Johny Fernandez: Hey, what's going on everyone? I'm Johny Fernandez.
Sean Murray: I'm Sean Murray,
Johny Fernandez: Welcome to deBanked. tv. Sean, we're going to talk about a
very interesting topic, something that we, you know, was on the DailyFunder.
And essentially, you know, there was a scenario that was written out, and we
read through it, but the big picture is what happens when you're working with a
company. And you know, whether it's a lending or bonding company and broker,
etc. When they stop responding to you, and they just kind of, you know, you're
doing business with them. They stop responding, you don't hear anything from
them. And essentially, they disappear.
Sean Murray: Yeah, well, that's a, that's a pretty broad scenario. You
know, what happens when you're working with someone and they just disappear.
But we there was a post that we were looking at on DailyFunder and had to do
had to do with a broker who submitted a file to an SBA lender, an online SBA
lender. And after we submitted the file, now, SBA loans can take a while to like
process and go through and all that other stuff. But after they submitted
the files, they didn't hear anything back. Like they couldn't reach them by
phone, email, the website, whatever methods are normally available. And so
they've submitted these deals to the online SBA lender, and they've gotten
nothing in return. And I think in that particular instance, though, I was
looking at the name of a company who they were, you know, kind of complaining
about, and that company was obviously all caught up in the PPP program. And
it's been my kind of understanding and experience that any SBA lender, who was
doing PPP, basically was unable to respond to anyone, period is what it
seemed like, like view, if you go online and look at some of the feedback that
these lenders have gotten. Everyone's complaining about not being able to
reach anyone. But if you're a broker who submitted deals to a lender, or to a
funder, and you don't hear anything back, obviously, you're going to be
troubled, because your entire you know, your, your money's on the line, your
commission is on the line, your income is on the line. So we know what do you
do in that circumstance? I think you have to start to first identify why
they're not getting back to you. If it's the case where the lender is caught up
with the PPP program, you should probably take your deal elsewhere,
because chances are, they're not going to get to it. Yeah. And the faster that
you communicate that to your own client, the better. Say they're doing PPP, just
it's never going to happen. But if we're talking more, you know, more
specifically about non SBA non non PPP, you know, I think you have to first
consider who the lender or the funder is. Is this a company that has a this
goes back to what we were just talking about? Yeah, do your diligence? Is this
a company that you have traditionally worked with, that gets back to you right
away, and all of a sudden, you're not now, or have you just started working
with them, and now you're not hearing from them, like right out of the gate.
And that's a very bad sign, I would take that as a sign of a relationship, that's
not going to end well. If it's starting off on the wrong foot like that you sent
off a deal to a company. We've never hearing anything back from it. First of
all, you have to start to worry about whether or not that file is gonna get
stolen from you. We were just talking about that recently. But you should also
take it as a sign as, consider what your other options are. Because if your
relationship starts out that way, it's a good chance it's going to continue that
way, you're going to have a lot of aggravation for yourself a lot of
frustration, but also for your customers, because it's your job to get
them funded. And if you're sending their file to a company that is going to get
back to you. Well, chances are they're going to be upset customers gonna be
upset with you, because you don't have any information for them. And you can't
just pass the buck, but oh, well, you know, the lender hasn't gotten back to
me. That's unacceptable, right? You're accountable to your customer at the end
of the day. And so you should probably take that as a sign of I need to play
somewhere else. Like right now. Maybe just send an email to the funder lender
and let them know, I don't know, whatever your contract tells you you're
supposed to do. But take that as a sign of, you know, work elsewhere if the
situation calls for it.
Johny Fernandez: Yeah. So let's say, you know, I think this sense of going back
to like being, uh, you know, doing your due diligence, and I guess not trying to
do anything to get back at them, or whatever the case is. So if these guys
disappear in a scenario, like what we just talked about, that we read on the
DailyFunder what action Did you take as a business owner?
Sean Murray: If I was a business owner, and I couldn't get ahold of anybody?
Johny Fernandez: yeah. Or if you if you were, you know, in this guy, see where
you know, you're pretty much you thought you were doing deals with these guys and
they disappear. What What would've you done?
Sean Murray: If I was the broker? Yeah, I would just stop working with them. I
point blank, like it but I mean, what else can you do? So if you're the broker
and you send your deal, off to a funder, and they're not getting back to you and
that disappear. I don't know that there's anything you can really do;
other than work with somebody else. I mean, what would you do? Like, there's
nothing you could do. Here's the whole thing. If we're talking about small
business finance, there's literally hundreds of companies out there. In some
way, you're kind of commoditize. There's no way that that funder was the only
one, all of them that could do that particular type of deal.
Johny Fernandez: But let's talk about this. If someone's new to the industry,
and they've put all their eggs in this basket. And this is like, you know, this
is kind of what they have. Is it worth it to even fight it to see if you can
get something back? Or is it just time to move on and learn from this
experience? And I think it's like what we talked about last time, where it's
not when you're gonna get, you know, when something bad's gonna happen to
you? It's not not if but when?
