Private lending is a powerful tool in the real estate investor’s arsenal. It allows both novice and seasoned investors to scale their portfolios by attracting funding without the traditional hassle of convincing lenders. In the popular podcast episode of “Raising Private Money,” Jay Conner and Ruben Izgelov dive deep into this topic, sharing invaluable insights and strategies for leveraging private money to build a thriving real estate business.
The Power of Networking: Starting Small to Raise Big
Ruben Izgelov, who has raised over $50,000,000 in private money, reveals a simple yet effective start—leveraging your immediate network. Friends and family are often your first potential investors, as their trust and familiarity with you create a solid foundation for initial funding. As Ruben mentions, trust must be coupled with a demonstration of your expertise and experience. The widespread use of social media today makes it relatively simple to showcase what you do and how well you do it. So, his first piece of advice to aspiring real estate investors is to ensure everyone in their social circle knows they’re in the real estate business and understands their capabilities.
Leveraging Social Media: Building a Consistent Digital Presence
In today’s digital age, social media provides an invaluable platform for sharing your real estate journey and drawing potential investors. Ruben emphasizes the importance of consistency in posting about your ongoing projects. From Instagram and Facebook stories to LinkedIn and even TikTok updates, the continuous flow of relevant content engages and informs your audience.
A fascinating tip Ruben offers is creating videos and images that demonstrate your work’s progress—both completed deals and those you’ve chosen to walk away from. This helps potential investors understand your thoroughness and decision-making process, enhancing their confidence in you. He suggests starting simple and scaling up; even the most basic social media posts can grow into comprehensive marketing strategies over time.
Creating Impactful Investor Decks: Confidence in Presentation
A lacking or overcomplicated investor deck can be detrimental. Ruben advises striking a balance; preparing just enough to showcase important details without overwhelming your audience. Investor decks should be straightforward, highlighting key property info, planned strategies, and anticipated returns. He suggests a landscape where real estate investors should be constantly learning and evolving. By keeping your pitches clear and straightforward, you build trust and show potential investors that you know your business inside out.
States Capital: A Refuge for Passive Investors
States Capital, Ruben’s private debt fund, provides an enticing entry point for accredited investors looking for real estate opportunities without the intricacies of ownership. As Ruben explains, States Capital focuses on attracting passive investors by offering them safer returns, given that they sit in the most secure part of the capital stack as debt investors rather than equity investors.
The fund is structured to support both short-term and long-term goals, providing fluidity and less lock-up compared to traditional syndications. This setup attracts those who want to earn passive income without being directly involved in every decision or deal negotiation associated with property ownership.
We Lend: Speed and Efficiency in Every Transaction
The service difference is what sets Ruben’s firms apart. We Lend, the originating arm of States Capital, specializes in providing fast, efficient loans for real estate investors. Speed is of the essence in property deals, and Ruben boasts turnaround times ranging from 3-7 business days, with existing clients sometimes experiencing funding within 24-36 hours.
Their approach stands out by focusing on the asset rather than exhaustive borrower vetting. No tax returns, no bank statements, just a clear, fair assessment of the property’s potential and the investor’s experience. This asset-focused lending, coupled with their speed, attracts experienced real estate operators drawn to We Lend’s efficiency and reliability.
Lessons Learned: Continuous Growth and Adaptation
One salient point Ruben makes is the importance of continuous learning and adaptation. No two deals are the same. By constantly putting out feelers and staying engaged with potential investors, you can refine your pitch, adapt your strategy, and ensure your investing approach remains relevant and compelling. Even after raising substantial funds, Ruben emphasizes that the journey never ends—your company grows, the deals get bigger, and so do your capital needs.
Conclusion
Private lending is a dynamic and powerful way to expand your real estate portfolio. By leveraging your immediate network, maintaining a consistent social media presence, preparing solid yet concise investor decks, and partnering with forward-thinking companies like States Capital and We Lend, you can set yourself up for exponential growth. The insights shared by Ruben Izgelov and Jay Conner in this podcast episode offer a robust foundation for anyone looking to excel in real estate investing through private money.
Whether you’re a newbie eager to dive in or a seasoned investor looking for advanced strategies, these practical tips and real-world examples will help you harness the full potential of private lending.
