Josh Feinberg: So you've been in the industry for five years,
Speaker: five years.
Josh Feinberg: Nice. How'd you get into it?
Speaker: I came into it as my father's business. He's been
doing it for 13 years and I just made my way just knowing he's
talking. I'm talking to him every day about it. So
Josh Feinberg: really, no. Is your Was that your dad I just
met?
Speaker: Yep.
Josh Feinberg: Nice. No. Do you guys have your company or do you
guys?
Speaker: yeah, it's his company. Yeah, it's his company.
Josh Feinberg: Nice.
Speaker: And I just, you know, I sometimes I'm the janitor, the
Josh Feinberg: the tough guy
the underwriter, the seller, the closer,
Speaker: the lead iso
Josh Feinberg: How old are you when you got into it?
Speaker: 19
Josh Feinberg: That's awesome.
Speaker: 25 now.
Josh Feinberg: Because I don't know if you've heard our story
at all.
Speaker: No.
Josh Feinberg: I was just about the same. So my dad was in the
industry beforehand. So I grew up seeing the same exact thing,
probably as you did. And then I got into the industry because of
my dad and I was 19 when I got into it, right? You'll hear
about the story later, but yeah, so that's awesome. So what
company is it?
Speaker: Advanced American Funding
Josh Feinberg: Okay. All right. So, so you do everything?
Speaker: Ah, mainly MCA, MCA.
Josh Feinberg: Okay
Speaker: A little bit on the leasing side on the equipment
side but strictly MCA focus.
Josh Feinberg: Okay. Are you not doing leasing because it's just
Speaker: We broker out leasing if needed, but we strictly we
I really don't know you guys .. don't know much about it?
strictly focus on- yeah, yeah.
Josh Feinberg: so so leasing. You guys broker it out and
everything? Okay,
Speaker: Why, you got it?
Josh Feinberg: Yeah. So, so let's put it this way. Two to
three years ago, we were 90% working capital, 10% equipment-
Everlasting Capital.
Unknown: Oh, you mentioned you wanted to find out about them?
Josh Feinberg: Yes.
Speaker: he really, honest to God my son. He said Dad I want
to check this conference out. Everlasting in there in a r-. So
go ahead and knock it out. Now you got 'em.
Josh Feinberg: There we go. So yeah, so three years ago, we
were strictly doing capital. And now we're 50-50, 50% Capital 50%
equipment.
Speaker: We need a good leasing and I'll tell you what I gotta
guy that does-
Can I send it out to you?
Josh Feinberg: Yes
Speaker: Broker it out?
Josh Feinberg: Of course.
Speaker: You got the points rolled in?
Josh Feinberg: Yeah, yeah. Well, we'll figure and it's the same.
It's basically the Commission's are same as cash advance. But
the big thing is, is the sources that we have, are really hard to
get into, but we've built a good relationship with them. Like
we're talking brand new startup, brand new startup application
only up to $150,000, like 10 to 12%, it is crazy,
Speaker: Man. I gotta do this. I did a lot of these say with a
friend of mine in Detroit, I'd send it to him every so often
but it's ------ slow man.
Josh Feinberg: That's the problem.
Speaker: It's not just you, I mean, I gotta get the D&B, then
you gotta, you gotta get the merchant to, you gotta, so you
got to clean them up.
Josh Feinberg: Yeah. So if it's titled, if it's titled, that's
where it takes a long time. If it's not titled, we're literally
going to be able to fund that within a day or two. So we have
a whole department that is strictly for documentation. And
think about this. We're just brokering the deal, right? For
equipment, sometimes we'll keep it in house, but brokering the
deal. We have a full department for documentation, underwriting,
and were just the broker of the deal. So like it's a lot of-
Speaker: You're making sure to qualify it before you send it
out.
I got a friend of mine that does all, a thing, what's that
company he's got? In other words, all the hard deals they
throw to him, I send to him and all of them they throw it to you
out and put back together.
Josh Feinberg: Yeah. So the best part about it all those leasing
companies are 10 minutes down the road from us. They all move
to Dover, New Hampshire. We're in Rochester. And they're like,
10 minutes away.
Speaker: That's awesome, yeah.
Josh Feinberg: Yeah, exactly. It was awesome meeting you guys.
Speaker: Yeah
Josh Feinberg: Nice to meet you. All my contact information is on
my card.
Speaker: I'll connect with you on LinkedIn as well.
Josh Feinberg: Sounds good, man. It was awesome. meeting you.
Andrew Reiser: Yeah, nice. So it's very well done.
