1 00:00:00.200 --> 00:00:03.300 Alright, and I'm Johnny Fernandez. Thank you guys so much for joining us today 2 00:00:03.300 --> 00:00:06.400 Shawn. Happy Thursday. No what day today's 3 00:00:06.400 --> 00:00:09.700 Thursday that Wednesday? Happy Wednesday. We're almost 4 00:00:09.700 --> 00:00:11.200 to the weekend. So Midway through 5 00:00:12.200 --> 00:00:15.300 So exciting exciting week we've had so far. We've been back 6 00:00:15.300 --> 00:00:18.400 here working on some exciting new other projects and 7 00:00:18.400 --> 00:00:21.200 we have Broker Fair coming up. So we're gonna talk a little bit more about 8 00:00:21.200 --> 00:00:24.400 that later on but first we're gonna 9 00:00:24.400 --> 00:00:27.600 talk about the business the industry and how 10 00:00:27.600 --> 00:00:30.900 it's getting impacted specifically when 11 00:00:30.900 --> 00:00:33.500 it comes to disclosure laws. Now. 12 00:00:33.500 --> 00:00:36.100 This has been something we've been talking about for a while 13 00:00:36.100 --> 00:00:39.900 depending on the state, you know, there's been a lot of conversations regarding 14 00:00:39.900 --> 00:00:42.300 that this the last year, but today we're 15 00:00:42.300 --> 00:00:45.200 going to talk about the new California disclosure law. It will 16 00:00:45.200 --> 00:00:48.200 be going into effect on December 9th. Now Sean, this is 17 00:00:48.200 --> 00:00:51.600 something we were talking about before we actually, you know 18 00:00:51.600 --> 00:00:54.500 went live this disclosure law 19 00:00:54.500 --> 00:00:57.500 is definitely different than other disclosure laws. In 20 00:00:57.500 --> 00:01:00.300 other states specifically, you know, we're talking 21 00:01:00.300 --> 00:01:03.200 about Virginia, you know, we've talked about New York. We've talked about 22 00:01:03.200 --> 00:01:06.500 Maryland. So the California law is it's different and 23 00:01:06.500 --> 00:01:09.900 what we've been hearing from people that work in 24 00:01:09.900 --> 00:01:11.600 California that they are ready to 25 00:01:11.900 --> 00:01:15.300 I'm ready to do business and pretty 26 00:01:14.300 --> 00:01:17.300 much get ready for this 27 00:01:17.300 --> 00:01:20.400 law. But we've talked to the professional her 28 00:01:20.400 --> 00:01:24.600 name. She was a partner with Hudson cook Lop so 29 00:01:23.600 --> 00:01:26.600 Sean. Let's talk a little bit about that and what 30 00:01:26.600 --> 00:01:29.300 she had to say and how she helped us understand 31 00:01:29.300 --> 00:01:32.900 this disclosure a little bit better and we 32 00:01:32.900 --> 00:01:36.100 did have we do have an article about this on debank.com. 33 00:01:35.100 --> 00:01:38.600 So like I've 34 00:01:38.600 --> 00:01:41.200 been saying this is a very different disclosure law compared to 35 00:01:41.200 --> 00:01:41.400 Virginia. 36 00:01:42.500 --> 00:01:45.300 For me and this is something that I mistakenly said 37 00:01:45.300 --> 00:01:48.400 to you. There's an assumption 38 00:01:48.400 --> 00:01:51.300 that all disclosure laws are pretty much almost the same, 39 00:01:51.300 --> 00:01:54.200 you know, if if I'm in business if I'm in 40 00:01:54.200 --> 00:01:57.700 business thinking that the Virginia disclosure law is pretty 41 00:01:57.700 --> 00:02:00.900 much the same format as Maryland one 42 00:02:00.900 --> 00:02:03.500 the New York when the California one I'd be 43 00:02:03.500 --> 00:02:06.100 afford to think that because and I was foolish to think that 44 00:02:06.100 --> 00:02:09.400 because this California law. Well, you weren't foolish. You 45 00:02:09.400 --> 00:02:12.400 know, I guess you just kind of just mistaken this yeah. 46 00:02:12.400 --> 00:02:15.100 Yeah, but this California law is requiring a 47 00:02:15.100 --> 00:02:18.500 lot more detail than just a simple just a simple disclosure form. 48 00:02:19.600 --> 00:02:19.900 well 49 00:02:20.900 --> 00:02:23.200 Here's and here's a here's a 50 00:02:23.200 --> 00:02:26.900 good thing to talk about first because we've talked about disclosure laws 51 00:02:26.900 --> 00:02:29.500 on here. I feel like a tongue if 52 00:02:29.500 --> 00:02:32.200 there's a law being proposed if one passes if one 53 00:02:32.200 --> 00:02:32.900 goes into effect. 54 00:02:34.200 --> 00:02:37.500 And whenever the topic is brought up. I I 55 00:02:37.500 --> 00:02:40.400 usually have I usually 56 00:02:40.400 --> 00:02:43.100 have people tell me that that they're in favor 57 00:02:43.100 --> 00:02:46.400 of the disclosure law and I'm like, you know, oh, okay. 58 00:02:46.400 --> 00:02:49.500 Tell me about that and said well, we're one of the good guys and we're 59 00:02:49.500 --> 00:02:52.200 in favor of disclosing. Why wouldn't we 60 00:02:52.200 --> 00:02:55.600 want to you know, provide accurate and transparent information to our 61 00:02:55.600 --> 00:02:56.400 customers and I said 62 00:02:57.400 --> 00:03:00.200 Well, yeah that makes sense. You know, that would make you a 63 00:03:00.200 --> 00:03:03.500 good person or you know, one of the good guys if you want to make sure that the other 64 00:03:03.500 --> 00:03:06.200 party has all the information to make an informed decision, but 65 00:03:06.200 --> 00:03:09.300 when these laws are drafted they're not always. 66 00:03:10.300 --> 00:03:13.700 They're not always coming in with that being in the end goal. 67 00:03:13.700 --> 00:03:16.800 Yeah, it's not just about there being a form 68 00:03:16.800 --> 00:03:19.200 or an APR that makes the 69 00:03:19.200 --> 00:03:23.100 customer more informed because all these other things that 70 00:03:22.100 --> 00:03:25.500 come with that. Yeah that are 71 00:03:25.500 --> 00:03:28.900 going to make it more expensive and more difficult for 72 00:03:28.900 --> 00:03:31.500 you to operate your business. And and 73 00:03:31.500 --> 00:03:34.600 this is what this is what's happened? Yeah with with 74 00:03:34.600 --> 00:03:37.400 California for Virginia. Yeah there, you 75 00:03:37.400 --> 00:03:40.100 know, there was some legal leg work that company has had 76 00:03:40.100 --> 00:03:43.400 to jump through. I've heard from several funding comedy that 77 00:03:43.400 --> 00:03:46.900 said they are confident that they're able to continue funding 78 00:03:46.900 --> 00:03:49.600 like they were before they've got the form like we've 79 00:03:49.600 --> 00:03:52.500 got the form the form the form everyone keeps they can't 80 00:03:52.500 --> 00:03:55.400 talk about the form enough. We have the form we put the Forum we're 81 00:03:55.400 --> 00:03:58.100 good. We're doing the Forum we our form is good 82 00:03:58.100 --> 00:04:01.300 and then it's like okay on to California. What's my California 83 00:04:01.300 --> 00:04:04.300 form? And it's like hold on. This one's not 84 00:04:04.300 --> 00:04:07.400 just about a form. There's a lot more going on here in California, 85 00:04:07.400 --> 00:04:09.900 and I think it's interesting because when we talk about, 86 00:04:10.200 --> 00:04:13.100 And yet we actually there's a there's a video that we 87 00:04:13.100 --> 00:04:16.300 do we actually went through the form with everyone like this is what this 88 00:04:16.300 --> 00:04:19.300 could mean, you know talk with your lawyer don't we're not giving 89 00:04:19.300 --> 00:04:22.100 legal advice but and it was a form we sat here we went through 90 00:04:22.100 --> 00:04:25.500 the form we went through the form but in California, it's a lot