10 Discussion Questions from this Episode:
- Understanding the Basics: What are the fundamental differences between raising capital from private investors versus borrowing from traditional banks as mentioned by Ruben Izgelov?
- First Steps in Raising Money: Ruben emphasizes starting with friends and family when raising initial capital. Do you agree with this approach, and why or why not?
- The Role of Social Media: How can leveraging social media platforms like Instagram, LinkedIn, and WhatsApp help in raising capital more effectively for real estate investments?
- Storytelling in Investment: Jay and Ruben discuss the importance of telling a story through social media posts. How can real estate investors craft compelling stories to attract potential investors?
- Learning from Failures: Ruben mentions the importance of discussing deals that weren’t pursued. How can sharing failures or missed opportunities enhance credibility with investors?
- Speed of Execution: Ruben highlights the importance of speed in securing deals. Why is the ability to close quickly so critical in real estate investing, and how do We Lend facilitate this?
- Investor Deck Essentials: What are the key components that should be included in an investor deck or one-pager for real estate deals?
- Scaling with Preparedness: Ruben talks about balancing between being under-prepared and over-prepared. How can new investors find this balance, and what preparation strategy would you recommend?
- Understanding States Capital: How does States Capital provide a unique investment opportunity for accredited investors, and what are the benefits and risks associated with investing in a private debt fund?
- Funding Nuances: What specific advantages did Ruben and Jay highlight about using a private lender like We Lend for real estate investors, and how do these advantages compare with other sources of funding?
Fun facts that were revealed in the episode:
- Ruben has raised over $50 million in private money.
- WLend can close deals in as little as 24 to 36 hours for returning borrowers.
- Ruben’s first social media post for WLend was very basic but allowed him to build his marketing incrementally over time.
Timestamps:
00:01 Raising Private Money Without Asking For It.
03:41 Real estate entrepreneur showcasing expertise via social media.
09:12 Create concise, detailed investor decks; avoid over-preparation.
10:34 Would you be interested in a deal?
14:23 Debt fundraising from accredited investors.
19:50 Private lenders simplify funding with fewer investors.
21:57 Experienced operators favored despite credit; flexible lending.
23:58 Hard money lenders provide checks and balances.
From Loans to Profits: Real Estate Growth with Ruben Izgelov’s Private Lending Strategies
Jay Conner [00:00:00]:
Welcome to another amazing episode of Raising Private Money. I’m Jay Conner, your host, and this is the show where we talk about attracting funding for your deals without ever having to ask for money. Well, my guest that we’ve got on the show today, I’ll tell you what, he knows a lot about raising private money. He’s raised over $50,000,000 in private money. Well, he’s been in the industry for more than 10 years. He’s been acquiring, flipping, developing, and financing over $500,000,000 in real estate. Well, he’s the co-founder and managing partner of States Capital and also a nationwide lender called We Lend. So we’ll be diving into that.
Jay Conner [00:00:45]:
Well, first of all, real quick, who or what is the state capital? Well, it’s a private debt fund focused on making short-term bridge loans secured by first lanes on real estate. And State Capital allows accredited investors to invest in real estate without the risk of owning real estate. And then his other company, We Lend, it’s a nationwide private lender focused on providing quick and low-cost capital for investment properties. With that, in just a moment, I’m so excited, that you’re gonna be meeting my special guest, Ruben Iskallov, right after this.
Narrator [00:01:22]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:01:49]:
Well, hello there, Ruben. Welcome to the show.
Ruben Izgelov [00:01:53]:
Thank you so much for having me, Jay. This is an absolute pleasure.
Jay Conner [00:01:57]:
Absolutely. Well, you’ve got all this experience in raising private money for real estate deals. Can’t wait to dive in. And so with that, you got 2 companies, States Capital, you got We Land. I want us to start our conversation for the audience, for the segment of the audience that’s listening to this show, who are real estate investors who are looking to start raising capital for their real estate deals, or maybe they are seasoned real estate investor and now they just really want to grow, grow their business. So you’ve raised over $50,000,000 in private lending. When you started, how did you go about attracting the money? Because if you’ve raised that amount of money, which you have, I know you haven’t been doing much chasing, begging, persuading. You are probably of the same philosophy as a million who is attracting it and not chasing it.
