Helping clients build wealth and staying ahead of industry change motivate the Forino brothers.

It’s said that opposites attract. In the case of Lou and Raffaele Forino, their completely different business backgrounds have benefited them as they’ve built Gauntlet Funding.

The brothers were born and raised in Queens, New York. They chose careers in different industries. Lou, the elder, gravitated toward technology and owned a tech consulting firm, which he sold in 2008. Raffaele has 25 years of experience as a mortgage banker. When the Great Recession hit, both sensed an opportunity.

“What spawned the idea is when the market crashed, we understood the market so well that we started acquiring properties,” Raffaele said. “Understanding there was a need for this, we moved over into the finance side, the private lending side. The traditional side of the business was suffering so much and there was so much [opportunity] on the distressed asset side that it was a natural fit, if you knew where to look.”

Lou added that post-recession legislation created additional opportunities on the lending side. Capitalizing on their distinct insights and business acumen, the brothers began working together around 2010 and formalized Gauntlet Funding in 2014.

‘Complete Trust’
A friend suggested the name Gauntlet, which the Forinos liked because of its connotation of protection. (And, as comic book fans, they didn’t mind the association with a Marvel Comics series.)

The company’s New York office is on Long Island, and it houses their 10 employees. The company also uses the services of a few contractors.

They lend all along the East Coast and had been planning to open a satellite office in Florida. Those plans were put on hold earlier this year as the coronavirus pandemic spread to the U.S.

In running the business, “we don’t really operate with titles,” Lou said. They consider themselves co-presidents. Both are actively involved in loan processing, but Lou handles investor relations and Raffaele focuses on client relationships.

When it comes to working with family, both agreed that the trust factor is crucial in allowing them to operate at peak levels.

“There’s complete trust,” Lou said. “Beyond that, it’s not very different from partnerships I’ve had in the past. Everyone is expected to do their jobs. … I don’t think anyone takes for granted that we’re here to build a company.”

Raffaele concurred that being able to rely on each other has allowed them to grow the business.

“When we assign roles to ourselves, he’ll keep me informed. I don’t have to wonder if he’s doing something behind my back. I don’t have to look over his shoulder, and he doesn’t have to look over mine,” he said. “I can’t explain how that makes you feel when we can truly focus on what we do best. In the course of a day, if you’re really focused on what you do best and not trying to wear every hat in the company and not look over your shoulder, it’s really impressive what you can get done when you have a singular focus.”

In fact, that singular focus occasionally spills into after hours. “Sometimes at family events, we end up talking about business more than before,” Lou said.

Staying True to the Mission
The mission of Gauntlet Funding is to help borrowers and investors build wealth.
Lou said that’s why he finds the real estate industry motivating.

“More people become wealthy through real estate than any other means. Not everybody can be a corporate CEO. Not everybody can start the next dot-com company. But no matter where people are, there’s a way for them to build wealth through real estate,” Lou said. “We’re helping people build better lives, and I’ve seen this through borrowers who have been with us for years. Their lives have improved dramatically. And if we can be a small part of helping them achieve that, that’s a great thing.”

Clearly, Lou takes to heart the often-quoted advice to do what you love.

“If you love this, you can be good at it. If you think it’s just an easier path, I promise you it’s not,” he said.

For Raffaele, the constant change and staying ahead of the trends keep him excited.

“Every market lasts six months. There’s a rotation. Some things become in vogue, some things become more popular. I love the way the market moves. … When you know the places under your feet and can feel things move, I love to be able to hop off one and go to the other and understand why things are moving and changing.”

Raffaele attributes his knowledge of the market to decades of experience in residential financing. “A lot of clues I can see coming. There are telltale factors if you see them multiple times.”

The fluid nature of the industry requires vigilance and the ability to pivot fast, the brothers said.

“The goal posts do move often in this business,” Raffaele said. “Foresight is paramount. It’s not easy, and I don’t think there’s a formula. But it can make a tremendous difference.”

While there may not be a formula, Lou said he learned valuable lessons from a business coach early in his career that taught him how to keep a finger on the pulse of an industry. He relies on data, networking, reading industry news and participating in industry organizations such as AAPL to keep perspective on trends and how competitors are responding. But he doesn’t discount his instincts.

“At the end of the day, you have to trust your gut,” Lou said.

That principle applies to all aspects of their business, from doing deals to creating new products.

“If it fits with our mission, we do it. If it doesn’t, we don’t do it,” Lou said. “Being entrepreneurs, it’s easy to get bright light syndrome, chasing shiny things. But you have to stay focused on your mission.”

The Forino brothers never forget their business revolves around people and relationships, not just with clients but with employees too. By hiring “good players,” they’ve forged a team with great chemistry they said. Although they operate in an industry where it’s crucial to dot every “i” and cross every “t,” it’s important to their culture to remain personable and grow relationships. “People like real people,” Raffaele said.

At the end of the day, there’s one practice that has proven fundamental to making the business one they love.

“I think it’s super important to us to have a lot of fun in what we’re doing. I can’t think of a day when we haven’t laughed quite a bit at the office,” Lou said. “Having fun lets people service our customers better and keeps the mood as lighthearted as possible.”