different, you 91 00:04:25.500 --> 00:04:28.900 know, it's gonna require specific disclosures on these 92 00:04:28.900 --> 00:04:31.800 contracts on the commercial the finance contracts, 93 00:04:31.800 --> 00:04:34.300 you know anywhere from you know, 94 00:04:34.300 --> 00:04:37.000 the actual APR, you know 95 00:04:37.700 --> 00:04:41.300 from normal things like that to when it comes to the 96 00:04:40.300 --> 00:04:43.100 operation process when it 97 00:04:43.100 --> 00:04:46.600 comes to you know, what exactly the my new details 98 00:04:46.600 --> 00:04:49.300 and something we spoke about earlier was when we were off 99 00:04:49.300 --> 00:04:52.700 camera was this specific this school 100 00:04:52.700 --> 00:04:55.400 this specific law is requiring so much more 101 00:04:55.400 --> 00:04:58.600 detailed and just kind of a generic 102 00:04:58.600 --> 00:05:01.300 overview of you know, hey, this 103 00:05:01.300 --> 00:05:04.300 is a product. Here's the epr sign and we're done. This is 104 00:05:04.300 --> 00:05:06.300 this actually has more, you know, 105 00:05:07.500 --> 00:05:10.300 conversations that can happen that can trigger, you know 106 00:05:10.300 --> 00:05:10.800 into 107 00:05:12.500 --> 00:05:15.300 Talk about you know business about 108 00:05:15.300 --> 00:05:18.000 talk and having conversations that you know 109 00:05:18.400 --> 00:05:22.400 will need to be logged. We need to be timed. So Sean, 110 00:05:21.400 --> 00:05:25.000 let me ask you this. What do you think overall is 111 00:05:24.100 --> 00:05:27.000 the one the main thing that people should be 112 00:05:27.400 --> 00:05:30.600 aware of if they're thinking about doing business in California? All 113 00:05:30.600 --> 00:05:33.400 right. So I think this there's two things one one is 114 00:05:33.400 --> 00:05:36.800 with Virginia and don't quote me on this because 115 00:05:36.800 --> 00:05:39.200 this is my takeaway if I'm 116 00:05:39.200 --> 00:05:42.400 talking with someone who is more knowledgeable about it than I but 117 00:05:42.400 --> 00:05:45.700 with in Virginia the form the infamous 118 00:05:45.700 --> 00:05:48.300 form that we've talked about is that that form 119 00:05:48.300 --> 00:05:51.600 is required with the contract, right? So your 120 00:05:51.600 --> 00:05:55.200 funding the merchant you're doing the deal. Here's the disclosure form. 121 00:05:56.400 --> 00:05:59.300 Easy in California. My understanding is that it's 122 00:05:59.300 --> 00:06:00.000 a little bit different. 123 00:06:00.700 --> 00:06:04.100 If you need to disclose potentially earlier 124 00:06:03.100 --> 00:06:06.700 on in the conversation, it may 125 00:06:06.700 --> 00:06:09.700 not just be here. It is with the contract. I 126 00:06:09.700 --> 00:06:13.000 believe it has more to do with when you're making proposals 127 00:06:12.400 --> 00:06:15.500 to the merchant when you're like, you know 128 00:06:15.500 --> 00:06:19.000 you qualify I think for you know, 10,000 or 129 00:06:18.300 --> 00:06:21.600 you know, 15,000 dollars easily approximate 130 00:06:21.600 --> 00:06:25.000 terms. We're talking about that conversation now is 131 00:06:24.200 --> 00:06:27.500 a little bit more dangerous than it used to be because you 132 00:06:27.500 --> 00:06:31.100 have to worry about whether or not it's entered into the territory as 133 00:06:30.100 --> 00:06:33.600 to whether or not you need to now offer the state 134 00:06:33.600 --> 00:06:36.200 required disclosures. So the 135 00:06:36.200 --> 00:06:39.500 whole process you just mention the word like term operational 136 00:06:39.500 --> 00:06:40.500 process. Yeah. 137 00:06:41.300 --> 00:06:44.600 The operational process could be affected because 138 00:06:44.600 --> 00:06:47.900 everyone is used to pitching the merchant terms right 139 00:06:47.900 --> 00:06:50.600 at some point, right? It could be a pre-approval. 140 00:06:50.600 --> 00:06:53.000 It could be Ballpark and then you get to 141 00:06:53.100 --> 00:06:56.800 the point where like these are the final terms sign the contract. However, 142 00:06:56.800 --> 00:06:59.200 you may need to make disclosures prior to 143 00:06:59.200 --> 00:07:02.200 the final terms. It could be early in the conversation when you're 144 00:07:02.200 --> 00:07:06.200 like texting the merchant we might be able to get you 10,000 out 145 00:07:06.200 --> 00:07:09.100 of six month deal right that and don't quote 146 00:07:09.100 --> 00:07:12.700 me. You need to talk to a lawyer but that could potentially be 147 00:07:12.700 --> 00:07:15.200 a scenario in which you are now required to 148 00:07:15.200 --> 00:07:18.300 give some sort of estimated APR based upon 149 00:07:18.300 --> 00:07:21.100 a state required calculation. Yeah, and that you have to 150 00:07:21.100 --> 00:07:24.900 log this particular conversation and report 151 00:07:24.900 --> 00:07:27.600 it back to the funding company that it happened along with 152 00:07:27.600 --> 00:07:30.300 the disclosure that you provided and something that the 153 00:07:30.300 --> 00:07:33.600 article stated was that like all this data that you have from 154 00:07:33.600 --> 00:07:36.600 the first conversations you have, you know that has 155 00:07:36.600 --> 00:07:39.200 all the details of you know, the time the dates that 156 00:07:39.200 --> 00:07:41.100 all needs to be stored. You can't just throw. 157 00:07:41.300 --> 00:07:44.700 The way because part of the compliance is that you have proof 158 00:07:44.700 --> 00:07:47.500 of the data showing that you know, this is all you 159 00:07:47.500 --> 00:07:50.300 know for this specific transaction. This is all that 160 00:07:50.300 --> 00:07:54.000 has gone into it. So it's not just contract form 161 00:07:53.500 --> 00:07:56.400 you're done. There's a lot more that goes into 162 00:07:56.400 --> 00:07:59.700 the California law. When did you talk to the merchant? What did 163 00:07:59.700 --> 00:08:02.200 what exactly did you say Oh you talked 164 00:08:02.200 --> 00:08:05.600 about this. Did you send over the necessary disclosures? Did you 165 00:08:05.600 --> 00:08:08.800 use the estimated APR that is required by the state. Did you 166 00:08:08.800 --> 00:08:11.200 log in the conversation? Did you did you put 167 00:08:11.200 --> 00:08:14.100 down the put it down in a journal and time stamp that this happened? 168 00:08:14.100 --> 00:08:17.600 Did you report it back to the funder when it happened? Guess what? My understanding 169 00:08:17.600 --> 00:08:20.400 isn't don't call me on everything I say but my 170 00:08:20.400 --> 00:08:24.000 understanding that the fonder is responsible for whatever 171 00:08:23.400 --> 00:08:26.800 the broker is doing if you're like, well, you 172 00:08:26.800 --> 00:08:29.300 know, I might just kind of keep Blind Eye to some of 173 00:08:29.300 --> 00:08:32.400 it. You know, we'll we'll comply where we can and if 174 00:08:32.400 --> 00:08:35.400 the broker goes off and the deep end and starts making proposals that 175 00:08:35.400 --> 00:08:38.100 are outside of my purview. You know, that's not on me. 176 00:08:38.100 --> 00:08:41.100 My understanding is that it may be on you if you're the 177 00:08:41.200 --> 00:08:44.700 Company if the broker is negotiating deals with the merchant they 178 00:08:44.700 --> 00:08:47.900 may be required to give approvals or 179 00:08:47.900 --> 00:08:50.100 pre-approvals or terms that are approved by 180 00:08:50.100 --> 00:08:53.800 the funder and abide by all the necessary disclosures every single 181 00:08:53.800 --> 00:08:56.500 time. They make those offers to the merchant. These are 182 00:08:56.500 --> 00:08:59.700 things you need to think about. Do not quote Sean Murray. Do 183 00:08:59.700 --> 00:09:01.600 not say that Sean Murray told you to do this. 184 00:09:02.300 --> 00:09:07.000 This is just my understanding, please hire qualified Council, 185 00:09:05.200 --> 00:09:08.500 but the other thing is that you 186 00:09:08.500 --> 00:09:11.200 know, how did this compare to California? That's just one 187 00:09:11.200 --> 00:09:13.500 thing this whole trigger of disclosure. 