1 00:00:00.960 --> 00:00:03.630 Sean Murray: Hello, it's Sean Murray at deBanked TV. We are 2 00:00:03.630 --> 00:00:04.230 back. 3 00:00:04.650 --> 00:00:06.990 Johny Fernandez: What's up guys? I'm Johny Fernandez back with 4 00:00:06.990 --> 00:00:10.170 Sean Murray. I know he missed me. But I'm back. I was in 5 00:00:10.170 --> 00:00:14.250 Philadelphia on assignment. Great time in Philly. But I'm 6 00:00:14.250 --> 00:00:15.510 glad to be back in New York. 7 00:00:15.540 --> 00:00:16.860 Sean Murray: You know, Johny, when you weren't here, I didn't 8 00:00:16.860 --> 00:00:20.610 even show you. But I actually, I gave you a special shout out 9 00:00:20.730 --> 00:00:23.100 thanking you for all your hard work here and telling you that I 10 00:00:23.100 --> 00:00:26.280 really appreciate you participating in the growth of 11 00:00:26.310 --> 00:00:27.150 deBanked TV. 12 00:00:27.270 --> 00:00:30.990 Johny Fernandez: Oh, thank you, and it's my honor. You're a 13 00:00:30.990 --> 00:00:32.010 legend. So. 14 00:00:32.430 --> 00:00:34.080 Sean Murray: Okay, well, the feeling is mutual. 15 00:00:34.110 --> 00:00:37.320 Johny Fernandez: Like, all right, so enough of that smushy 16 00:00:37.320 --> 00:00:37.860 stuff. 17 00:00:37.890 --> 00:00:38.250 Sean Murray: Yeah. 18 00:00:38.310 --> 00:00:40.380 Johny Fernandez: Let's get to the good stuff today. So today, 19 00:00:40.380 --> 00:00:43.260 we're gonna talk about three different topics. The first one 20 00:00:43.260 --> 00:00:46.560 is very interesting, cause we've brought this topic up a lot. 21 00:00:47.820 --> 00:00:49.650 Sean Murray: I don't know about a lot, but it's come up. 22 00:00:49.680 --> 00:00:52.200 Johny Fernandez: It's come up. Or it's come up. 23 00:00:52.230 --> 00:00:52.650 Sean Murray: Yeah. 24 00:00:53.340 --> 00:00:58.680 Johny Fernandez: Sean and I are massive bachelor fans. Right. 25 00:00:58.710 --> 00:01:01.230 Sean Murray: I don't know about massive. I do watch The Bachelor 26 00:01:01.260 --> 00:01:02.280 on ABC. 27 00:01:02.460 --> 00:01:02.820 Johny Fernandez: Okay. 28 00:01:02.870 --> 00:01:06.050 Sean Murray: I don't consider my myself a fan. I don't know 29 00:01:06.050 --> 00:01:06.320 about. 30 00:01:06.350 --> 00:01:08.240 Johny Fernandez: We are part of Bachelor nation. 31 00:01:08.240 --> 00:01:10.700 Sean Murray: Okay. Yeah. What's up bachelor nation, Sean Murray 32 00:01:10.700 --> 00:01:13.700 and Johny Fernandez here in the middle of the rose. 33 00:01:13.760 --> 00:01:14.630 Johny Fernandez: Not after the rose. 34 00:01:14.630 --> 00:01:16.550 Sean Murray: Not after the rose, the shows still going on. 35 00:01:16.630 --> 00:01:19.390 Johny Fernandez: So the shows I've been catching up with the 36 00:01:19.390 --> 00:01:25.900 show every Monday to hold that at my house. And it's a big, 37 00:01:26.140 --> 00:01:28.240 it's a big deal every Monday at eight o'clock from eight to 10. 38 00:01:28.240 --> 00:01:30.910 Like, phones are off like we are invested in. 39 00:01:30.940 --> 00:01:32.590 Sean Murray: Yeah, that sounds like a massive fan. 40 00:01:32.620 --> 00:01:34.660 Johny Fernandez: Hashtag team. Greg. Let's go. We're rooting 41 00:01:34.660 --> 00:01:37.360 for you, Greg, New Jersey, the Jersey boy like we're rooting 42 00:01:37.360 --> 00:01:38.350 for Greg anyways. 43 00:01:38.380 --> 00:01:38.830 Sean Murray: All right. 44 00:01:38.900 --> 00:01:41.120 Johny Fernandez: Um, so interestingly enough, the reason 45 00:01:41.120 --> 00:01:44.420 why we're bringing up the bachelor nation and the deBanked 46 00:01:44.450 --> 00:01:48.230 is because there was an article that recently came out that we 47 00:01:48.230 --> 00:01:52.910 learned that certain bachelor stars have received PPP loans, 48 00:01:53.270 --> 00:01:57.320 specifically Tayshia Adams. So Tayshia was the Bachelorette 49 00:01:57.920 --> 00:02:01.700 last season. Yeah, on The Bachelorette, and then she's 50 00:02:01.700 --> 00:02:07.670 also co host this season. But she received PPP money, but she 51 00:02:07.670 --> 00:02:12.950 actually received it through her LLC. And she according to like 52 00:02:12.950 --> 00:02:17.690 her rep, it said that she used that money to hire someone. So 53 00:02:17.720 --> 00:02:21.290 Sean, when you hear this, you know, she's she's not like a 54 00:02:21.290 --> 00:02:25.970 small business owner, storefront type business, but she does have 55 00:02:26.000 --> 00:02:30.350 she does have an LLC. What do you think, Sean? What are your 56 00:02:30.350 --> 00:02:32.246 Sean Murray: Yeah, so the bachelor star is getting PPP 57 00:02:32.246 --> 00:02:32.301 thoughts? 