Episode 41: How Much Money Do You Really Need to Start Making 30-50% Returns

Is $10K enough to earn 30–50% returns in private lending? Many new investors hope so, but Rich Lennon reveals why starting with too little could backfire ethically and financially. In this episode, he breaks down the real cost to lend responsibly, the two rules that matter most, and how to structure deals that protect your partners. If you're serious about private lending, this nine-minute masterclass will sharpen your thinking and strategy.

You’ll Learn How To:

• Evaluate first-position vs second-position loans
• Understand the true capital required to protect your partner and returns
• Avoid risky structures with imbalanced moral positioning
• Use fractional lending responsibly and ethically

What You’ll Learn in This Episode

• 00:04 – 00:21 How much do I need to start lending?
• 00:34 – 01:09 First position is non-negotiable (Rule #1).
• 01:16 – 02:29 Median home price determines lending base
• 02:36 – 02:49 Fractional lending done right with real numbers
• 03:42 – 05:08 Lazy money shouldn’t take first losses
• 05:18 – 05:58 Bad practices in payment structure flagged
• 06:22 – 08:16 How much skin is enough? (Rule #2)
• 08:28 – 09:08 Payments, protection, and partner-first structures

Who This Episode is For:

• New private lenders evaluating initial deal structures
• Passive investors seeking to partner in loan deals
• Real estate entrepreneurs exploring lending as a strategy
• Ethical investors who care about partner protection

Why You Should Listen:

Rich Lennon doesn’t sugarcoat it. This episode reveals exactly how much capital you need to safely earn high returns — and the two critical rules that make or break deals. It’s not just about how much money you bring, but how you protect your partners while earning those high yields.

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Website: https://richlennon.com/

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