How Private Lending Helps Real Estate Investors Fund More Deals Faster | Matt Hiltner

Matt Hiltner (00:00)
great question. And I wish there was just one because it made my life a lot easier. But here’s what I will say a lot of times lending is a for— you know, is a— is an afterthought almost. They’re so focused on finding the next deal, finding you know, where what the next deal is. Once they get it, finding the contractors, getting the bids, a lot of times they come to us at the last minute and say, “Hey, I’ve got all this. We got to close in a week.” By understanding you know, putting capital first, because at the end of the day, you can have a great deal, you can have great contractors, you can have great knowledge, but until someone brings the money to a deal, it’s not a deal.

Scott Bursey (02:11)
Welcome back to the Real Estate Pros podcast, powered by Investor Fuel. I’m your host, Scott Bursey. And today we have Matt Hiltner with us, a true expert operating at the vital intersection of real estate investing and private lending. Matt has been a driving force at the Build Lending and Funding Network, helping investors unlock the capital they need to turn potential deals into profitable realities. Matt, welcome to the show.

Matt Hiltner (02:37)
Thanks, Scott, I appreciate it.

Scott Bursey (02:39)
It’s just awesome having you here and to help our listeners get up to speed, please give us the front row seat on how your career ignited and where you’re pouring your fuel now.

Matt Hiltner (02:49)
Yeah. So, you know, my my career really started as a love for real estate. So I always knew I wanted to be in real estate, started as many people do, looking at different options, different opportunities. and I started flipping houses when I was young. I was 19 years old, really found a niche that I loved. But what I soon realized is there was this other niche in real estate lending, kind of being a broker, capital advisor for other investors. And that really is what I’ve taken and and built my career off over the last 15 years. We still— I still do direct investment, got rental properties, we’re still doing flips, some new construction, but really the majority of my business is helping other investors find the capital they need for their projects.

Scott Bursey (03:32)
that’s awesome, man. And what really caught my attention about you, Matt, was the way that you’ve been able to simplify the funding process, you know, turning complex financial hurdles into clear pathways for investors looking to scale. That is not an easy task.

Matt Hiltner (03:50)
No, it’s not. It’s really not. I mean, every, as we know, every real estate deal is different, right? It doesn’t matter if if it’s a fix and flip on one side of the street versus the other side of the street, there are different unique challenges to each one, whether it be market timing, whether it could be, you know, bed and bath count, anything, square footage. It could be really anything. And and having an understanding of what it takes to get funding for that specific project is— is a— is a huge advantage to any investor.

Scott Bursey (04:20)
And Matt, I’m curious to know, what is the biggest strength that sets the Build Lending and Funding Network apart in this competitive private lending landscape?

Matt Hiltner (04:30)
Yeah, so we, you know, it does— we we do loans for everyone from $200,000 fix and flips to $50 million subdivision, multifamily developments, things like that. What we do is we take a very highly strategic institutional level approach to every deal. We take in, even though we’re not a direct lender, right? We are a capital advisory broker for private money, hard money, debt fund— that type of lending avenues for real estate investors, doesn’t matter how big your deal is. We’re going to look at it with the same lens before we even take it to market to place it. What that does is a couple of things. It allows us to look at your deal with another lens that maybe you haven’t looked at and find potential holes, red flags, places where maybe you can improve the— improve the the deal and potentially make more profit or make it more successful on the back end. But the other thing it does is it allows us to target, you know, strategically, which lenders are going to do it. So every lender in this world, there are a lot of them doing investment type lending. And whether it’s, you know, location-based or you know, population-based, rural, not rural, single family versus multifamily, condos versus townhomes, all those are taken into— in— into factor with lenders. And if you’re just using the spray and pray technique where we take your information, we take your word for it, and we just start sending it out to everyone, that’s gonna ruin our reputation. It’s gonna make your deal less desirable to anyone. So that’s what we do at— at Build Lending is we really take that institutional level approach from the beginning so we can set you up for the— for success from the beginning.

Scott Bursey (06:59)
How do you leverage that specific strength when market volatility spikes?