Jay Conner [00:02:50]:
So how did you start?
Ruben Izgelov [00:02:52]:
So I gotta tell you, I mean, the way which I in my opinion, to start in raising money is the people closest to you, the people that have known you for years, for decades, and so on. Those are your friends and your family. Right? The only way that, you know, you can get them to write a check other than the fact that they trust you is to also demonstrate your experience, your wherewithal, and your abilities. So it’s very easy to do in today’s market, in today’s world with social media and technology. You know, today, I pride myself in the fact that every single person that I know knows exactly who I am and what I do for a living. You know, I have a lot of friends that I’ve known for probably since elementary school. And from time to time, I still don’t understand or know what they do. Complete opposite of me.
Ruben Izgelov [00:03:41]:
Everyone knows that I’m a real estate entrepreneur. I buy, sell, flip, and develop, but most importantly, I also lend money through WeLend and States Capital. So everyone around me knows exactly what I do and that if they ever want to invest in real estate, I am their guy. So I think first things first is you got to make sure that people know what they what what you do for a living. In addition to that, you have to demonstrate to them that you know what you’re doing. Outside of the fact that they know what you do, you have to demonstrate to them that you know what you’re doing. So how we do that and we pride ourselves in doing that is through social media. You know, we’re very, very involved on Instagram, on Facebook, on LinkedIn, on even TikTok.
Ruben Izgelov [00:04:22]:
Right? And even on WhatsApp. I think WhatsApp has the option to, post stories. So what we do is make sure that we post the deals that we’ve just recently funded or the deal that we’ve just recently purchased and now we’re flipping and the exit strategies that we’re seeing also with the performance that we’re capturing. So I think that’s really where it all begins.
Jay Conner [00:04:43]:
So I want to dive into that a little bit on how to leverage social media. So when let’s say we have a real estate investor who’s focusing on single-family houses. What advice would you give on how to leverage social media to where it keeps the audience engaged? I mean, it’s one thing to just give facts, but it’s another thing to tell a story. What advice can you share on that?
Ruben Izgelov [00:05:11]:
So we thank God today, Weiland is large enough that we have an entire marketing department that strategizes and puts a plan together, not only every week, every month, semiannual basis, along on an annual basis. That is very important, but that only comes in scale. You gotta get there. Right? But before that, how we did it, and we did it at the most basic level. And then it just kind of compounds, and it grows on top of each other. You lay the foundation, everything grows on top of each other. If you look at one of the first posts that we made about We Land, it was the most simple and basic post. I suggest and recommend that everyone go on our social media platform Instagram.
Ruben Izgelov [00:05:48]:
Our handle is WeLend LLC. You’ll see and just scroll down. You’ll see the first post we ever made. It was so basic versus what we have today. And I tell my marketing team, you never delete that. And the reason why I say that is to encourage people to start with the most basic thing. And as you grow, as your progress progresses, so will your post and so will how you post about it. What we like to do and what I like to pride about is discussing the deals that we’re buying, discussing the deals that we did not buy.
Ruben Izgelov [00:06:18]:
Sometimes that’s more important than the deals that you bought. And the reason why I say that is because then you’re demonstrating to people through the captions of the post. Right? There’s a post. Under the post, there’s a caption. In the caption of the post, I like to do that on LinkedIn. If you guys go out on my LinkedIn, on my page, obviously Ruben Isgalov, you’ll see some of the deals that I discussed that we passed on or some of the deals that we’ve just recently funded, which demonstrates my track of thinking for my investors. Right? They know, alright, this guy crosses every t and dots every I. Is it always perfect? It never is.
Ruben Izgelov [00:06:51]:
Right? Mike Tyson says it best. Everyone has a plan until they get punched in the face. Nevertheless, 9 out of 10 times, we execute exactly what we plan on executing.
Jay Conner [00:07:03]:
So when you are posting, is it videos or is it, images or both?
