1 00:00:00.000 --> 00:00:01.290 Johny Fernandez: Johny Fernandez, Sean, it's good to 2 00:00:01.320 --> 00:00:01.770 see you. 3 00:00:01.800 --> 00:00:02.610 Sean Murray: Good to see you, too. 4 00:00:02.640 --> 00:00:05.130 Johny Fernandez: Sean, it's an exciting day, because we have 5 00:00:05.160 --> 00:00:07.470 another round of the lightning round. 6 00:00:07.830 --> 00:00:08.430 Sean Murray: Excellent. 7 00:00:08.460 --> 00:00:10.500 Johny Fernandez: It's been a hit. But we have a couple of 8 00:00:10.500 --> 00:00:13.320 questions we want to chat with you about, I want to chat with 9 00:00:13.320 --> 00:00:16.860 you about and I know the viewers also want to chat with you about 10 00:00:16.860 --> 00:00:20.460 this. So if you're ready, do you accept the challenge? 11 00:00:20.760 --> 00:00:21.900 Sean Murray: I accept the challenge. 12 00:00:21.930 --> 00:00:22.200 Johny Fernandez: Okay. 13 00:00:22.440 --> 00:00:24.750 Sean Murray: It has been an interesting exercise. 14 00:00:25.110 --> 00:00:25.680 Johny Fernandez: Why is that? 15 00:00:25.710 --> 00:00:29.760 Sean Murray: Just doing these. I think because I've worked in it 16 00:00:29.760 --> 00:00:32.400 for so long, you know, alternative finance, non bank 17 00:00:32.400 --> 00:00:37.200 finance, small business lending, MCA, all that other stuff. And I 18 00:00:37.200 --> 00:00:39.930 think it's been a little bit of just kind of like a wake up call 19 00:00:39.930 --> 00:00:45.420 for me to acknowledge how many new entrants have joined the 20 00:00:45.420 --> 00:00:50.010 industry, and kind of where the education level is at and what 21 00:00:50.010 --> 00:00:54.090 we can do to try to help them out. So I feel like, even though 22 00:00:54.090 --> 00:00:57.390 this has been a strange and different format, you just you 23 00:00:57.390 --> 00:01:01.980 asking me questions or whatever. We have found that people have 24 00:01:02.460 --> 00:01:05.460 really enjoyed it and found it to be beneficial. 25 00:01:05.540 --> 00:01:09.200 Johny Fernandez: Yeah. So you said this a couple months ago, 26 00:01:09.410 --> 00:01:13.640 that you saw an increase of businesses signing up for the 27 00:01:13.670 --> 00:01:17.540 DailyFunder, like they're emailed, walk me through the 28 00:01:17.540 --> 00:01:21.500 difference between, you know, what you saw now versus last 29 00:01:21.500 --> 00:01:24.680 year, two years ago, just the numbers like before COVID, or 30 00:01:24.680 --> 00:01:27.590 after COVID, what was the percentage or the number that 31 00:01:27.590 --> 00:01:31.520 you saw of people signing up to be part of deBanked? Versus 32 00:01:31.820 --> 00:01:33.710 businesses that went out, etc? 33 00:01:33.800 --> 00:01:37.010 Sean Murray: Yeah, well, you know, I didn't, I didn't dig up 34 00:01:37.010 --> 00:01:39.680 any numbers before we went on. But. 35 00:01:39.680 --> 00:01:40.280 Johny Fernandez: Rough estimate. 36 00:01:40.360 --> 00:01:42.910 Sean Murray: Rough estimate. You know, I actually forget, we 37 00:01:42.910 --> 00:01:45.190 talked about this before, but I can I can give you something. 38 00:01:45.220 --> 00:01:50.050 Yeah. to your to your question is that we saw a, a significant 39 00:01:50.080 --> 00:01:54.580 amount of registered users on DailyFunder whose email 40 00:01:54.580 --> 00:01:59.650 addresses no longer existed after COVID. It's one thing to 41 00:01:59.650 --> 00:02:02.740 try to measure who's still in business and who's not right and 42 00:02:02.740 --> 00:02:06.400 not be 100% sure, but if your email address no longer exists, 43 00:02:06.640 --> 00:02:08.800 you certainly don't work there anymore. That's a very good 44 00:02:08.800 --> 00:02:11.920 indication, we saw a lot of people drop off drop off of 45 00:02:11.950 --> 00:02:17.650 DailyFunder. But at the same time, we added more new people 46 00:02:18.010 --> 00:02:21.820 than we lost. That was, that was the craziest thing to me, right, 47 00:02:21.940 --> 00:02:25.690 that we added more new people than we lost. And my first 48 00:02:25.690 --> 