58 00:02:32.301 --> 00:02:35.699 money. You know, when I first read it, it was written as if it 59 00:02:35.753 --> 00:02:39.096 was a scandal, I think it was written. And this was published 60 00:02:39.151 --> 00:02:42.384 by a lot of different news outlets. And I think it was kind 61 00:02:42.439 --> 00:02:45.727 of written in sort of like, as if it was a scandal that that 62 00:02:45.782 --> 00:02:49.070 had been found out, and that these people had done something 63 00:02:49.124 --> 00:02:52.248 wrong. That's that's the impression that they were trying 64 00:02:52.303 --> 00:02:55.426 to create that the money was supposed to go to struggling 65 00:02:55.481 --> 00:02:58.824 business owners. However, these celebrity TV stars, they took 66 00:02:58.879 --> 00:03:02.112 advantage of it too, as if you know, they were bad. I think 67 00:03:02.167 --> 00:03:05.509 that's a, you know, a little bit misguided, to be honest with 68 00:03:05.564 --> 00:03:08.962 you. I don't know if whether or not they were entitled to take 69 00:03:09.017 --> 00:03:12.524 the money. Because I don't know their actual business underlying 70 00:03:12.578 --> 00:03:15.757 business, right. But just because somebody is famous or on 71 00:03:15.812 --> 00:03:18.990 TV, doesn't mean that their business is ineligible for for 72 00:03:19.045 --> 00:03:22.607 PPP money. In fact, this type of thing came up a lot. In the very 73 00:03:22.662 --> 00:03:26.223 beginning. There were there were numerous companies with kind of, 74 00:03:26.278 --> 00:03:29.237 I guess, questionable, moral business, you know, moral 75 00:03:29.292 --> 00:03:32.580 businesses or whatever. And the debate became whether or not 76 00:03:32.635 --> 00:03:35.813 they should get it versus someone else. And I think at the 77 00:03:35.868 --> 00:03:39.211 end of the day, people said, it's really not about, you know, 78 00:03:39.266 --> 00:03:42.334 whether or not we morally support a business, or whether 79 00:03:42.389 --> 00:03:45.568 or not someone is famous or not, it's about whether or not 80 00:03:45.622 --> 00:03:48.801 they're eligible based upon the statute. Everybody kind of 81 00:03:48.856 --> 00:03:52.089 suffered, it's hard for them to go in and and, and evaluate 82 00:03:52.144 --> 00:03:55.651 literally millions of businesses on their own individual merits, 83 00:03:55.705 --> 00:03:59.048 you do have to fill out like, you know, an at an attestation, 84 00:03:59.103 --> 00:04:02.227 that you are eligible or not. So assuming they follow the 85 00:04:02.281 --> 00:04:05.624 guidelines, and were truthful about it. I don't see anything. 86 00:04:05.679 --> 00:04:08.967 I don't honestly see anything wrong with it. Yeah. I get why 87 00:04:09.022 --> 00:04:12.310 it's, I get why it makes for good, compelling news. You know 88 00:04:12.364 --> 00:04:15.652 what I mean, because, you know, they're famous, right. But I 89 00:04:15.707 --> 00:04:18.995 don't think that necessarily translates into wealth, some of 90 00:04:19.050 --> 00:04:22.393 the comments I read online on social media. I went on to like 91 00:04:22.447 --> 00:04:25.735 Reddit and Twitter to see what people were saying. And there 92 00:04:25.790 --> 00:04:29.243 was this impression that these people are all multimillionaires 93 00:04:29.297 --> 00:04:32.366 and I don't think that's the case. I don't think I don't 94 00:04:32.421 --> 00:04:35.873 think that fame equals money. I think that's a false impression 95 00:04:35.928 --> 00:04:39.380 that people get I think that's why you get all these people who 96 00:04:39.435 --> 00:04:42.778 want to be YouTube stars and TikTok stars. They think that if 97 00:04:42.833 --> 00:04:46.011 you're just once you reach a certain level of fame, you're 98 00:04:46.066 --> 00:04:48.970 just automatically a millionaire. Yeah. And hey, even 99 00:04:49.025 --> 00:04:52.039 if they are millionaires, it doesn't mean they were not 100 00:04:52.094 --> 00:04:55.491 eligible for PPP, PPP money. So as long as they did everything 101 00:04:55.546 --> 00:04:58.999 on the up and up, I don't think there's anything wrong with it. 102 00:04:59.053 --> 00:05:02.561 It's I was kind of disappointed that I didn't think to check the 103 00:05:02.615 --> 00:05:05.848 bachelors stars to see if they were on the PPP list because 104 00:05:05.903 --> 00:05:09.082 this database came out end of last year, and we could have 105 00:05:09.136 --> 00:05:12.534 easily have gone in and typed in the names, but we didn't. So, 106 00:05:12.589 --> 00:05:15.877 you know, unfortunately, the mainstream press beat us to the 107 00:05:15.932 --> 00:05:17.850 story, but it's kind of a nonstory. 108 00:05:17.870 --> 00:05:21.170 Johny Fernandez: Yeah, yeah. And I think the fact that she has an 109 00:05:21.200 --> 00:05:26.510 LLC, so it is, you know, categorized as a small business. 110 00:05:26.630 --> 00:05:29.180 It's not like she took the money, you know, under herself, 111 00:05:29.180 --> 00:05:34.790 like, she has, you know, a small business, a corporation, however 112 00:05:34.790 --> 00:05:38.270 you want to frame it, or however she refers to it as. So I do 113 00:05:38.270 --> 00:05:41.720 think that, you know, like you said, a lot of people think fame 114 00:05:41.750 --> 00:05:45.710 equals money. And that isn't always accurate. Yeah. And, you 115 00:05:45.710 --> 00:05:48.440 know, sometimes these celebrities, just some of these 116 00:05:48.440 --> 00:05:50.630 people in general, they need they need the help, I mean 117 00:05:50.630 --> 00:05:55.310 whether she needed it or not, but she did it. And, you know, 118 00:05:56.060 --> 00:05:59.750 it is what it is. I mean, I believe that, you know, she 119 00:05:59.750 --> 00:06:03.260 followed under the LLC. I don't see anything wrong with that. 120 00:06:03.470 --> 00:06:06.920 But again, people could probably say otherwise. 