The Secret to Safer Investing—It’s Not Just About Assets

HEY EVERYONE,

When it comes to smart investing, most people focus on the asset—whether it’s a property, a business, or a loan. And while that’s crucial, there’s another piece to the equation that too many investors overlook:

The quality of the people you invest with.

Let me give you an example from my private lending company, 42 Solutions. Recently, we analyzed every borrower we’ve ever funded—past and present—to better understand the level of risk we’re taking on. The result? Our average borrower credit score is 723.

That’s a number I’m proud of. Why? Because it means we’re not just lending on strong real estate deals, we’re lending to qualified, financially responsible people.

And this principle applies far beyond private lending.

Whether you’re investing in real estate, syndications, private equity, or business partnerships, the quality of the people involved is just as important as the deal itself.

Here’s why this matters for any investment you make:

✅ People make or break a deal. Even the best asset can fail if the operator, borrower, or business owner is unreliable.

✅ Risk isn’t just about numbers—it’s about character. A credit score (or a business track record) is one indicator of whether someone follows through on their commitments.

✅ You want a return on investment—but also a return of capital. Just like in private lending, you should always think about how you’ll get your money back before you think about the upside.

I’ve learned over the years that the best investments come from strong partnerships with the right people. And the worst? Those usually happen when I ignore the warning signs about who I’m doing business with.

So next time you’re looking at an investment—don’t just underwrite the deal. Underwrite the people behind it.

Would love to hear your thoughts—have you ever been burned by a bad operator, or have you had an amazing investment experience because of the right people? Hit reply and let me know.

To smart investing,DK

P.S. If you’re interested in passive investing strategies and want to see more behind-the-scenes insights like this, make sure to check out my latest content on DevonKennard.com.