Sean Murray: Well, I think that the broker, what they could do is they could
shop the client to another funding company, I don't think that they need to
buy anything. You know, it's kind of like I just said, there's hundreds of
companies that hundreds of funders, hundreds of lenders out there that will
essentially do what other companies will do. And so the thought that you're going
to try, and I think this particular example, somebody was trying to reach
this lender for months, right? There's no way you should be trying to chase
down a lender for months, if you're, if you're chasing them down for a whole
week, it's already too long. So if you're a broker out there, and this is
the only only lender, you knew, that could that so they can do this type of
deal. And they've kind of ghosted you, I don't think it's a waste of time to try
to pursue them forever. To try to make this deal happen. You need to focus your
effort elsewhere, find a lender of funder who will do the deal, do your due
diligence, don't act desperate, and just be like, there's other guys that will do
it. So I sent it off to him. That's how you end up. That's how you end up
getting deals stolen. Because once you yourself are desperate, you're like, I
don't know who's gonna do this deal. And you just send it off to somebody.
Because they said they could do it out of the blue. And you're like, oh, I'll
just send to this person. And then you do get stolen. You know, that's, that's
how you run into those types of problems. And so I think what someone
needs to do is that they need to consider their other options and shop at
somewhere else, but do their due diligence. And don't feel like doing
this rushed. Yeah, to do it. Do it. Yeah. Be calm. Take it slow. Find the
right funding company, a lending company for this file. Yeah. And then then send
it to the one that's the most appropriate don't don't don't senses
react? And I'll send it here. Yeah.
Johny Fernandez: It won't work out well, in the end. So essentially, do you think
it's in the beginning, it's smarter to sometimes very just take a deep breath
and really do your homework. Be diligent, you know, work harder in the
beginning, so you don't end up going through a scenario like this? At the
end? Yeah. So work harder. Not smarter. No, I'm sorry. Work smarter.
Sean Murray: This guy works harder. Yeah, this guy, this guy works smart.
Why work smart when you can just work your way more work? I love that. You
know, 2020 was time to turn you know, conventional wisdom on its head. 2021
it's all about thinking different. Don't work smart guys. Work hard.
Johny Fernandez: Definitely work smart don't work hard.
Sean Murray: Work 24/7, don't put any thought into it. And hopefully,
hopefully you make a couple bucks.
Johny Fernandez: On that note, great piece of advice here to work smart. Not
hard. Not hard. No sweat. Yeah, it's outstanding. But yeah, I think overall
it's really good. Just intake from someone who's been in the, in the
industry for years. Yeah, you, you've always given out really good tidbits not
only to people in the industry, but just if you're on a commission sales job, in
general. So you've given a great piece of advice.
Sean Murray: I appreciate that. You know, one other piece of that particular
posts we're talking about is that I feel like that broker did get an answer. It
just wasn't the one they were looking for.There was some type of Portal. And
that portal said that the offer that was made had expired. Essentially, they sent
it in, you know, I don't, we didn't, we didn't interview this guy. But they
never heard back. And now when they check the status of it is expired. And
that's that's a whole other topic for discussion, like the deal with expired.
So whatever they thought they were presenting to the customer to the
prospect in the first place is not even valid anymore. Not even worth the
conversation with them anymore. Because it's not it's not valid. And this, this
can happen to you too, right? Because let's say it's not, let's say it's not
the lender for the funder, let's say because it's not always that way.
Sometimes the lender, the funder approves the deal, or approves it with
conditions and they tell the broker and they don't hear anything from the
broker. And the broker did the ghosting. Yeah. And that prospect is like, I don't
know what's going on. Right? Nobody can get ahold of the broker and the broker
is the one who had that client relationship. So here's the here's the
problem, right? They might have the prospect might have a really good offer
in front of in front of them. They just don't know about it. Or, or they told
the broker I liked but I need to think about it and the broker is not telling
the lender, that they need time to thin about. And so the lenders like, Okay
well, after like two weeks, we'r sending the offer. And I think whe
people when you start to impose tim limits, people think that's a sale
tactic. Like, if you were offere something, you must sign today, or th
offer is no good. You're like, okay like, at first, you might be like, Oh
man, I got it, I got it, I gotta sig this now it's gonna be gone. And the
you're like, wait a minute, wait minute, wait a minute, are they jus
telling me that so that I, you know, feel that pressure and sign? Well
perhaps sometimes, but at least in th small business finance world, there is
an expiration on an offer, because th transaction is very kind of, it's base
on future cash flow based on futur revenue. And so if there's any type o
adverse event that's going to impact th future revenue, future cash flow of th
business, they're gonna want to kno about it as early as possible. Yeah, s
a funding company, a lending compan will make an offer to a broker, th
brokers job to relate that offer to th prospect. And then at that, typically
if that prospect doesn't respond or g through there within like, say, tw
weeks, it's not that the offer itsel will be outright decline. But usuall
there will be a condition saying conditional upon providing update
transaction history, you know, they wan to know that in that two week period
you didn't close your business down, or you know, go away on vacation or have n
sales, or, you know, there was a fir that destroyed your store, and you'r
like, now that the fire destroyed m store, I would, of course, I would lov
to sell my future revenue, because I' not going to have any, right. And s
they need to protect themselves, the wa they do that they put an expiration, o
the contract itself
Johny Fernandez: Yeah, and that's fair
Sean Murray: Does that happen in real estate?
