ARIZONA AGENTS ARE NOW RAISING MONEY FOR FLIPPERS.

Scroll any Arizona developer’s or flipper’s feed this month and you will see something

that barely existed a few years ago: they are openly telling you they are taking on investors.

FROM DEVON’S DESK

This is not subtle anymore.

Developers and fix-and-flippers are posting on their feeds and stories that they are raising capital for their next projects. Agents are standing in those operators’ finished houses, filming walkthroughs, and ending the video with some version of: if you are interested in investing with this group, reach out to me.

That is not an agent showing off a listing. That is an agent raising money on an operator’s behalf, out loud, on camera, to anyone scrolling.

There is no grey area left. Raising private capital in public is now a normal part of how operators in this market grow.

I am for all of it. I believe private le

nders like us and private investors putting equity directly into projects are the future of how real estate gets built. Here is why:

Speed. Decisions in days, not committee cycles. Structure that fits the project, terms built around the actual deal and not a box designed for a different kind of loan. Fewer layers, capital goes from the person providing it straight to the project. Local judgment, the people funding the deal can drive to it, walk it, and know the street. Direct investment in real assets. Aligned incentives, when the project wins the lender and the investor win. And it funds what banks will not: heavy rehabs, ground-up builds, footprint expansions, and operators whose income does not fit a W-2 box.

If you are an operator who wants to grow, use these tools. Put a private lender on the bulk of the project and bring in investors where they fit. That is how the best operators in this state are building right now, and it is why I built 42 Solutions.

THE ONE THING TO WATCH

Here is the part that comes with the freedom.

When capital came mostly from banks, the slow approvals and the paperwork had a side effect: they forced operators to stop and look at their whole business before taking on more. Private capital moves faster and asks for less, which is the whole point. It also means the pause is gone, unless you build it in yourself.

And the temptation to skip it is real.

A few projects go well. You post that you are taking on investors, and people actually reply. An agent offers to film your next build. The DMs start coming in. Suddenly money is easy to find, and everything in you says scale.

Access to capital is not the same thing as capacity.

Capacity is cash, team, systems, and time. It is whether your business can absorb three projects running long at the same time without one of them dragging the others down. More money does not create capacity. It only tests it faster.

I learned a version of this in the NFL. The guys who lasted ten years were rarely the most talented guys in the room. They were the ones who knew exactly what their body could handle and did not take on more than it could carry. Talent got you on the field.

Managing your load kept you there.

Business is the same. Scale at the speed of your capacity, not your capital.

Planning your next project? Send it over. We will structure it so our capital carries the deal and your cash stays in reserve. borrowfrom42.com

ONE THING TO STEAL

Before you say yes to the next deal, answer these honestly for your own business:

• What is my total debt across every project, compared to what everything will be worth finished? One aggressive deal can hide inside a portfolio. Five of them cannot.

• If nothing sold for six months, could I make every payment on every project? Reserves are the shock absorber. Double them before you scale.

• Can I list every obligation from memory? Lenders, investors, preferred returns, profit splits, personal guarantees. If not, you are carrying more than you think.

• How many of my projects are trying to sell in the same month? Three listings in the same ZIP at the same time are competing with each other.

• Does my team have room for one more? How many projects per person running the jobs, and who steps in if that person is out?

If all five feel solid, go take the next one on with confidence. If one feels shaky, fix that first. The next deal will still be there.

If you flip or build: use private capital to grow, and let your reserves and your team set the pace. If you are an agent: raising money for an operator is a bigger job than selling their house. Know the operator well before your face is on the pitch, and make sure you understand the rules for raising capital before you ask anyone to invest. If you are in title or escrow: the clean closings are the ones where every lender and investor knew about each other from day one. If you are a contractor or sub: an operator growing at the pace of their cash and their crew is the one who pays on time all year.

One question I would actually like answered: if a new deal landed on your desk tomorrow, do you have the cash, the crew, and the time to take it on, or just the capital?

Reply to this email, submit at weare42solutions.com, or call or text 602-501-1174. We lend our own money, so when we say yes, we close.

P.S. Scale at the speed of your capacity, not your capital. When you are ready for the next one, send it over and we will build the structure so your reserves stay intact. Send your next deal at borrowfrom42.com. Know an operator taking on investors right now? Forward this to them.

Newsletter Edition #38