WHAT I’VE LEARNED AFTER LENDING $12.6M IN 2 YEARS

Hey Everyone,

How I Built a Lending Business That Pays Me Every Month—and Hasn’t Lost a Dollar

This month marks two years since I officially launched 42 Solutions, my Arizona-based private lending company.

We started simple: one deal, one borrower, one win.

Now, two years later, we’ve stacked some numbers I’m proud of:

$12.6M in total loan volume funded

44 loans closed

0 foreclosures

8-month average loan term

100% repeat borrower rate (yes, every single borrower has either come back—or committed to)

We did all this with no outside investors pressuring us to scale too fast—and no bank loans underwritten against the business itself. Just clean, private capital, strategic use of lines of credit backed by my own assets, and relentless reinvestment.

This isn’t some magic formula.

It’s just smart, disciplined, long-term business.

And along the way, here are the 3 big things I’ve learned:

1. Trust compounds faster than capital.

I’ve had dozens of conversations where a borrower tells me, “You’re the only lender I’ll call moving forward.”

Why? Because we fund fast. We communicate clearly. We don’t overpromise. And we don’t surprise them with fine print.

If you keep your word, people remember.

In a high-stakes game like lending, reliability is your moat.

2. You don’t need to scale fast—you need to scale right.

I’ve studied operators like Greg Crabtree, a finance expert who teaches entrepreneurs how to build highly profitable companies by keeping things simple and smart.

That’s exactly how I’m building 42 Solutions.

I don’t need 200 loans. I need the right 50—funded with the right capital, structured with the right terms, and aligned with the right borrowers.

This isn’t about ego. It’s about longevity.

3. Simple businesses win. Period.

Fix-and-flip loans. 12% interest. 1 point. Asset-backed.

That’s it.

This business works because I focus on three things:

Protect principal. Underwrite well. Move fast.

Every time I get tempted to overcomplicate or chase shiny objects, I come back to this truth: boring is profitable when you do it well.

So, what’s next?

Year 3 is about tightening the system—not bloating it.

That means better reporting. Sharper capital allocation. Streamlined borrower onboarding. And more great people in our ecosystem.

This business is the engine behind my entire investment strategy.

It gives me monthly income.

It gives me control over my capital.

And it gives me peace of mind knowing I’m building something sustainable.

If you’re building something too—whether it’s a portfolio, a business, or your next career move—I hope this encourages you to play the long game.

If you want to keep following along and dive deeper into the strategy behind all of this, subscribe to The Capital Edge newsletter or my YouTube channel.

Here’s to year three.

DK 💰

Founder, Kennard Capital & 42 Solutions