121 00:06:06.920 --> 00:06:09.377 Sean Murray: Yeah, you know, the only thing the only part I 122 00:06:06.900 --> 00:06:10.830 Yeah, I agree. I agree with you. And, again, we're big fans, 123 00:06:10.830 --> 00:06:12.877 thought was a little unusual was that representative for her had 124 00:06:12.420 --> 00:06:12.931 can't wait for Monday at eight o'clock. So definitely be tuning 125 00:06:12.931 --> 00:06:16.431 told TMZ that she used the money to hire someone, suggesting that 126 00:06:16.485 --> 00:06:19.500 she didn't have any employees before. But thanks to this 127 00:06:19.554 --> 00:06:22.085 money, she was able to then bring someone on my 128 00:06:22.139 --> 00:06:25.424 understanding is that it wasn't about expanding your business 129 00:06:25.478 --> 00:06:28.547 and taking money to grow and start adding people that you 130 00:06:28.601 --> 00:06:31.994 were supposed to use the money for people that were already on. 131 00:06:32.047 --> 00:06:35.117 And you were supposed to retro actively look at your your 132 00:06:35.171 --> 00:06:38.563 payroll numbers, and that's how much you would qualify for. And 133 00:06:38.617 --> 00:06:41.956 then use that to keep keep the payroll on. So I thought it was 134 00:06:42.010 --> 00:06:45.402 a little weird that she it was it was suggested that she use it 135 00:06:45.456 --> 00:06:48.525 to start hiring like, oh, I'm gonna use this to expand my 136 00:06:48.579 --> 00:06:51.756 business. Yeah. I don't really think it was for that. But I 137 00:06:51.810 --> 00:06:55.257 don't know all the details. And I definitely don't think there's 138 00:06:55.311 --> 00:06:58.757 enough there to say that she did anything wrong. It is you know, 139 00:06:58.811 --> 00:07:01.934 it's a story. I enjoyed reading it, but I think it's a non 140 00:07:01.988 --> 00:07:02.850 scandal scandal. 141 00:07:12.120 --> 00:07:12.300 in. 142 00:07:12.330 --> 00:07:15.150 Okay. Yeah, you gotta tune into deBanked TV and the bachelor, 143 00:07:15.210 --> 00:07:16.170 apparently. Yeah. 144 00:07:17.500 --> 00:07:20.500 Johny Fernandez: So and onto the next topic. And I think this is 145 00:07:20.500 --> 00:07:23.920 definitely an interesting topic that we both spoke about earlier 146 00:07:23.920 --> 00:07:29.140 today. Regarding is it a good deal? Is what a good deal, is 147 00:07:29.170 --> 00:07:31.870 the transaction that you're working on whether it be a 148 00:07:31.870 --> 00:07:34.540 broker in the business in the industry, you know, in real 149 00:07:34.540 --> 00:07:38.980 estate, is it a moneymaker? Or is it a time waster? Sean, we 150 00:07:38.980 --> 00:07:43.000 spoke about specifically, different transactions. On my 151 00:07:43.000 --> 00:07:46.420 side, in regards to the real estate aspect of it. Sometimes, 152 00:07:46.930 --> 00:07:51.310 the commission may look great. Sometimes a deal looks great. 153 00:07:52.180 --> 00:07:55.960 But sometimes what I've experienced in the past is the 154 00:07:55.960 --> 00:08:00.100 legwork. And the aftermath of really speaking with the 155 00:08:00.100 --> 00:08:02.440 individual seeing what the transaction when it comes to 156 00:08:02.440 --> 00:08:05.860 real estate. Specifically, you know, what I've seen it a lot in 157 00:08:05.860 --> 00:08:09.550 rentals is, you know, they have a great budget. The commission's 158 00:08:09.550 --> 00:08:12.010 pay is great, it makes up sometimes two or three months 159 00:08:12.010 --> 00:08:15.220 worth of my expenses. But then when you speak with the 160 00:08:15.220 --> 00:08:18.820 individual, and you realize that, wait a minute, this might 161 00:08:18.820 --> 00:08:22.270 be a time waster for me. Now, why is it a time waster for me 162 00:08:22.270 --> 00:08:26.290 because the commission split may be great, but sometimes managing 163 00:08:26.770 --> 00:08:30.370 the person's expectations, you know, they have unrealistic 164 00:08:30.370 --> 00:08:35.050 expectations of you know, how this transaction should be. And 165 00:08:35.050 --> 00:08:38.320 sometimes that within itself, and then also just, you know, 166 00:08:38.320 --> 00:08:40.630 trying to get on the same page with individuals in a real 167 00:08:40.630 --> 00:08:44.110 estate transaction. Sometimes it makes it not worth it. An 168 00:08:44.110 --> 00:08:46.750 example I can give you is, you know, I was working with a 169 00:08:46.750 --> 00:08:50.530 client, they had a great, great price point, but what they 170 00:08:50.530 --> 00:08:56.080 wanted was something that was out of this world. And I try to 171 00:08:56.080 --> 00:08:58.960 go around it and mentally and figure out like, all right, if I 172 00:08:58.960 --> 00:09:02.200 put all my time and effort into this deal, is it gonna be worth 173 00:09:02.200 --> 00:09:04.600 it, at the end of the day, I came to the conclusion that it 174 00:09:04.600 --> 00:09:07.480 was not going to be worth it because I was gonna be running 175 00:09:07.480 --> 00:09:09.940 around the entire city looking for something that did not exist 176 00:09:09.940 --> 00:09:13.960 for them, despite the commission being great. And I can put my 177 00:09:13.960 --> 00:09:16.990 heart and soul into it. But then reality meets, you know, the 178 00:09:16.990 --> 00:09:19.840 expectations and like the expectations were just not 179 00:09:19.930 --> 00:09:24.520 there. You know, and it was just I wasn't gonna be able to find 180 00:09:24.520 --> 00:09:28.210 them what they wanted. And I spoke with them tried to like 181 00:09:28.210 --> 00:09:31.780 really level with them tried to see like, hey, like, maybe we 182 00:09:31.780 --> 00:09:36.250 can adjust things here, manage