Staying Rich via Private Lending w/Ruben Izgelov
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Episode Description
Welcome to the Freedom Point Real Estate podcast! In this episode, Ruben Izgelov breaks down the world of private lending—exploring the differences between debt and equity funding, common pitfalls in underwriting, and how the right use of leverage can significantly boost investor returns.
Ruben Izgelov is a real estate entrepreneur with over a decade of experience acquiring, flipping, developing, and financing $500M+ in real estate. He is the Co-Founder & Managing Partner of We Lend Fund, a private debt fund, and We Lend, a nationwide private lender. Ruben’s expertise in real estate-backed lending helps investors earn high-yield returns while minimizing risk. A graduate of St. John’s University and Touro Law, he combines legal and financial acumen to innovate real estate finance. Passionate about investor empowerment, he’s a sought-after speaker shaping the future of private lending.
CONNECT WITH RUBEN IZGELOV!
Website: https://www.welendllc.com/
LinkedIn: https://www.linkedin.com/in/rubenizgelov/
Instagram: https://www.instagram.com/ruben_izgel/?hl=en'
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Consider Private Lending as a Safer Path to Strong Returns
"We walked into the private lending conference as developers and walked out as private lenders—we've never looked back."
Private lending offered Ruben and his partners equity-like returns while positioning them in the most secure part of the capital stack. They shifted from developers to lenders when they realized they could get better returns with lower risk, repaid first before any other stakeholders. This tip underscores the value of analyzing where you sit in a deal and how that impacts risk.
Tip #2: Know Why Borrowers Need Equity—and When Debt Isn't Enough
"We would never provide a borrower 100% financing."
Ruben explains that borrowers always need to bring their own equity to deals, and that equity often comes from syndication or private investors. Lenders like We Lend want alignment with operators, just as fund investors want alignment with fund managers. Understanding this balance helps investors evaluate deals and operator integrity more effectively.
Tip #3: Debt Funds Offer Diversification and Monthly Cash Flow
"When someone invests in our debt fund, their money is spread across many loans—we provide monthly distributions."
Compared to syndications that often lock up investor funds for years, debt funds offer shorter lockup periods, consistent cash flow, and greater diversification. Ruben highlights how this approach can better suit investors seeking liquidity, passive income, and reduced concentration risk.
Tip #4: Evaluation Discrepancies Are Common—Conservative Lending is Key
"Borrowers and lenders are usually about 10–15% off on valuations."
Optimism from borrowers can clash with lender conservatism, but that's by design. Private lenders protect capital by erring on the side of caution, especially since their investors are more focused on preserving wealth than multiplying it quickly. The takeaway? Conservative underwriting is a must in volatile markets.
Tip #5: Smart Leverage Drives Superior Returns
"We made a $1M loan at 12%, borrowed 75% of that at 9%, and earned 21% on the remaining equity."
Ruben demystifies the arbitrage strategy behind private lending returns. By borrowing against loan assets at a lower rate and lending them at a higher rate, lenders can amplify returns for investors. Understanding this strategy is essential for evaluating fund performance and associated risk.
Tip #6: Win on Service, Not Just Rate
"We’ve closed deals in 24 hours—what we offer is execution and speed."
Rather than compete on interest rates alone, Ruben focuses on borrower experience—fast closings, clear communication, and nimble operations. In private lending, responsiveness can win deals and build strong operator relationships, especially in competitive or distressed markets.
Tip #7: Protect Returns Through Conservative Leverage and Skin in the Game
"Today, our average ARV leverage is 58%—borrowers usually have 30% of their own money in before construction starts."
This conservative approach offers a cushion in case of market downturns. Ruben’s firm ensures borrowers have enough capital at stake to take responsibility and minimizes exposure by lending below potential market peaks. This protects both the lender and the investor’s capital.
Tip #8: Diligence the Jockey, Not Just the Horse
"If they give us 10 past deals, we verify every single one—they need real experience or more skin in the game."
We Lend emphasizes thorough vetting of borrowers, validating track records and ensuring credibility. This step is crucial for private lenders looking to minimize default risk and for passive investors seeking trustworthy operators.
Tip #9: Focus on Resilient Asset Classes
"Residential—especially one-to-fours and mixed-use—have shown resilience through headwinds."
Ruben avoids volatile asset classes like office or retail, preferring the stability of residential properties. This asset preference reflects a data-driven approach to long-term portfolio performance and risk-adjusted returns.
Tip #10: Keep Your Word and Build Authentic Relationships
"Your word is your bond—do what you say, and say what you do."
For Ruben, the most valuable lesson in business has been integrity. Consistently following through builds trust with investors, family, and partners—and that trust compounds over time into real opportunity. This closing tip highlights how authenticity and reputation underpin long-term success in any investment business.