Ruben Izgelov [00:07:10]:
So, you know, I like to post just images, on my, on my page. But on my story, right, it’s videos. We discuss, you know, mainly the type of deals that we’ve purchased, the type of deals that we’ve executed, the type of deals that our borrowers have purchased. That’s also very important because then it demonstrates exactly what we do throughout the day, showing everyone and letting everyone know exactly who we are.
Jay Conner [00:07:38]:
I love it. So you’ve been raising capital for quite a few years now.
Ruben Izgelov [00:07:45]:
And it never ends. It never ends, Jake.
Jay Conner [00:07:48]:
I know it. I know it.
Ruben Izgelov [00:07:49]:
You know, if you asked me 10 years ago that, you know if I would have raised x amount that we have today, would I be happy? I would say, oh, that would be the end of it for me. This is exactly where that is exactly where I want to land. Guess what? It never ends. It’s never enough because as you raise money, your company grows, you grow, and the deals that you’re making grow, so it’s never enough. Don’t ever think and make the same mistake that I’ve made that I just want to raise this amount and it’ll stop there. No. You gotta keep growing.
Jay Conner [00:08:16]:
Amen, brother. So I want to extract some lessons that you’ve learned along the way from when you started raising capital until where you are now. Any lessons learned or not to do that maybe you’ve done in the past? Anything you’re doing differently today on raising the capital? Any advice you give for someone who’s starting to raise capital, don’t do that, quote, unquote.
Ruben Izgelov [00:08:45]:
I’ll tell you what I think is one of the mistakes that, you know, a lot of new investors have. They don’t prepare enough they over-prepare. Right? It’s never gonna be perfect. Right? What we’ve learned is you need to have the basics when you go to an investor. Right? You need to have the property. I just at the very least. You need to have a good picture of it. You need to have some highlights of the property, and what you’re planning to do with it.
Ruben Izgelov [00:09:12]:
Right? In other words, it’s an investor deck or at the very least, a one-pager. But you have to know the details and specifics of the property of the deal that you’re looking to raise money on. So I think that you know, one, some people don’t do the bare minimum, which is put some type of investor deck or a one-pager together. And the investor decks shouldn’t be long, you know, at most maybe 10 to 20 pages slides long. Or they over-prepare. They over obsess. Right? And they wanna run for perfection. But you know what? Even if you think you’ve reached perfection, it’s still not perfect because you’re gonna learn something from it.
Ruben Izgelov [00:09:45]:
You’re gonna learn that you’ve missed this specific detail, that specific detail. So I think my recommendation is to hit the road running. Don’t delay. Don’t wait. Don’t waste time. And that’s the most important thing, right, is delaying time waiting for the perfect time to raise the money or to for the perfect pitch deck just delays your capital raising. I would also suggest, you know, from time to time, putting feelers out there. Right? While you’re putting this investor deck and you might be shooting for the stars of perfection, start putting feelers out there.
Ruben Izgelov [00:10:18]:
Call your investors that you’re thinking and planning on calling and saying, hey. Look. I got this property on 123 Main Street. I’m thinking of buying it. Again, I’m still doing my due diligence. This is what I think my cash on cash will be. This is what I think our IRR is gonna be. This is what I’m offering you.
Ruben Izgelov [00:10:34]:
If I had a deal of that caliber, would you be interested? Still putting all my due diligence together to send it over to you, and I think in the next couple of days I’ll have it, but I just wanted to get your input on it. And the reason why I do that personally, I suggest people to do that as well, is because it shows the people that you’re raising money from that you’re not just jumping the gun and you are trigger happy. You are doing your due diligence to make sure the deal makes sense before you buy. Now a lot of times, while I’m doing my due diligence, after I put the feelers out there, I didn’t execute the on the deal. And I have investors call me saying, hey. I know you called me about this property address. And most of the time, I give them the address depending on who it is. Sometimes I don’t.
Ruben Izgelov [00:11:12]:
And they ask, are you are you buying on it? I’m interested, and I want to deploy some money. And when you tell them you didn’t execute and the reason why you didn’t execute is because of these reasons and you list them down, they’re gonna say again, oh, wow. This guy knows what he’s doing. We like the way they’re thinking. And that’s the most important thing is just making sure that your thinking is aligned with your investors.
