From Brokers to Balance Sheet Lenders: The Dynamo Capital Story

Matt Medrano and Justin Rocheleau, co-founders of Dynamo Capital, join Kevin Kim live at Fortra Con in Las Vegas to discuss their rapid rise as a Midwest-based private lender. Starting from residential mortgage and brokerage backgrounds, the duo share how frustrations with traditional lending channels led them to launch their own fund and build a balance sheet lending business. They unpack their evolution from brokering deals to becoming a direct lender, the challenges of operating in overlooked Midwest markets, and their philosophy around autonomy, disciplined underwriting, and borrower relationships. The conversation also explores team building, market expansion, and maintaining consistency while scaling a fast-growing lending platform.   Bullet Points:  [00:00:00] Introduction and live recording at Fortra Con in Las Vegas.  [00:01:56] Dynamo Capital overview and transition from brokerage to direct lending.  [00:03:30] Challenges operating in Midwest markets and lack of lender coverage.  [00:05:31] Early days juggling residential and BPL businesses simultaneously.  [00:06:00] Building internal infrastructure and refining underwriting after early loans.  [00:07:35] Entering DSCR lending and competing with local "rich uncle" lenders.  [00:10:42] Matt and Justin's origin story and transition into mortgage lending.  [00:14:44] Justin's background in finance and move into non-QM lending.  [00:17:25] Discovering BPL through client demand and learning via Scotsman Guide.  [00:18:46] First attempt at large commercial deal and lessons learned.  [00:23:32] Mapping BPL lending structures to residential mortgage frameworks.  [00:24:54] Realization of loan buyers and secondary market dynamics.  [00:27:01] Early confusion around lender vs. fund identity and business model.  [00:30:29] Capital challenges and lessons from losing an early funding partner.  [00:32:28] Building a balance sheet to maintain autonomy and consistency.  [00:33:27] Avoiding reliance on external capital partners and loan buyers.  [00:39:26] Scaling from two founders to a 45-person team.  [00:40:15] Fully transitioning to fund-based lending and eliminating brokering.  [00:41:12] Hiring outside the industry and building a service-driven culture.  [00:42:26] Early struggles with remote teams and improving cultural alignment.  [00:44:32] Expansion strategy focused on strong operators and local presence.  [00:46:25] Importance of boots-on-the-ground approach in new markets.  [00:47:46] Emphasis on disciplined lending over volume growth.  [00:49:00] Portfolio structure, bundled loans, and construction lending growth.  [00:51:20] Value of working with experienced builders over rigid guidelines.  [00:52:06] Midwest market dynamics and relationship-driven lending culture.  [00:53:12] Commitment to borrower trust and long-term relationships over pricing.   Links:  Learn more about Dynamo Capital at https://dynamocapital.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)