WHY I PREFER LENDING TO OWNING RIGHT NOW

Hey Everyone,

Over the past few years, I’ve owned dozens of doors across multiple markets — Kansas City, Tampa, Tennessee, Arizona. I’ve done BRRRRs, flips, syndications, and everything in between.

But if you ask me where I prefer to put my money right now — the answer might surprise you:

Private lending.

Not because I don’t love real estate. I do.

Not because I’m scared of the market. I’m not.

But because, right now, lending checks more of the boxes I care about.

Let me break down why.

💸 1. Lending Pays Me First

When I own real estate, I get paid last — after vacancies, maintenance, CapEx, management, taxes, insurance, and maybe a surprise plumbing issue or two.

When I lend, I get paid first.

Monthly interest, fixed returns, no toilets, no termites.

I’m the bank — and the bank never waits in line.

🧠 2. The Math is Cleaner

Let’s say I buy a rental with 25% down.

I’m putting up $75K–$100K and hoping for an 8–10% cash-on-cash return after expenses.

With lending, I can deploy that same $100K at 12% plus fees — and I don’t need property management, tenant screening, or even insurance (the borrower covers that).

And most loans don’t last the full year — which means I get to recycle my capital, sometimes twice in 12 months. That boosts my effective return even more.

🧱 3. I Can De-Risk While Still Making Double Digits

Right now, I’m lending at 60–70% of ARV to experienced operators I know personally.

That means if something goes wrong, I’m stepping into an asset with 30–40% equity baked in.

It’s the opposite of gambling. It’s underwriting.

And because I stay local, I know these markets, these borrowers, and these properties better than most.

🧰 4. I Still Control the Real Estate (Without Owning It)

Here’s the irony:

When I lend, I’m not just passive — I’m in control.

If a borrower defaults, I don’t panic — I pivot.

I can foreclose, restructure the deal, or even step into the property with an upside margin already built in.

Compare that to being a landlord right now — with insurance costs rising, interest rates still elevated, and cap rates decompressing in some markets.

Lending lets me stay in the real estate game, but on my terms.

🧭 5. Lending Aligns with My Capital Philosophy

Everything I invest in gets filtered through the same lens:

Does it cash flow?

Is it capital efficient?

Can I control it or influence the outcome?

Does it compound long-term?

Private lending checks every box.

And right now, as deals get leaner and equity gets thinner, cash becomes more valuable.

When capital is scarce, I want to be the capital.

Final Word

This isn’t a knock on owning real estate.

I’ll still buy when the deal’s right — especially in Arizona where I know the terrain.

But for now, lending is my core engine.

It gives me income, liquidity, security, and leverage — all without the operational drag.

If you’re in a season where you want cash flow without complexity, consider this:

You don’t always have to own the property to own the outcome.

Stay Sharp,

DK 💰

Founder, Kennard Capital & 42 Solutions