Private Lending

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Dominic Pizzi
  • Lender
  • Freehold, NJ
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Personality in Lending MATTERS

Dominic Pizzi
  • Lender
  • Freehold, NJ
Posted Nov 17 2022, 13:19

Being a private lender in a never ending competition to get clients between everyone else. Everyone can offer better rates, lower fees, quicker closing times than one another. The bottom line though, is that people will go with the lender they feel most comfortable with. 

This business is about personality and trust between a lending provider and a borrower. A borrower will be more likely to go with a lender that gave them the time of day when their loan amount was a bit on the smaller side, or remembered their name after not hearing from them for a few months, or sounded excited on a call when having a potential project explained to them. This stuff makes the difference! It is just as much about the experience with the lender as much as it is on the interest rates that they provide. 

Trust is also huge. You will continue to use a lender that consistently closed a loan for you, or you will use a lender that a friend/business partner used in the past. Again, even if the rate is a little higher, trust in the fact that a lender will close a deal for you will go a long way!

These two pieces are so important in this business. It is also worth noting that one bad experience with one lender should not be projected onto another lender, because each one is different!

The point I make is this: when using a lender, make sure that not only the numbers will work for you, but the team working with you will be one that you are comfortable talking to and hoping to build a long standing partnership with!

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Jonathan Taylor
  • Lender
  • Los Angeles, CA
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Jonathan Taylor
  • Lender
  • Los Angeles, CA
Replied Nov 17 2022, 15:55

@Dominic Pizzi great breakdown on the details of the relationship based world we all operate in. 

Lender CA (#02115256) and NMLS (#1993906)

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Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
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Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
Replied Nov 20 2022, 19:57

Agreed - and not just the Account Executive, the whole team is important too (underwriter, closer etc)

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Mohammed Rahman
  • Realtor
  • New York, NY
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Mohammed Rahman
  • Realtor
  • New York, NY
Replied Nov 21 2022, 12:08

Hey @Dominic Pizzi - it's the same in every aspect of real estate, relationship matters and your personality is the driving factor of how your relationships unfold. 

I have a couple videos about this on my channel, but it's incredibly frustrating working on a transaction when someone on the other side of the fence is having a never ending string of bad days lol! 

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Don Konipol
  • Lender
  • The Woodlands, TX
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Don Konipol
  • Lender
  • The Woodlands, TX
Replied Nov 21 2022, 15:31
Quote from @Dominic Pizzi:

Being a private lender in a never ending competition to get clients between everyone else. Everyone can offer better rates, lower fees, quicker closing times than one another. The bottom line though, is that people will go with the lender they feel most comfortable with. 

This business is about personality and trust between a lending provider and a borrower. A borrower will be more likely to go with a lender that gave them the time of day when their loan amount was a bit on the smaller side, or remembered their name after not hearing from them for a few months, or sounded excited on a call when having a potential project explained to them. This stuff makes the difference! It is just as much about the experience with the lender as much as it is on the interest rates that they provide. 

Trust is also huge. You will continue to use a lender that consistently closed a loan for you, or you will use a lender that a friend/business partner used in the past. Again, even if the rate is a little higher, trust in the fact that a lender will close a deal for you will go a long way!

These two pieces are so important in this business. It is also worth noting that one bad experience with one lender should not be projected onto another lender, because each one is different!

The point I make is this: when using a lender, make sure that not only the numbers will work for you, but the team working with you will be one that you are comfortable talking to and hoping to build a long standing partnership with!


Pretty good advice 

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Beth Johnson
  • Lender
  • Renton, WA
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Beth Johnson
  • Lender
  • Renton, WA
Replied Dec 1 2022, 21:09

@Dominic Pizzi

Amen! As a private lender, I'm always frustrated when I am asked "What's your rates and terms?" The numbers penciling out are certainly important but matter little if the lender can't perform a loan closing reliably or on time.

Taking the time to develop relationships with lenders who match your values, and can support your project needs beyond just the loaned money itself, can be well worth the extra point or percentage! Great points!