188 00:09:14.400 --> 00:09:17.500 The other side of it is that it's it's 189 00:09:17.500 --> 00:09:20.300 a it's not just a matter of filling out a form you now 190 00:09:20.300 --> 00:09:23.500 need to calculate an APR. First of 191 00:09:23.500 --> 00:09:26.500 all, if you're doing a loan, that's easy. Yeah, but 192 00:09:26.500 --> 00:09:29.300 if you're doing say a purchase the future sale, 193 00:09:29.300 --> 00:09:32.300 if you're doing an MCA transaction, there's no such thing 194 00:09:32.300 --> 00:09:35.200 as an APR now because it's so short 195 00:09:35.200 --> 00:09:38.500 that it wouldn't be appropriate some people think they're like, oh 196 00:09:38.500 --> 00:09:41.300 you don't want to give an APR because your argument is that it's so 197 00:09:41.300 --> 00:09:44.500 short term that it's not appropriate not about appropriate. It's just mathematically 198 00:09:44.500 --> 00:09:47.300 not possible to calculate because you have no element 199 00:09:47.300 --> 00:09:51.300 of time and APR requires a precise element 200 00:09:50.300 --> 00:09:53.200 of time in the calculation and there is 201 00:09:53.200 --> 00:09:56.400 none in an MCA. Guess what this date of 202 00:09:56.400 --> 00:09:59.500 California it came to terms with that because it 203 00:09:59.500 --> 00:10:02.500 is true. So they said guess what you 204 00:10:02.500 --> 00:10:05.200 are going to estimate one. You can use 205 00:10:05.200 --> 00:10:08.200 two methods to decide what it is 206 00:10:08.200 --> 00:10:11.400 Oracle method or the underwear. Yeah Historical Method or the underwriting 207 00:10:11.400 --> 00:10:14.200 method not gonna get into the two different methods, but it's my understanding. 208 00:10:14.400 --> 00:10:17.300 That New York is going to try to do the same thing, but they're like you choose 209 00:10:17.300 --> 00:10:20.100 the method that you want and it's you know, it's an 210 00:10:20.100 --> 00:10:23.700 estimate but we're gonna hold you to it if you're estimate is wrong, 211 00:10:23.700 --> 00:10:26.300 even though you're just estimating right? So you 212 00:10:26.300 --> 00:10:29.700 have to work with legal counsel to make sure that whatever estimate 213 00:10:29.700 --> 00:10:32.500 you use whatever methodology you use is up 214 00:10:32.500 --> 00:10:35.200 to Snuff with what they want. But then it goes 215 00:10:35.200 --> 00:10:38.200 one step further. I already had no idea about this at all 216 00:10:38.200 --> 00:10:41.500 until I had this conversation last week it then 217 00:10:41.500 --> 00:10:45.100 so all right. So I a fundamental 218 00:10:44.100 --> 00:10:47.300 piece of a MCA agreement. 219 00:10:48.200 --> 00:10:52.500 Is that there is a true-up or reconciliation provision, which 220 00:10:51.500 --> 00:10:54.500 means that if a 221 00:10:54.500 --> 00:10:57.900 Merchants sales go up or down the 222 00:10:57.900 --> 00:11:00.900 merchant has the ability to reconcile the 223 00:11:00.900 --> 00:11:03.100 payments based upon whether or not 224 00:11:03.100 --> 00:11:06.200 funds are over collected or undercollected. So if the 225 00:11:06.200 --> 00:11:09.500 sales tank like hey, you were technically debiting out too much. You 226 00:11:09.500 --> 00:11:12.000 need to reimburse me for the overage Bill the other 227 00:11:12.100 --> 00:11:15.100 way too. Hey your sales doubled by technically should be giving you 228 00:11:15.100 --> 00:11:20.000 more you should have been collecting more than you did at the reconciliation and 229 00:11:18.100 --> 00:11:20.700 that's the true up. 230 00:11:21.900 --> 00:11:24.700 California says okay. We understand. 231 00:11:25.700 --> 00:11:29.100 That too, but now there's another here's another 232 00:11:29.100 --> 00:11:29.400 thing. 233 00:11:30.400 --> 00:11:33.200 Do you predict any of these circumstances, you 234 00:11:33.200 --> 00:11:36.200 know these scenarios happening where you're going to need to do one of 235 00:11:36.200 --> 00:11:39.200 these reconciliations? I don't know if anyone predicts them. 236 00:11:39.200 --> 00:11:42.300 Yeah, you know, that's the whole point of doing the troop because you can't really predict it 237 00:11:42.300 --> 00:11:45.200 you make a prediction the prediction was wrong. So you got to 238 00:11:45.200 --> 00:11:49.100 do the true up or the reconciliation because it's hard to predict the 239 00:11:48.100 --> 00:11:51.500 state is saying however, my understanding showmar is 240 00:11:51.500 --> 00:11:54.100 understanding not legal advice. I'm not a 241 00:11:54.100 --> 00:11:57.500 lawyer but my understanding that the state is saying you now have 242 00:11:57.500 --> 00:12:00.700 to come up with your own predictions for 243 00:12:00.700 --> 00:12:04.000 I guess one off 244 00:12:03.500 --> 00:12:06.500 events that could trigger reconciliation or 245 00:12:06.500 --> 00:12:07.500 true up and 246 00:12:07.500 --> 00:12:10.500 And come up with the date that you think these things will happen and 247 00:12:10.500 --> 00:12:11.000 the amount. 248 00:12:12.300 --> 00:12:14.400 That will happen when you do these two ups. 249 00:12:15.400 --> 00:12:18.300 I've never heard of anything like this before in my entire life. I 250 00:12:18.300 --> 00:12:21.300 don't know if any funding company has ever even performed this 251 00:12:21.300 --> 00:12:24.900 retent potential calculation. And so, of course, you know, 252 00:12:24.900 --> 00:12:27.600 I had a conversation with it about a conversation 253 00:12:27.600 --> 00:12:30.000 about it with someone else and said, do you know any of 254 00:12:30.300 --> 00:12:33.100 us means like how would you how would you even know? How would you 255 00:12:33.100 --> 00:12:36.600 calculate? Yeah a day and time of an unpredictable event 256 00:12:36.600 --> 00:12:39.000 that said. Well, maybe it means let's say it's like a ski resort. 