Matt Hiltner (07:04)
Yeah, so we’ve been in business for 15 years, right? So we have seen these different ebbs and flows of the real estate market. And I think being through it, not only as on the lending side, but on the investment side, it allows us to— to project and and have a better idea of what makes sense and what doesn’t. Leverages are always changing, right? Someone who’s doing, you know, 90% loan to cost today, if we start to see that these market change, geopolitical— geopolitical issues, whatever it might be, we can adjust for that. And, you know, what we can also do is not only help with that, but if it’s like, “Hey, you need more equity in this project, you need more— you need an LP partner, you need a little bit more cash,” we can help you find that as well. So taking those market volatilities and really understanding what they’re gonna do to investment lending and investments in general helps us, you know, you know, get ahead of it rather than playing catch up all the time.

Scott Bursey (07:58)
That makes a lot of sense. It’s that kind of focus that really separates the players from the spectators. Yeah, I’m interested to think about this. You know, many investors struggle with funding bottlenecks. What do you see as a common weakness or friction point in the current deal funding process that investors often overlook?

Matt Hiltner (08:20)
Yeah, so great question. And I wish there was just one because it made my life a lot easier. But here’s what I will say a lot of times lending is a for— you know, is a— is an afterthought almost. They’re so focused on finding the next deal, finding you know, where what the next deal is. Once they get it, finding the contractors, getting the bids, a lot of times they come to us at the last minute and say, “Hey, I’ve got all this. We got to close in a week.” By understanding you know, putting capital first, because at the end of the day, you can have a great deal, you can have great contractors, you can have great knowledge, but until someone brings the money to a deal, it’s not a deal. So we’re really sitting in a seat here where— where we need to be, you know, and we can help from the beginning on that process, right? We can help you, you know, dial in what your costs need to be and make sense. so that’s the biggest bottleneck is waiting too long to— to start the process. now, you know, a lot of— there’s a lot of people out there talking about how you can get in real estate with no money, right? what— but what they don’t tell you is that doesn’t mean you don’t need money. You need money, but that’s gonna be a combination whether it’s debt and family and friends money, investor money. The money’s gotta come from somewhere. but I want— if I can— if I can take your question and kind of project it through into a project, if you don’t have some cash sitting aside, something’s going to go wrong. Any investor that’s been in investments knows that at some point there’s an unexpected, whether it’s opening up at a wall and finding mold or whatever the case may be. If those— if those— if that money’s not sitting aside to cover that, you can’t go back to the lender, sit, you know, crying to and say, “Hey, I need more money because we didn’t anticipate this.” Well, they’re gonna say, “Too bad, so sad, go find it, figure it out, right?” So that’s the biggest bottleneck is really getting people to understand that, like, yeah, yes, if you have— if the deal is gonna fifty thousand dollar purchase and a twenty-five thousand dollar rehab and you have seventy-five thousand dollars, that’s not enough, right? If you raise seventy-five thousand, get a little bit more, make that buffer so that you’re not in trouble three months down the line when that unexpected thing comes— comes up.

Scott Bursey (11:05)
You bet. Thanks for highlighting that, Matt. And if you could help us understand, where are the biggest opportunities right now for investors who are looking to utilize private lending to scale their business in 2026?

Matt Hiltner (11:19)
Yeah. Look, private lending has a lot of benefits. Obviously, it’s more expensive. I mean, anywhere you go, look, you know, you’re gonna get sticker shock if you go look, get a bank term sheet, if you can get a bank term sheet versus a private lender. three or four percent, sometimes even more on interest rate plus points. but really the benefit comes in where— I mean, let’s set aside for now the fact that a lot of banks aren’t even lending on investment type property. Unless you’re an A plus plus plus borrower, they’re not even going to look at your file. and you’ve got a lot of experience. But from a private lending perspective, it’s speed, right? We’re all about speed, less red tape. it truly is asset-based lending. Yes, they are gonna look at you from an experience standpoint. they’re gonna, you know, sometimes— a lot of times they’re still gonna pull a crop credit, a lot of times soft credit pulls just to make sure you there’s no you know, foreclosures, bankruptcies, white-collar crime, thing like that in your background. But it’s true asset-based lending. So if the deal makes sense, that’s half the battle, if not more than half the battle. So, you know, if you’re looking to scale, less red tape, more leverage, you can take more of that cash you’ve raised or you have sitting aside and fund more projects than say a bank would. A bank may lend, you know, 80% of cost or 70% of cost, where we’ll lent— lend 90, sometimes up to 100% of the cost. So that’s really the advantage if you’re looking to scale, especially in 2026 and— and going forward.