00:02:29.890 thought on that was that it was folks who left one company, and 49 00:02:29.890 --> 00:02:33.670 then went to another one, right. And so you have you have people 50 00:02:33.670 --> 00:02:36.070 who have been in it for a while, they're not using their old 51 00:02:36.070 --> 00:02:39.790 email anymore, it's inactive, it's disabled, deleted, and now 52 00:02:39.790 --> 00:02:41.860 they've come back, but under a different company, maybe they 53 00:02:41.860 --> 00:02:45.520 started their own. But I think I found that that's not actually 54 00:02:45.520 --> 00:02:48.490 entirely the case, there wasn't a lot of people going from one 55 00:02:48.490 --> 00:02:53.230 company to another during COVID. Not a lot of hiring was was 56 00:02:53.230 --> 00:02:57.400 going on. And I think what we've learned since then, is that it's 57 00:02:57.400 --> 00:03:00.490 a lot of brand new people who have never been in the business 58 00:03:00.490 --> 00:03:03.850 before getting into it. And part of that it has been driven by 59 00:03:04.420 --> 00:03:08.890 the work from home crowd, who has been training, they've been 60 00:03:08.890 --> 00:03:13.390 training brokers, online, in Facebook, to private groups, and 61 00:03:13.390 --> 00:03:16.210 so on. And then we have brand new people who've taken that 62 00:03:16.210 --> 00:03:19.180 training, a lot of them working from home and individually. And 63 00:03:19.180 --> 00:03:21.790 then they've signed up for DailyFunder, and they've signed 64 00:03:21.790 --> 00:03:24.970 up for deBanked. And so we have this whole new generation of 65 00:03:24.970 --> 00:03:28.120 people who literally, you know, are just learning it for the 66 00:03:28.120 --> 00:03:31.240 first time that you know, so I don't have a statistic for you. 67 00:03:31.330 --> 00:03:34.780 But that's a major trend we've seen. And I think that's why 68 00:03:34.780 --> 00:03:37.030 this has, you know, this type of format we've been doing. Yeah. 69 00:03:37.030 --> 00:03:38.470 Has proven to be so valuable. 70 00:03:38.500 --> 00:03:41.710 Johny Fernandez: Yeah. Because it's pretty much the basic 101 71 00:03:42.010 --> 00:03:47.440 of the business. And I think it's really interesting that, 72 00:03:47.560 --> 00:03:50.530 you know, being in something for so long, you think everyone 73 00:03:50.530 --> 00:03:55.600 knows, you know, what an ISO is, or, you know, what, just a 74 00:03:55.600 --> 00:03:59.680 simple definitions of certain things. But I think, you know, 75 00:03:59.710 --> 00:04:01.960 there are people out there that don't know, and like we've said 76 00:04:01.960 --> 00:04:05.260 in the past that they're scared to ask, you know, simple 77 00:04:05.260 --> 00:04:08.530 questions like, what's the point? Like, what's an ISO? 78 00:04:09.100 --> 00:04:12.520 What's a broker? What's a lender? Like, these things that 79 00:04:12.520 --> 00:04:16.480 you think is universal, but may not know the answer, and that's 80 00:04:16.480 --> 00:04:16.960 okay. 81 00:04:17.200 --> 00:04:19.660 Sean Murray: Yeah, I mean, it's okay in the very beginning, when 82 00:04:19.660 --> 00:04:19.750 you're. 83 00:04:19.750 --> 00:04:20.590 Johny Fernandez: In the very beginning, yes. 84 00:04:20.590 --> 00:04:22.800 Sean Murray: When you're first starting out, it's not okay. If 85 00:04:22.800 --> 00:04:25.140 you've been working on it for years, and you still don't know. 86 00:04:25.170 --> 00:04:27.840 Yeah. So if you're one of those people, and you've been working 87 00:04:27.840 --> 00:04:28.180 Johny Fernandez: Yeah. So without further ado, let's get 88 00:04:28.180 --> 00:04:30.990 it for years, and this is helped you learn what you didn't know, 89 00:04:31.050 --> 00:04:35.310 I'm happy, right. I'm happy. It's helpful. Yeah. But at the 90 00:04:35.310 --> 00:04:39.210 same time, I'm hoping you don't operate in this business not 91 00:04:39.210 --> 00:04:42.390 knowing a lot of what a lot of what you've been asking. Some of 92 00:04:42.390 --> 00:04:45.480 it has been complex. You know, you say it's like