Episode #8
As Good As Your Last Month
Gabriel Sultan and Daniel Benarroch join Kevin Kim to share how Alto Capital grew from a small Miami lending operation focused on foreign-national borrowers into a high-volume private lender. They discuss the shift from hard money to institutional RTL lending in Florida, building long-term relationships with borrowers and capital partners, and maintaining flexibility as the company scales. Gabriel and Daniel also cover geographic expansion, securitization, offshore staffing, competitive pressure, their upcoming DSCR platform, and their goals for continued growth while preserving a hands-on approach. Bullet Points: [00:00:00] Introduction. [00:01:00] Gabriel Sultan and Daniel Benarroch share their backgrounds and early introductions to private lending. [00:03:31] Daniel and Gabriel's first business ventures and their path from trucking into lending. [00:05:04] Launching their lending business around foreign-national borrowers in South Florida. [00:06:56] Expanding from foreign-national loans into fix-and-flip and value-add lending. [00:09:30] The evolution from Equity Lending Solutions to Alto Capital and an early secondary-market strategy. [00:11:08] Using discretion to finance deals outside a conventional lending box when the fundamentals make sense. [00:13:04] How institutional capital changed Florida's private lending market and created a distinction between RTL and traditional hard money. [00:16:24] Scaling production through institutional capital and surpassing $1 billion in annual volume. [00:17:33] Identifying weakening Florida submarkets early and adjusting lending exposure. [00:19:37] Recognition from banks and capital partners as a sign of growth while continuing to pursue larger goals. [00:21:50] Staying closely involved in underwriting, servicing, and borrower relationships while building a management team. [00:23:03] The challenge of recruiting experienced RTL talent in Miami. [00:23:50] How Florida's lending market shifted after COVID and changed Alto's core borrower base. [00:26:15] Allowing borrower demand and capital availability to shape Alto's product mix. [00:27:09] Alto's balance-sheet, loan-sale, and potential securitization strategies. [00:28:25] Choosing capital partners based on how they behave when loans encounter problems. [00:30:28] Prioritizing repeat borrowers and asking capital partners to take a reasonable, relationship-driven approach. [00:33:27] The importance of diversifying capital sources while concentrating business with trusted partners. [00:34:19] Weighing the benefits, costs, and operational demands of securitization. [00:36:39] Building a lean team with domestic leadership and an offshore back office. [00:38:28] Using Alto's Spanish-speaking roots and cultural connection as an advantage with Latino borrowers. [00:39:33] Expanding the company's relationship-driven model into Texas, the Carolinas, and California. [00:42:21] Comparing lending conditions, leverage, inventory, and foreclosure considerations across Texas, California, and other markets. [00:47:36] Maintaining credit discipline as increased capital and competition push lenders to chase loans. [00:49:02] Deepening borrower relationships by providing equity alongside debt for selected projects. [00:50:18] Identifying experienced operators who continued performing after appreciation stopped carrying weaker borrowers. [00:56:25] The operational costs behind servicing borrowers properly as loan volume and extensions increase. [00:57:35] Building Alto's DSCR platform and creating another financing option for existing borrowers. [01:00:35] Setting production goals for 2027 after reaching the company's $1 billion target ahead of schedule. [01:01:41] Alto's year-over-year production growth and the pressure of resetting performance expectations every year. [01:04:36] Using borrower track records and production volume to negotiate exceptions and broader credit appetite with capital partners. [01:10:36] Alto's hands-on approach, recruiting plans, and expansion into additional markets. [01:12:06] Alto Circle, the company's Miami networking event connecting borrowers, investors, brokers, and other industry partners. [01:13:48] Measuring success through the borrowers and entrepreneurs who have grown alongside the company. Links: Learn more about Alto Capital at: https://altocapital.com Learn more about Fortra Law at: https://fortralaw.com Subscribe to the Lender Lounge newsletter for episode notifications and exclusive content at: https://fortralaw.com/lender-lounge-podcast/ Subscribe to the Fortra Law newsletter at: https://fortralaw.com/sign-up/ Follow Lender Lounge with Kevin Kim on LinkedIn and YouTube Editing and post-production work for this episode was provided by The Podcast Consultant ( https://thepodcastconsultant.com )
