1 00:00:00.505 --> 00:00:01.085 Hey everyone. 2 00:00:01.085 --> 00:00:03.605 Alison Berger here at Broker Fair 2024. 3 00:00:03.845 --> 00:00:07.005 I am now with John Deo from Direct Merchant Funding. 4 00:00:07.225 --> 00:00:08.725 How are you? Great. How are you Doing? 5 00:00:08.725 --> 00:00:10.325 Tremendous. Yeah, these events are great. 6 00:00:10.325 --> 00:00:11.205 This is where you get to meet 7 00:00:11.205 --> 00:00:12.565 everybody, see everybody face to face. 8 00:00:12.625 --> 00:00:13.965 So I remember the first one 9 00:00:13.965 --> 00:00:16.205 that he did in Brooklyn on the rooftop in 2018. 10 00:00:16.505 --> 00:00:18.805 And, uh, just getting better and better as we go. We 11 00:00:18.805 --> 00:00:20.685 Have to keep evolving with the industry, right? 12 00:00:21.525 --> 00:00:24.365 Industry is ever evolving, obviously, uh, new products, 13 00:00:24.385 --> 00:00:25.885 new ways to underwrite different 14 00:00:25.885 --> 00:00:27.005 funders coming into the space. 15 00:00:27.065 --> 00:00:29.045 So yes, it's good to come and meet everybody 16 00:00:29.045 --> 00:00:30.685 and see really what's going on in the space 17 00:00:30.985 --> 00:00:31.985 And what is going on. What 18 00:00:31.985 --> 00:00:33.405 are the trends? What are you seeing, uh, 19 00:00:33.405 --> 00:00:35.525 The trends, uh, let's see what's going on now. 20 00:00:35.525 --> 00:00:37.485 It's getting a little bit harder on underwriting. 21 00:00:37.905 --> 00:00:41.005 Uh, everything's now more ai, so there's not really a a, 22 00:00:41.165 --> 00:00:43.365 a human touch on the file, so you have to make sure 23 00:00:43.365 --> 00:00:44.805 that you're sending your files to the right spot, 24 00:00:44.805 --> 00:00:45.965 otherwise your file sits there 25 00:00:46.135 --> 00:00:47.845 until you actually call somebody and talk to them. 26 00:00:47.905 --> 00:00:49.205 So, which is a good thing though, 27 00:00:49.205 --> 00:00:50.885 because a lot of the clients don't wanna 28 00:00:50.885 --> 00:00:51.965 really deal with a broker anymore. 29 00:00:52.035 --> 00:00:54.365 They just wanna be able to go right direct to the funders, 30 00:00:54.365 --> 00:00:56.565 which we're currently doing in our space, 31 00:00:56.865 --> 00:00:58.565 is getting everything API to this way, 32 00:00:58.565 --> 00:00:59.845 there's no hands on the file, won't get 33 00:00:59.845 --> 00:01:00.925 back door, things of that nature. 34 00:01:01.345 --> 00:01:03.005 And what type of clients are coming to you? 35 00:01:03.375 --> 00:01:05.445 We're getting everybody. I, I mean, I've seen the worst 36 00:01:05.445 --> 00:01:06.645 of files and then the guys 37 00:01:06.645 --> 00:01:08.165 that you would never think would come to you 38 00:01:08.315 --> 00:01:10.005 that own publicly traded companies, 39 00:01:10.005 --> 00:01:11.725 but they need a quick infusion of cash 40 00:01:11.945 --> 00:01:13.325 and they can't get it from the, you know, the, 41 00:01:13.385 --> 00:01:14.885 the clients or, or shareholders. 42 00:01:14.905 --> 00:01:16.645 So they need an alternative place to get it. 43 00:01:16.785 --> 00:01:18.125 And we're funding in 48 hours, 44 00:01:18.185 --> 00:01:19.365 so why wouldn't they come to us? 45 00:01:19.985 --> 00:01:21.725 Yes, money's a little bit more expensive, 46 00:01:21.725 --> 00:01:23.405 but if you have the right partners in funding, 47 00:01:23.625 --> 00:01:24.885 you can still get really good deals. 