, and let them focus on execution.

When borrowers win, they come back. That’s how we’ve built a 100% repeat borrower rate.

What This Means for the Big Picture

At scale, this model becomes a true compounding engine:

Fee income = cash up front

Interest income = steady cash flow

Quick turnarounds = faster reinvestment

Strong operators = low default risk

Trusted relationships = better deal flow

Internal capital base = margin expansion

And as we continue to grow, I’m not just looking for more loans — I’m looking for better borrowers. Operators who know how to get in, get out, and get paid — so we can both keep compounding.

If you’re an investor thinking about how to build a business with compounding economics, downside protection, and recurring cash flow — this is it.

I’m building 42 Solutions for the long haul.

Let’s keep stacking smart wins.

DK 💰

Founder, Kennard Capital & 42 Solutions

devon@kennardcapital.com

devon@weare42solutions.com