How a Private Credit Lender Built His Business

On stage, Richard C. Wilson introduces a private credit lender, who tells the story of building his real estate lending business.

Richard C. Wilson introduces an unnamed guest and says he brings in over $100 million per year, with over 25 years of experience in real estate finance, fund management, legal practice, and military service as a US Marine Corps combat veteran. The guest tells how his experience as a borrower led him to private lending and describes the choices that shaped his business.

In this video: Richard C. Wilson (Host and introducer), Private credit lender (Guest speaker)

What they said

1. Borrower experience shaped his view. The guest says banks considered him non-financeable when he sought a fix-and-flip loan, so private credit became his first route into real estate. After he fell a little past maturity, he says he negotiated the 24% default rate down to 18%.
2. He stayed within familiar territory. The guest says that for the first 10 years, he only made deals in the Bronx, where he knew property values and could sell quickly if he had to take a property back. Later, he expanded to Manhattan, Queens, Brooklyn, and the tri-state area.
3. Participation led to bank use. As deal sizes grew, the guest brought investors into specific transactions through participation, then began negotiating use facilities with banks. He says he now avoids deals below $20 million to $30 million.
4. Fear gave him early motivation. The guest says fear motivated him early in his career. He points to the personal guarantee on his first loan as an experience that gave him immediate clarity.

In their words

"And before I was a lender, I was actually a borrower."

"I start negotiating with banks to get leverage facilities."

Why it matters if you are building or preserving great wealth

After negotiating his own default rate from 24% to 18%, he had firsthand experience with how a loan's terms could change after maturity.