This is where most people get it wrong.
They think “passive” means pooled.
Derek doesn’t pool money.
One investor.
One property.
First position only.
Joe puts up 80k.
Joe gets the promissory note.
Joe gets the first position mortgage.
Joe gets a lender title policy.
Clean. Simple. Protected.
Yes, Derek adds a second lien later.
Higher rate. Higher price. Different buyer.
But Joe stays first in line.
Always.
And here’s the part that actually matters.
The investor doesn’t get a call when a tenant misses.
The payment shows up on the first either way.
That’s the company taking operational risk… not the lender.
Structure beats promises.
Priority beats projections.
This is how you build trust at scale.