How We Made $52k in a Week Without Lifting a Hammer

The Power of Hard Money Lending

This week’s episode is about the power of hard money lending. Most people in this business already feel that, but I want to reemphasize it. Everything lined up over a few days, with several closings hitting at once. We earned $52,000 in points alone, and it was genuinely fun to see the work compound. Normally, deals straggle across weeks or months as documents trickle in and timelines shift. However, this time, everything moved according to plan. Multiple files cleared together, and the momentum felt great.

Why bring this up? A close friend is finishing a flip he’s been working on for months. The project is stunning, and the craftsmanship shows. In the past, I would have drooled over the before-and-after photos and the projected payday. Now I see the full story behind those numbers. The effort is real, but the risk is real too.

The effort is real, but the risk is real too.

If you’re newer to the podcast, here’s quick context. We used to flip houses. We didn’t run a gigantic operation, yet we completed a solid number of projects—anywhere from 12 to 20 per year. Over roughly five years, we did around a hundred projects. Systems improved. Materials standardized. Contractors aligned. Even so, things still went wrong.

I look back at my first flip and then at the hundredth. The difference was night and day. We learned constantly and kept refining our process. Nevertheless, every flip had surprises. You uncover a foundation issue. Moving a wall isn’t possible as planned. Then settlement appears where you didn’t expect it. Or you open a panel and the electrical is a nightmare that needs a full rewire. There is always something.

Now we’re based in Arizona, where the cost of living and home prices are much higher than where we used to flip. The average home might sit between the mid-six figures and beyond, whereas we previously bought in the $150,000 to $300,000 range. Naturally, larger prices create larger spreads. Consequently, big potential profits show up more often. I’ll admit I still admire a beautifully executed flip. Yet I also see how long it can take to actually get paid.

In many flips, the money doesn’t arrive for 60, 90, or even 120 days after listing. Showings, negotiations, title, escrow, and settlement all have to run their course. Meanwhile, the stress meter keeps ticking. If we just continued doing hard money lending, we’d likely make about the same as a massive flip, but with far less headache. When you spread a big check across eight to ten months, the monthly average is less impressive. It’s still good, but the reality is different than the headline number. I’m not dismissing large profits. I am saying the trade-offs matter.

… we’d likely make about the same as a massive flip, but with far less headache.

At a certain point, you ask what’s actually worth your energy. Personally, I want a more relaxed life. I don’t want to sprint between job sites, chase materials, and juggle crews every hour of the day. Managing jobs and contracts is a lot. As seasons change, so do priorities. For us, hard money lending now fits those priorities better.

Flipping vs. Lending: A Real-World Contrast

Our pivot started around the COVID timeframe when a project went south. It went really south. We lost about $50,000. The timeline dragged for roughly 14 months. When the property finally closed, I looked at the settlement statement. Even though we lost $50,000, our private lender made $25,000. That was a startling moment.

I remember thinking, hang on, how is that fair? I had months of sleepless nights and constant worry. The lender probably slept like a baby. He barely knew the project’s headaches. He just received his return. As a result, we began to shift into private lending. It became an incredible revenue source and, more importantly, a source of peace of mind.

It became an incredible revenue source and, more importantly, a source of peace of mind.

This week underscored that contrast. A friend’s gorgeous flip may soon deliver a significant payday. Meanwhile, we had a killer week closing multiple loans without leaving the home office. The contrast revealed what fits our phase of life today. For us, steady returns with lower stress beat chasing one massive win.

Let me explain why the mechanics matter. In flipping, delays usually erode profits. Holding costs climb. Supply issues pop up. Unplanned repairs stack on top of schedules. Conversely, in hard money lending, time typically works in your favor—within reason and with the right structure. Interest accrues as projects progress. We’re not loan sharks; that’s not the goal. However, the alignment of incentives and the predictability of payments feel better to us.

Furthermore, lending lets us lean into our strengths. We enjoy underwriting, structuring deals, and monitoring risk. We still use systems, but the day-to-day chaos is lower. Consequently, our stress is lower. That is worth a lot. Ultimately, it’s about building a business you can sustain without burning out.

This Week’s Deals and What They Taught Us

Now, onto the mechanics behind this week’s momentum. We initially tallied the volume at $1.85 million, then corrected it. The final figure came to $1.75 million in total loan volume. We closed three $300,000 loans and one $850,000 loan. The larger deal sits in a higher-cost area of North Idaho on Priest Lake, with proceeds supporting a purchase and renovations. Altogether, it looks like one of our best months ever.