257 00:12:39.700 --> 00:12:42.200 and you're like, well the ski resorts sales numbers are 258 00:12:42.200 --> 00:12:44.500 going to be lower in the summertime like 259 00:12:45.100 --> 00:12:48.700 but shouldn't that be built into the original? Yeah calculation. Let's say 260 00:12:48.700 --> 00:12:49.800 let's say that it's not 261 00:12:50.500 --> 00:12:53.300 Maybe you know that you know ski season 262 00:12:53.300 --> 00:12:56.200 ends on May 1st. You can say 263 00:12:56.200 --> 00:12:59.500 on you know, June 1st. We anticipate there 264 00:12:59.500 --> 00:13:02.500 being a Reconciliation and potentially the reconciliation 265 00:13:02.500 --> 00:13:03.400 amount will be this. 266 00:13:04.500 --> 00:13:07.400 Maybe that's what it means. You don't know so I'm very 267 00:13:07.400 --> 00:13:11.400 not a lawyer not a lawyer, but you have to come up with scenarios of 268 00:13:10.400 --> 00:13:13.800 where you think you could reasonably anticipate 269 00:13:13.800 --> 00:13:16.300 a Reconciliation taking place 270 00:13:16.300 --> 00:13:18.700 the amount and the date and 271 00:13:19.700 --> 00:13:22.000 If you do this wrong, too, I guess 272 00:13:22.200 --> 00:13:25.200 you could be held to account by by the city. These are things I've never even 273 00:13:25.200 --> 00:13:28.400 heard of. Yeah, I mean and this is definitely a unique situation because 274 00:13:28.400 --> 00:13:32.800 every state is different but something that the 275 00:13:31.800 --> 00:13:34.400 individual the professional Miss 276 00:13:34.400 --> 00:13:37.200 Fisher we were talking about and she helped us 277 00:13:37.200 --> 00:13:40.600 out with this article something that she mentioned was getting ready for 278 00:13:40.600 --> 00:13:43.500 December. If you wait till 279 00:13:43.500 --> 00:13:46.300 December you're too late, you know to kind of get anything 280 00:13:46.300 --> 00:13:49.100 ready. So how in regards to preparation. How does 281 00:13:49.100 --> 00:13:52.400 one prepare for this new compliance law 282 00:13:52.400 --> 00:13:52.700 in California? 283 00:13:53.700 --> 00:13:56.400 You know if it were if it 284 00:13:56.400 --> 00:13:57.000 were me I would. 285 00:13:57.800 --> 00:13:58.900 Be working with an attorney. 286 00:13:59.800 --> 00:14:00.900 To figure this all out. 287 00:14:01.700 --> 00:14:04.400 I can't imagine that any funding company 288 00:14:04.400 --> 00:14:08.700 will be able to comply. Well if 289 00:14:07.700 --> 00:14:10.600 they do not work with 290 00:14:10.600 --> 00:14:14.400 an attorney to guide them through all this. Yeah, there 291 00:14:13.400 --> 00:14:16.200 are Concepts in this law at the one I just 292 00:14:16.200 --> 00:14:19.700 talked about where you have to kind of guess future troop scenarios. 293 00:14:19.700 --> 00:14:22.700 I've never once contemplated in my 16 294 00:14:22.700 --> 00:14:25.500 years in the industry. You never heard of this, right? Yeah. Sure. 295 00:14:25.500 --> 00:14:28.100 We all think about there could be a Black Swan event 296 00:14:28.100 --> 00:14:31.400 and there could be a tornado that wipes out the business but is 297 00:14:31.400 --> 00:14:34.400 that a reasonably anticipated event? Like it's giving what's 298 00:14:34.400 --> 00:14:37.300 reasonably anticipated and I think Underwriters are already trying to 299 00:14:37.300 --> 00:14:40.500 make a prediction as to what's gonna happen and we're looking back at the 300 00:14:40.500 --> 00:14:43.300 history. Yeah and everything that probably gonna be similar in 301 00:14:43.300 --> 00:14:46.800 the future. Yeah, and then the state is saying but but what 302 00:14:46.800 --> 00:14:49.700 if something else happens when you 303 00:14:49.700 --> 00:14:51.800 think that will happen? Yeah, I think that will be 304 00:14:53.200 --> 00:14:56.600 Yeah, that sounds like that sounds like data science. It 305 00:14:56.600 --> 00:14:59.200 sounds like you know, it's just copy. It's a complicated 306 00:14:59.200 --> 00:15:02.800 situation, you know you there's certain things you don't predict 307 00:15:02.800 --> 00:15:05.200 for and if you get it 308 00:15:05.200 --> 00:15:06.200 wrong, you know. 309 00:15:07.400 --> 00:15:10.200 You get in trouble if you don't put it all 310 00:15:10.200 --> 00:15:13.400 you get in trouble. So it's it's really it's really really weird. 311 00:15:13.400 --> 00:15:17.300 And I only I don't mean to scare anyone necessarily but these 312 00:15:16.300 --> 00:15:19.500 are the components of the California 313 00:15:19.500 --> 00:15:22.800 law that go into effect on December 9th. So 314 00:15:22.800 --> 00:15:25.500 we are looking at something that's quite different from Virginia 315 00:15:25.500 --> 00:15:28.500 and which it does at the end of the day, Virginia does 316 00:15:28.500 --> 00:15:31.500 boil down to a form. Yeah, so you are forgiven if 317 00:15:31.500 --> 00:15:31.900 you thought 318 00:15:32.700 --> 00:15:35.800 It's probably going to be something similar in California, you 319 00:15:35.800 --> 00:15:38.300 know, maybe as I wanted to things a little bit different but 320 00:15:38.300 --> 00:15:42.000 we're one of the good guys. Of course, we'll comply. Well, 321 00:15:41.600 --> 00:15:44.700 I think it might be a little bit more than some 322 00:15:44.700 --> 00:15:47.300 of you have asked for or thought it would be maybe some 323 00:15:47.300 --> 00:15:50.500 of you are excited. Anyway, I don't know but it does sound like it would be costly to 324 00:15:50.500 --> 00:15:53.400 you know to comply with this and then you don't 325 00:15:53.400 --> 00:15:56.400 know if this data is going to apply some type of gotcha. 326 00:15:57.200 --> 00:16:00.800 You know map to all of this where you you've done 327 00:16:00.800 --> 00:16:03.300 everything that you could and you felt like you were following 328 00:16:03.300 --> 00:16:06.100 the rules and you said gosh that cost us to 329 00:16:06.100 --> 00:16:10.000 million dollars. Yeah, but we are a compliance in California. And California's regulator 330 00:16:09.300 --> 00:16:12.300 is just lying and wait to find out the one 331 00:16:12.300 --> 00:16:15.500 thing you screwed up and they're gonna come in and say gotcha. Yeah, you 332 00:16:15.500 --> 00:16:19.500 know what? I mean? So yeah, I think it's it's safe to 333 00:16:19.500 --> 00:16:20.000 say that 334 00:16:21.600 --> 00:16:24.200 If you are working in this industry and you are working in 335 00:16:24.200 --> 00:16:27.400 different states to not assume that what one state 336 00:16:27.400 --> 00:16:30.000 has is going to be the same as another state or it's going to 337 00:16:30.300 --> 00:16:33.300 be a copycat version where there could be similarities. But also 338 00:16:33.300 --> 00:16:36.700 there are a lot of differences as we're seeing now between 339 00:16:36.700 --> 00:16:39.300 California and Virginia, Virginia, like you said blows down 340 00:16:39.300 --> 00:16:42.100 to one form. You just fill it out you put presented into 341 00:16:42.100 --> 00:16:46.400 the contract and you keep it moving California. That's a whole different. It's 342 00:16:45.400 --> 00:16:48.700 a whole different ball game because there's so 343 00:16:48.700 --> 00:16:52.000 much my new details that go into it that you have to know, you 344 00:16:51.300 --> 00:16:54.400 know, like you said the best piece of advice is to 345 00:16:54.400 --> 00:16:57.200 reach out to an attorney get counsel and 346 00:16:57.200 --> 00:17:00.200 make sure you know, there's a proper understanding of 347 00:17:00.200 --> 00:17:05.100 how to do business in California. Once December 348 00:17:04.100 --> 00:17:07.500 comes around, you know, there was an old saying that's a 349 00:17:07.500 --> 00:17:10.200 low barriers to answer to this business. And that's if that 350 00:17:10.200 --> 00:17:13.800 were still true today. It's very quickly quickly going away because 351 00:17:13.800 --> 00:17:16.900 Advantage is going to go to the funding 352 00:17:16.900 --> 00:17:19.300 companies and the lending companies that have 353 00:17:19.300 --> 00:17:20.800 access to expens. 