WHAT INVESTMENT PAYS YOU MONTHLY?

When you play in the NFL, everyone wants to show you a deal. I took those meetings for years.

The growth side of a portfolio is crowded. The income side is empty.

I invested in more than fifty syndications and private deals and built my own rental portfolio one house at a time. I was not a passive listener. I was writing checks and watching what happened after.

Almost none of it paid me anything I could live on, on a schedule I could plan around.

Every pitch was about what my money would be worth in year seven. My question was what it would pay me next month, because an NFL paycheck has an expiration date, and I knew mine was coming.

Private equity, venture, syndications, those are real growth engines, and most portfolios should own some. But they lock capital up for five to ten years with very little cash flow early. The stock market is the opposite trade: daily liquidity, and volatility that makes monthly planning almost impossible.

The growth side has a hundred good options. The income side has almost none.

So I built one.

What I Built

In 2020 I started lending my own money against Arizona real estate. Six years later that is 85 loans and more than $34 million, almost all single-family, almost all here.

People have been asking to participate for three years. My answer was a private conversation, one at a time. That works at ten people. It does not work at a hundred.

42 Income Fund LLC is open. www.42incomefund.com

The Fund buys into the same loans 42 Solutions makes, by true sale, at the same note rate. No markup in between. Borrowers pay interest monthly. That interest goes to investors first, as a 10% targeted preferred return. Whatever is left is what my company earns.

Whatever is left. There is no management fee, and the Fund's operating costs come off my side, not yours.

Targeted is the honest word there. A preferred return is a priority, not a promise.

And I will tell you what I tell everyone on the phone: I would not put all of my money here, or all of my money anywhere. Growth assets and this do different jobs, and a real portfolio needs both. What I want is for people to see the value of dedicating a portion to something that actually pays them.

This is not a side project for me. It is my own largest income investment, and investors are in the same loans I am in.

The Fund is offered under Rule 506(c), to verified accredited investors only. The full letter, the overview, and the terms are at investwith42.com. Request the overview, read it, and if you want to talk, I do a 30-minute call with everyone.

One question this week: what percentage of your portfolio pays you something this month? Not what it might be worth someday. This month. Reply with the number. I am curious what people find.

P.S. The thing I would want to be judged on is not the target. It is that I eat my own cooking, every month, out of the same loans.

This communication is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Securities are offered only to verified accredited investors pursuant to formal offering documents, including a Private Placement Memorandum, under SEC Regulation D, Rule 506(c), which control in all respects. The preferred return is a targeted, priority return only; it is not guaranteed, and no return of capital is guaranteed. All investments involve risk, including loss of principal. Lending figures reflect the activity of 42 Solutions, LLC, not the performance of 42 Income Fund LLC; past performance is not indicative of future results. 42 Income Fund LLC is managed by 42 Capital Management LLC and its loans are serviced by 42 Solutions, LLC, affiliated entities under common control. 42 Solutions, LLC · NMLS #2677176 · BK-2006250.

Newsletter Edition #212