Josh Feinberg: Which one? The exposing one?
Andrew Reiser: Yes exactly I thought that was very good. No,
no, he did a video where he called a company that called
themselves "the bank" trying to prove that they were a fraud,
and kind of doing it live. Yeah, I thought that was very good.
Josh Feinberg: It's crazy, man. Because that because I always
get calls for funding, trying to sell me money and I want to hear
what they're saying. But it's like, the it's getting grimy
and, I, it drives me insane because that person's we have
that injures our reputation as a whole. Sorry, but I think,
don't, go ahead-
Andrew Reiser: You know, so many people over the years would call
our clients and say we work with Strategic Funding and they said
that, you know, we should give you a call. Remember all those?
People are just disgusting and it's----
Josh Feinberg: What do you think I Is there any way that you
think the industry is going to get to a point where we start to
kind of weed out...?
Andrew Reiser: Oh, yeah, regulation will do that.
Those that know and do things right and disclose. It's going
to happen. It's just a matter of time that Jeremy was talking
about going to Albany, but yeah, I was going to Albany too. So
yeah, there's a lot going on in the New York legislature, New
Jersey, California. And it's all about transparency. Yeah. It's
all about disclose this disclose that. And that's the way the
investment banking industry went too. Yeah, the brokers didn't
disclose, at that time was NASDAQ. Now, FINRA, they changed
names, and they said you need to disclose this, this, and
this.that's what's going to happen here too.
Josh Feinberg: I mean, you've talked about it to the equipment
leasing industry, because they're because their barrier of
entry is a lot more than
Andrew Reiser: exactly
Josh Feinberg: our capital.
So and I just I mean, who knows, maybe, like, just in general,
all the direct lenders out there start to maybe do a little bit
more background checks before just letting any Joe Schmo enter
their company into capital-
Andrew Reiser: Right, we have one person specifically on the
broker side, that goes through every broker that we sign up,
and kind of yay or nay. And in the past, everybody was a yay
unless he was a murderer. Yeah, today, financial crimes are not
accepted. And, you know, we're trying not to be overly judgmental
That's awesome.
Andrew Reiser: It's a totally different group of, you know,
brokers and ISOs, that we'll work with.
Josh Feinberg: Awesome, it was nice talking to you.
Now, how much is do you guys do with the equipment leasing
industry?
Evan Marmott: I don't really do much, I mean occassionally but
most of my stuff is all cash advance.
Josh Feinberg: All cash advance?
Evan Marmott: A lot of these other guys come in, they
[inaudible] And, you know, litigating. Yeah, stick with a
lot of most of them cash and traditional factoring, but most
of my stuff is cash advance 99% of my business.
Josh Feinberg: Now, do you see stuff like defaults increasing
lately? Well, I like comparatively,
Evan Marmott: I mean, I also fund as well. So I mean, my own
paper's pretty steady, you know, within the course. But I do see
a big increase on the outside paper that I get.
Josh Feinberg: Yeah
Evan Marmott: the other funders. You know, it is it's just the
lack of underwriting is just throwing money out there.
Josh Feinberg: Yeah.
Evan Marmott: You know, throw money out.
Josh Feinberg: Yeah
Evan Marmott: See what happens. And what happens is you get one
guy with 10 positions,
Josh Feinberg: Right
Evan Marmott: And it's just, uh, you know, and so whoever the
last guy does, he decides not to renew him.
Evan Marmott: And it's a race to get the money. So I would say
Josh Feinberg: Yeah.
there's a big uptick, I would say in defaults. But it's, it's
just because there's no barrier to entry with the funders. So
everyone just comes in as funding deals, and not
underwriting, not knowing what they're doing and then they try
to send out and collect.
Josh Feinberg: So what do you think the next thing is that's
going to happen?
Evan Marmott: in the collection and or just in general?
Josh Feinberg: but just in general, the industry?
Evan Marmott: I think you're going to see a shakeout pretty
soon, you're always gonna have the guys come in and out smaller
guys. Right?
Josh Feinberg: Right.
Evan Marmott: It's easy to get a couple hundred thousand to come
in.
Josh Feinberg: Yeah.
Evan Marmott: and syndicate whatever, but I think you're
gonna see is a lot of the paper that you're at, that's out there
doing the, you know, the 12, 18 month deals, numbers on paper,
you see them already-
Josh Feinberg: yeah,
Evan Marmott: when going out, there's gonna be it's gonna be
more of a short term product, which really meant to be and you
just see a lot of these guys, if the economy ever dips, that's
when you'll see like three quarters of this business get
wiped out just
Evan Marmott: because they can't maintain a good portfolio and
Josh Feinberg: right.
then once they let their portfolio matriculate out yet,
we'll see how bad it is. But everyone gets excited because
they see cash flow coming in.
