42 Income Fund review: investor-friendly terms from a young Arizona lender

What the fund is

The 42 Income Fund LLC is a Phoenix-based private lending fund for verified accredited investors. It buys shares of short-term, first-position loans that its affiliate, 42 Solutions, makes to real estate investors in Arizona, mainly for fix-and-flip projects and, more recently, new construction and bridge loans. The fund aims to pay investors monthly income with a 10% annual target.

The fund is managed by 42 Capital Management LLC. Its loans are originated and serviced by 42 Solutions, LLC, a licensed Arizona mortgage banker (NMLS #2677176, license BK-2006250). Both are under common control by founder Devon Kennard.

As a private placement, the fund’s full terms and financial statements are provided to investors in its offering documents. This review lists what to request rather than treating unpublished detail as a weakness.

Devon Kennard

Devon Kennard grew up in Phoenix, played at USC, where he earned bachelor’s and master’s degrees, and spent nine seasons as an NFL linebacker after the New York Giants drafted him in 2014; he also played for the Detroit Lions and Arizona Cardinals. He began investing in real estate in 2014, starting with a turnkey rental in Indiana, built a rental portfolio during his playing career, invested in syndications, and wrote the book It All Adds Up.

After retiring, he launched 42 Solutions in 2024, named for his jersey number, and later the 42 Income Fund. He runs the business with his wife, Camille, a Phoenix-area realtor, and personally makes lending decisions, which borrowers cite as an advantage.

How the structure works

The fund’s terms, as described on its website, are notably aligned with investors:

• No markup: the fund buys loan shares by true sale at the full interest rate 42 Solutions earns on its own share, with no spread taken in between.
• No management fee: 42 Capital Management charges the fund no management fee.
• Expenses covered: 42 Solutions pays the fund’s operating costs, including tax preparation, K-1s, administration, accounting and securities filings.
• Investors first: 42 Solutions earns nothing from the fund until investors’ 10% target is met, and keeps whatever is left above that.
• Skin in the game: 42 Solutions has its own capital in the same loans alongside the fund.

The website also discloses that borrower-paid loan fees, such as origination fees, are charged and kept by 42 Solutions and are not fund income. That is common in lending funds, and disclosing it this clearly is a positive.

The lending

42 Solutions lends in the Greater Phoenix area. Its published criteria for fix-and-flip loans are up to 70% of the property’s after-repair value, funding up to 90% of the purchase price and 100% of renovation costs. That means borrowers may put little cash into the purchase, so the 70% after-repair value limit is the main protection.

Kennard reported in 2026 that the average loan size rose from about $470,000 to $725,000 in a single quarter as experienced operators moved to higher-priced properties, and that 42 Solutions funded its first ground-up new construction loan, at $1.65 million. He has also said the company had more than $5 million ready to deploy.

Track record

As of August 2026, Kennard reports that 42 Solutions has funded more than 88 loans and lent more than $36 million; another page on his site cites more than $33 million, likely reflecting an earlier date. That is a meaningful volume for a two-year-old lender, but it has not yet been tested through a housing downturn or a period of rising defaults.

Before lending, Kennard built a personal rental portfolio. Descriptions of its size vary: one profile says over 20 rental properties, while a 2026 article headline describes a 50-rental portfolio.

Claims versus records

Key risks

• Short history: the lender began in 2024, and its loans have not been tested in a downturn.
• Phoenix concentration: results depend heavily on one housing market.
• Moving upmarket: larger loans and new construction carry more risk per loan and less diversification.
• Borrower leverage: funding up to 90% of purchase and 100% of rehab leaves borrowers with little cash in the deal.
• Key person: underwriting decisions rest heavily on Kennard.
• Related parties: the manager, lender and servicer are all under common control, so investors rely on the same group for loan selection, servicing and workouts.

What investors say

The fund is new, and we found no investor reviews yet on Invest Clearly, BiggerPockets or similar platforms. We also found no complaints, lawsuits or regulatory actions involving the 42 Income Fund, 42 Solutions or Devon Kennard. His lending software provider and real estate investor associations have profiled him positively, and he publishes regular, detailed market commentary.

Strengths and concerns

Strengths

• No management fee and sponsor-paid fund expenses.
• Sponsor paid only after investors reach 10%.
• Sponsor capital invested in the same loans.
• Licensed, state-regulated lender with clear affiliate disclosures.
• First-position loans with a 70% after-repair value limit.

Concerns

• A lending record of about two years.
• Concentration in the Phoenix market.
• Growing loan sizes and new construction exposure.
• High borrower leverage on purchases.
• Dependence on one key decision-maker.

Who it suits

Questions to ask before investing

1. What are the redemption terms and any lock-up period?
2. How many loans has 42 Solutions had go late, into default or foreclosure, and what were the losses?
3. What share of the fund is in new construction or loans above $1 million?
4. How much of 42 Solutions’ own capital is in the loans the fund holds?
5. Is the fund’s financial reporting reviewed or audited by an outside accountant?
6. Who makes credit decisions if Devon Kennard is unavailable?

What would change our verdict

• Several more years of lending, including through a softer housing market;
• published default and loss data;
• broader diversification across loans and markets;
• independent investor reviews.

What to request in the offering documents

• The private placement memorandum and operating agreement.
• Loan-level data, including delinquencies and losses.
• Redemption and liquidity terms.
• The fund’s financial statements and accountant.
• Details of how loan shares are allocated between the fund and 42 Solutions.

Verdict history

October 15, 2026 · Initial review · Mixed (6.9)

Sources

• 42 Income Fund
• Devon Kennard (devonkennard.com)
• About Devon Kennard (devonkennard.com)
• Our average loan size jumped 54% in one quarter (devonkennard.com)
• 42 Solutions blog (42 Solutions)
• Tackling private lending: Devon Kennard’s next big play (Baseline)
• Designing your game plan for financial success with Devon Kennard (Zen and the Art of Real Estate Investing podcast)
• Devon Kennard, the NFL linebacker who built a 50 rental portfolio (Boston REIA)
• Devon Kennard (Wikipedia)