their expectations, but it just 183 00:09:36.280 --> 00:09:38.830 they just wanted things a certain way. And for me, that 184 00:09:38.830 --> 00:09:42.520 was a time waster. I think you know, when you're trying to see 185 00:09:42.520 --> 00:09:45.010 if a deal is good or not everyone has to meet and be on 186 00:09:45.010 --> 00:09:48.640 the same page. And then from there, you know, sometimes, you 187 00:09:48.640 --> 00:09:51.280 know, we get could get eight out of the 10 things on their list, 188 00:09:51.670 --> 00:09:52.510 or it's a go. 189 00:09:53.260 --> 00:09:55.990 Sean Murray: Yeah, I think what's important is that and you 190 00:09:55.990 --> 00:09:59.230 mentioned it is that you have to ask questions from the very 191 00:09:59.230 --> 00:10:02.560 beginning to try to establish where this potential customer 192 00:10:02.560 --> 00:10:07.000 is, to determine how realistic the deal itself will be. And I 193 00:10:07.000 --> 00:10:09.310 can't speak about real estate, but in the business finance 194 00:10:09.310 --> 00:10:12.670 world, it's really important to ask certain questions like, what 195 00:10:12.670 --> 00:10:15.790 they're gonna use the money for, what their expectations are in 196 00:10:15.790 --> 00:10:19.120 terms of, you know, costs and and all that stuff. And if it's 197 00:10:19.120 --> 00:10:21.460 a conversation about whether or not something is a moneymaker, a 198 00:10:21.460 --> 00:10:24.250 time waster, you can save yourself a lot of time and not 199 00:10:24.250 --> 00:10:28.480 waste your time by asking very important questions like, it 200 00:10:28.480 --> 00:10:30.940 would not be a good use of time to just try to go out there and 201 00:10:30.940 --> 00:10:33.940 get applications in from every single person that you speak to. 202 00:10:34.090 --> 00:10:36.340 Because you're gonna sort through those applications. And 203 00:10:36.400 --> 00:10:38.560 these some of these deals are gonna have no chance of closing, 204 00:10:38.800 --> 00:10:42.070 this could be because maybe someone's expectations are that 205 00:10:42.070 --> 00:10:44.650 the money is gonna be between, you know, one and 3% interest a 206 00:10:44.650 --> 00:10:48.040 year. And the products you have in your arsenal, are all like 207 00:10:48.070 --> 00:10:51.370 20% plus, and you're like, wow, think of the commission I could 208 00:10:51.370 --> 00:10:54.790 make, I got the paperwork in. And you're going to spend all 209 00:10:54.790 --> 00:10:58.000 this time trying to get it approved, counting the 210 00:10:58.000 --> 00:11:00.610 commission that you can make, and then trying to convince the 211 00:11:00.610 --> 00:11:03.130 customer to take the deal that they would never ever go in to 212 00:11:03.130 --> 00:11:06.850 take that that's a time waster. Another example is and I just 213 00:11:06.850 --> 00:11:10.060 encountered this recently, I was talking to someone who they knew 214 00:11:10.060 --> 00:11:15.190 the client had been convicted of fraud in the past, this wasn't 215 00:11:15.190 --> 00:11:18.040 necessarily a deal breaker for every single funding company, 216 00:11:18.040 --> 00:11:22.090 some funding companies, they'll charge a premium, to do a deal 217 00:11:22.180 --> 00:11:24.340 with that type of thing in the background. But I was just 218 00:11:24.340 --> 00:11:27.610 thinking to myself, this type of deal is just a recipe for 219 00:11:27.610 --> 00:11:30.760 disaster. Even if you get it done. This was not like an old 220 00:11:31.000 --> 00:11:34.210 fraud conviction, this was like a recent conviction, you know, 221 00:11:34.240 --> 00:11:36.400 they were just setting themselves up for disaster. 222 00:11:36.430 --> 00:11:40.780 Because even if that deal gets done, there's this good chance 223 00:11:40.780 --> 00:11:42.790 that something's gonna happen afterwards to it, you're 224 00:11:42.790 --> 00:11:46.270 risking, they're risking your commission being pulled back 225 00:11:46.300 --> 00:11:48.640 like if the deal, if something happens to it in the first 30 226 00:11:48.640 --> 00:11:52.330 days or so your commission could get pulled back. Or if that 227 00:11:52.780 --> 00:11:55.930 merchant commits fraud, they're gonna blame you for sending to 228 00:11:55.930 --> 00:11:58.990 them in the first place, even even though they knew. So there 229 00:11:58.990 --> 00:12:01.330 are certain things that you could, you know, certain factors 230 00:12:01.330 --> 00:12:04.990 that you could look out for, that could just, you know, plant 231 00:12:04.990 --> 00:12:08.530 the seed of, I'm gonna drop this deal from the beginning and not 232 00:12:08.530 --> 00:12:11.080 and not waste the time. And what I actually thought was funny is 233 00:12:11.200 --> 00:12:14.980 they tried to get it done anyway. And the person ended up 234 00:12:14.980 --> 00:12:18.520 submitting forged documents to try to get the deal closed. So 235 00:12:18.520 --> 00:12:21.790 it just, it was a perfect example of like, how how that 236 00:12:21.790 --> 00:12:23.980 was a time waster from the beginning. Yeah. And they were 237 00:12:23.980 --> 00:12:26.710 like, no, no, no, someone will do it, someone will do it. And 238 00:12:26.740 --> 00:12:29.590 you know, the guy was trying to defraud them from the start. So. 239 00:12:30.050 --> 00:12:32.570 Johny Fernandez: And I think something that we can both agree 240 