Scott Bursey (12:51)
Is there a specific asset class you think is currently undervalued?

Matt Hiltner (12:55)
Boy. bit of a loaded question because it’s— it’s— it’s by market, right? And all over the country, right? Here in Col— here in Denver where I am, I will say right now we’re seeing this trend where, you know, values spiked. You know, there was this bubble after COVID. you know, I was selling properties for, you know, a hundred percent of what I bought them for two years later just because of the COVID bubble. we’re right now this summer starting to see a— an in— drastic increase in vol— in listings, which is driving down prices. Now you go to places like the Midwest, where it’s always been kind of that lower val— that lower cost entry point for investors, and we’re still seeing a lot of good deals there. when it comes to being undervalued, I do think it’s those, it’s still the starter homes, right? So I would recommend for anyone getting started, don’t look at a, you know, you know, a high-end flip if you’re just getting started. Cause, you know, there— there— there’s a lot— there’s market volatility, there’s absorption rates. Look at those smaller entry-level homes in your market and— and focus on that.

Scott Bursey (14:02)
That was an excellent breakdown. And we’d love to get your take on what is a looming threat or macroeconomic factor that investors in the lending space need to be prepared for.

Matt Hiltner (14:13)
Yeah. I’ll— I’ll go back to it, the geopolitical stuff we’re seeing right now. It’s the Fed— the Fed chair change, rates. Nobody knows what the heck rates are gonna do. You know, it used to be that we could tell a year out. You know, we could have a pretty good idea of what rates are gonna do. Right now we have no idea. and while rates don’t necessarily change that big of a difference for what you’re gonna get pricing wise for your loans for your projects, what they are going to do is your end buyers, right? That’s where we got to look at. And you know, that— and I still think we’re trying to iron out how big of a bubble the COVID bubble was, right? Again, here in Colorado, you talk to— you talk to a hundred l— realtors, half are gonna tell you the market’s still strong and half are going to tell you it’s declining. And that’s across the country. Tampa, I know, is seeing that. There’s a lot of places. So it’s really just understanding, really taking a closer look at the end game from the beginning, if that makes sense.

Scott Bursey (15:54)
it makes perfect sense. And how should they adjust their underwriting to shield themselves from— from the— the pressure, let’s say?

Matt Hiltner (16:02)
Yeah. Look, it— be realistic about your costs. Right. I know a lot of times when— when you’re starting in real estate investment, when you’re newer, you— you just want to get those first deals. And it’s okay to walk away from deals. I’ve walked away from— I’ve underwritten, you know, close to two billion dollars in loans. We funded around eight hundred million. So right there, that tells you we’ve— we’ve funded and— and worked on less than what we’ve actually taken in. And that’s what your approach and your mindset should be is that, “Okay, I’m gonna go in this with looking at this as a worst-case scenario.” And if the worst-case scenario makes sense and can get it done, then it’s a good deal. What you don’t wanna do is, you know, think that you’re gonna get a rehab done for 25,000 because you just want it, and then realize halfway through the process that it’s going to cost you 50. That is the fastest way to lose your property, to start in this— and get out of this industry from the beginning. So just be realistic about your costs. Don’t ever— don’t ever think that, you know, just because you want that deal, you’re gonna try to pinch pennies. Don’t do it.

Scott Bursey (17:10)
Spot on, Matt, and I appreciate you highlighting that. Let’s dig into this. For those looking to build their own lending infrastructure, what is the most critical component they need to secure first in your view?

Matt Hiltner (17:22)
from— from the investment side or building a capital advisor business like I’ve got.

Scott Bursey (17:26)
From— from the lending side of things.

Matt Hiltner (17:28)
Yeah, I think— can— can you ask that question one more time? So, I apologize.

Scott Bursey (17:32)
Sure, sure. Let’s take a look at— at perhaps the macro. yeah. For those looking to— to build their own lending infrastructure, you know, strategically, what is the— the most critical component that they need to secure first to— to start that process so they can reach their end goal?

