The Long Game in Private Lending: Building Without Institutional Capital, with Chris Haddon & Jason Balin

Chris Haddon and Jason Balin of Hard Money Bankers join Kevin Kim on this episode of Lender Lounge to discuss their nearly 20-year journey building a private lending business rooted in conservative underwriting and private capital. Starting in 2007 during the early stages of the financial crisis, they share how they scaled through disciplined deal structures, strong investor relationships, and a focus on long-term sustainability rather than rapid growth. The conversation examines the evolution of private lending, the rise of institutional capital, and the trade-offs between control, volume, and risk. Chris and Jason also break down their approach to maintaining deal flow, adapting to changing markets, and building a lending business that doubles as an investment vehicle.   ----------  Chris Haddon  Co-Founder, HardMoneyBankers.com Co-Host, Private Lenders' Podcast  Chris Haddon is the Co-Founder of Hard Money Bankers and handles investor relations and oversees the loan portfolio. Chris designed the loan servicing and capital operations of HMB which allow the company to manage a $50mm loan portfolio in a very efficient manner with minimal staff and overhead. Chris is also an avid growth marketer and his efforts over the years have allowed HMB to be recognized as one of the best  private lending companies in the MidAtlantic Region.  In 2019, Chris and his business partner, Jason Balin, launched the Private Lenders' Podcast  and Hard Money Mastermind, the #1 community in the private lending space.  ----------  Jason Balin  Co-Founder, HardMoneyBankers.com Co-Host, Private Lenders' Podcast  Jason Balin is a real estate private lender based in Maryland who co-founded Hard Money Bankers in 2007. He focuses on responsible and opportunistic lending to local real estate investors. Jason provides market knowledge in many real estate asset classes from personally investing in private notes, residential houses, office, multi-family and self-storage projects.   He has written 3 books and currently hosts 2 podcasts:  Private Lenders Podcast and Real Estate Reserve Podcast.   Jason also runs a mastermind group helping other private lenders grow their own hard money companies called HardMoneyMastermind.com.   Bullet Points:  [00:00:00] Introduction to Lender Lounge and guest background.  [00:01:17] Chris and Jason's overview of Hard Money Bankers and lending model.  [00:02:22] Building a business using private investor capital instead of institutional funding.  [00:03:41] The importance of multiple business models in private lending.  [00:04:59] Early careers in mortgage lending and real estate investing.  [00:05:02] Identifying opportunities during the pre-2008 housing bubble.  [00:07:23] Launching Hard Money Bankers during the 2007 market downturn.  [00:08:15] Lack of liquidity and competition in early private lending markets.  [00:10:25] Early challenges sourcing deals versus raising capital.  [00:12:22] Conservative underwriting approach and borrower requirements.  [00:13:30] Grassroots marketing strategies including REIAs and early YouTube.  [00:15:04] Leveraging technology and branding ahead of competitors.  [00:17:19] Operating through the 2008 financial crisis and early growth.  [00:20:40] Identifying business viability through profitability and deal volume.  [00:22:19] Transition from brokering loans to building an investment vehicle.  [00:24:19] Realization of passive income potential through lending capital.  [00:26:14] Balancing active business operations with passive investment returns.  [00:27:11] Market changes with the entrance of institutional capital.  [00:28:12] Evaluating institutional funding versus maintaining independence.  [00:30:52] Choosing control and long-term stability over rapid scaling.  [00:31:31] Losing borrowers to higher leverage institutional lenders.  [00:33:59] Industry shifts toward mortgage banking-style operations.  [00:35:39] Ongoing tension between growth, risk, and maintaining discipline.  [00:37:03] Concerns around high leverage lending and credit cycle risks.  [00:39:04] Differentiating between lending as a business versus an investment vehicle.  [00:41:02] Importance of investor relationships and capital trust.  [00:43:54] Challenges of sustaining deal flow in a competitive market.  [00:45:51] Expanding into new markets and loan types to maintain volume.  [00:48:12] Diversifying beyond fix-and-flip into commercial and bridge lending.  [00:50:01] Discussion on institutional capital cycles and market shifts.  [00:51:39] Launching a mastermind group for private lenders.  [00:53:35] Structure and collaboration within the lending mastermind community.  [00:54:55] Benefits of sharing resources and building industry relationships.  [00:57:12] Common challenges new lenders face and need for education.  [00:58:11] Growth and success stories from mastermind participants     Links:  Learn more about Hard Money Bankers at https://www.hardmoneybankers.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)