00:12:32.570 --> 00:12:36.620 on is sometimes, you know, when you're speaking with with a 241 00:12:36.620 --> 00:12:40.010 client, you know, someone that's new, the best thing to do is 242 00:12:40.100 --> 00:12:43.670 really read through documents, because I think the documents 243 00:12:43.670 --> 00:12:47.810 will speak for its themselves. And sometimes, you know, in a 244 00:12:47.810 --> 00:12:49.940 transaction, you're just trying to get everything done, and you 245 00:12:49.940 --> 00:12:52.670 get kind of lost in the rat race, and you're just trying to 246 00:12:52.670 --> 00:12:54.980 read everything, highlight everything, whatever, that 247 00:12:54.980 --> 00:12:58.370 sometimes. And I remember, there was a transaction that I had a 248 00:12:58.370 --> 00:13:01.760 friend that was doing where they were almost at the finish line. 249 00:13:02.150 --> 00:13:05.540 And when they read the person's taxes, it was like 40 pages, 250 00:13:05.750 --> 00:13:09.980 they realized at the very bottom, there was a conflict 251 00:13:09.980 --> 00:13:14.180 with the names, and then push comes to shove, they ended up 252 00:13:14.180 --> 00:13:18.440 seeing that the names did not match up to the taxes. And then 253 00:13:18.530 --> 00:13:21.860 because of that, they ended up finding out that this person was 254 00:13:21.860 --> 00:13:22.700 committing fraud. 255 00:13:23.000 --> 00:13:23.630 Sean Murray: Wow. 256 00:13:23.780 --> 00:13:25.580 Johny Fernandez: And it was just, you know, you they quickly 257 00:13:25.610 --> 00:13:27.050 were able to trace certain things. 258 00:13:27.080 --> 00:13:27.980 Sean Murray: This was a broker? 259 00:13:28.010 --> 00:13:28.820 Johny Fernandez: This was broker. 260 00:13:28.820 --> 00:13:29.240 Sean Murray: Okay. 261 00:13:29.480 --> 00:13:31.490 Johny Fernandez: This was a broker that I that I was working 262 00:13:31.490 --> 00:13:34.310 with. And, you know, we found out that this person was trying 263 00:13:34.310 --> 00:13:38.510 to commit fraud, but it was because all the information was 264 00:13:38.510 --> 00:13:41.270 there. And they were about to submit everything, we were 265 00:13:41.270 --> 00:13:44.810 almost gonna close this deal. And they found out there that 266 00:13:44.840 --> 00:13:47.990 something didn't add up with the papers. And it was and they 267 00:13:47.990 --> 00:13:50.240 would have avoided all this work if they would have just read 268 00:13:50.240 --> 00:13:52.130 everything, you know, in the beginning. 269 00:13:52.130 --> 00:13:55.600 Sean Murray: Yeah. Yeah. It would have been better if they 270 00:13:55.600 --> 00:13:58.300 had, if they had discovered it earlier, obviously. Yeah. But 271 00:13:58.300 --> 00:14:01.480 sometimes a good fraudster can can fool people for a long 272 00:14:01.480 --> 00:14:04.180 period of time. Yeah. But you raised a good point, the idea 273 00:14:04.180 --> 00:14:07.570 that the broker kind of was the one that made the discovery. And 274 00:14:08.140 --> 00:14:10.840 that's something that all brokers should sort of do. They 275 00:14:10.840 --> 00:14:13.060 are the frontlines of underwriting so to speak, even 276 00:14:13.060 --> 00:14:14.920 though a lot of people would say, that's not my job. The 277 00:14:14.920 --> 00:14:17.350 underwriters job is to determine if it's a good deal or not. 278 00:14:17.380 --> 00:14:19.240 Yeah. But we're talking about whether or not is it a time 279 00:14:19.240 --> 00:14:23.230 waster or a moneymaker. You got to go through the deal yourself. 280 00:14:23.230 --> 00:14:24.790 You got to look through the paperwork yourself. And you got 281 00:14:24.790 --> 00:14:27.010 to find all the red flags from the beginning. And then you got 282 00:14:27.010 --> 00:14:30.850 to ask that, that particular prospect about the red flags. 283 00:14:30.850 --> 00:14:34.000 Yeah. Like you see that names are matching up on a tax return. 284 00:14:34.030 --> 00:14:36.670 Now this was at the end of the deal for you. But let's say you 285 00:14:36.670 --> 00:14:39.880 get in, let's say you're getting bank statements. And there's, 286 00:14:40.120 --> 00:14:42.430 there's weird things that pop up. We saw something that was 287 00:14:42.430 --> 00:14:47.830 posted online recently where a doctor's office, they sent him 288 00:14:47.830 --> 00:14:51.070 based bank statements and it gave the impression that this 289 00:14:51.310 --> 00:14:55.210 business was a restaurant. Okay. Not a doctor's office, but they 290 00:14:55.210 --> 00:14:58.120 were like no, no, it's a doctor's office. But none of the 291 00:14:58.150 --> 00:15:00.460 transactions were consistent with a doctors office. Yeah. It 292 00:15:00.460 --> 00:15:03.100 looked like a restaurant. So something was something was off. 293 00:15:03.430 --> 00:15:06.370 Now, I would say in that case, it would be a big time waste to 294 00:15:06.370 --> 00:15:10.000 be like, whatever, you know, underwriters problem. Yeah. Send 295 00:15:10.000 --> 00:15:12.880 it off everywhere. It's gonna come up at some point, and then 296 00:15:12.880 --> 00:15:16.390 you're gonna have to go and find out anyway. Yeah. And then, you 297 00:15:16.390 --> 00:15:19.360 know, then you're gonna have to try to, you know, fix it or who 298 00:15:19.360 --> 00:15:22.030 who knows what you do. But you're setting yourself up to, 299 00:15:22.060 --> 00:15:24.220 you know, for a lot of problems down the road. Yeah. Because at 300 00:15:24.220 --> 00:15:28.180 some point, someone's gonna ask that question. Yeah. So these 301 00:15:28.180 --> 00:15:31.180 are things that these are things that you can look for. If the 302 00:15:31.180 --> 00:15:33.640 owner's name doesn't match up with what's on the application. 