WHAT A ZERO-FORECLOSURE YEAR REALLY MEANS

A $10.8M Year — No Foreclosures, No Defaults

The 2025 Private Lending Review

When I launched 42 Solutions, the goal was never volume for the sake of volume.It was execution.

In 2025, that focus showed up in measurable ways:

• $10.8M in private loans funded

• 23 total loans

• Zero foreclosures

• Zero defaults

• Average loan term: 8 months

• Over $3M in profit created for our borrowers

Year-over-year growth:

• Balance sheet: +156.7%

• Gross revenue: +168.2%

• Net income: +163.7%

Those numbers matter. But they are not the real headline.

Growth Without Compromising Discipline

What I’m most proud of in 2025 is not the scale. It’s the selectivity.

We intentionally tightened our borrower network across Arizona. We leaned further into:

• Experienced operators with clean track records

• 700+ credit profiles

• Proven execution under shifting market conditions

• Clear communication and realistic timelines

That discipline changed the dynamic.

By the second half of the year, we were seeing more high-quality deal flow than deployable capital. That allowed us to:

• Maintain conservative leverage

• Avoid stretching on structure

• Move quickly on the right opportunities

• Decline deals that did not fit our risk profile

Selectivity became a competitive advantage.

What Actually Drove the Results

The 2025 performance was not driven by aggressive leverage or chasing yield.

It was driven by:

• Strong borrower relationships

• Clean underwriting

• Conservative loan structures

• Liquidity planning

• Consistent execution

In private lending, the absence of problems is often the strongest signal of strength.

Zero foreclosures and zero defaults do not happen by accident. They happen when borrower quality, structure, and discipline align.

The Long-Term Playbook

The goal is not to win one year.

The goal is to build a lending business that performs across cycles.

That means:

• Staying patient when others stretch

• Growing only when underwriting standards support it

• Protecting downside first

• Letting compounding do the rest

2025 reinforced that durability beats noise.

Here’s to building on that foundation in 2026 — with the same discipline, sharper execution, and an even stronger balance sheet.

If you’d like to join our upcoming Capital Edge Office Hours to break down the discipline, borrower selection, and underwriting behind our 2025 results, reply OFFICE HOURS and I’ll send you the calendar invite.