354 00:17:21.300 --> 00:17:24.300 And qualified Council. Yeah, right and it's the 355 00:17:24.300 --> 00:17:27.300 expensive because you I don't know that you could rely on the lawyer 356 00:17:27.300 --> 00:17:30.100 down the street who helped you draft your you know, you're right so 357 00:17:30.100 --> 00:17:34.200 agreement to walk you through, you know complicated State 358 00:17:33.200 --> 00:17:36.300 compliance in California. I think a lot 359 00:17:36.300 --> 00:17:39.200 of smaller funding companies know a guy, 360 00:17:39.200 --> 00:17:42.200 you know or no no woman who who can 361 00:17:42.200 --> 00:17:45.000 help them with some legal stuff. Yeah, when it comes 362 00:17:45.300 --> 00:17:48.200 up everything up an LLC, you know, I think something we talked 363 00:17:48.200 --> 00:17:52.000 about was and I'm pretty sure it was here that you 364 00:17:51.200 --> 00:17:54.300 know, you may know a guy but you know 365 00:17:54.300 --> 00:17:57.500 a lawyer that practices criminal, you know, 366 00:17:57.500 --> 00:18:00.800 family court or family law entertainment 367 00:18:00.800 --> 00:18:03.400 law and then you know, it's not the same 368 00:18:03.400 --> 00:18:06.700 as someone that practices, you know within the MCA 369 00:18:06.700 --> 00:18:09.600 within the alternative Finance industry and that specializes 370 00:18:09.600 --> 00:18:12.400 in this area. So that's something else 371 00:18:12.400 --> 00:18:15.400 to take into consideration because you may 372 00:18:15.400 --> 00:18:18.700 know a guy that can help you set up an LLC and S Corp, whatever but 373 00:18:18.700 --> 00:18:21.100 then when you're like Hey, how do I do the 374 00:18:21.300 --> 00:18:24.100 Oracle method of APR on my California contract 375 00:18:25.500 --> 00:18:27.100 You know, even if they give you an answer. 376 00:18:27.900 --> 00:18:30.200 Can are you are you confident in the 377 00:18:30.200 --> 00:18:33.600 answer that you get so you probably will need 378 00:18:33.600 --> 00:18:36.800 qualified counsel to give you all the precise answers. 379 00:18:36.800 --> 00:18:39.800 Yeah that you need for this particular law. Do 380 00:18:39.800 --> 00:18:42.300 not quote or use any of the stuff. 381 00:18:42.300 --> 00:18:45.400 I said at 100% face value because I'm 382 00:18:45.400 --> 00:18:48.300 not a lawyer and I'm going off of my understanding of what 383 00:18:48.300 --> 00:18:51.700 other people told me and what I read, right? So 384 00:18:51.700 --> 00:18:54.000 do your own due diligence and talk to 385 00:18:54.300 --> 00:18:57.900 the right people the right qualified people to guide you through the state 386 00:18:57.900 --> 00:19:00.200 of California. Yeah, so definitely good piece of 387 00:19:00.200 --> 00:19:03.200 advice and obviously if you want to learn more about this story, you can log on 388 00:19:03.200 --> 00:19:06.200 to the bank calm and we have an article a lot of people reading it. I 389 00:19:06.200 --> 00:19:09.300 know I've got a lot of people work up right now it is because it's so important 390 00:19:09.300 --> 00:19:12.200 and I think that one thing that really like stuck with 391 00:19:12.200 --> 00:19:16.000 me is that these compliance laws, you know, just across 392 00:19:15.100 --> 00:19:18.600 the board, you know, there may be some similarities, 393 00:19:18.600 --> 00:19:22.600 but every one of them is different, you know, New York, Maryland, Virginia, 394 00:19:21.600 --> 00:19:24.200 California, like they may 395 00:19:24.200 --> 00:19:27.400 there's some copy cats versions, you know things that they've 396 00:19:27.400 --> 00:19:27.600 taken out. 397 00:19:27.800 --> 00:19:30.600 It's all different. Yeah, New York 398 00:19:30.600 --> 00:19:33.300 passed their own law as we all know and have talked 399 00:19:33.300 --> 00:19:37.100 about but they have not finalized the actual rules. 400 00:19:36.100 --> 00:19:39.300 They're still going over the nuances of 401 00:19:39.300 --> 00:19:40.400 how it will all be rolled out. 402 00:19:41.100 --> 00:19:44.800 There are very many. There are very many similarities in 403 00:19:44.800 --> 00:19:48.000 that legislation to what California pass so 404 00:19:47.100 --> 00:19:51.400 we may see very similar version roll 405 00:19:50.400 --> 00:19:53.300 out in New York eventually could be 406 00:19:53.300 --> 00:19:56.400 as early as you know the end of this year. I'm not sure everyone's lying 407 00:19:56.400 --> 00:19:59.300 and wait for what the final rules are going to be. But if 408 00:19:59.300 --> 00:20:02.700 you're wondering what is the future of disclosures laws 409 00:20:02.700 --> 00:20:05.100 and compliance in the industry, California is a great 410 00:20:05.100 --> 00:20:08.900 example of how maybe expensive or difficult it 411 00:20:08.900 --> 00:20:11.300 can be because if if you have 50 states 412 00:20:11.300 --> 00:20:12.900 doing 50 different things. 413 00:20:13.800 --> 00:20:16.300 Are you going to be able to afford to keep doing 414 00:20:16.300 --> 00:20:19.100 business? That's a question. You're going to have to ask yourself and it's 415 00:20:19.100 --> 00:20:22.400 not like it's not like every single law every single state is 416 00:20:22.400 --> 00:20:26.000 passing a law, but we do have a number of them that have and 417 00:20:25.200 --> 00:20:28.400 we have a number more of that are attempting to 418 00:20:28.400 --> 00:20:31.500 pass one. So the the landscape is 419 00:20:31.500 --> 00:20:34.600 is changing over time. Yeah, it 420 00:20:34.600 --> 00:20:37.600 is. It's speaking about change. We're gonna 421 00:20:37.600 --> 00:20:40.700 jump into the next story. So this story really common attention online 422 00:20:40.700 --> 00:20:43.300 because it had a shiny card on it and 423 00:20:43.300 --> 00:20:46.600 we're talking about a shop called car-fi down 424 00:20:46.600 --> 00:20:49.900 south and it's owned by Edward Siegel 425 00:20:49.900 --> 00:20:52.800 now seagull, he was part of the MCA space you're 426 00:20:52.800 --> 00:20:55.700 familiar with him and then he opened up this shop 427 00:20:55.700 --> 00:20:58.900 down south called card finds. What they do is they 428 00:20:58.900 --> 00:21:01.300 evaluate the market value of a card and 429 00:21:01.300 --> 00:21:04.300 then they make an advance against it now, this is cool because I 430 00:21:04.300 --> 00:21:07.600 was actually talking about this with a friend of mine about how cards 431 00:21:07.600 --> 00:21:10.800 are very valuable if you have a 432 00:21:10.800 --> 00:21:13.500 valuable car like, you know baseball card. 433 00:21:13.800 --> 00:21:16.700 Able to yeah, but their 434 00:21:16.700 --> 00:21:19.800 valuable if you have the card, you know baseball card 435 00:21:19.800 --> 00:21:22.800 sports card football baseball, you know, 436 00:21:22.800 --> 00:21:25.100 I was talking to buddy of mine in he was saying that a Pokemon 437 00:21:25.100 --> 00:21:28.600 card is going for over it. So at $300,000 438 00:21:28.600 --> 00:21:31.600 that's a lot of money. Yeah far that, 439 00:21:31.600 --> 00:21:34.200 you know guys just threw around as a kid and now 440 00:21:34.200 --> 00:21:37.900 they're with all this money. So when you when when 441 00:21:37.900 --> 00:21:40.800 you heard about what would Ed was 442 00:21:40.800 --> 00:21:44.800 I call it what Edward 443 00:21:44.800 --> 00:21:45.400 seago is doing? 444 00:21:47.700 --> 00:21:50.300 What went through your mind, I mean this is this is fa unique 445 00:21:50.300 --> 00:21:53.700 approach because it's been dealing with cars, you 446 00:21:53.700 --> 00:21:56.400 know, it's sports cards, you know, just all 447 00:21:56.400 --> 00:21:59.100 these different types of valuable cards. What went through 448 00:21:59.100 --> 00:22:02.500 your mind John. I mean this was unique. This is definitely unique approach. You know, what's funny 449 00:22:02.500 --> 00:22:05.300 I had to do an interview with him before the interview because I 450 00:22:05.300 --> 00:22:08.200 was worried. I didn't completely understand it. Yeah, right. 