Want Safer Passive Income? Here’s Why I’m Investing Like the Bank

If you’ve been feeling uneasy about where to put your money right now, you’re not alone.

The market’s been volatile. Syndications have taken hits. Real estate isn’t the sure bet it used to be. And let’s be honest stock market “diversification” isn’t cutting it for those of us who want true financial freedom.

That’s why, in this season, I’m shifting more of my own capital into something most people never consider…

Debt investing.

It might sound counterintuitive. We’re taught to avoid debt. But here’s what the wealthy understand:

“He who holds the debt holds the power.”

And this week on the Money Ripples Podcast, I brought on Heather Dreves from Central Lending to explain why investing like the bank might be one of the smartest and most stable wealth strategies available today.

What Is Debt Investing?

Let’s break it down. Debt investing means you’re not buying the property you’re funding the loan behind it. You’re acting like the bank.

Just like your mortgage lender gets paid whether your home goes up in value or not, you earn predictable income whether the real estate market booms or dips.

You’re not gambling on appreciation.

You’re not waiting 5 years for an exit.

You’re getting monthly cashflow secured by a lien on real property.

Debt Gets Paid First

Here’s the thing that really flipped the switch for me:

In every real estate deal, debt investors get paid first, equity investors get paid last.

It doesn’t matter if you “own” the property. If it underperforms or gets sold in a downturn the lender gets their money first. Always.

I’ve seen deals where equity investors walked away with nothing. Meanwhile, the debt holders were whole. That alone should tell you where the risk really lies.

Why Heather Dreves and Central Lending Caught My Attention

I’ve seen a lot of private lenders. What impressed me about Heather and her team at Central Lending was the combination of:

✅ Extremely conservative underwriting

✅ First lien positions only

✅ Low default rate (just 7 foreclosures out of 1,500+ loans)

✅ 30% equity cushion in every deal

✅ Double-digit returns for investors

✅ Options for both accredited and non-accredited investors

They’re not just selling high-yield notes. They’re actually protecting capital, first and foremost.

Plus, Heather’s team stays involved. If a borrower stops paying, they step in and handle the servicing, communication, and even foreclosure support. You don’t have to be a legal ninja to invest in this space. You just need the right team backing you up.

What About Non-Accredited Investors?

One of the most exciting takeaways from this episode is that you don’t have to be ultra-wealthy to invest in debt.

Central Lending offers:

• Promissory Notes starting around $40–50K (must buy full notes)

• Debt Funds for accredited investors with minimums starting at $50K

The notes are great if you want to be more hands-on. You get a steady stream of interest income and own the note. If something goes wrong, the property could become yours—and in many cases, that’s actually a win.

The fund, on the other hand, gives you diversification across hundreds of loans. It’s more set-it-and-forget-it. Plus, you can reinvest the returns automatically and compound your growth over time.

Real Risk Management, Not Just Marketing Hype

We also talked about:

• Why Heather’s firm never fronts rehab money—they only reimburse after verified work is completed

• How to protect yourself from borrowers defaulting (hint: it’s about equity and skin in the game)

• Why LTV (loan-to-value) matters more than the interest rate

• The power of being in control without owning the asset

• And why even in a worst-case scenario, debt investors still come out on top

Final Thoughts: What Kind of Investor Are You?

If you’ve been feeling burned by equity deals or just looking for a smarter way to earn passive income, this could be your pivot point.

Whether you’re:

• Sitting on a 401(k) rollover or practice sale

• Wanting consistent monthly income

• Or just looking to diversify beyond stocks and rentals

Debt investing might be your next best move.

I say this as someone who’s been in the trenches. I’ve built wealth, lost it, and rebuilt again. I’ve seen strategies that look good on paper and collapse in practice.

But when you invest like the bank, you start to understand what true security and true leverage really look like.