303 00:15:33.670 --> 00:15:35.590 If there's multiple owners, and they won't tell you who they 304 00:15:35.590 --> 00:15:38.200 are, find out first, if they're never going to tell you they're 305 00:15:38.200 --> 00:15:39.850 never going to tell the underwriter. Yeah. And you're 306 00:15:39.850 --> 00:15:42.880 just wasting your time. So if someone has, someone's in 307 00:15:42.880 --> 00:15:45.760 bankruptcy, you know, ask them right off the bat. You know what 308 00:15:45.760 --> 00:15:47.890 you know, you just you need to have all the facts, because. 309 00:15:47.890 --> 00:15:50.030 Johny Fernandez: I think a key thing in this whole thing and 310 00:15:50.030 --> 00:15:52.820 something that I've learned early on in my real estate 311 00:15:52.820 --> 00:15:55.850 career, and I know a lot of the freshman brokers for the 312 00:15:55.850 --> 00:15:58.400 industry, is that sometimes people are scared to ask 313 00:15:58.400 --> 00:16:01.880 questions. And those weird, awkward questions like, why did 314 00:16:01.880 --> 00:16:04.760 you have bankruptcy? Like what happened? Like, those are like 315 00:16:05.000 --> 00:16:08.150 touchy subjects sometimes and it's awkward to ask, but those 316 00:16:08.150 --> 00:16:10.910 are the things that people need to ask. So when you move 317 00:16:10.910 --> 00:16:14.240 forward, you have answers to it. And you can see there, hey, this 318 00:16:14.240 --> 00:16:16.100 may work out or this may not work out. 319 00:16:16.130 --> 00:16:18.890 Sean Murray: Yeah. No that's a good point. And when I first 320 00:16:18.890 --> 00:16:21.980 when I was a broker for a period of time, in the beginning, I was 321 00:16:21.980 --> 00:16:25.070 scared to ask questions. I was so excited and desperate to get 322 00:16:25.070 --> 00:16:27.920 any paperwork. I didn't want to scare them away. But you know, 323 00:16:27.920 --> 00:16:30.530 what would happen? If I didn't ask questions and I get the 324 00:16:30.530 --> 00:16:33.230 paperwork in and I'd send it off. And then the underwriter 325 00:16:33.230 --> 00:16:36.710 would ask me questions that seem seemingly were basic and simple. 326 00:16:36.740 --> 00:16:38.690 Yeah. And then I would turn around after they've done all 327 00:16:38.690 --> 00:16:41.180 this work. I've sent in all the paperwork, it took them a long 328 00:16:41.180 --> 00:16:43.880 time to get it. And then I go back and ask a question, say, 329 00:16:43.910 --> 00:16:46.970 hey, you know, why are you in open bankruptcy? And they're 330 00:16:46.970 --> 00:16:50.000 like, is that a problem? And you're like, yeah, right. And 331 00:16:50.000 --> 00:16:52.670 they're like, well, I wish you would have asked me that before 332 00:16:52.670 --> 00:16:56.030 I sent you everything. Yeah. So who, at the end of the day, I 333 00:16:56.030 --> 00:16:59.270 was the bad guy. Yeah. So here, I was afraid to ask the 334 00:16:59.270 --> 00:17:02.600 question. But I should have because they would have liked me 335 00:17:02.600 --> 00:17:05.840 more and appreciated me more for asking them so I wouldn't waste 336 00:17:05.870 --> 00:17:08.630 their time. Yeah. Literally everyone's time was wasted. 337 00:17:08.660 --> 00:17:11.840 Yeah. I wasted their time. They wasted my time. I wasted the 338 00:17:11.840 --> 00:17:14.750 underwriters time. Yeah. That that right there is a time 339 00:17:14.750 --> 00:17:16.400 waster by not asking questions. 340 00:17:16.430 --> 00:17:18.260 Johny Fernandez: Yeah. So definitely something to take 341 00:17:18.260 --> 00:17:21.110 into consideration, especially if you're a freshman, you know, 342 00:17:21.110 --> 00:17:23.900 broker whether it's in real estate or whether it's in you 343 00:17:23.900 --> 00:17:26.060 know, the industry, in alternative finance to ask 344 00:17:26.060 --> 00:17:27.920 questions, so you don't waste time later. 345 00:17:27.960 --> 00:17:30.900 Sean Murray: Yeah. And if the if a deal looks good, work on it 346 00:17:30.900 --> 00:17:33.750 really hard and move fast. Yes. Because. You gotta make money. 347 00:17:33.780 --> 00:17:35.640 You gotta make money too, right? We're talking about all the time 348 00:17:35.640 --> 00:17:38.970 wasted, I mean, if a deal looks good, move it along as fast you 349 00:17:38.970 --> 00:17:41.280 can work as hard as you can. Don't let anybody beat you out 350 00:17:41.280 --> 00:17:43.410 on the deal, and go and make money on it. 351 00:17:43.410 --> 00:17:45.640 Johny Fernandez: Yeah. So the third topic we're talking about 352 00:17:45.640 --> 00:17:48.820 today is Tether. So I know that's a conversation you and I 353 00:17:48.820 --> 00:17:53.320 have had so Sean, let's walk walk us through about Tether. 354 00:17:53.590 --> 00:17:56.230 Sean Murray: Okay, so this is pivoting from business finance 355 00:17:56.230 --> 00:17:59.110 into the fun world of cryptocurrency. It's not 356 00:17:59.110 --> 00:18:01.630 everyone's favorite topic, and why everyone likes to try to get 357 00:18:01.630 --> 00:18:02.950 rich off of cryptocurrency. 