Real Estate Rookie Podcast: How to Make Bigger, Faster Returns Without Buying Rentals

Hosts: Ashley Kerr & Tony J Robinson
Guest: Devon Kennard (Former NFL Linebacker, Private Lender)
Date: November 5, 2025

Main Theme & Purpose

This episode explores how you can make significant, often faster, returns in real estate without buying rental properties—by becoming a private lender instead. Devon Kennard joins the hosts to break down private lending for rookies: how it works, why it might outperform traditional buy-and-hold investing, what makes it truly (almost) passive, how much money is required to start, and most importantly, how to protect yourself from risk.

Key Discussion Points & Insights

1. What Is Private Lending?

• Plain-english breakdown: Private lending bridges the gap for real estate investors who, for example, buy fixer-uppers but need funding for the purchase and/or renovations before selling or refinancing.
• “You can get in and make pretty good money but not have to actually do hammer to nail when you have a 9 to 5 job or you’re busy raising your kids…” (Devon, 01:14)
• It’s a passive but lucrative way to play the real estate game, especially for those who don’t want to own or manage property directly.

2. Private Lending vs. Hard Money Lending vs. Syndication

• Private Lender: Lending your own money directly to an investor, with the asset (property) as collateral (02:41).
• Hard Money Lender: Typically brokers using institutional funds at scale; less lucrative, more rules, often the “middleman.”
• Syndication/LP: You give money to a fund/manager to invest; less control, lower returns (think 8% coupons vs. 12-14% or more in direct private loans).

“As a private lender, I’m keeping all of that… as opposed to a hard money lender—when they’re a huge company, they're really selling off the interest and just collecting some fees up front.” (Devon, 03:31)

3. Why Choose Private Lending?

• If you're a cash flow investor after double-digit returns rather than chasing tax benefits or slow appreciation.
• Rentals have tax benefits and appreciation but often weak cash flow, especially after CapEx/maintenance.
• Private lending offers mid-teen returns and compounds fast, despite paying regular income tax (05:00).

“If you want to maximize the dollars you can generate… to be able to make an 18% return on a second position loan with a qualified borrower… it’s a compelling thing to consider.” (Devon, 12:56)

4. The Mechanics: How Private Lending Works

• You “become the bank.” Instead of tenants, you have a promissory note (loan agreement) and often a deed of trust tied to the property (07:13).
• Downside is protected: if borrower defaults, you can take the property back.
• Upfront work: vet the deal and the borrower, set ironclad terms, and collect payments monthly—often automated via ACH.

"If they default... I'm in a position where I can take over this project and probably make more money if I have to sell it myself. I don’t want that to ever have to happen, but there’s a good chance I’m going to make more." (Devon, 10:50)

5. How Much Money Do You Need?

• Not just for the “NFL rich.” Friends and acquaintances have started with as low as $20-50k, often taking “second position” on loans (riskier but higher returns, 14-18%+).
• First position = you’re funding most of the project; second position = smaller amounts, higher return, more risk.

6. Devon’s Origin Story

• Started with SFHs in the Midwest, got up to 50 units. Cash flow dried up in those markets.
• Discovered private lending—saw higher returns, less headache (14:05).
• Was “amazed at how little work it was for the return.”

7. How To Lend Safely: Underwriting for Rookies

• Step 1: Vet the borrower—track record, character, previous projects (18:13).
• Step 2: Vet the deal—let borrower provide spreadsheets, comps, budget, exit plan.
• Step 3: Documentation! Do not let the borrower provide the documents. Spend on a real attorney or use reputable services (LightningDocs AI for $500 per deal).
• Always get a promissory note, deed of trust, personal guarantee.

“Do not let someone do that to you [provide docs]. Spend a little bit upfront… and actually get a correct promissory note, deed of trust, personal guarantee.” (Devon, 19:45)

8. How to Find Borrowers / Lenders

• Go to real estate conferences, build relationships; often takes time (bpcon, local meetups, etc.)
• Borrowers: Create a professional presentation (comps, plan, ARV, etc.)
• Lenders: Ask for finished work, references, build gradual trust.