451 00:22:09.100 --> 00:22:12.900 So I said just you know walk me through this because I 452 00:22:12.900 --> 00:22:15.100 as you know, the average I guess 453 00:22:15.100 --> 00:22:18.300 Millennial Gen X in generation, I 454 00:22:18.300 --> 00:22:21.300 grew up with baseball cards. Yeah, it had baseball cards. I had Marvel cards. 455 00:22:21.300 --> 00:22:22.300 I had some football cards. 456 00:22:23.100 --> 00:22:26.600 And so I collected baseball cards in the 90s and there's still 457 00:22:26.600 --> 00:22:30.700 kicking around somewhere or other and sure I 458 00:22:29.700 --> 00:22:32.200 recognize that some of 459 00:22:32.200 --> 00:22:35.300 them might be valuable. Now. I know that people trade them and collect, you 460 00:22:35.300 --> 00:22:38.700 know this collectors and you know, there's eBay and you 461 00:22:38.700 --> 00:22:41.700 know, I grew up new knowing that a Mickey Mantle was worth 462 00:22:41.700 --> 00:22:44.600 a lot everyone knew that right everyone knew 463 00:22:44.600 --> 00:22:47.300 the Mickey Mantle was worth a lot Mickey Mantle rookie card. That was 464 00:22:47.300 --> 00:22:49.700 the dream card, which I never had obviously. 465 00:22:50.700 --> 00:22:53.500 But there is a market apparently where you 466 00:22:53.500 --> 00:22:56.200 can you could some companies will offer you a loan 467 00:22:56.200 --> 00:23:00.200 against a card others will offer you in advance. Like would card 468 00:22:59.200 --> 00:23:02.500 buyers Joanne. I'll give you an advance against the card and 469 00:23:02.500 --> 00:23:04.800 it does work similar to an MCA. 470 00:23:05.400 --> 00:23:09.200 But I started to think about you know, how what the 471 00:23:08.200 --> 00:23:11.500 scalability of this business because my mind immediately went 472 00:23:11.500 --> 00:23:14.300 back to Mickey mantles. Yeah, how many Mickey 473 00:23:14.300 --> 00:23:17.300 mantles are there? And he said showing you got to realize this is 474 00:23:17.300 --> 00:23:20.500 not just about vintage baseball cards. It's about 475 00:23:20.500 --> 00:23:23.400 modern cards and there's more than just baseball. It's 476 00:23:23.400 --> 00:23:26.400 like this football. There's basketball as well hockey, you 477 00:23:26.400 --> 00:23:29.300 know? Yeah in a hockey and I said, yeah, but 478 00:23:29.300 --> 00:23:33.000 for like a like a current player, yeah who 479 00:23:32.300 --> 00:23:36.000 you know, like how much could that be worth and boy 480 00:23:35.400 --> 00:23:38.600 did he educate me? And I and 481 00:23:38.600 --> 00:23:41.200 I had to go and do my own reasons. This is why I had to do the call before the call. Yeah, 482 00:23:41.200 --> 00:23:45.500 as you said people are are taking loans against current players 483 00:23:44.500 --> 00:23:48.000 people who are currently playing right? So 484 00:23:47.100 --> 00:23:50.600 we don't even know how their career is going to turn out and people 485 00:23:50.600 --> 00:23:53.000 are taking loans or advances against these cards and I said 486 00:23:53.900 --> 00:23:56.100 no, right but they are 487 00:23:56.100 --> 00:23:59.300 and these cards can be quite valuable. I think it's a 488 00:23:59.300 --> 00:24:02.300 Justin Herbert card. He's what third year in 489 00:24:02.300 --> 00:24:05.100 the NFL. Yeah. There was an auction going. 490 00:24:05.400 --> 00:24:08.700 Are one of his cards. And the 491 00:24:08.700 --> 00:24:11.100 last time I checked the top bid at 492 00:24:11.100 --> 00:24:14.800 the time was over a million dollars this guys. He his 493 00:24:14.800 --> 00:24:17.300 career is just starting sure. He's had a 494 00:24:17.300 --> 00:24:20.300 great start. He's done got a lot of potential right but 495 00:24:20.300 --> 00:24:23.200 to think that his card could already be worth it a 496 00:24:23.200 --> 00:24:26.300 million us it blew my mind. Yeah. It blew my 497 00:24:26.300 --> 00:24:29.700 mind. Did you collect cards at all when you're okay so so I was kind of a little 498 00:24:29.700 --> 00:24:32.300 bit after you know, what you described. 499 00:24:32.300 --> 00:24:35.000 So my the group of friends in my group friends was you know, 500 00:24:35.400 --> 00:24:38.400 was Pokemon cards, you you go cards like, you know, all those 501 00:24:38.400 --> 00:24:41.300 type. Of course, especially for the Pokemon cards. That's what we're 502 00:24:41.300 --> 00:24:44.600 talking about my buddy that there's certain cards that you know, 503 00:24:44.600 --> 00:24:47.400 you like, you know, you're in the playground playing 504 00:24:47.400 --> 00:24:50.800 dropping it like, you know, and now 505 00:24:50.800 --> 00:24:54.100 these cards are worth like, you know over 200,000 so 506 00:24:53.100 --> 00:24:57.300 you like up to a million dollars and there's a 507 00:24:57.300 --> 00:25:00.300 company that you know, they they'll categorize it and 508 00:25:00.300 --> 00:25:03.300 and make sure it's like authentic and they'll give 509 00:25:03.300 --> 00:25:05.100 it like a rating and if it's a certain rating 510 00:25:05.600 --> 00:25:08.800 It goes past a certain like value. 511 00:25:08.800 --> 00:25:11.300 It's just it blows my mind because these records that 512 00:25:11.300 --> 00:25:14.700 were less than like two three bucks. Yeah, and now 513 00:25:14.700 --> 00:25:15.100 they're worth. 514 00:25:15.600 --> 00:25:18.300 a lot and I wish I would have been that kid that had a 515 00:25:18.300 --> 00:25:21.500 binder and had the sleeve and had all the cards well collected because 516 00:25:22.500 --> 00:25:25.600 I could have probably been retired by now. Yeah, well, 517 00:25:25.600 --> 00:25:28.400 you know, there are certain reasons, why 518 00:25:28.400 --> 00:25:31.700 cards can be worth a lot and my 519 00:25:31.700 --> 00:25:34.600 mind immediately went to well, it's Mickey 520 00:25:34.600 --> 00:25:37.800 Natural rookie so has to be worth a lot. But you mentioned like grading 521 00:25:37.800 --> 00:25:40.400 of the cards. Yeah, so you have to get like a PSA grade 522 00:25:40.400 --> 00:25:43.400 by cardfight for example will not make an advanced 523 00:25:43.400 --> 00:25:46.900 against the car that has not been PSA graded. So it's essentially has 524 00:25:46.900 --> 00:25:49.300 to be authenticated as real and then it gets 525 00:25:49.300 --> 00:25:52.200 a grade on the quality. So if it's all bent up and stuff that's gonna 526 00:25:52.200 --> 00:25:55.800 get a really low grade 10 is the highest grade one of 527 00:25:55.800 --> 00:25:58.400 the lowest and so there was actually a Mickey Mantle believe 528 00:25:58.400 --> 00:26:01.400 it or not a 1952 tops Mickey Mantle card 529 00:26:01.400 --> 00:26:04.400 that recently sold out auction for 12.6 million dollars 530 00:26:04.400 --> 00:26:07.100 and they had a PSA grade of 9.5 which is 531 00:26:07.100 --> 00:26:10.600 considered men on the only 52. Topps 532 00:26:10.600 --> 00:26:13.800 card 12 million six million, that's crazy. So, you 533 00:26:13.800 --> 00:26:16.200 know and here you have, you know, 534 00:26:16.200 --> 00:26:19.300 Eddie Siegel and 535 00:26:19.300 --> 00:26:21.900 cardify. He actually showed he was holding a 536 00:26:22.400 --> 