Find out why hyper-local connections matter more than ever, and how they can set you apart in a crowded market
Every mortgage broker is always looking for new ways to generate more business for their brokerage. Two private lending executives offered tips to brokers looking to expand, encouraging brokers to build relationships locally first and valuing every client as if they were their only one.
Mark Munson (pictured top left), co-founder and CFO of CapSource, and Eric Panecki (pictured top right), CEO and founder of Brick City Capital, were two executives on a broker roundtable panel at the National Private Lenders Association conference in Atlantic City.
Munson said the first key is not to overextend your business by promising loan coverage in areas where you are likely to be beaten out by local mortgage brokers.
“Localized, hyper-relationship-based,” Munson said. “Don’t tell everybody that you lend across 40 states. Lend to the four states you can travel to and be a presence in, and create relationships in. Because the reality is, we can all pull the same data. We can all call from anywhere else in the country, but they don’t know you from anybody else.”
He noted that it will be the places where you can build relationships that will allow you to close deals. If you can’t be present to build those relationships, it’s hard to make your brokerage stand out.
“They’re going to get 10 other calls from 10 other LOs,” he said. “What are you doing to separate yourself? And if you’re not better than me on the phone, I’m going to win that deal. So you have to self-develop. So I still think it’s a relationship business.”
Technology makes relationships more important
Munson believes that as artificial intelligence becomes more commonplace in mortgage lending, those relationships you build will be even more critical.
“I think as we see more AI come into the business, where we think AI can replace a bunch of things, the pendulum will swing back to relationship-based. So, I think you need to be deeply rooted in brick-and-mortar, shaking hands, boots on the ground of an area. Whether it’s the Southeast region or the East coast, and figure out how to be really good at lending here, before I say I’m going to lend everywhere.”
Panecki also stressed to the brokers in attendance that it is the relationships that will allow your brokerage to grow.
“I’m thinking about how I can provide the most value,” Panecki said. “When we started, I was a broker. It was just me. I came from the private lending space, working for another lender in the space. We were brokering loans to keep the lights on and cover overhead. And I treated every single client like it was my only client, because they probably were.”
When starting, Panecki developed the habit of asking clients for referrals. He noted that while some people might scoff at the idea, he stressed to brokers that it’s a great way to build a network when starting.
“One thing that I got into the habit of early on was asking for referrals,” he said. “I think that’s something that nobody does. It’s a simple little thing. If everybody you spoke to throughout the day you said, ‘By the way, do you have three names of people who my services might be valuable to?’
“You guys are talking to people all day, especially guys just starting out. Just ask for referrals. Don’t be ashamed to ask for referrals, because they will produce business.”
“Work in the business or work off the business”
Munson said that when building out your team, you need to find other lending professionals who are as dedicated to your brokerage as you are, and that can be a challenge.
“At some point, you have to make a decision as an operator, whether you want to work in the business or off the business,” Munson said. “When you’re wanting to make that decision, if you want to work in the business, I can close 30 or 40 loans every month, make a good living, so can my business partner, not hire anybody, and keep this team small and live the life we want.”
He noted that once you decide you want to go beyond what you can do with your brokerage, it’s about finding, training, and supporting the right people to help them succeed, which in turn helps your company grow.
Private lenders must adapt to an "uncertain market," says Jonathan Hornik of the NPLA. He notes that escalating construction costs require different underwriting approaches for large commercial projects. https://t.co/kjDvbbASP5
— Mortgage Professional America Magazine (@MPAMagazineUS) June 25, 2025
“It was important as we tried to phase ourselves out, to look at the bigger picture and not be in the trenches as much, was to get somebody in there to shadow initially,” he said. “I think that’s a good process. When we hire, they sit in a classroom for 30 days. They don’t leave that classroom for 30 days. Then they shadow for 30 days, and they’re on their own for 30 days.
“If you’re going to build a company, you’re building it off people. It’s not your product. It’s not a myriad of other things you could bring up. It’s the people within your company. So, you need to bring in high-quality people.”
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