“Private lenders are everywhere… Anyone who has capital potentially can become your private lender. It’s educating them and showing them why they should trust you with their funds.” (Devon, 24:38)

9. Staying Safe: Key Risks & Guardrails

• Never lend at too high LTV (Loan-To-Value); Devon never lends above 70% of ARV (after repair value).
• Get listed as mortgagee for insurance, require property insurance (builder’s risk for major rehabs).
• Always get a title policy (Alta).

“You want to have your own best interest in mind [for docs]… and you make sure the settlement statement makes sense and you approve to close.” (Devon, 38:51)

10. Step-By-Step: Doing Your First Deal

(See [38:31])

• Vet the borrower & deal.
• Get insurance; be listed as mortgagee.
• Coordinate with title company for title insurance.
• Prepare your own loan docs (attorney or LightningDocs AI).
• Have borrower sign term sheet (your fees, interest, points).
• Sign everything, approve settlement statement, wire funds at closing.
• Set up ACH to auto-pull payments beginning the next month.

“You create a checklist and have a really clean structure of what you need to do on every loan…Once the loan is funded, I’m only looking on the first of the month, approve payment.” (Devon, 42:56)

11. Business Strategy, Scaling, and Building Wealth

• Devon is liquidating rentals to redeploy capital into lending—prefers to compound at 15% vs. accept lower-yielding home equity.
• Plans to acquire more "legacy" assets for family wealth later, but for now, lending is the highest and best use of his dollars.

“If I can gross 15% return on every dollar and I can compound that into more and more loans… people forget about the compounding factor.” (Devon, 45:10)

Notable Quotes & Memorable Moments

• On passivity in investing:

  "Even if I own a long-term rental and even if I have a property manager... there's still active work involved. But it feels like private lending is truly one of the only passive routes." – Tony (02:08)

• On protecting your downside:

  "That promissory note and deed of trust are the two strongest documents…if they do [default], I’m in a position to take over and probably make more." – Devon (10:15)

• On getting started with little capital:

  "People I know started with $20,000, $50,000, $100,000…if you’re the second position lender, you get to charge more for that risk." – Devon (11:58)

• On business mindset:

  "I’m in builder mode and allocating money into my lending company is my best return. I’m actually in the process of selling a lot of my [rental] assets...I just let that machine roll." – Devon (45:10)

Important Timestamps

• 00:44 – What is private lending (Devon’s plain English breakdown)
• 02:41 – Difference between private lender, hard money lender, syndication
• 04:45 – Why pick private lending over property ownership (returns vs. tax benefits)
• 11:58 – How much money you need to start, first vs. second position
• 14:05 – Devon’s story; why he pivoted from rentals to lending
• 18:13 – How to safely underwrite: vet the borrower, vet the deal, proper documents
• 21:49 – Where to get pro loan docs (LightningDocs AI, attorneys)
• 24:00 – Building lender–borrower relationships; how to present yourself as a borrower
• 27:40 – Private lending “checklist”—insurance, title, documentation
• 33:26 – Rookie mistakes (too-high LTV, bad docs)
• 38:31 – Step-by-step, how to do your first deal as a private lender
• 45:10 – Devon’s long-term business and wealth strategy

Conclusion & Takeaways

• Private lending is accessible, even for small capital. You don’t need to be rich or a pro athlete.
• Returns are strong and scalable if you structure deals right and compound earnings.
• Risk can be minimized with solid underwriting, strict LTV caps, state-specific documents, and clear communication.
• It’s a relationship business: building trust, vetting people, and following checklists is more important than ever—with big upside for those willing to do a bit of homework.
• Ashley & Tony are now considering going all-in on lending! ([47:30])

Want to connect or learn more?

• Devon Kennard: @devonkennard on social, devonkennard.com

“If you’re a potential borrower in Arizona, hit me up. Slide into the DMs ASAP.” (Devon, 48:41)

This summary preserves the encouraging, hands-on, and practical tone of the podcast, focusing on actionable guidance for absolute beginners wanting to take their first steps as a private lender in real estate.