Two of the $300,000 loans went to a local contractor who had become a bit over-leveraged. He had paid cash to secure several projects and then realized he lacked funds to complete construction. Because he got good land deals, we were able to leverage some of that land in the structure. Both projects sit right in the heart of town, which we like. We’re at roughly 45% LTV, which makes me comfortable if something unexpected happens. As he improves the properties, the spread should grow. In other words, the gap between what he owes and what the projects are worth expands as progress continues.

Because he got good land deals, we were able to leverage some of that land in the structure.

The third $300,000 loan sits in Boise and funds a barndominium for a nonprofit. This one pushed me to study recourse vs. non-recourse and how to secure everything without personal guarantees. It might become a full episode on its own. The nonprofit’s mission is compelling. They teach underskilled laborers trades like carpentry and HVAC, pairing licensed contractors with hands-on training. They travel around Idaho building barndominiums while students gain real-world experience. We were glad to support work that builds skills and community capacity.

All three deals reinforced the same lesson. We’re in the right lane. The phase of life we’re in favors calm over chaos. Moreover, the economics still pencil. We can earn attractive returns while staying aligned with our values and our energy. That alignment matters more than any single check.

This perspective also changes how I look at big flip profits. Years ago, I would stare at spreads and feel a rush. Today, I evaluate the work behind those spreads and the time required to realize them. Despite the allure, flips require constant attention. Materials get back-ordered. A contractor goes sideways. Permit delays surface without warning. Each snag increases holding time and risk. Meanwhile, a well-structured loan keeps accruing, provided the fundamentals remain strong.

That’s why this $52,000 week hit so clearly. The income came from doing what we do best and from trusting the systems we’ve built. We coordinated documents, confirmed valuations, finalized terms, and closed. No chasing down five different crews. Instead of rewriting a scope three times, we moved forward. A supplier’s missed shipment never forced a kitchen redo. Instead, we focused on underwriting, communication, and execution.

The income came from doing what we do best and from trusting the systems we’ve built.

Additionally, lending gives us more flexibility day to day. We can plan deep work blocks for analysis and pipeline reviews. We can meet with borrowers and referral partners without scrambling across town. That rhythm supports better decisions. It also supports a better life. Because your business shouldn’t consume all your energy to be successful.

Key Takeaways, Mindset Shifts, and What’s Next

Here are the practical takeaways from this week. First, hard money lending can deliver steady, meaningful returns with less operational chaos. When multiple closings align, the compounding feels excellent. However, you only feel that benefit if your systems are tight. Term sheets, valuation checks, document requests, and funding flows must be crisp.

Second, the headline number in flipping can disguise the reality of time. Big checks often require months of work and risk management. By contrast, lending can distribute earnings in a way that feels calmer and more predictable. The returns aren’t guaranteed, and diligence is crucial. Nevertheless, the stress profile is different, and for us, it’s better.

… lending can distribute earnings in a way that feels calmer and more predictable.

Third, evaluate your phase of life. What served you five years ago may not serve you now. If your goals include consistent income, fewer fires, and a sustainable schedule, lending might fit. Alternatively, if you crave hands-on renovation and thrive on constant action, flipping may still be right. There isn’t a single correct answer. There is a best answer for you.

Fourth, build margin into your underwriting. Low LTV, conservative valuations, and clear exit strategies matter. Additionally, know your borrowers. Track their plan, their timeline, and their resources. Good relationships and honest communication solve problems before they become crises. In hard money lending, the upfront work saves the back-end headaches.

Fifth, keep learning. The Boise barndominium deal forced us to sharpen our understanding of non-recourse structures and collateral security. As markets shift, so do best practices. Consequently, staying curious pays off. The more you understand, the stronger your structures become.

Sixth, remember the human side. The nonprofit’s mission helps people build capabilities that last. We love seeing projects that create value beyond one transaction. Progress feels better when it helps others move forward. Purpose and profit can align.

Finally, this week reaffirmed our direction. $52,000 arrived from doing work that matches our skills and our season. The result felt earned, steady, and sane. We didn’t have to leave the home office to make it happen. That’s a win in multiple dimensions.

We didn’t have to leave the home office to make it happen. That’s a win in multiple dimensions.

Alright, Quin and I also just returned from the American Lending Conference. Next week, we’ll share our takeaways. Expect insights on deal flow, capital sources, underwriting trends, and what we’ll do differently going forward. We’ll keep it straightforward and useful. No hype—just lessons you can apply.

In summary, flipping taught us discipline, systems, and grit. Lending taught us alignment, structure, and peace. Both paths can work. For us, hard money lending delivers the returns we want with the life we want. And after a week like this, that choice feels even clearer.

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