00:26:25.100 At 52 mantle and one of the Instagram videos, but it was 537 00:26:25.100 --> 00:26:28.400 a PSA 4, right? So the quality the quality 538 00:26:28.400 --> 00:26:30.800 was was lower. Yeah, and so 539 00:26:32.300 --> 00:26:35.600 There's also other factors involved like how many of these cards were made? Yeah, 540 00:26:35.600 --> 00:26:38.300 were there 10,000 of them? Yeah, because he's 541 00:26:38.300 --> 00:26:39.800 like showing up there were only five. 542 00:26:41.200 --> 00:26:44.200 Five of this particular card. Yeah, even if it's a 543 00:26:44.200 --> 00:26:47.100 current player think about it. There's only five or there's only what if 544 00:26:47.100 --> 00:26:50.700 there's only one there's only one right? I hadn't 545 00:26:50.700 --> 00:26:53.700 thought of that at all. It's the scarcity Factor plays it 546 00:26:53.700 --> 00:26:56.100 plays a role in the value of the card and then 547 00:26:56.100 --> 00:26:59.100 you can take advances against these particular card. He had this whole 548 00:26:59.100 --> 00:27:02.100 slogan and catch phrase. I went with it. I can't remember what it was. 549 00:27:03.300 --> 00:27:06.200 But then he's told me that like I'm like, how do you find how 550 00:27:06.200 --> 00:27:09.300 do you find these people? Who's doing this? Right? Yeah. How 551 00:27:09.300 --> 00:27:12.600 do you find these people? How do you find these people? So 552 00:27:12.600 --> 00:27:15.400 he goes to sports card like 553 00:27:15.400 --> 00:27:18.200 trade shows? Okay, there's that they have them out. 554 00:27:18.200 --> 00:27:21.300 Like they have like big conventions and stuff like that and people will bring 555 00:27:21.300 --> 00:27:24.200 their cards and no sometimes it said he'll 556 00:27:24.200 --> 00:27:27.100 literally he'll evaluate the value right there and he'll make the 557 00:27:27.100 --> 00:27:30.200 Advance on the spot like in person so he holds on 558 00:27:30.200 --> 00:27:33.400 to the car, right he holds onto the card. Okay, he has 559 00:27:33.400 --> 00:27:37.600 an actual bank vault in his office. Okay, you 560 00:27:36.600 --> 00:27:39.200 can watch the videos on Instagram. He's got 561 00:27:39.200 --> 00:27:42.100 the dial and everything is you go in there and it's got all these little 562 00:27:42.100 --> 00:27:45.600 other little cubbies in there. So he'll give you the advance he 563 00:27:45.600 --> 00:27:46.600 holds on to the card. 564 00:27:47.200 --> 00:27:50.300 And then what and then you know, if the advanced completes 565 00:27:50.300 --> 00:27:53.600 you can take that possession of the card back, although he 566 00:27:53.600 --> 00:27:55.100 said many people choose to renew. 567 00:27:55.700 --> 00:27:58.600 So he'll hold on to the card and he'll re-extend funds 568 00:27:58.600 --> 00:28:01.400 that you can get a renewal. It's very similar to and 569 00:28:01.400 --> 00:28:04.400 said that's very similar to MCA and I 570 00:28:04.400 --> 00:28:07.000 and he was talking about like factories and so forth. 571 00:28:07.100 --> 00:28:10.100 I don't remember what the cost was but he's talking about underwriting systems 572 00:28:10.100 --> 00:28:13.600 and like pre-approvals and all this technology 573 00:28:13.600 --> 00:28:16.500 and that he's like we can even take referrals from brokers. 574 00:28:18.500 --> 00:28:19.700 What are you doing later today? 575 00:28:20.700 --> 00:28:23.100 What am I doing? Yeah. Why should we go to 576 00:28:23.100 --> 00:28:26.500 your mom's basement? Yeah going to my mom's basement. Mom. Don't 577 00:28:26.500 --> 00:28:29.200 throw out that binder. I might have a Jeter rookie 578 00:28:29.200 --> 00:28:32.800 in there. I actually do think I might have a Jeter rookie. What what 579 00:28:32.800 --> 00:28:35.400 grade do you think it's gonna get? Ah, and I 580 00:28:35.400 --> 00:28:38.200 used to beat those cards up and you know, I was the, you know, I put 581 00:28:38.200 --> 00:28:41.600 a lot of them in the sleeves in the binders, right? That's what people did and then 582 00:28:41.600 --> 00:28:44.100 I also I did buy a whole top set. I don't 583 00:28:44.100 --> 00:28:47.700 remember what year it was with a 93 92 94 91, maybe 584 00:28:47.700 --> 00:28:50.400 with 90. Okay, but I had the whole box about the 585 00:28:50.400 --> 00:28:53.200 whole thing. Okay, but you know, I went through every card a million times. 586 00:28:53.200 --> 00:28:56.300 I used to take out the player and like look at the 587 00:28:56.300 --> 00:28:59.200 stats and then like I want to find my favorite one, you know what I 588 00:28:59.200 --> 00:29:02.500 mean? I'm like, oh I got the Nolan Ryan, you know, they put it 589 00:29:02.500 --> 00:29:05.200 asleep and then I'm like, oh this one's going to sleep. Right and 590 00:29:05.200 --> 00:29:08.200 I'll put all the ones I don't really care about just leave those and those ones in the box, 591 00:29:08.200 --> 00:29:11.300 right? But you have to go through them to see which one can get 592 00:29:11.300 --> 00:29:14.200 you money. You know, it's not a bad idea. I probably 593 00:29:14.200 --> 00:29:17.700 I'm going to do that at some point. You know what I have 594 00:29:17.700 --> 00:29:20.300 study. I'm like What's the whole Genesis for you 595 00:29:20.300 --> 00:29:20.600 getting? 596 00:29:20.700 --> 00:29:23.500 Into this business and he said it was always a passion of his he'd 597 00:29:23.500 --> 00:29:26.200 been doing it for a long time and he wanted to kind of get into 598 00:29:26.200 --> 00:29:30.400 it again, but he said covid and lockdowns 599 00:29:29.400 --> 00:29:32.800 really escalated people with 600 00:29:32.800 --> 00:29:35.000 interest because they were setting at home and what do they do? He said 601 00:29:35.200 --> 00:29:38.400 they wanted her basements and they dug out their old baseball cards and then one 602 00:29:38.400 --> 00:29:41.300 on eBay said hey, what does this worth and people found out 603 00:29:41.300 --> 00:29:44.800 that they're worth quite a bit and then there were people who wanted to buy them everyone 604 00:29:44.800 --> 00:29:47.600 just stuck at home on your computer. Yeah. They said the market exploded. 605 00:29:48.500 --> 00:29:51.000 And of course I had to ask him I said, 606 00:29:51.700 --> 00:29:54.600 yeah, but aren't like cards becoming like NF tees 607 00:29:54.600 --> 00:29:57.500 and still now remember you talked about energy. I know you don't believe about 608 00:29:57.500 --> 00:30:00.200 yeah, I believe in you believe you believe in 609 00:30:00.200 --> 00:30:03.100 them. Now you believe in them, but I had to ask the same 610 00:30:03.100 --> 00:30:06.700 question because sports players now are releasing cards in 611 00:30:06.700 --> 00:30:09.200 nft. Format. No cool. They're like holiday 612 00:30:09.200 --> 00:30:09.900 stuff. Yeah. 613 00:30:10.500 --> 00:30:14.200 Instead of that eating into this Market. They said no the physical 614 00:30:13.200 --> 00:30:16.600 Card Market is not being 615 00:30:16.600 --> 00:30:20.100 impacted by the nft market because collectors 616 00:30:19.100 --> 00:30:22.500 sports cars collectors want 617 00:30:22.500 --> 00:30:25.200 the physical card. Yeah, just like you were saying 618 00:30:25.200 --> 00:30:28.200 I'm telling you. I've always been implicit. I'm all up for 619 00:30:28.200 --> 00:30:32.800 nmts all that stuff like, you know, the all the 620 00:30:32.800 --> 00:30:35.500 virtual thing the metaverse but there's always something 621 00:30:35.500 --> 00:30:38.600 about this. Yeah it personally if it was myself I 622 00:30:38.600 --> 00:30:41.300 would want the physical card too. I wouldn't want the Derek Jeter 623 00:30:41.300 --> 00:30:44.400 nft. Yeah, if I can have the real dirty eater physical rookie card, 624 00:30:44.400 --> 00:30:47.500 you know what I mean? I mean sure if you want to send me the Jitter 625 00:30:47.500 --> 00:30:50.400 end of Teen and tell me it's worth a lot of money. I'll take it from you. Yeah, but am 626 00:30:50.400 --> 00:30:53.500 I gonna go out and buy it? I'm not gonna go out and buy it. Yeah the Judah rookie. 