Why Lending Beats Flipping & How to Do It the Right Way with Rich Lennon

In this episode, I’m joined by one of my favorite humans and my very first Simple CFO client—Rich Lennon. Rich has done it all: from flipping houses to owning rentals, and now, he’s built a life of freedom through private lending. We unpack how he made the shift from operator to lender, what a “fractional wrap” is, and why lending has become his favorite seat at the table.

Whether you’re deep in real estate or just starting to stack cash, this episode gives you a blueprint for transitioning into lending the right way. Rich breaks down the systems, the mindset, and the returns—and shares how you can lend with both profitability and integrity.

Episode Timeline

[0:00] – Introduction

[2:15] – My early days working for Rich and how he became Simple CFO’s first client

[5:00] – How Rich discovered $800K hiding in his books and started thinking differently

[6:00] – Reaching financial freedom during COVID—and shutting everything down

[7:00] – Falling in love with lending: high returns, minimal hours, and maximum freedom

[9:00] – From flips to funding: Why lending is easier and less risky than operating

[12:00] – What a fractional wrap is and how Rich earns 30-50% ROI with lower risk

[14:30] – How to structure lending deals with skin in the game and built-in protection

[17:00] – Why you only need to do 2-4 deals per year to create serious passive income

[19:30] – Can you scale lending into a real business? Rich explains how he did it

[21:00] – Why staying local is crucial for successful private lending

[23:00] – How to underwrite a deal (even if you’ve never flipped a house)

[25:00] – The moral code of lending: returns are great—but do it the right way

[27:00] – How to get in touch with Rich and learn his full lending system

5 Key Takeaways

1. Lending can be simpler and safer than flipping — if you structure your deals correctly and underwrite with discipline.
2. Fractional wraps allow you to combine your money with others, lend it at a higher rate, and pocket the spread—earning 30–50% ROI.
3. Having skin in the game protects both you and your lender. Don’t cut corners on underwriting or paperwork.
4. Stay local so you can personally inspect properties and build trust with borrowers.
5. Integrity matters—Rich teaches not just how to make money but how to do it in a way that serves everyone involved.

Links & Resources

• Text Rich Lennon directly at (804) 601-0330 to learn more about his training on fractional wraps and private lending.
• Need to stack cash first? Book a free financial clarity call at simplecfo.com

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