358 00:18:02.950 --> 00:18:04.390 Johny Fernandez: Yeah, that's been a hot topic, you know, the 359 00:18:04.390 --> 00:18:07.690 last year, and it fluctuates. Yeah. But, go ahead. 360 00:18:07.750 --> 00:18:09.700 Sean Murray: Anytime crypto comes up, it's always it always 361 00:18:09.700 --> 00:18:11.770 seems to be in the context of whether or not you can get rich 362 00:18:11.770 --> 00:18:15.850 off of it. For a lot of people, that's all they can really see 363 00:18:15.940 --> 00:18:18.850 as the opportunity is there. I think there's a lot more to it 364 00:18:18.850 --> 00:18:21.340 than that. But there's a kind of a big elephant in the room in 365 00:18:21.340 --> 00:18:24.340 the crypto currency market. And that is the digital asset called 366 00:18:24.370 --> 00:18:27.490 Tether. It's a quote unquote stable coin, meaning that every 367 00:18:27.490 --> 00:18:32.110 unit of Tether is always worth $1. Supposedly, and because they 368 00:18:32.140 --> 00:18:36.220 say so right. The problem with Tether is that when they were 369 00:18:36.220 --> 00:18:38.470 investigated by the New York Attorney General, some of the 370 00:18:38.470 --> 00:18:41.740 things they were representing, turned out to not be accurate. 371 00:18:41.890 --> 00:18:46.060 They were telling the world that every unit of Tether every $1 372 00:18:46.570 --> 00:18:49.030 worth of Tether is backed by an actual dollar in a bank account 373 00:18:49.030 --> 00:18:51.610 somewhere. So they're like if you're transacting in Tether, 374 00:18:51.940 --> 00:18:54.580 that you know, and it's worth a dollar you can you can trust 375 00:18:54.580 --> 00:18:56.650 that it's worth $1 because there's an actual dollar 376 00:18:56.650 --> 00:18:59.200 somewhere to back that Tether up. Yeah. So people were like, 377 00:18:59.200 --> 00:19:02.110 okay, that sounds pretty good. Right? And I trust you for 378 00:19:02.110 --> 00:19:05.170 saying it's worth $1. But according to the New York State 379 00:19:05.170 --> 00:19:07.990 Attorney General when they conducted an investigation, and 380 00:19:08.050 --> 00:19:11.950 they settled, but the New York AG came out with a lot of 381 00:19:11.950 --> 00:19:14.830 findings that said that what they were saying wasn't true 382 00:19:14.890 --> 00:19:18.610 that they weren't all backed by $1 in a bank account somewhere. 383 00:19:18.610 --> 00:19:21.730 In fact, it was quite the opposite. As part of the 384 00:19:21.730 --> 00:19:25.720 settlement with the New York AG Tether had has to send in 385 00:19:25.720 --> 00:19:29.410 regular reports, detailing what their financials are, they 386 00:19:29.410 --> 00:19:32.380 recently for the first time ever disclosed what Tethers are 387 00:19:32.380 --> 00:19:35.920 backed by, like in a pie chart, not like in a financial 388 00:19:35.920 --> 00:19:38.860 statement. And they showed it online and it was basically 389 00:19:38.860 --> 00:19:45.460 saying that only 3% of all Tethers are backed by dollars. 390 00:19:45.730 --> 00:19:47.890 They were saying it was 100% for a long period of time. 391 00:19:47.920 --> 00:19:52.000 Apparently it's only like 3% so three cents out of every dollar 392 00:19:52.030 --> 00:19:55.540 that is actually backed that's pretty terrifying. I would be 393 00:19:55.540 --> 00:19:58.270 really scared personally, personally to trust Tether, 394 00:19:58.510 --> 00:20:02.740 after having found that out and you're saying, okay, who cares? 395 00:20:02.740 --> 00:20:04.510 What do I care about Tether? You know, I don't I don't do 396 00:20:04.510 --> 00:20:07.240 anything about cryptocurrency or why why does it affect me? The 397 00:20:07.240 --> 00:20:10.690 problem is that so many people use Tether to trade 398 00:20:10.690 --> 00:20:13.630 cryptocurrency online, because you can't just like wire money 399 00:20:13.630 --> 00:20:17.830 from your bank to buy a Bitcoin to go into Ethereum, you know, 400 00:20:17.830 --> 00:20:22.030 to go into Dogecoin, or dog coin or doggy coin or whatever you 401 00:20:22.030 --> 00:20:23.890 want. I mean, like, it can't just go in and out of your bank 402 00:20:23.890 --> 00:20:26.140 account you need you need something to liquid. Yeah. That 403 00:20:26.140 --> 00:20:29.410 represents $1. And a lot of people use Tether. So many 404 00:20:29.410 --> 00:20:31.660 people use Tether, in fact, that is kind of the glue that holds 405 00:20:31.660 --> 00:20:34.510 the entire worldwide crypto market together. So the fact 406 00:20:34.510 --> 00:20:36.940 that all these Tethers are not actually backed by actual 407 00:20:36.940 --> 00:20:40.840 dollars, should be should be terrifying. And this isn't just 408 00:20:40.840 --> 00:20:43.330 something I'm saying this is something that the actual 409 00:20:43.330 --> 00:20:46.690 Federal Reserve Bank is now worried about, because 410 00:20:46.690 --> 00:20:50.470 apparently there's more than $65 billion worth of Tethers out 411 00:20:50.470 --> 00:20:53.830 there that are floating around in the cryptocurrency markets 412 00:20:53.860 --> 00:20:56.680 that are being used to transact Bitcoin stuff back and forth. 