Matt Hiltner (17:52)
Yeah, it’s really finding the right partners, right? You want to make sure that you’re— you’re finding the right people to surround yourself with. I’m a big proponent of that. Finding someone who is doing what you’re doing or can help you get to where you need to be. If you’re the smartest person in the room, you’re in the wrong room, is what I always say. so you know, take people who have done it and— and learn from them, but also, you know, partner yourself with lenders and— and brokers and people who have your best interests at heart. In a deal, everybody’s making money, right? The seller, the realtor, the lender. As an investor, you’re the last one to make money. Everyone else is getting money beforehand or during the process. You’re the last one. And a lot of times they don’t necessarily have your best interest of heart because they— they’re about a paycheck. Just make sure you’re surrounding yourself with the right people and the right partners who have your best interests at heart and are going to help you succeed.

Scott Bursey (18:42)
Great advice. You never want to be the smartest person in the room. That is dangerous.

Matt Hiltner (18:49)
Absolutely. Absolutely.

Scott Bursey (18:51)
And Matt, we need your expertise on what is the one piece of advice you’d give to an investor looking to secure their first major private lending deal that most people overlook.

Matt Hiltner (19:02)
Boy. again I’m gonna go back to it. I think it’s making sure that you’re not over your skis. What I mean by that is don’t start with, you know, a high-level flip or trying to do a ground-up scrape deal before you’ve you know, cut your teeth on a smaller cosmetic rehab. we see it all the time. While you can get funding, while you can do it, there’s a danger to it. And look, I’m an ethical— I— I like to, you know, take myself in and be ethical, right? So yes, if you come to me and say, “Hey, I’ve never done a real estate deal, I’ve got this house, I’m gonna scrape it and I’m gonna— I’m gonna build it from the ground up,” my honest recommendation to you is don’t do it. And that’s unless you’ve got wads of cash sitting aside for— for all the— that adds a whole ‘nother level component. So stay within your lane to start. You’ll get there, right? You’ll get to the point where you can do large development if you want to. But just— just make sure, you know, we’re not— look, I want everyone to be successful. I don’t— last thing I want to see is people losing properties, losing the money that they’ve saved up for their project. I don’t want to see it. So just— just stay in your lane. Grow a natural growth.

Scott Bursey (20:19)
Stay in your lane. Be ready to pivot. I love that framing.

Matt Hiltner (20:23)
Yeah. And as— as you grow, deals will come to you. It’ll be a natural progression. Don’t ever, you know, reach for something. Let— let the deals come to you.

Scott Bursey (20:32)
Absolutely. And Matt, you’ve given us so much great advice here today. Is there anything else that you’d like to leave with our— our listeners, our pros?

Matt Hiltner (20:41)
Yeah, I’ll say this. money is an emotional game, right? Money is probably— is one of the— is the biggest driving factor in— in wars, in relationship drama, in everything. It all comes down to money when you really dig down to it. While it should be emotional and you should care about it, you know, set yourself up for success to the point where you know that if— if a— you know, if you can get this deal done, you’re gonna be set. And what I— what I mean by this is, you know, don’t let the— the money be emotional, right? So work on getting you know, good deals funded well, well-capitalized, and the money part will come. They say money can’t buy happiness, but it can, you know, it can— it— it can help with a lot of things in— in this world.

Scott Bursey (21:27)
That is a huge distinction. Thank you for that, Matt. And if our listeners want to follow your journey or collaborate with you, what’s the best way for them to— to reach out to you?

Matt Hiltner (21:39)
Yeah, so buildlending.com, B-U-I-L-D lending dot com is where you go if you need— if you need help funding projects. you know, we’ve also got the Funding Network Pro academy. That’s where if you want to learn to do the business I’m doing, you want to take what I’ve built and learn how to— how to do what I’m doing on a daily, day-to-day basis, that’s fundingnetworkpro.com. But also you can reach out to me directly, [email protected].

Scott Bursey (22:05)
Thank you for joining us today, Matt. This has been an absolute master class.

Matt Hiltner (22:10)
I appreciate it, Scott. Thanks you— thank you for having me on.

Scott Bursey (22:13)
And to our listeners, we appreciate you. If you receive value from today’s episode, please subscribe. We’ll be fueling your tanks with a lineup of elite guests, just like Matt Hiltner, who are accelerating and setting the pace for the rest of the industry. Until next time, keep your standards high and your vision clear. We’ll see you on the next episode, everyone.