basic, some of 93 00:04:45.480 --> 00:04:47.580 it has been a little bit complex, and I understand that 94 00:04:47.580 --> 00:04:50.460 but you know, you don't want to operate in the commercial 95 00:04:50.460 --> 00:04:54.960 finance space and not know certain terms and lingo and 96 00:04:54.960 --> 00:04:56.370 stuff because it's very important when you're 97 00:04:56.370 --> 00:04:59.910 communicating products to a customer and also from a legal 98 00:04:59.910 --> 00:05:03.420 perspective to make sure you're doing everything properly. You 99 00:05:03.420 --> 00:05:06.270 yourself are protected when you're putting these deals 100 00:05:06.270 --> 00:05:11.010 together. And so, you know, I say we'll do as many of these as 101 00:05:11.010 --> 00:05:15.090 people desire not not everyone, is it not everyone is, is 102 00:05:15.600 --> 00:05:18.810 emailing us, some, some of you are, but we can see it in the 103 00:05:18.840 --> 00:05:23.490 statistics and all that stuff. And in all the traffic charts, 104 00:05:23.520 --> 00:05:26.130 this is the type of content that people are actually quite 105 00:05:26.130 --> 00:05:26.460 interested 106 00:05:30.410 --> 00:05:30.770 started. 107 00:05:30.770 --> 00:05:31.820 Sean Murray: The new lightning round. 108 00:05:31.820 --> 00:05:38.890 Johny Fernandez: Alright, so Sean, first question. What is a 109 00:05:38.920 --> 00:05:40.240 high risk lender? 110 00:05:41.680 --> 00:05:44.650 Sean Murray: Okay, what is a high risk lender? A high risk 111 00:05:44.650 --> 00:05:50.380 lender is a lender that underwrites and focuses on high 112 00:05:50.380 --> 00:05:53.740 risk applicants. But maybe that doesn't answer your question, 113 00:05:53.770 --> 00:05:57.790 right? It really should be I think, at the end of the day, 114 00:05:57.790 --> 00:06:02.440 what is high risk. And if we're talking about non bank, finance, 115 00:06:02.860 --> 00:06:07.090 non bank, lenders, non bank funders, they can help 116 00:06:07.090 --> 00:06:09.850 businesses all across the spectrum, they can help ones 117 00:06:09.850 --> 00:06:13.300 with very good credit, very weak credit, high revenue, low 118 00:06:13.300 --> 00:06:16.720 revenue, a long time in business, low time in business. 119 00:06:17.920 --> 00:06:22.090 But there is, you know, there is a category for those for 120 00:06:22.090 --> 00:06:24.520 businesses that are essentially impaired in some way, you know, 121 00:06:24.520 --> 00:06:30.190 they have unsteady cash flow, history of NSS, the owners have 122 00:06:30.220 --> 00:06:34.930 poor credit, maybe they have a past or recent bankruptcy, maybe 123 00:06:34.930 --> 00:06:38.050 they're having issues with their rent, maybe their sales are 124 00:06:38.050 --> 00:06:42.730 going down. And that enters the the realm of high risk. But when 125 00:06:42.730 --> 00:06:46.150 I think people say, what is a high risk lender? I think 126 00:06:46.150 --> 00:06:50.170 they're often asking about the highest risk possible, 127 00:06:50.230 --> 00:06:53.230 basically, like everything is going wrong type type of thing. 128 00:06:53.230 --> 00:06:56.650 That's just been my experience when people say, you know, Sean, 129 00:06:56.680 --> 00:06:59.590 what do you know, a high risk lender, I have this deal, 130 00:06:59.770 --> 00:07:02.380 they're typically talking about, you know, the, the most 131 00:07:02.380 --> 00:07:06.010 difficult of difficult situations. And so a high risk 132 00:07:06.010 --> 00:07:11.260 lender in that context is someone who can offer capital or 133 00:07:11.260 --> 00:07:15.760 financing or funding to businesses or applicants in that 134 00:07:15.760 --> 00:07:20.050 type of circumstance. And, you know, the one thing that could 135 00:07:20.050 --> 00:07:23.200 be universally true is that the cost is probably going to be 136 00:07:23.200 --> 00:07:26.020 quite high versus say, a low risk lender. 