Why Lending Is One of My Favorite Investments Right Now
Featuring Andrew Boccia, Founder of Central Lending
When people ask me what one of my favorite investments has been over the last few years, they expect to hear about real estate or maybe infinite banking. But lately, one of the most exciting and overlooked investments I’ve come across is… lending.
This week on the Money Ripples podcast, I sat down with Andrew Boccia, founder of Central Lending—a company we’ve been working with and promoting for several months now. And if you’ve ever wondered how to generate consistent, passive income while keeping risk surprisingly low, you’re going to want to lean into this conversation.
Who Is Andrew Boccia?
Before founding Central Lending, Andrew’s path was anything but ordinary. He grew up in Detroit, the son of two public school teachers, and got into real estate over 11 years ago. But what makes his background especially interesting? He was a professional poker player for eight years.
That poker background gave him an edge when it came to managing risk, reading people, and calculating odds—skills that now directly apply to how he evaluates lending opportunities. He began investing in real estate with his own capital and eventually launched a fund so others could co-invest. Over the years, he’s completed over 1,500 real estate deals, including over 1,200 loans through Central Lending.
Why Lending Beats Flipping (For Many Investors)
Lending has become a core part of Andrew’s business model—and for good reason. He found that flipping properties, while potentially profitable, was time-intensive and risky. On the other hand, lending offered:
- Consistent returns regardless of market fluctuations
- Less operational stress (no tile choices, no contractor headaches)
- Fewer moving parts
- A better return on time
The key advantage? As a lender, your returns are only threatened if the market drops significantly—typically more than your loan-to-value buffer.
Default Rate: Less Than 2% Over 800 Completed Loans
This is the part that raised my eyebrows: out of over 800 completed loans through Central Lending, only about 15 resulted in either a loss or a situation where they had to take back a property (REO). That’s less than a 2% failure rate.
Even more impressive? A few of those so-called “bad deals” still made a profit thanks to strategic recovery and resale.
Compare that to other funds and lenders where 10–15% default rates are not uncommon, and it’s clear Andrew and his team are doing something differently—and smarter.
The Secret: Smart Due Diligence and Fraud Prevention
So how do they keep risk so low?
Andrew attributes much of their success to obsessive due diligence and rigorous fraud detection. He spends significant time uncovering red flags most other lenders miss, especially mortgage fraud—something he says is the #1 risk in the industry today.
Due diligence includes:
- Credit reports and background checks
- Personal guarantee verification
- Bank statements and entity documentation
- Property value analysis with third-party appraisals and QC reviews
- Deep dive into local market experience and project feasibility
He jokes that if he doesn’t catch mortgage fraud at least once a quarter, he assumes he missed something. That level of attention makes a huge difference.
Loan-to-Value vs. Loan-to-Cost: The Four Metrics
One of the smartest strategies Andrew shared was how his team evaluates deals using four leverage ratios:
- Loan to Purchase Price – How much skin in the game does the borrower have on day one?
- Loan to Final Cost – How much are both borrower and lender in for after rehab?
- Loan to Value (LTV) – What’s the current loan amount compared to the property’s current value?
- Loan to ARV (After Repair Value) – How does the final loan stack up against the expected value post-renovation?
All four need to be in check. It’s not just about how valuable the property is, but how much actual money the borrower has at risk.
The Two Investment Options at Central Lending
One of the reasons I’ve recommended Central Lending to clients is their flexibility. They offer two main ways to invest:
- Invest in the Lending FundDiversify across dozens of loans with minimal effort. Andrew and his team manage everything. It’s the most hands-off and passive option.
- Buy Individual NotesIf you want more control, you can select from 100+ available notes, filter by criteria (location, borrower credit score, LTV, etc.), and make your own picks. You get full transparency and can review every piece of due diligence documentation before investing.
Why This Matters Right Now
With an unpredictable stock market and growing concerns about inflation, many investors are looking for alternatives that offer stable income and lower volatility. Lending, when done right, fits the bill beautifully.
It’s not without risk, but when you’re working with a company that has experience, systems, and a track record like Central Lending, the odds are heavily in your favor.
What’s Andrew’s Ripple Effect?
At the end of the episode, I asked Andrew what ripple effect he hopes to create. His answer was profound:
“We’ve done over 1,500 deals. That’s touched thousands of contractors, subs, realtors, and communities. On top of that, I’m building a company where my team can build real careers and our investors can build real wealth. That’s the ripple effect.”
That’s what it’s all about.
Final Thoughts: Ready to Lend Like a Pro?
If you’re looking for a way to generate steady, passive income while reducing risk, lending might be the answer you’ve been searching for. And if you want to explore this world without having to vet deals on your own, I highly recommend checking out Central Lending.
👉 Visit CentralLending.com to learn more.