---
title: The Best Debt on Planet Earth | The Leverage Letter 002
description: "Why single family should be the foundation of your capital stack: 30-year, fixed, fully amortizing agency debt — no balloon, no rate reset, nobody who can call it. Billion-dollar funds can't borrow on those terms. You can."
---

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[The Leverage Letter](https://winwithwolff.com/letter?hsLang=en) · Issue 002

# The best debt on planet Earth.

July 28, 2026 · by [Wyatt Wolff](https://winwithwolff.com/about?hsLang=en) · as sent to subscribers

## THE LEVER

"If everyone sells the same money, why did my local bank say no?"

I got this question after [last week's letter](https://winwithwolff.com/letter/structure-beats-rate?hsLang=en). Saw it on the way to the gym and spent the whole workout thinking it through. Great Back Day, by the way.

Short answer: local banks lend their own money, off their own balance sheet, with their own concentration limits and overlays. "My bank did my last four loans and just told me no more." (That would be concentration, by the way.) They didn't reject you. They simply ran out of runway.

But that question brings us right to the feet of something bigger, a strategic bedrock: agency money doesn't run out of room the same way. And that's exactly why single family should be the foundation of your capital stack.

When you finance a single family rental with agency-backed debt, you're getting the only loan in world finance available to a regular person that runs 30 years, fixed, fully amortizing, with no balloon, no rate reset, and nobody who can call it. Billion-dollar funds cannot borrow on those terms. You can. The government-backed machine behind SFR paper is the deepest pool of capital on the planet, which is why it's also the cheapest debt you will ever hold. Lock it once, and your payment stays flat for three decades while rents do what rents do. DSCR fits this description as well, by the way.

Everything else in the game moves. Commercial debt balloons or reprices. Credit lines get called. Hard money matures in 6-12 months. These belong in the stack, but higher up. The foundation is the debt that cannot move underneath you.

**So this week, count your doors:** how many sit on agency paper versus everything else (including paid off)? If you have doors left unlevered, that's foundation you haven't poured yet. View it as a savings account for the larger projects you want to fund.

## THE W

A hard money quote went out in Charlotte this week: 100% of the purchase, 100% of the renovation. Same structure I mentioned last week. A great deal that would have otherwise required $30-40k out of pocket.

## THE L

I have noticed a LOT of lag in third parties recently, even from big firms. An AMC and an attorney's office (separate deals) each hung up closings by more than a day. These are large, regional entities. WILD. The lesson: your closing date is only as strong as the slowest third party on the file. Build in buffer.

## ON THE RADAR

- I get asked a lot where rates are headed. If I could accurately predict that, I would have a very large boat off the coast of a very small tropical country. What I do watch is the spread between DSCR/Non-QM pricing and the regular market. That spread has stayed wide. There is a LOT of demand on the secondary market for DSCR. Translation: investors (you) are buying great deals and crushing it. Keep going.
- One thing I have been obsessed with recently: how AI can make this business better and amplify the person-to-person side of it. I have been using Claude a lot and have been very impressed. Full writeup soon.
- I am working with a few firms on marketing in my local metro for off market properties. After working with some lenders and industry insiders, I built a strategy that I think will do very well. More on that soon.

Cheers,  
Wyatt

*The Leverage Letter | When you know the game, nobody can play you.*

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Deal details reflect real client files, anonymized; not a quote or a commitment to lend. All loans subject to credit approval and underwriting. Next in the archive: [stop paying principal](https://winwithwolff.com/letter/stop-paying-principal?hsLang=en).

**Win with Wolff** · Wyatt Wolff, NMLS #2264646 · Kinfolk Home Loans, NMLS #2336233 · ⌂ Equal Housing Opportunity

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