Jay Conner [00:11:33]:
I love it. You know, in my experience, Ruben, there’s been, the worst time to be raising money or trying to attract money is when you need it. When you need it. I mean, I mean, yeah, one of my one of my favorite, sayings is desperation has got a smell to it. Totally. And if you’re coming across desperate, I mean, they’re gonna run. They’re gonna run.
Ruben Izgelov [00:12:03]:
Totally.
Jay Conner [00:12:03]:
And so what I like to do, of course, everything I do is single-family houses, and you’re doing well, share with everybody. What type of properties are you doing that you raise money for?
Ruben Izgelov [00:12:13]:
So, look, I would say a good 95% of my day, if not sometimes even a 100, really goes, towards WLend and States Capital. So WLAN is the originator for States Capital. States Capital is where the investors sit to fund and originate or fund the loans that the originator WLAN is bringing to the table. Essentially, we focus on 1 to 4-unit multifamily and, mixed-use properties throughout the nation. Right? So we’ll finance up to, you know, 85 to 90% of the purchase price. We’ll give the borrower, the sponsor 100% of the construction cost. The construction never comes to the closing table, and a lot of our borrowers don’t like that. Well, the reason why we don’t do that is again we want to make sure that we’re aligned as lenders and as investors along with our borrowers and we want to make sure they always have skimmed the game at acquisition.
Ruben Izgelov [00:13:03]:
So we’ll give them, again, 85 to 90% of the purchase price, a 100% of the construction. The loans are usually made for about 12 months. Most of our borrowers today, are buying properties for value-added reasons. Right? They’re buying physically, and financially distressed properties throughout the nation. They’re bringing some, you know, TLC to it, sometimes even major work, vertical, horizontal extensions, conversions from a single unit to a 10 unit, conversions from a, you know, long stay hotel to a multifamily building, we’ve done that, you know, quite some time, quite a few times. So that’s really what we focus on today. I would say a good portion of our time is dedicated to that.
Jay Conner [00:13:44]:
Excellent. In case somebody’s got to jump off early before we don’t finish the show, I want you to go ahead I want you to go ahead and give out, your website for Weyland, so everyone can not miss out on that. Of course, we’ll have all this in the show notes. But go ahead and give out your We Lend website.
Ruben Izgelov [00:14:04]:
www.WeLendllc.com. You can also visit us on all major social media platforms. The handle is We Lend LLC.
Jay Conner [00:14:12]:
Okay. Wonderful. So let’s move over and let’s talk about state capital, what that is, and dive into that a little bit. So tell us about the state capital.
Ruben Izgelov [00:14:23]:
Sure. So it is a 506 c reg d. Essentially, it’s an exemption through the SEC. It’s a debt fund. We raise money through accredited investors, mainly friends and family, along with our money as well. Principles, myself, along with my partners have personally invested along with our, investors in the by the way, that’s very important. Right? You know, one of the things that we’ve learned is having to raise 100% of the money that you need for the deal without bringing any of your own money doesn’t align your interest with your investors. Most investors, including myself, even when I invest in a deal with some of our borrowers from time to time, never wanna give them 100% financing or 100% of the equity.
Ruben Izgelov [00:15:06]:
We want them to have skin in the game. So we are personally invested in our fund. Essentially, our strategy is to perform for our investors, making sure that they receive passive cash flow while being in the safest part of the capital stack. And what that essentially means, and just to kinda walk you through it, is there are different types of stacks in the capital stack. Right? In other words, you being a lender isn’t the safest part. Now it may not be yielding the greatest and highest rate of return as a deal as you would be in an equity stack. Right? Because as an equity, you have a little bit more risk. You’re exposed to it naturally because of your position.
Ruben Izgelov [00:15:43]:
But it is bringing mid-teen returns today. We’re very proud of that. We’re very happy with that, and so are our investors.
Jay Conner [00:15:51]:
Excellent. So, again, States Capital is a private debt fund that individuals can invest in, and then those funds that are invested in States Capital, your originating company, which is WeLend LLC, you all originate that and then, you know, lend that out and etcetera. So
Ruben Izgelov [00:16:17]:
So, yeah, to that point forgive me, Jay. To that point, you know, essentially, states’ capitalists funding the loans for Whelan. Right? And that’s where, you know, the ability to earn a passive income for our investors comes in. Because as the borrowers are paying us, we’re paying our investors.
