What if the biggest problem in real estate is not money but finding the deal?
Scott Meyers sits down with Josh Stech to unpack his journey from flipping homes to building one of the largest private lending platforms in the country and now disrupting off market real estate through his company, Sundae.
Josh shares how the industry shifted from a lack of capital to a lack of inventory and how Sundae is solving that problem by creating a transparent, competitive marketplace for sellers and investors alike.
From scaling a billion-dollar lending business to raising over $100 million for a new venture, he reveals the importance of staying mission driven, building trust with sellers, and resisting shortcuts for quick profit.
The conversation also dives into the future of real estate, industry consolidation, and how entrepreneurs can partner with Sundae to scale faster.
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WHAT TO LISTEN FOR
1:07 How did Josh Stech go from Stanford grad to building the nation’s largest private lender?
3:27 How does Sundae’s competitive marketplace model benefit both sellers and investors?
9:52 What kind of experienced operator does Sundae want as a franchise partner?
14:33 What does Sundae’s growth look like across every major US city in five years?
26:20 What is the one piece of advice Josh Stech says every investor needs to hear?
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CONNECT WITH GUEST: JOSH STECH, CEO | CO-FOUNDER AT SUNDAE
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Announcer (00:03):
This is the Self Storage Podcast with the original self storage expert, Scott Meyers.
Scott Meyers (00:11):
Hello, everyone, and welcome back to the Self Storage Podcast. I am your host, Scott Meyers, and in the studio today we have my good friend, Josh Stech. Josh, welcome to the Self Storage Podcast.
Josh Stech (00:21):
Thanks for having me, Scott. Great to see you.
Scott Meyers (00:24):
Great to see you as well. So, for the record, I have known Josh for about five or six years now, as he and I are in a real estate mastermind together. I have also known his dad for about 20 years. I can probably go so far as to say his dad is a legend when it comes to raising private equity. Josh, as they say, the apple does not fall far from the tree. He has taken what his dad created and what he learned from him and has gone on to do the same thing.
That is really what I wanted to talk about today, to share a little bit about your journey, Josh. Then we will get into the specifics of Sundae and some of the other businesses you have created, bought, and sold, and what you are growing right now.
(01:04)
So with that, the floor is yours.
Josh Stech (01:07):
Awesome. Thanks again for having me. I am really excited to share a little bit more about some of the things I have learned along the way. I certainly do not know it all, but I have learned a few things and I am happy to share while continuing to learn.
By way of background, I started my career fixing and flipping homes in Las Vegas just after graduating from Stanford grad school, which was a bit of an unusual path. The entrepreneurial bug was always there, largely because of my dad. I learned how to fix and flip, then realized that lending was much more scalable and frankly more fun.
I transitioned into a company doing that with my dad. We raised a fund and then parlayed that experience into my first technology business called LendingHome, now known as Kiavi. It is the largest private lender in the country, doing between 700 and 900 million dollars in loans per month.
(01:59)
That was a great experience, starting from nothing and scaling it into a very large business. Today, I am focused on Sundae. We are bringing more process, standards, and rules of engagement to the off market real estate space, which often lacks structure and can create bad outcomes.
Scott Meyers (02:23):
Let’s dive into that. You built a huge platform and scaled multiple businesses. Where does Sundae fit in? What niche were you targeting and why was there a need for another company in this space?
Josh Stech (02:43):
With LendingHome, we solved what was then the number one need for investors, which was access to capital. It was a very early market and not institutionalized. You were lucky to find capital at rates below 15 percent.
As time passed after the financial crisis, access to inventory became the bigger issue. Finding good deals became the number one need. I wanted to continue supporting investors along their journey by making investing easier.
(03:27)
Sundae was created to solve the problem of finding off market deals in a fair and consistent way. Sellers should not be limited to a single low offer. Instead, they should receive multiple offers in a competitive environment that benefits both the seller and the investor.
We created a marketplace that sits in the middle of that transaction. We also built supporting divisions like lending and escrow to service it.
Scott Meyers (04:26):
Walk us through the customer journey. What happens when someone reaches out to Sundae?
Josh Stech (04:34):
We strongly believe in meeting in person. This is often someone’s largest financial asset and can be very emotional. Whether it is inheritance, financial distress, or other reasons, trust is critical.
We start with a call, do light qualification, explain the process, and then aim to meet the seller in person. From there, we prepare the property for the marketplace with inspections, 3D walkthroughs, photos, and disclosures.
(05:18)
The goal is to provide enough information for investors to confidently make offers without needing to visit the property. We avoid overwhelming sellers with multiple in person showings.
We run a two round auction process. First, investors compete to be in the top three. Then those top three submit their highest and best offers. This helps maximize value for the seller.
Scott Meyers (06:21):
You have had strong success with this. What are you most proud of and what surprised you along the way?
Josh Stech (06:42):
I am most proud of staying true to our mission. There are always temptations to take shortcuts for profit, but we have stayed focused.
We have also attracted incredible people and investors. Having someone like Dr. Phil as a spokesperson was unexpected, along with backing from major real estate firms.
Scott Meyers (08:15):
What is next for expansion?
Josh Stech (08:15):
We are opening up our platform to entrepreneurs in markets we do not yet serve. Instead of requiring people to join full time, we are offering a partnership model where operators can use our brand, technology, and marketing.
(09:09)
We are launching in Oklahoma City and Salt Lake City, with more markets coming soon. This could help us become a household name.
Scott Meyers (09:34):
Who is your ideal partner?
Josh Stech (09:52):
We are looking for experienced operators already doing 20 to 40 deals a year who want to scale significantly. This is not for beginners. It is for those ready to grow quickly using better systems and branding.
Scott Meyers (10:58):
Are you seeing more consolidation in the industry?
Josh Stech (12:10):
Yes. The market is very fragmented, which creates inefficiencies. Regulation will likely drive consolidation because smaller operators may struggle to keep up.
(13:14)
We believe in a transparent model similar to an online marketplace for homes. This could create better outcomes for both buyers and sellers.
Scott Meyers (14:22):
What does Sundae look like in five years?
Josh Stech (14:33):
We have spent six years and over 100 million dollars building the platform. I hope that in five years, Sundae is in every major US city and recognized as the standard for how transactions should be done.
Scott Meyers (16:18):
Let’s talk about giving back.
Josh Stech (19:34):
Our mantra is make money, have fun, do good. In that order. Making money allows you to have fun and do good at a higher level.
(20:29)
We support causes like fighting child trafficking and housing initiatives. Giving back has become a major focus for our family.
Scott Meyers (21:10):
That perspective is powerful.
Josh Stech (22:07):
It really is. Giving back is the most fulfilling part of life, especially when you involve your kids early.
Scott Meyers (24:36):
How can people reach you?
Josh Stech (24:36):
You can email me at membership@Sundae.com if you are interested in bringing Sundae to your market.
For private lending education, visit justbethebank.com/scott. We have free resources, PDFs, and webinars available.
Scott Meyers (26:20):
What is the best piece of advice you have ever received?
Josh Stech (26:20):
One of the best pieces of advice came from Meg Whitman. She said, it is not about the quality of your last decision, it is about the quality of your next decision.
(26:54)
You cannot always be right. You will fail. What matters is moving forward and not letting past mistakes define your future.
Scott Meyers (27:49):
That is powerful. Thanks again, Josh.
Josh Stech (28:17):
Thank you, Scott.
Scott Meyers (28:19):
Take care.
Announcer (28:22):
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