137 00:07:26.020 --> 00:07:29.600 Johny Fernandez: So let's to back up. So high risk, like if 138 00:07:29.600 --> 00:07:32.900 you're a high risk client, or individual, and you're trying to 139 00:07:32.900 --> 00:07:36.320 work with a company, what would what would make you fall into 140 00:07:36.320 --> 00:07:41.630 that category of being a high risk person, company, etc? 141 00:07:41.630 --> 00:07:45.320 Sean Murray: Yeah. So you know, it's, it depends on the lender 142 00:07:45.320 --> 00:07:48.140 or their funder who is underwriting the deal. They have 143 00:07:48.140 --> 00:07:51.440 their own risk categories. So you know, the answer is it 144 00:07:51.440 --> 00:07:56.270 depends, right. But there are certain factors that kind of 145 00:07:56.270 --> 00:08:00.740 play a role throughout and across the industry. The credit 146 00:08:00.740 --> 00:08:04.610 score of the owners is usually a factor. Yeah. It's going to be 147 00:08:04.610 --> 00:08:08.570 things like whether or not there's like liens and judgments 148 00:08:09.170 --> 00:08:13.730 that could play a factor time in business is a factor. If you are 149 00:08:13.730 --> 00:08:15.860 a, if you are a brand new business, you've been open 150 00:08:15.860 --> 00:08:18.260 three, you know, three to six months, and you're applying for 151 00:08:18.260 --> 00:08:21.650 capital, you may have all these other great attributes about you 152 00:08:21.650 --> 00:08:25.310 that make you look so good. But at the same time, three to six 153 00:08:25.310 --> 00:08:28.190 months, it's hard to gauge what the future success of your 154 00:08:28.190 --> 00:08:31.520 business is going to be, even if you started off pretty well. So 155 00:08:31.520 --> 00:08:33.770 that can be considered high risk. So it's really not just 156 00:08:33.770 --> 00:08:37.010 about it's really not just about credit, it could just it could 157 00:08:37.010 --> 00:08:40.310 be about a business. That's seasonal, that only does you 158 00:08:40.310 --> 00:08:43.460 know very well in say three or four months of the year. And you 159 00:08:43.460 --> 00:08:46.250 now have to worry about whether or not the seasons are going to 160 00:08:46.370 --> 00:08:48.920 going to remain consistent. Is there going to be snow at the 161 00:08:48.920 --> 00:08:51.710 ski resort? You know what I mean? Yeah. Or or is there going 162 00:08:51.710 --> 00:08:56.060 to be a hurricane at the beach resort? Right? Yeah. That type 163 00:08:56.060 --> 00:08:59.750 of business could be high risk. It's all going to depend on upon 164 00:08:59.750 --> 00:09:03.350 the appetite the lender or the funder has for the deal that 165 00:09:03.350 --> 00:09:06.440 determines what risk category it falls in. But those are the 166 00:09:06.620 --> 00:09:08.750 those are the general the general things that they'll be 167 00:09:08.750 --> 00:09:09.260 looking at. 168 00:09:09.620 --> 00:09:12.050 Johny Fernandez: Okay. Great. Thank you. 169 00:09:12.230 --> 00:09:12.800 Sean Murray: You're welcome. 170 00:09:14.240 --> 00:09:15.950 Johny Fernandez: So the next question is, what is a 171 00:09:15.950 --> 00:09:17.030 consolidation? 172 00:09:18.260 --> 00:09:20.420 Sean Murray: What is the consolidation? So I think we're 173 00:09:20.420 --> 00:09:23.120 talking about what is what is essentially what is debt 174 00:09:23.120 --> 00:09:27.410 consolidation. And debt consolidation is when you get a 175 00:09:27.410 --> 00:09:32.930 loan, to pay off multiple other loans, and then you pay off the 176 00:09:32.930 --> 00:09:38.180 one lender instead. So it can be quite challenging to juggle 3, 177 00:09:38.180 --> 00:09:42.620 4, 5, 6, or even more loans at once, or, you know, maybe it's 178 00:09:42.620 --> 00:09:46.100 advances and you have a daily debit coming out, you know, 3, 179 00:09:46.100 --> 00:09:50.060 4, 5, 6 of them at a time, every single day. And you'd rather 180 00:09:50.060 --> 00:09:53.180 just manage the relationship with one rather than logging 181 00:09:53.180 --> 00:09:55.880 into five or six different portals to see you know what 182 00:09:55.880 --> 00:10:00.500 your performance history is. So, a consolidation is the is a 183 00:10:00.530 --> 00:10:03.320 financial company that will essentially satisfy the 184 00:10:03.320 --> 00:10:06.710 obligations of all the other outstanding balances you have. 185 00:10:06.890 --> 00:10:09.740 And then you will only pay the one that remains. That's the 186 00:10:09.740 --> 00:10:10.700 consolidation. 