Jay Conner [00:16:34]:
Exactly. Now how can someone learn about state capital and investing in that? Does that have its own separate website?
Ruben Izgelov [00:16:43]:
Yeah. So you can actually find it on our website, www.WeLendLlc.com. If you go on to the Invest with Us tab, it’ll have all the information there for you. Happy to jump on a call with any investor and discuss their ability to invest. I do have to question every investor that it is only for accredited investors. You know, nonaccredited investors, we just can’t accept their investment.
Jay Conner [00:17:04]:
Sure. Sure. And that’s because of how the fund is set up. So when someone is interested in investing, in States Capital, typically, how long are the notes, or how long will their investment capital stay in the fund, or is that flexible?
Ruben Izgelov [00:17:21]:
It is flexible, to a certain degree. So, you know, what we like to do is kind of separate the type of investments that are out there in real estate. Well, 1, there is debt first lien positions recorded on the property, personally guaranteed by the borrowers, along with a pledge of shares from the principles behind it, which is what we do at States Capital. The other form of investment is being an equity investor in the deal. Right? A lot of times when you invest as an equity investor, you become, essentially, if you’re doing a preferred return, kinda like a second position. Right? So before anyone takes out their money, we, as Welend, take out our money first, which is the beauty of what we do because that brings us again to the safest part of the capital stack. For example, Jay, I’m I’m sure, you know, you’ve you’ve taken on mortgages before. Sure.
Ruben Izgelov [00:18:09]:
You’ve brought on investors onto your deals. So have I. But before we and our investors take out the deals in the deals that we’re buying, the lender is always repaid first. And that’s exactly where States Capital sits, so it is a much safer form of investment. The loans that we make are for 12 months. They’re usually repaid within 8 to 11 months. So naturally, when you invest in a State’s Capital, the lock-up period is usually for about 12 months.
Jay Conner [00:18:36]:
Okay. That makes sense. So, I mean, it’s not like a syndication where it may be locked up for 3 years or Exactly. Or 5 years.
Ruben Izgelov [00:18:46]:
Exactly. Exactly. So it is a lot more fluid, and it’s not locked up for a very long period.
Jay Conner [00:18:53]:
Right. That’s wonderful. Well, that’s great because you and your companies are serving 2 different markets. You’re serving you’re serving one market that wants to be a passive investor, but they don’t wanna go out there and negotiate deals and and do value adds. They just wanna sit back and get a nice return. Right? And then the other markets you’re serving are those that real estate investors that need to borrow that money, you know, through your We Lend arm. What would you say so let’s speak to the real estate investors that are listening to this show or watching it, that want to investigate the We Lend, you know, services and borrow. What would you say are some of your defining differences from, say, other lenders, out there that loan on, on real estate? And what are, like, some of your advantages that, your borrowers, actually really like?
Ruben Izgelov [00:19:50]:
So I’ll tell you. One of the key differences is that a lot of times, you know, some investors, don’t like to borrow money, right, from a lender per se. They like to go out and raise the money individually deal by deal. You know, and they like to raise 100% of the money that they need. That complicates things because you need a whole hell of a lot of investors to deploy some of the deals to deploy money into some of the deals that you’re buying or that you’re finding versus working with a private lender. And the reason why I say that is because as a private lender, this is our business is to give you up to 90% of your purchase price, give you a 100% of your construction cost. All you have to come up with is about 10%. So that’s one of the reasons why borrowers or real estate investors need to be working with a mortgage private lender like ourselves.
Ruben Izgelov [00:20:38]:
What differentiates us from all other lenders and most lenders is the speed to close. We pride ourselves on the fact that we close deals in as quick as 3 to 7 business days. Now, I gotta tell you, if it’s a returning borrower and if it is a property that makes sense, we’ll even fund deals within 24 to 36 hours. Hard to come by. Hard to find. Right? The only difference is that you have to be a returning borrower to be able to close that quickly versus if it’s a new borrower, it’s about 3 to 7 business days. In addition to that, we fund deals that most lenders won’t. So you could have a physically or financially distressed property.