48 00:01:24.905 --> 00:01:27.765 12, 15, 18 month deals at one two sevens 49 00:01:27.985 --> 00:01:29.045 and make yourself three 50 00:01:29.045 --> 00:01:30.885 or four points on a, on a half a million dollar deal instead 51 00:01:30.885 --> 00:01:33.005 of trying to rob somebody and trying to get 10 points 52 00:01:33.005 --> 00:01:34.765 and charging 'em one four fives, you know? 53 00:01:35.145 --> 00:01:36.965 So is that something that makes you stand out 54 00:01:36.965 --> 00:01:38.525 amongst everyone else in the industry? 55 00:01:38.525 --> 00:01:39.845 Your quick turnaround? 56 00:01:39.995 --> 00:01:41.925 Yeah, the quick turnaround and the fact that I've been 57 00:01:41.925 --> 00:01:43.165 around for 16 years, so, you know, 58 00:01:43.165 --> 00:01:44.485 I'm like a stalwart in this business, 59 00:01:44.505 --> 00:01:46.965 but, uh, yeah, I mean, I'm not one of those guys that have 60 00:01:46.965 --> 00:01:48.605 to charge 10, 12% every single time. 61 00:01:48.785 --> 00:01:51.045 If I make two, three points, I, I just wanna make sure 62 00:01:51.045 --> 00:01:52.925 that I, I'm making money on every single lead 63 00:01:52.925 --> 00:01:55.005 that's coming in, so we do cut the fees a lot. 64 00:01:55.085 --> 00:01:56.165 A lot of people tell me I'm crazy, 65 00:01:56.305 --> 00:01:57.405 you should be charging extra. 66 00:01:57.805 --> 00:01:59.125 I just don't believe in it. And that's why I 67 00:01:59.125 --> 00:02:00.245 feel I'm in the space that long. 68 00:02:00.525 --> 00:02:02.725 A lot of these guys come in and out, they make fast bucks, 69 00:02:02.725 --> 00:02:04.685 they make quick money, but then you don't see 'em next year. 70 00:02:04.755 --> 00:02:05.925 Well, I haven't seen 'em here yet. 71 00:02:06.835 --> 00:02:08.125 Well, what do you believe is going 72 00:02:08.125 --> 00:02:09.325 to come for the rest of this year? 73 00:02:09.865 --> 00:02:11.005 Uh, listen, I, I think 74 00:02:11.165 --> 00:02:13.525 that we're gonna get some restrictions on us, which is okay. 75 00:02:13.665 --> 00:02:15.845 Uh, I think it's gonna weed out a lot of the bad people 76 00:02:15.845 --> 00:02:17.525 that are in the space, which is a good thing. 77 00:02:17.865 --> 00:02:20.085 Uh, and, and, uh, I'm actually hoping that they do, 78 00:02:20.085 --> 00:02:23.325 because when I started this place 16 years ago, 79 00:02:23.325 --> 00:02:24.845 there was maybe 20 shops. 80 00:02:25.145 --> 00:02:27.285 Now there is thousands and everybody's 81 00:02:27.365 --> 00:02:28.445 fighting for that same piece of cheese. 82 00:02:28.505 --> 00:02:30.765 So if it closes it down just a little 83 00:02:30.765 --> 00:02:32.245 bit, I think we'll be good. Yeah, 84 00:02:32.425 --> 00:02:34.805 We need to hone in on the good cheese. 85 00:02:34.825 --> 00:02:36.285 Yes, a hundred percent. And, and, 86 00:02:36.505 --> 00:02:38.445 and obviously you gotta pick what kind of cheese you like, 87 00:02:38.445 --> 00:02:39.845 but yes, you gotta hone in on the good cheese. 88 00:02:40.165 --> 00:02:42.445 I prefer Brie. Uh, guta is my favorite 89 00:02:43.635 --> 00:02:44.635 From an Italian. It's 90 00:02:44.635 --> 00:02:45.565 guta. Yeah, 91 00:02:45.805 --> 00:02:48.045 I mean, listen, you know, I like all the normal Italian 92 00:02:48.045 --> 00:02:50.605 cheeses, but you know, outside the box, which I like 93 00:02:50.605 --> 00:02:52.165 to think every once in a while is the guda. 94 00:02:52.765 --> 00:02:55.885 I hear you. So I'm getting a broker bite from everyone. 