What if the fastest way to grow your wealth in real estate… isn’t owning real estate at all?
Let that sink in for a second.
Most of us were taught that buying properties is the key to building wealth. But what if being the bank—not the buyer—is where the real money, security, and peace of mind live?
That’s exactly what today’s guest, Ruben Izgelov, discovered.
An immigrant who went from sharing a one-bedroom apartment with 20 people to founding a private lending company that’s originated over $700 million in loans—Ruben’s story is more than inspiring. It’s a roadmap for investors at any level.
STORY-DRIVEN TAKEAWAYS
- The $200K breakup fee that revealed NYC’s new investor reality.
- Why Ruben walked away from flipping—even when it was profitable.
- The 2 lies most new investors believe about ARVs and renovation budgets.
- How to earn equity-like returns—while avoiding toilets, tenants, and termites.
- The overlooked risks in blue states... and how red states became the new capital havens.
FROM FLIPPING TO FUNDING: THE STRATEGIC SHIFT THAT CHANGED EVERYTHING
“I was making $150K as a teenager—and then the crash hit.”
That was the wake-up call for Ruben. Like many investors during the 2008 crash, Ruben learned the hard way how volatile the equity side of real estate can be. But that setback led to his biggest breakthrough.
While attending a private lending conference as a flipper, Ruben had a lightbulb moment:
“We can make equity-like returns while being in the safest part of the capital stack.”
Instead of taking all the risk as a developer, Ruben realized he could lend to the developers—and still hit double-digit returns, secured by real estate, and backed by personal guarantees.
Beginner: Understand the Capital Stack
When you fund a deal through debt, you’re first in line to get paid. That’s the opposite of equity investors, who get paid last—after everyone else.
Intermediate: Evaluate Debt Returns vs Equity ROI
Debt funds like We Lend offer 13%–16.5% annual returns, paid monthly. Unlike syndications, there’s no 3–5 year hold. There’s a 12-month lockup, then liquidity.
Advanced/Pro: Use Lending to Diversify Risk and Boost Liquidity
Rather than tying up all your capital in long-term syndications or operational-heavy flips, lending lets you stay liquid and spread risk across dozens of deals, locations, and borrowers.
THE $1.5M ARV MISTAKE INVESTORS KEEP MAKING
“There’s no way you’re selling that for $1.5M—especially with a $200K rehab budget.”
Ruben sees it constantly.
New and aggressive investors overestimate After Repair Value (ARV) and underestimate construction costs—especially in expensive markets like NYC or LA.
Beginner: Use Real Comps, Not Dreams
Base your ARV on actual sold comps within half a mile and 90 days—adjusting for square footage, finishes, and lot size.
Intermediate: Align Rehab Budget with Buyer Expectations
A luxury ARV requires luxury finishes—and that means your budget better reflect that. Cutting corners kills your resale value.
Pro: Implement a Red-State Strategy
Due to hostile landlord laws and rising regulation, Ruben sees more investors fleeing to investor-friendly states like Florida, Texas, and the Carolinas.
PASSIVE DOESN’T MEAN PROBLEM-FREE—UNLESS YOU’RE THE LENDER
“I had a tenant live rent-free for 5 years in one of my units. She owed me $180K by the time she left.”
Even seasoned pros like Ruben aren’t immune to the tenant nightmare.
That’s why private lending is attracting real estate operators, doctors, attorneys, and professionals alike. It’s truly passive—and backed by hard assets.
Why Investors Are Switching to Debt:
| Equity (Syndication/Flips) | Debt (Private Lending) |
| Long lockups (3–5 years) | 12-month lockup, then liquid |
| Delayed cash flow | Monthly distributions |
| Higher risk, lower priority | First lien, secured |
| Market-sensitive returns | Predictable returns |
SOCIAL PROOF: THIS STRATEGY WORKS
“We’ve originated $700M in loans across 1,400 deals—and never lost a dime.”
That's not a fluke. It’s strategic.
Here’s what Ruben’s team at We Lend does to reduce risk:
✅ Loans personally guaranteed
✅ Real estate-secured
✅ Nationwide diversification
✅ Stress-tested for construction cost increases
✅ Focus on distressed, off-market, high-margin deals
Example: A buyer walked away from a $4.3M deal in Manhattan—losing a $200K deposit—due to political uncertainty. Ruben saw the writing on the wall before committing any capital.
CONCLUSION: Flip the Script—And Be the Bank
Ruben Izgelov’s story isn’t just inspiring—it’s a powerful lesson in strategy, discipline, and knowing when to pivot.
He started with nothing. Immigrated to the U.S. with his family, shared a one-bedroom apartment with 20 people, and clawed his way through flipping homes, law school, and economic crashes. But the breakthrough came when he stopped trying to own everything—and instead focused on owning the right part of the deal.
Today, he’s not swinging hammers or chasing tenants—he’s lending to those who do.
And for many real estate investors in today’s environment, that shift could be the smartest one they make.
✅ Lending offers consistent cash flow
✅ Protection through collateral and guarantees
✅ True passivity without sacrificing returns
In Ruben’s words:
“We can earn equity-like returns while being in the safest part of the capital stack.”
Whether you're tired of managing properties, looking to protect your capital, or just want more freedom without giving up growth—it may be time to flip the script.
Don’t just invest in deals.
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