413 00:20:57.010 --> 00:21:01.210 And now the Federal Reserve Bank of the US is worried that if 414 00:21:01.300 --> 00:21:04.720 Tether collapses, we could actually see real disruption to 415 00:21:04.720 --> 00:21:07.390 the short term credit markets, kind of like an old kind of like 416 00:21:07.390 --> 00:21:10.840 an 08, 09 thing. Yeah. Not not as big. Yeah. But enough to 417 00:21:10.840 --> 00:21:13.360 create actual disruption the fact that something called 418 00:21:13.360 --> 00:21:15.700 Tether, something most people have never heard of, and don't 419 00:21:15.700 --> 00:21:19.480 know what I'm talking about, could be so impactful to United 420 00:21:19.480 --> 00:21:22.480 States economy. I think it's something that's really worth 421 00:21:22.480 --> 00:21:25.090 paying attention to, and it's an actual, like, huge problem. And 422 00:21:25.090 --> 00:21:26.980 if you're out there speculating on Bitcoin and say hey, I'm 423 00:21:26.980 --> 00:21:29.500 gonna get rich on Bitcoin. And you know, bitcoins only gonna go 424 00:21:29.500 --> 00:21:32.980 up. Well, I think it's only as high as it is right now. Because 425 00:21:32.980 --> 00:21:35.920 so many people are buying Bitcoin using Tethers and what 426 00:21:35.920 --> 00:21:39.280 are Tethers backed by, from what we've seen, not a whole lot. 427 00:21:39.370 --> 00:21:41.140 Johny Fernandez: Not a whole lot. So interesting to see 428 00:21:41.140 --> 00:21:43.510 what's gonna happen. And interesting to see how this will 429 00:21:43.510 --> 00:21:47.920 impact the cryptocurrency market. So, Sean, you're so 430 00:21:47.920 --> 00:21:50.410 wise, I wanna be just like you when I grow up. He knows 431 00:21:50.410 --> 00:21:51.010 everything. 432 00:21:51.100 --> 00:21:52.690 Sean Murray: I don't know. I don't know everything. 433 00:21:53.470 --> 00:21:55.840 Johny Fernandez: All right, so that's it for us. But before we 434 00:21:55.840 --> 00:21:59.050 leave, if you want to follow us on our social media platforms, 435 00:21:59.050 --> 00:22:02.050 and learn more about our stories that we have, you can follow us 436 00:22:02.080 --> 00:22:05.560 online. We have Instagram, Facebook, Twitter, and LinkedIn. 437 00:22:05.920 --> 00:22:10.060 And also, we can't forget Broker Fair, that's also coming up. 438 00:22:10.060 --> 00:22:13.390 That's gonna be coming up on December 6, you can follow us 439 00:22:13.420 --> 00:22:16.210 for any Broker Fair updates on Twitter, Instagram, and 440 00:22:16.210 --> 00:22:19.450 LinkedIn. And we're excited for Broker Fair, that's that's 441 00:22:19.450 --> 00:22:22.330 definitely I've had a lot of people actually reach out to me 442 00:22:22.330 --> 00:22:25.600 regarding Broker Fair, fair, saying that they are excited and 443 00:22:25.600 --> 00:22:28.330 other people that we even met in Philadelphia, that they are 444 00:22:28.330 --> 00:22:30.580 excited to be going to Broker Fair. 445 00:22:30.580 --> 00:22:31.630 Sean Murray: Yeah, it's gonna be huge. 446 00:22:31.660 --> 00:22:32.680 Johny Fernandez: It is. I'm excited. 447 00:22:32.700 --> 00:22:34.764 Sean Murray: We're actually I don't know, if people have 448 00:22:34.812 --> 00:22:37.596 noticed, we've kind of we haven't been sending out tons of 449 00:22:37.644 --> 00:22:40.621 emails about it. I don't want the whole conference to sell out 450 00:22:40.669 --> 00:22:43.501 like three months in advance. We've already almost sold out 451 00:22:43.549 --> 00:22:46.238 the sponsorships. So that's already off the table. Yeah. 452 00:22:46.286 --> 00:22:49.118 We've sold a ton of a ton of tickets already. And our shows 453 00:22:49.166 --> 00:22:52.191 tend to sell out. So you don't want to wait to the last minute. 454 00:22:52.239 --> 00:22:55.167 Yeah. But if we were blasting people every day about it. Yep. 455 00:22:55.215 --> 00:22:58.096 We actually feel like it would make things worse, if we sell 456 00:22:58.144 --> 00:23:00.832 out like three months in advance. We'd rather we do want 457 00:23:00.880 --> 00:23:03.953 to sell out. But we'd rather be closer to like a week or two out 458 00:23:04.001 --> 00:23:06.785 from the event. Because imagine three months worth of time 459 00:23:06.833 --> 00:23:09.666 where, you know, 1000s more people find out about it. We're 460 00:23:09.714 --> 00:23:12.258 talking about capacity restrictions at the venue like 461 00:23:12.306 --> 00:23:15.235 we could we're only paying for so many people to come. And so 462 00:23:15.283 --> 00:23:18.211 if you're like, oh, you can't, you know, you can't not really 463 00:23:18.259 --> 00:23:21.140 sold out are you no, it will sell out. Yeah. And there won't 464 00:23:21.188 --> 00:23:24.260 be able, we won't be able to fit any more people. So when we say 465 00:23:24.308 --> 00:23:27.045 it's sold out, that's it. You know what I mean? You can't 466 00:23:27.093 --> 00:23:30.213 come. So it's someone exclusive. And it's the biggest event we do 467 00:23:30.261 --> 00:23:33.238 each year, obviously 2020 was was a bit of a mess. But I mean, 468 00:23:33.286 --> 00:23:36.070 this is going to be this is going to be a game changer. So 469 00:23:36.119 --> 00:23:39.095 if you want to come to Broker Fair, you want to be part of the 470 00:23:39.143 --> 00:23:41.880 small business finance industry. I hope to see you there. 471 00:23:41.880 --> 00:23:43.990 Johny Fernandez: Yeah. All right, you guys. That's all for 472 00:23:44.041 --> 00:23:47.130 us today, here from Brooklyn, New York. I'm Johny Fernandez. 473 00:23:47.130 --> 00:23:47.970 Sean Murray: And I'm Sean Murray. 474 00:23:48.000 --> 00:23:48.990 Johny Fernandez: And we'll see you next time.