From Fix-and-Flip to Mega Builds: Private Lending Evolves

Fix and flip investing built the private lending business in New York, but a fundamental shift is underway. Ruben Izgelov, CEO and Founder of We Lend, reports that the company is increasingly financing large-scale construction projects—ground-up builds, condo conversions, and building extensions—rather than quick cosmetic renovations. We Lend, a private direct lender historically known for fix-and-flip loans in New York and New Jersey, now handles construction budgets that often exceed the property purchase price, reaching $1 million to $2 million. The firm is backed by its own capital and makes all underwriting decisions in-house, enabling it to tackle complex projects. Izgelov explains that rising costs and tighter margins have compressed returns on standard flips, pushing investors toward more substantial work.

To manage the increased risk, We Lend focuses on familiar markets and requires documentation many lenders skip, such as an architect’s letter confirming no rezoning is needed and completion guarantees from general contractors. Two recent deals illustrate the range: one converting a bank-owned eight-unit building into 16 fully leased units, another restructuring a loan on a 22,000-square-foot spec home in an affluent New Jersey suburb. Izgelov advises borrowers to budget carefully for longer timelines—often 18 to 24 months—and to build based on demand, not trends. More details are available on the company’s How It Works page.

We Lend offers commercial bridge loans, multifamily and mixed-use loans, and acquisition, renovation, and ground-up construction loans across New York and New Jersey. The shift from fix-and-flip to larger construction reflects a broader market evolution, and We Lend’s approach demonstrates how private lenders can adapt to changing investor needs while managing risk.