Brian Valdivia, CEO, Beltway Lending
A Conversation About the Real Estate Industry and Private Lending
Brian Valdivia is the Chief Executive Officer of Beltway Lending, a highly specialized “refi shop” for real estate investors, which was also founded by seasoned real estate investors. Their firsthand industry knowledge and experience allows them to more quickly understand real estate investors’ goals and financial strengths.
Beltway’s team processed over $100 Million in loans last year alone while maintaining a perfect 5-star rating. Beltway Lending prides itself on having the fastest, most pain-free lending process in the industry.
REI INK sat down with Brian to discuss the real estate investment industry and specifically private lending.
Brian, how did you get started in the private lending industry?
Interestingly enough, after graduating from the University of Baltimore Merrick School of Business with a degree in Business Administration/Finance, I began building and managing pawn shops in Maryland. That business was a tremendous success. Afterwards, I became a financial analyst with Northrop Grumman, an American multinational aerospace and defense technology company.
In May of 2021, I purchased my first rental property. I quickly decided that to become truly successful in the real estate investment space, I needed to become an expert on the lending industry. It was not enough to just be “book smart.” So, I went to work for a while for a lending company to learn as much as I could about the industry. I left that company in July 2022 and started Beltway Lending. But during that time, I also focused on growing my real estate portfolio, and today I own about 141 rental properties across the state of Maryland.
What were the early days of Beltway like?
I consider myself an expert at operations and processes. Immediately, I established a Debt Service Coverage Ratio (DSCR) loan program. Beltway grew very, very quickly, initially doing about $40M in DSCR loans. In 2023, we did approximately $114M in DSCR loans.
When I started Beltway, it was my intention of doing ten loans per month. We currently do 75-85 loans per month and now have 14 full-time employees.
That meteoric rise is amazing, not only growing your real estate portfolio from one to 141 in less than three years, but the rapid growth in the amount of loans you are making. What do you attribute your success to?
Beltway Lending was founded “By Investors for Investors.” We can close a DSCR loan in as little as 22 days, whereas it takes our competitors about 35-45 days. Tim Herbert, my Sales Manager, has the ability to scrub application files very quickly and find solutions to any problems almost immediately. And the rest of my team is just as phenomenal. Also, we do not accept excuses or delays during the loan processing cycle.
We have a great reputation in the industry as well. We always do what we say we are going to do. Because of that, all our business is done by referrals. I think we spent a grand total of $8,700 on marketing-related expenses last year. That is unheard of.
There are a few people I absolutely need to give credit to for the advice and guidance as Beltway was beginning to take shape. There is certainly more than I could list here, but Jack Bevier from the Dominion Group and Warren Braverman from Poplar were both invaluable resources.
Finally, I would be remiss if I did not give credit to the entire team at Beltway Lending. The team goes well above and beyond anything that Ross and I would have ever imagined. Our leadership team consisting of Lilly, Melissa, and Tim, outwork anyone that I have met in this industry.
What differentiates Beltway from its competitors?
First off, we do not have to spend money on marketing, which cuts down on our overhead. Next, would be the amount of time it takes us to close a loan, a mere 22 days. And we actually listen to people and solve problems.
Beltway is HUGE on providing outstanding customer service. Regarding our service area, we are approximately 55% on the East coast with the remaining 45% spread out across the country.
What does the future hold for Beltway Lending?
We want to continue branching out across the country and very importantly, we want to open up more to the Hispanic community. The Hispanic community is tremendously underserved in
the real estate space. I feel we can connect some of the dots and bring them into this industry that creates millionaires out of regular people.
This year, I want to originate $140M in DSCR loans and become a “household name.” I want to be the first company people think of when they want to begin investing or need a loan.
What are your thoughts on the current economy and what the future holds?
I do not want to comment on the economy. Nobody knows what is going to happen and nobody has a clear crystal ball, all crystal balls are foggy.
However, regarding real estate, 2024 will be a hot year. Rates are finally dropping and hopefully homes will become more affordable. I do feel bad for retail homebuyers because they will continually be in “multi-offer” situations which will be difficult for them.
Any words of wisdom for the real estate investor?
Don’t wait. One of my favorite sayings is that “Time is undefeated.” Buy a property and wait…do not wait to buy a property.
Discover more about Beltway Lending at https://beltwaylending.com/.