Johny Fernandez: So essentially, I mean, it's a little bit, it's a little bit
different in real estate, because, you know, once you have like leases drawn,
or you know, like, they've accepted your offer and whatnot, for leases, for
example, you know, usually, the deal has to be signed within a number of days,
because someone else is going to come. And, essentially, like, if we have a
lease drawn out for us on a rental, for example, and you don't sign within a
week, and then someone else is gonna come in, they're pretty much gonna kind
of get a feel for what's going on with us. And, you know, sometimes if you
don't sign within three to four days, you kind of know, right, this person is
definitely not interested or something happened, that magically, you know, they
are no longer to sit in the apartment. So, but in regards to like, an actual
expiration date, usually, you know, things are drawn out, and then, you
know, they just have to sign and there's usually a time to pretty much, you know,
get out of whatever scenario you're in whether it's, you know, an accepted
offer, you know, at least is drawn out. But once you get past a certain point,
it's kind of like, are you fully committed into this? And you kind of
just go straight through? Yeah.
Sean Murray: Yeah, that makes sense. I mean, for for brokers who are out there,
and when they get approvals from lenders, and funders and lenders, and
funders, give some type of timeline as not to apply the pressure, it's because
things just have, you know, things just have a, a period when they when they
have to be executed. Otherwise, things can change. You know, in real estate, it
could literally just be the competitive nature,
Johny Fernandez: Yes, with real estate, especially in Manhattan, in Brooklyn, or
New York City. Things are things move quickly. And I think that's something
people don't really fully understand when you're renting or buying in New
York City is that things move at a rapid fast pace, especially now that things
are getting back to normal, that, you know, something could be on the market
for less than a day. And there's like multiple bidding wars on things like a
rental, like, you know, and at the end of the day, you know, you're you're you
put in an offer for I've heard a story. Someone had a client, one of my buddies
had a client who was a $10,000 a month and rental deal, rental, and they had
bidding wars, and they went up to $12,000 a month, per month for that
specific unit. And I don't act quick, someone else is going to get you to so I
think that's the competitive nature, you're talking about that? You know,
they have at least tried inside and you know, you've had an accepted offer, you
have to sign because if not like you can get out because there's multiple other
people, you know, waiting?
Sean Murray: Yeah, yeah, that makes sense. You know, in the small business
finance world, it's kind of it's kind of similar in that other lenders or funders
might try to piggyback off the underwriting of another company. So you
have a, say, business owner and merchant who's approved for whatever dollar
amount it is, they weren't able to get approved elsewhere before and all of a
sudden, this one company turns around and says, you know, we, we hereby truly
approve you. Another funding company might take that contract proposal and be
like, well, this company would approve them and I know they're smart and
underwriting is good. I'll make the same offer but add $2,000 more I make the
same deal. Yeah. Right. And so the original company, like how can that be
I, you know, I thought we were only the smart and being able to, in order to
make this type of deal happen, but the competitor might literally just
piggyback off of what they think that company knows what they think that
lender would they think that funder knows and literally gave the same
approval, but maybe sweeten one part of it, whether you know, it's a lower cost
or more money up front of something, and and work from that angle. And then all
of a sudden, here you were the broker or the lender waiting for the client to
take the deal. And the client takes it. So we just had something job the client
takes a deal, and it's not the one that you proposed, it's something close to
that looks a little a little better, and then you think that your deal got
stolen? Yeah, like my deal got stolen, they offered something a little bit
better. No, it's the customer literally probably took that well could happen but
the customer probably took that proposed contract and showed it to somebody else
and said they offered me 20,000 you know, I will go with you if you give me
22 or if you give me 25 and they know that the other company is underwriting a
sound and say hey, let's do it and then you feel like the deal got stolen but
that's not what happened.
Johny Fernandez: It's how it happened. I think the name of the game for
everything is got to move quick.
Sean Murray: You got to move quick got to move it with a broker, the lender,
the merchant
Johny Fernandez: Whoever the you have to move quick so I think that's a big
takeaway
Sean Murray: And work hard now smart
Johny Fernandez: Alright, so for more of our stories, you can go online not to
google.com but to deBanked.com and definitely check out you know, our our
other videos and stories that we have posted there and also on social media,
you can check us out on different platforms, Twitter, Facebook, LinkedIn,
Instagram, the other one. So for all of us here, I'm Johnny Fernandez.
Sean Murray: And I'm Sean Murray.
Johny Fernandez: See you guys next time.
Sean Murray: Work hard out there.