Josh Feinberg: Right.
Evan Marmott: All right, well, money's coming in on the day,
they don't ever analyze static analysis, you know, real way to
look at a portfolio here.
Josh Feinberg: right.
Evan Marmott: So a lot of guys are just taking money and taking
money from everyone else, and put it in, who cares, everyone
else loses I'm making fees, I'm making management fees every
[inaudible] underwriting everything and then it
eventually collapses. Unless you keep getting your money.
Josh Feinberg: Right.
Evan Marmott: [inaudible] But I mean our space has been around
we've got a good opportunity still, it's just a lot more
saturated.
Josh Feinberg: right. And I think the equipment leasing
space is the next thing for these guys. I mean, I've been in
the industry for a long time.
Evan Marmott: But it's not as it's
Josh Feinberg: it's not as easy to get in.
Evan Marmott: - over as much it's not as easy to get in and
it's a doesn't have the same thing of the same number system
because I can I can monetize one deal four or five times, then I
get more positions, maybe I get a bit looser, if I just did th
leasing, not everyone need leasing.
Josh Feinberg: right.
And I'm just saying diversification
Evan Marmott: Oh yeah, diversification
Josh Feinberg: Because our company is 50-50 and a lot of
people don't know that. 50% Capital 50% equipment,
Evan Marmott: Wow, okay.
Josh Feinberg: And it's split right across the board. Three
years ago, we were 100% cash.
Evan Marmott: Wow.
Josh Feinberg: Now we're 50-50.
Evan Marmott: Really? that much?
Josh Feinberg: Yes. And because it's because we need to be able
to diversify.
Evan Marmott: Yeah.
Josh Feinberg: I'm a little nervous of the industry.
Evan Marmott: You have card?
Josh Feinberg: I don't actually have any.
Evan Marmott: Oh you don't have any? Because you're famous!
Josh Feinberg: Famous! But hey, we'll talk cuz I want to get a
you know if I can introduce equipment leasing
Evan Marmott: Stay famous. Yeah that would be good. I would love
Evan Marmott: All right man, Good to see ya.
to do that. I like it.
Josh Feinberg: So we got Humberto here. Previous video
that we had where, you know, he contacted me through LinkedIn.
Right?
Humberto Hernandez Jr.: Yeah.
Josh Feinberg: LinkedIn, and he was just getting into the cash
advance space. And yeah, at that point, how are you feeling when
you first were getting into it?
Humberto Hernandez Jr.: Overwhelmed, you know those I come from a
banking background and so I understand finances I was a
banker for 14 years. But then I found an article on you guys I
think through deBanked, you know, and then I looked you up
on LinkedIn because I just needed some help to be honest, I
just need to be pointed in the right direction. And so found
you on LinkedIn, just cold called you didn't even know if
you're going to take my call or talk to me. You know, I just
figured what the hell I try it. And then he spent I don't know,
20, 30 minutes on the phone helped me out and it was huge
deal.
Josh Feinberg: Awesome, and I and I think we've worked
together a few times so far right? now what have we done?
Closed two deals? And what were they
Humberto Hernandez Jr.: Yellow iron.
Josh Feinberg: Yellow iron?
Humberto Hernandez Jr.: Yeah, it was Two Cats.
Josh Feinberg: Two cats?
Humberto Hernandez Jr.: Yeah.
Josh Feinberg: Okay, what was the dollar amount on those?
Humberto Hernandez Jr.: 55 and 30.
Josh Feinberg: Okay, and how's everything been going since we
talked then to now? Like, what do you, what's been going on?
Humberto Hernandez Jr.: Good, man. I mean there's, you know,
ebbs and flows, of course, you know, a lot more clarity, a lot,
a lot of help. I mean, Will's been a lot of help, too. I mean,
I've talked to a handful of times. So it's been great man.
Josh Feinberg: Fantastic. Awesome. Congratulations.
Humberto Hernandez Jr.: You too man.
Josh Feinberg: All right.
What do you feel most confident talking to a customer about?
Humberto Hernandez Jr.: just traditional bank products.
Josh Feinberg: Okay.
Humberto Hernandez Jr.: Yeah.
Josh Feinberg: And that's what you're offering right now. And
that's probably out of the five, how many of those were that?