627 00:30:54.300 --> 00:30:57.300 Maybe maybe you know the mantle the Mantle rookie. 628 00:30:57.300 --> 00:31:00.700 I'll take that. Yeah, maybe maybe if you 629 00:31:00.700 --> 00:31:03.100 want to send me a mental rookie card, I'll take 630 00:31:03.100 --> 00:31:06.300 it from here. Yeah, that's awesome. I love that story. You know, I think 631 00:31:06.300 --> 00:31:09.300 the thing I love about that story is because it's so unique. 632 00:31:09.300 --> 00:31:12.700 I have never heard anything like this before so when 633 00:31:12.700 --> 00:31:15.400 he first called me and it's like, you know, it's talking about baseball cards. 634 00:31:15.400 --> 00:31:18.300 I say this really gonna be yeah this like a deep Bank story. 635 00:31:18.300 --> 00:31:21.400 Yeah, you have to start. Yeah, you mean like it's something 636 00:31:21.400 --> 00:31:24.300 something baseball cards. I got to think about what the readership 637 00:31:24.300 --> 00:31:27.800 is really gonna be interested in. Yeah, and then, you know, then he entered 638 00:31:27.800 --> 00:31:30.600 is the whole you're taking advantage against the card it 639 00:31:30.600 --> 00:31:33.100 goes into the system Brokers can refer deals and like 640 00:31:33.100 --> 00:31:38.300 yeah, I want to write about it. Yeah. So and 641 00:31:37.300 --> 00:31:41.600 in order for you to meet guys like Eddie Edward 642 00:31:41.600 --> 00:31:45.100 and Edward Ed, whatever. Yeah, and other 643 00:31:44.100 --> 00:31:47.400 guys, we have Broker coming up. So that's gonna 644 00:31:47.400 --> 00:31:50.200 be taking place next month over at the 645 00:31:50.200 --> 00:31:51.700 Time Square, New York Marriott. 646 00:31:54.200 --> 00:31:57.400 Third please get your ticket for the pre-show and 647 00:31:57.400 --> 00:32:00.200 for the actual events the events going to be taking place on 648 00:32:00.200 --> 00:32:03.700 the 24th. It's gonna be great. We're gonna have people from all 649 00:32:03.700 --> 00:32:06.600 different states going to be there. We're gonna have panel discussions 650 00:32:06.600 --> 00:32:09.300 and then just a great networking and opportunity 651 00:32:09.300 --> 00:32:10.900 for everyone. Oh, you know what? 652 00:32:12.400 --> 00:32:15.700 Kate Fisher the person I talked about the California. Yeah 653 00:32:15.700 --> 00:32:19.500 state law. She's speaking at 654 00:32:18.500 --> 00:32:21.300 the event and should we 655 00:32:21.300 --> 00:32:24.300 talking about California? Ah, so that's another good reason 656 00:32:24.300 --> 00:32:27.400 why you are not going to want to miss out on that. I remember last 657 00:32:27.400 --> 00:32:30.400 year the New York disclosure law. That was that 658 00:32:30.400 --> 00:32:33.500 was a very popular panel that everyone was looking 659 00:32:33.500 --> 00:32:36.500 forward to but yeah, I mean, this is a great opportunity if you 660 00:32:36.500 --> 00:32:39.700 are interested in learning and growing and 661 00:32:39.700 --> 00:32:42.400 growing your business and networking Brokers a 662 00:32:42.400 --> 00:32:45.400 place to do it and we have an incredible agenda which will 663 00:32:45.400 --> 00:32:48.600 go up on the site. We're just starting to announce the panels now, it's not 664 00:32:48.600 --> 00:32:52.200 if you think this is just about MCA it's much 665 00:32:51.200 --> 00:32:54.600 broader than that. We call it a commercial Finance conference 666 00:32:54.600 --> 00:32:57.500 on purpose. There's going to be panels about 667 00:32:57.500 --> 00:33:02.000 equipment Finance saying yeah trucking truck, 668 00:33:01.300 --> 00:33:04.500 right? Yeah real estate. We have 669 00:33:04.500 --> 00:33:07.300 a lot of different categories that are going to be very helpful if you 670 00:33:07.300 --> 00:33:10.400 are a broker because if you are a one-trick pony and you go out offering 671 00:33:10.400 --> 00:33:11.700 the same product all day long 672 00:33:12.400 --> 00:33:15.400 And you're competing against 10 other guys that offer the same thing. Guess what 673 00:33:15.400 --> 00:33:18.500 you're limiting your potential at broker Fair. 674 00:33:18.500 --> 00:33:21.800 We hope that you will be exposed to a wider Universe 675 00:33:21.800 --> 00:33:24.400 of products that when you go home, you can 676 00:33:24.400 --> 00:33:27.400 make more money by closing more deals because when 677 00:33:27.400 --> 00:33:30.300 you have that customer and they're talking to other people you're going 678 00:33:30.300 --> 00:33:33.300 to be able to offer products that fit their needs that 679 00:33:33.300 --> 00:33:36.400 your competitors competitors cannot offer. That is 680 00:33:36.400 --> 00:33:40.000 why you need to come to broker fair. Not just to meet the funders. It's 681 00:33:39.300 --> 00:33:42.400 to learn and have more Tools in 682 00:33:42.400 --> 00:33:45.600 your tool belt for your own customers to make more 683 00:33:45.600 --> 00:33:48.800 money. Yeah. I think that alone is 684 00:33:48.800 --> 00:33:51.100 a very important statement just 685 00:33:51.100 --> 00:33:54.300 to make more money. That's that's what it's about making more money. That's 686 00:33:54.300 --> 00:33:56.200 it. We're not putting on show is just to have a good time. 687 00:33:57.300 --> 00:34:00.400 I can do that other places is to make money. Honestly, that's 688 00:34:00.400 --> 00:34:03.400 really what it is. Especially for the new guys. If you guys are watching 689 00:34:03.400 --> 00:34:06.700 this and you guys are interested in coming through please sign up tickets are 690 00:34:06.700 --> 00:34:09.500 going to be available for a limited time. And you know, and you 691 00:34:09.500 --> 00:34:13.000 should you should buy them now. Yes, this is my first warning that 692 00:34:12.100 --> 00:34:15.800 you should probably not be waiting any longer. Yeah, and 693 00:34:15.800 --> 00:34:18.200 obviously pre shows a separate ticket. It's gonna 694 00:34:18.200 --> 00:34:21.400 be on the 23rd and that's gonna be a great time too because 695 00:34:21.400 --> 00:34:24.700 we're not at the event is like the pre-show so people, you 696 00:34:24.700 --> 00:34:27.300 know, you just get to know people one on one. So I'm excited for that. 697 00:34:27.900 --> 00:34:30.700 So but yeah, so get your ticket and for 698 00:34:30.700 --> 00:34:33.100 any other information regarding the stories that we've done 699 00:34:33.100 --> 00:34:36.300 our information regarding the events can go ahead and check us 700 00:34:36.300 --> 00:34:39.600 out on the bank.com or check us out on our social media platforms. 701 00:34:40.400 --> 00:34:43.600 So does it for today? I think it does. Yeah. All 702 00:34:43.600 --> 00:34:46.400 right, so, I'm Johnny Fernandez, and I'm Mickey Mantle 703 00:34:46.400 --> 00:34:47.500 and I'll see you guys next time.