Must open if you’ve lent money to a friend for free before
Or if you’re sick of your 4% savings account
You’ve heard the buzz about real estate — flipping, rentals, multifamily. But what if I told you the most profitable path isn’t any of those?
I recently asked a veteran investor worth $100 million about their best wealth-building move in real estate. Their answer was instant: Private Debt. Also known as hard money lending.
It’s not sexy. It’s not mainstream. But it’s delivering returns—fast.
Most investors never even consider it. Why? Because it seems risky and most often it’s out of reach.
Meanwhile, private lenders are pocketing 30–40% annualized returns without the 2 a.m. maintenance calls.
In this issue, I’ll show you:
Why Private Debt might be real estate’s best-kept secret What makes it work — and who it’s really for How to avoid the trap of “boring” private debt funds
📌 Heads-up: This isn’t for everyone. But if you’ve got liquidity and access, this is a door you should knock on.
The Hidden Gem: Private Debt’s High-Performance Profile
Forget what you’ve heard about wealth through real estate. Private debt flips the model. You’re not the buyer or the builder — you’re the bank. You finance deals others can’t touch because traditional lenders move too slow.
And the result?
In the past 2 years, I’ve closed 7 hard money loans. My average annualized return? 35%.
That’s not a typo. That’s nearly triple the S&P500 and almost nine times what your high-yield savings account offers. With none of the headaches that come with managing property.
It’s clean. It’s fast. And it works.
🏠 Interested in starting or growing your real estate portfolio? Join a community of changemakers investing to build wealth and create impact.
The Access Issue: Why Most Can’t Play This Game
Private debt isn’t on the menu for everyone. It demands liquidity. It requires knowing the right people. And it assumes you can move quickly when a deal drops.
This is why most investors never see it — they’re not looking in the right places. Or worse, they’re lured into 6% private debt funds that give a huge portion of the interest to the managers.
To play the high-return version of this game, you need edge: the right network, trusted deal flow, and the discipline to underwrite risk like a lender — not a landlord.
The Opportunity in Plain Sight
Every investor talks about “alpha” — that edge over the average. But in private debt, the alpha isn’t hidden. It’s sitting there, ignored, because it doesn’t look like what the real estate gurus are selling.
That’s the opportunity.
While the masses chase conventional deals, private lenders are cashing in on velocity and access. Fast in, faster out. High trust, higher returns.
This is your invitation to think differently. To act like the bank, not the borrower. And to realize that boring isn’t safe—it’s often just slow.
Until next time,
Jon
P.S. Ready to see if you qualify for this kind of lending?
Thanks for reading Drops of Change! Subscribe for free to receive new posts and support my work.