BiggerPockets Real Estate Podcast
BiggerPockets Real Estate Podcast

He Bought 50 Rentals, Then Stopped to Do This (Makes $5,000/Month Per Deal)

April 29, 2026

AI Summary

5 min read

On a $500,000 loan, Devon Kennard collects $5,000 per month in interest, plus $6,500 in upfront fees. If the borrower repays in four to six months—common for fix-and-flippers—he can lend that same capital out again within the same year, effectively earning 15 to 16 percent annualized on his money. The borrower does all the work: finding the deal, pulling permits, managing contractors, and selling the property. Kennard just reviews the numbers, signs the documents, and collects payments.

From 50 Rentals to Private Lending

Kennard started buying rental properties in 2014, scaling to 50 units across the Midwest—Indiana, Kansas City, Cleveland, and Tennessee. He bought turnkey properties for around $100,000 and rented them for $1,200 or more, crushing the one percent rule. As home prices and interest rates rose, cash flow shrank. He shifted into syndications as a limited partner, investing in 50 different funds and deals for an 8 percent preferred return. But he found the lack of control frustrating: operators could suspend payments, and he couldn't sell his position. "You're on a roller coaster and you're just like, let's see what happens," he says.

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What you'll learn

  • 1 (00:06) **From 50 Rentals to Private Lending** - Devon Kennard explains why he pivoted from active landlording to lending as cash flow dried up in the 2022-2023 market.
  • 2 (08:17) **What Private Lending Actually Is** - A clear, plain-language definition of how private lending works as an investment vehicle.
  • 3 (09:38) **Why It Limits Your Downside Risk** - Dave and Devon explain the built-in safety of being backed by hard assets with equity buffers.
  • 4 (11:49) **The Portfolio Strategy: Lending as a Cash Flow Supplement** - Devon frames lending as one piece of a balanced real estate portfolio alongside appreciation and tax-benefit plays.
  • 5 (16:22) **Exact Returns: $5,000/Month on a $500K Loan** - Devon breaks down the specific fees and interest structure that generate his cash flow.
  • 6 (18:11) **The Tax Caveat Everyone Needs to Know** - An important distinction between lending income and rental income.
  • 7 (19:47) **Three Ways to Get Into Private Lending** - The different entry points, from most active to most passive.

+ Full timestamped outline available in the app

Show Notes

Struggling to find cash flow these days? You’re not the only one. Today’s guest built a portfolio of 50 rental properties before margins started getting thin, but one giant pivot changed everything—a pure cash flow play to complement the appreciation and tax benefits from his rentals. If you want cash flow, he’ll show you exactly where to find it!


Today, Devon Kennard makes 12%-14% returns with an investing strategy that doesn’t involve tenants or toilets: private money lending. Better yet, he’s often able to recycle the same capital multiple times per year for even faster returns. And yes, this is real, passive income. Despite scaling to over $12 million in assets under management (AUM), his tech stack allows him to spend just 25 hours a week on his real estate business.


It sounds too good to be true, but with some capital and a few tools, you could start doing private money deals that give you the monthly income you’re unlikely to find with normal rental properties. Devon shows you how to get started with as little as $10,000 and even breaks down a standard deal where he makes $5,000 in monthly cash flow—plus fees upfront!


In This Episode We Cover

How to generate massive cash flow with private money lending

Why Devon pivoted to passive investing after building a 50-property rental portfolio

How to structure your own private money deals (with as little as $10,000)

The three “levels” of private lending you can start using in 2026

The tech stack that makes private money lending easy for new

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