Private lender We Lend LLC, which has funded over 1,400 loans and more than $700 million in originations across New York and New Jersey, is warning real estate investors that waiting for interest rates to drop is a costly mistake. CEO and Founder Ruben Izgelov, who has observed borrower behavior across that deal volume, says the most common errors are not about bad deals but about avoidable decisions that cost investors time, money, and opportunity.
Izgelov sees borrowers stalling on deals while waiting for the Federal Reserve to cut rates or market conditions to improve. That reasoning sounds sensible, but investors who consistently execute outperform those who wait. “The answer is no, do not wait, just execute and move on,” Izgelov said. “Most of the time, those who are on the sidelines are the ones who are not doing as well as the ones who are just executing.” The opportunity cost of sitting out—including missed deals, lost relationships, and undeveloped market knowledge—is consistently significant.
Another common mistake is jumping between lenders to save a quarter of a basis point. Private lending is relationship-based; a lender who knows a borrower will extend flexibility that does not appear on a term sheet but shows up when deals have complications. Borrowers who constantly switch lenders never build that depth. “We are very relationship-based,” Izgelov said. “If I know you are committed to me, I am going to be committed to you.” Consistent deal volume with a lender earns priority and flexibility worth more over time than shaving a quarter point on individual transactions.
The opposite error is working exclusively with one lender. Izgelov, who completed over 100 fix-and-flip transactions before founding We Lend, has experienced this himself. Lenders get concentrated in asset classes, go on vacation, or get cautious at the wrong moment. A borrower with only one hard money relationship will eventually hit a deal the lender cannot do. “I always tell every single borrower: have multiple working hard money relationships, do not just work with one,” he said. “I say that from personal experience.” The right approach is one primary lender for most deals and at least one secondary relationship kept warm through occasional transactions.
Operationally, the most immediate mistake is arriving unprepared. The speed at which a private lender can close depends on how quickly a borrower produces complete documentation. We Lend closed a $3 million mixed-use loan in under 48 hours because the borrower had everything ready. The standard closing window is seven to ten days; it extends when documents arrive piecemeal. Borrowers who treat document preparation reactively lose time on competitive deals. For more on how We Lend structures its loan process, visit welendllc.com/how-it-works.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