95 00:02:56.035 --> 00:02:58.045 What were you looking forward to most for today? 96 00:02:58.265 --> 00:02:59.565 Uh, actually Paul Rivero. 97 00:02:59.625 --> 00:03:02.045 Uh, that's one, only one of the reasons why I came. 98 00:03:02.385 --> 00:03:04.245 The guy's been in the space just as long as I have 99 00:03:04.245 --> 00:03:06.365 or longer built a couple companies sold them, 100 00:03:06.505 --> 00:03:08.525 and he has a, you know, when I see him posting on LinkedIn, 101 00:03:08.585 --> 00:03:09.965 all of his guys are making huge money. 102 00:03:10.145 --> 00:03:11.645 So I wanted to see how he was doing it. 103 00:03:11.865 --> 00:03:13.485 And, uh, it sort of, you know, put on 104 00:03:13.485 --> 00:03:15.605 what I'm doing currently and how he's built it out. 105 00:03:15.985 --> 00:03:18.205 I'm right behind it and what we're trying to do. 106 00:03:18.625 --> 00:03:20.125 Uh, and I learned a lot from his 107 00:03:20.125 --> 00:03:21.325 speech, that quick hour speech. 108 00:03:21.565 --> 00:03:22.765 I know quick is an hour, 109 00:03:22.825 --> 00:03:25.245 but it, it was really a lot to learn, a lot to pick up. 110 00:03:25.555 --> 00:03:26.925 What was the biggest thing you learned? 111 00:03:27.425 --> 00:03:29.765 Uh, about just having my guys on the floor. 112 00:03:29.765 --> 00:03:31.005 I let everybody use their cell phones, 113 00:03:31.215 --> 00:03:33.805 which he said he doesn't allow that he fires the guys. 114 00:03:34.225 --> 00:03:35.565 And I, I'm gonna probably go back 115 00:03:35.565 --> 00:03:37.565 to the office tomorrow and probably do the same thing. 116 00:03:37.565 --> 00:03:39.725 Fire just one of the guys and say, I keep telling you guys, 117 00:03:39.745 --> 00:03:41.405 get off the cell phones, because that's 118 00:03:41.405 --> 00:03:42.605 how you're getting backdoor deals, right? 119 00:03:42.605 --> 00:03:43.925 They're texting, they're sending it to, 120 00:03:43.925 --> 00:03:45.085 to one of their friends in the space. 121 00:03:45.425 --> 00:03:47.645 Uh, and we have a, a, a huge platform 122 00:03:47.645 --> 00:03:49.325 that we built ourselves as a CRM 123 00:03:49.325 --> 00:03:50.365 marketing that you don't need it. 124 00:03:50.365 --> 00:03:52.285 Everything's connected to your phone through our CRM. 125 00:03:52.345 --> 00:03:54.365 So you shouldn't be texting your clients separately. 126 00:03:54.545 --> 00:03:55.365 You should be going through our 127 00:03:55.505 --> 00:03:56.645 CM so we can track the calls. 128 00:03:56.905 --> 00:03:58.925 We can track, uh, you know, how many times you talked to 129 00:03:59.025 --> 00:04:00.165 and what you actually talked about. 130 00:04:00.275 --> 00:04:01.925 Yeah. So, and that, and to me that's big. 131 00:04:02.065 --> 00:04:03.885 And then you know where the file should be going too. 132 00:04:03.905 --> 00:04:05.965 If you don't and you see that it's not being sent somewhere, 133 00:04:06.185 --> 00:04:07.205 you know something's going on. 134 00:04:07.555 --> 00:04:09.005 Very interesting. Well, I'm glad we 135 00:04:09.005 --> 00:04:10.205 we'll know what you're doing tomorrow. 136 00:04:10.465 --> 00:04:13.125 Yes. But thank you very much for spending some time with me. 137 00:04:13.255 --> 00:04:14.765 Thank you. So we'll be back soon.