Ruben Izgelov [00:21:12]:
In other words, physically, there is a roof missing. Literally, there is no roof. Or you need to close within 30 days. There’s there may or may not be access to the property. That’s okay. We’ll lend on that. In addition to that, we don’t ask for tax returns. We don’t ask for bank statements.
Ruben Izgelov [00:21:27]:
We don’t ask for your W2s. We don’t care in terms of your income. What we do care about is the asset. That’s the focus that we’re looking at. Now we do a background check on the borrower. We do check their credits and make sure that they have sound credit and that they can refinance the deal and take our loan out in the future if they choose not to sell the property and they wanna hold it in their portfolio. So there is still a component in checking the borrower, but we’re focusing more on the asset. And a lot of our borrowers today, they’re they’re full-time real estate operators.
Ruben Izgelov [00:21:57]:
They are sophisticated real estate experienced operators. They may not have the best credit. Right? For us, 6 20 credit FICO or above is good enough. So long as you don’t have any major, you know, lawsuits in terms of, you know, real estate deals or if you don’t have any, obviously, money laundering, any type of issues with foreclosures or anything to that effect, we’ll lend to you. Right? So long as you have the experience that we need. Now even if you don’t have experience, that’s okay. We’ll still lend to you, but we won’t be at that 90, 85 to 90% of the purchase price. We’ll be right around, I would say, maybe 70, 65 to about 75% of the borrower’s purchase price.
Ruben Izgelov [00:22:35]:
So I think one of the differentiating factors for us is the fact that we close very quickly. We have a lot less red tape, and we fund deals that most lenders would really run away from.
Jay Conner [00:22:48]:
Well, really what it comes down to, Ruben, is service. Customer service. And when I say customer service, I’m talking speed. Speed. Because with a lot of the deals that we invest in, you can’t make money in slow motion. I mean, what I’ve discovered over the years, I’ll get so many more of my offers accepted from a seller because I can close so quickly. For example, not long ago, a few weeks ago, we had a state owner of a property respond, or they did a Google search, and they found us on Google. And the property, Oceanfront property, here in Atlantic Beach, North Carolina, was going to a foreclosure sale in less than 2 weeks.
Jay Conner [00:23:35]:
And because of private money, I was able to close in 5 days. 5 days.
Ruben Izgelov [00:23:41]:
I believe it. I believe it.
Jay Conner [00:23:42]:
Other real estate investors, you know, were making offers, but they couldn’t move that fast. So then you make a great point there, and your company can fund the deal so quickly. That your borrowers will get more offers accepted because you can fund so quickly.
Ruben Izgelov [00:23:58]:
And not only that. Like, you know, when I was a full-time real estate operator and I had the liquidity to buy a deal in all cash because I was able to raise the money or what have you, I would still use a hard money lender. And the reason why is because we look at the deal alongside you. We have our attorneys looking at the title alongside you. Right? So there are a lot of checks and balances by having a hard money lender by your side because now you know for a fact that this deal does make sense. After all, there are so many people, there are so many eyes on your deal, and everyone is rooting for you to win.
Jay Conner [00:24:32]:
Perfect. Ruben, it’s been fantastic to have you here on the show. And one more time, give out your contact information for the investor side and, as well as for the borrowing side. I think it’s the same website.
Ruben Izgelov [00:24:45]:
Totally. You can find all of it on www.WeLendLlc.com. Love for you guys to visit our website. Feel free to inquire. Love to jump on a call with you and answer any and all questions.
Jay Conner [00:24:58]:
Ruben, thank you so much. Thanks for joining me on Amazing Private Money. There you have it, my friend. Another amazing episode of Raising Private Money. I’m Jay Conner, the Private Money Authority. And if you happen to be watching on YouTube, be sure to subscribe and ring that bell so you don’t miss out on the upcoming episodes. If you happen to be listening on one of your favorite podcast platforms, be sure and follow me. We always have amazing guests, just like we had today with Ruben.
Jay Conner [00:25:25]:
And I look forward to seeing you right here on the next episode of Raising Private Money.
Narrator [00:25:33]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/Moneyguide, and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/Moneyguide to get your free guide. We’ll see you next time on raising private money with Jay Conner.