Humberto Hernandez Jr.: Oh, no, no, out of the five, just
alternative.
Josh Feinberg: Just alternative.
Humberto Hernandez Jr.: Yeah. I mean, if we're talking
conventional, and SBA and all that stuff, I don't even know,
man, I'd have to like sit down and look-
Josh Feinberg: Is there been a good amount over the past six
months?
Humberto Hernandez Jr.: Yeah.
Josh Feinberg: So the thing is, you know about that, right? You
want to hire somebody, hire somebody to do that, train them
exactly on that product, it may take a month, it may take two
months. And then you can focus on getting more into the
alternative space. Because if you have your bread and butter,
you know, train your guy to know I guess hire somebody to do
strictly that, then you can branch off and go do in the
other direction that you want to do, because that's what we've
done. And I'm going to talk about it at 3:15 is, you know,
I know the [inaudible] about sales, right? So I wanted to
hire sales guys first, because that's what I knew most about.
So then once I did that, that's when I started to implement my
systems because I had time because I had him, I had my
father, I had, you know, four other guys being able to call
for me, so I don't have to focus on that.
Humberto Hernandez Jr.: Yeah.
Josh Feinberg: And then once they were on the phone, they do
exactly, like he he listened to me the first six months in
repeating everything that I was saying the merchants every
single thing. So once I felt comfortable with him that he
could carry us from month to month. That's what I would focus
on our systems. And then once I felt that the systems that I
wanted to be able to focus on equipment financing, now we're
50-50 and started three years ago. 100% working capital now
we're 50-50 equipment and capital, so
Humberto Hernandez Jr.: there he is now,
Josh Feinberg: yes, that's my father, Steve.
Humberto Hernandez Jr.: Nice to meet you.
I'm from San Diego, American Profit Consulting.
Steve Feinberg: What was the name of your company?
Humberto Hernandez Jr.: American Profit Consulting.
Steve Feinberg: okay.
Josh Feinberg: Yeah. You might have seen the video. So when he
first was getting into cash advances, I remember I was at
Larry's in Florida. Yes. And I had someone reach out to me on
LinkedIn, and he wanted to learn about the industry. This is him.
Steve Feinberg: Oh, wow.
Humberto Hernandez Jr.: Yeah.
Steve Feinberg: What a small world. Yeah, that's awesome.
Humberto Hernandez Jr.: I said, I read a read about Everlasting
on I think a deBanked article. And it was just like, wow,
instant fan of him. And so I looked him up on LinkedIn. I
thought, I just through he's probably not even going to take
my call. He might, who knows. And so I called him just to try
to figure out more learn a little bit. And he spent like,
10, 20 minutes on the phone. And it was so cool.
Steve Feinberg: So awesome.
Humberto Hernandez Jr.: Yeah,
Steve Feinberg: So cool look back and see how people connect
and
Humberto Hernandez Jr.: Yeah
Steve Feinberg: to make things work.
Humberto Hernandez Jr.: So here we go. It's cool that I've read
about you, then connect, and then I call them and then he
spent time with me on the phone. And he was showing me the ropes
a little bit.
Josh Feinberg: The best thing that I heard this morning, was
the money makes the difference. But it doesn't make me
different. You know what I mean? So I like you reaching out, I'll
read, I'll talk to anyone. I don't give a [....]. You know
what I mean? Because the thing is, it doesn't, it doesn't make
me any different of a person.
Humberto Hernandez Jr.: Yeah.
Josh Feinberg: you know, then six years ago, so
Humberto Hernandez Jr.: right on man.
Steve Feinberg: One day when you help people, you have no idea,
you know, how that impacts other people's lives. And you look
back, and it's like, you know, in business, a lot of times it's
just a byproduct of helping people, right?
Humberto Hernandez Jr.: Oh, absolutely. I agree 100%.
There's a difference between success and significance and
significance is when you help other people succeed. And so
that was significant to me.
Josh Feinberg: Yeah, that's a that's a good one. That was
impressive. I like that.
Humberto Hernandez Jr.: Yeah.
Steve Feinberg: You know, and it happens one day where, you know,
somebody helps us one and then got it and paid it forward and
that's great.
Humberto Hernandez Jr.: Absolutely.
Yeah, it's a pleasure to meet you, man.
I was always always looking forward to coming in and meeting
him and Will, I got to meet Jantzen which is really cool,
but I was really looking forward to meeting these guys.
Steve Feinberg: Oh that's awesome.
Josh Feinberg: Appreciate it.
Humberto Hernandez Jr.: Absolutely.