Coffeez for Closers with Joe Shalaby - Episode 43: Lending Strategies with Ease ft. Dawar Alimi

Host: Joseph Shalaby, Broker and CEO of E Mortgage Capital Inc.
Guest: Dawar Alimi, CEO and Co-founder of Lender Price
Release Date: October 4, 2024

Introduction

In Episode 43 of Coffeez for Closers, host Joseph Shalaby welcomes Dawar Alimi, the visionary CEO and Co-founder of Lender Price. With over two decades of experience in the mortgage industry, Dawar has led Lender Price to significant growth and innovation, positioning the company as a leader in the financial tech sector. This episode delves into Dawar's entrepreneurial journey, his strategies for navigating the competitive mortgage landscape, and his insights into the future of fintech, especially with the advent of artificial intelligence (AI).

Guest Background and Industry Journey

Dawar Alimi begins by sharing his academic background in computer science from Cal State San Marcos and his initial career path in engineering at GTE (now Verizon). However, his move into the mortgage industry was influenced by his roommates' success and entrepreneurial spirit.

Dawar Alimi [05:51]: "I decided to leave my 9 to 5 job just getting a salary and ended up working for a broker and doing IT stuff."

He founded Cornerstone Lending, a brokerage that eventually evolved into a wholesale mortgage company, paving the way for his later ventures in fintech.

Morning Routine and Personal Wellness

Emil and Dawar discuss their shared morning routine of waking up at 4:00 AM, highlighting the importance of discipline and personal health in sustaining entrepreneurial energy.

Dawar Alimi [02:06]: "I actually wake up at 4:00, so my internal clock is 4:00am I love it."

Dawar emphasizes the role of High-Intensity Interval Training (HIIT) and intermittent fasting in maintaining his physical and mental health, which he believes is crucial for effective leadership.

Dawar Alimi [04:14]: "And intermittent fasting, obviously. Right, so fasting and just exercising, for me, it's a way for me to have the energy that I need in the morning to get to work."

Founding and Growing Lender Price

In 2015, Dawar co-founded Lender Price, leveraging his technical expertise to build a scalable fintech solution. The company's growth exceeded expectations, increasing sales revenue by over 300% since 2015 and managing approximately $30 billion in loans.

Dawar Alimi [13:31]: "And then we started Lender Price."

His ability to integrate technology with financial services allowed Lender Price to serve 22 of the top 30 wholesale lenders, positioning the company as a cost-effective alternative to competitors like Loan Sifter.

Dawar Alimi [19:07]: "Our UI is superior to their existing UI."

Investment and Partnerships

Dawar recounts the serendipitous investment journey, including investments from notable figures like Kevin Costner and Glenn Stearns, facilitated through connections in Hollywood and strategic networking.

Dawar Alimi [13:40]: "Kevin Costner introduced me to Glenn Stearns."

These investments were pivotal in scaling Lender Price, allowing further innovation and market penetration despite industry downturns.

Innovating Beyond Competitors

A significant portion of the discussion focuses on Lender Price's strategy to outperform competitors by listening to clients and continuously innovating. Dawar highlights the importance of a user-friendly interface and the development of a configurable UI tailored for Non-Qualified Mortgage (Non QM) lenders.

Dawar Alimi [22:41]: "We came up with a configurable UI where think of it like a, you know, like what are some of those websites that you could just drag and dropping?"

Lender Price’s user-centric approach contrasts with the rigidity of established players like Loan Sifter, offering flexibility and better ROI for lenders.

The Role of AI in Fintech and Future Outlook

Dawar delves into the transformative role of AI in the mortgage industry, emphasizing that AI will augment rather than replace loan officers and underwriters. He discusses the integration of Natural Language Processing (NLP) and the development of proprietary small language models (SLMs) to maintain data security and compliance.

Dawar Alimi [27:33]: "I think that AI is going to enhance the ability for you to get things done faster."

He shares insights on how AI can streamline regulatory processes and improve user experience without compromising sensitive information.

Leadership, Talent, and Company Culture

Emphasizing the importance of building a strong team, Dawar shares advice inspired by Glenn Stearns:

Dawar Alimi [38:20]: "Find people that are smarter than you and hire them."

He discusses fostering a culture of innovation and collaboration, ensuring that Lender Price attracts and retains top talent to drive continued success.

Balancing Entrepreneurship and Family

The conversation shifts to personal aspects, where Dawar reflects on balancing the demands of running a company with family commitments. He underscores the importance of being present for his children's activities and cultivating supportive relationships.

Dawar Alimi [42:30]: "It's unfortunate that when you're running a company, you're not there for your kids as much."

He highlights the role of a supportive spouse in sustaining his entrepreneurial endeavors.

Personal Goals and Philosophies

Dawar shares his personal goal of learning to meditate, highlighting his dedication to continuous self-improvement. He advocates for taking incremental steps in entrepreneurship and encouraging the younger generation to explore their passions.

Dawar Alimi [33:11]: "Just taking the first step. You know, the vast majority of people that want to own their own business never take the first step."

He emphasizes the immigrant mentality of hustle and perseverance, drawing from his own experiences as a refugee.

Managing Risk in a Hyper-Regulated Industry

Discussing risk management, Dawar explains how Lender Price navigates the cyclical nature of the mortgage industry by taking measured risks and seizing opportunities during downturns.

Dawar Alimi [40:27]: "It's a cyclical industry."

He underscores the necessity of adaptability and strategic planning to sustain growth amidst regulatory challenges.

Final Reflections and Legacy

Concluding the episode, Dawar reflects on his desired legacy, focusing on being a good human being and fostering meaningful relationships over financial success.

Dawar Alimi [45:15]: "I would hope that I could contribute something. I don't know what that is, but, you know, gosh, that's such a hard."

He shares a heartfelt perspective on life’s true values, emphasizing family, friendships, and personal integrity.

Key Takeaways

• Discipline and Routine: Establishing a consistent morning routine contributes to sustained entrepreneurial energy and personal well-being.

• Innovation Through Listening: Continuously engaging with clients and adapting to their needs is crucial for developing competitive fintech solutions.

• Strategic Networking: Building relationships across diverse industries can open doors to pivotal investments and partnerships.

• AI as an Enabler: Leveraging AI to enhance efficiency and compliance without compromising data security is essential in the fintech landscape.

• Leadership and Talent: Hiring smarter individuals and fostering a collaborative company culture drives innovation and business growth.

• Work-Life Balance: Prioritizing family commitments while leading a company fosters personal fulfillment and long-term success.

• Measured Risk-Taking: Navigating industry cycles with strategic risk management ensures resilience and sustained growth.

Notable Quotes

• Dawar Alimi [01:51]: "Focus on what you do best and what we do best. Because the only thing that we can control is what we do, not what others do."

• Dawar Alimi [05:23]: "If you're not healthy, you don't have the energy and you don't have the mental capacity to actually make tough decisions."

• Dawar Alimi [19:12]: "Our UI is superior to their existing UI."

• Dawar Alimi [38:20]: "Find people that are smarter than you and hire them."

• Dawar Alimi [33:11]: "Just taking the first step. You know, the vast majority of people that want to own their own business never take the first step."

Conclusion

Episode 43 of Coffeez for Closers offers a comprehensive look into Dawar Alimi’s entrepreneurial journey and the innovative strategies driving Lender Price’s success in the competitive fintech mortgage space. From the importance of personal discipline and health to the strategic integration of AI and fostering a strong company culture, Dawar provides valuable insights for professionals in the mortgage industry, aspiring entrepreneurs, and anyone interested in the mechanics of building a successful business.