187 00:10:11.670 --> 00:10:14.220 Johny Fernandez: So the other question is what is a reverse 188 00:10:14.220 --> 00:10:15.240 consolidation? 189 00:10:16.080 --> 00:10:19.290 Sean Murray: What is a reverse consolidation? So, you know, I 190 00:10:19.290 --> 00:10:21.930 don't know where this term came from, but it's gotten quite 191 00:10:21.930 --> 00:10:24.960 popular in the last few years in the in the non bank finance 192 00:10:24.960 --> 00:10:28.320 industry. What is a reverse consolidation? So what's 193 00:10:28.320 --> 00:10:32.940 different is that instead of the the consolidator paying off all 194 00:10:32.940 --> 00:10:36.000 of your outstanding loans or obligations at once, what they 195 00:10:36.000 --> 00:10:40.860 will do instead is that they will make the payments towards 196 00:10:40.860 --> 00:10:45.720 all your loans and obligations as they're supposed to be paid. 197 00:10:45.870 --> 00:10:49.200 Right? And not actually pay them off at once. They'll pay them 198 00:10:49.200 --> 00:10:53.970 off over over time. Yeah. So if you have five lenders who are 199 00:10:53.970 --> 00:10:57.450 debiting, your account every day or every week, the reverse 200 00:10:57.450 --> 00:11:02.040 consolidator will give you the money, each time those debits 201 00:11:02.040 --> 00:11:05.670 are going to come out to cover all of those payments. And at 202 00:11:05.670 --> 00:11:08.220 the end, once everyone has paid off, or you're going to be 203 00:11:08.220 --> 00:11:11.670 paying the reverse consolidator for a long time, because they've 204 00:11:11.670 --> 00:11:13.890 been paying all your bills, you know, they've been paying all 205 00:11:13.890 --> 00:11:17.910 your loans off for a long time. And so then you only have one at 206 00:11:17.910 --> 00:11:20.250 the end of it. But in the meantime, they're gonna cover 207 00:11:20.250 --> 00:11:22.440 all of your payments, that's a reverse consolidation. 208 00:11:23.580 --> 00:11:25.740 Johny Fernandez: The next question is, what is debt 209 00:11:25.740 --> 00:11:26.310 settlement? 210 00:11:27.780 --> 00:11:30.780 Sean Murray: What is debt settlement? Okay, so debt 211 00:11:30.780 --> 00:11:34.740 settlement, it's its own industry, really, but I think if 212 00:11:34.740 --> 00:11:37.230 we're talking about in the in the Small Business Finance 213 00:11:37.230 --> 00:11:42.570 world, debt settlement is typically a product offered by a 214 00:11:42.570 --> 00:11:47.490 third party, debt negotiation company, debt settlement 215 00:11:47.490 --> 00:11:51.810 company, something to that effect, where they will try to 216 00:11:51.810 --> 00:11:59.280 come in and negotiate on behalf of a, a borrower or or merchant, 217 00:12:00.420 --> 00:12:05.280 and then go to the the lender or the funder and say this, this 218 00:12:05.280 --> 00:12:08.370 merchant is only going to pay you this amount of money, 219 00:12:08.850 --> 00:12:11.460 they're in some type of they're experiencing some type of 220 00:12:11.460 --> 00:12:15.480 financial difficulty, they were too scared to, to tell you on 221 00:12:15.480 --> 00:12:19.260 their own, we're here to tell you that ourselves, they're 222 00:12:19.260 --> 00:12:24.330 willing to give you X amount of money relevant or related to 223 00:12:24.330 --> 00:12:28.470 what they owe, and essentially settle, settle the debt for a 224 00:12:28.470 --> 00:12:31.830 lower amount, and then the the incentive for the debt 225 00:12:31.830 --> 00:12:35.100 settlement company that they get some type of fee for having done 226 00:12:35.100 --> 00:12:37.560 this, now, they can't charge a fee, if they don't, if they 227 00:12:37.560 --> 00:12:40.470 don't perform a service, they can't just charge charge you for 228 00:12:40.470 --> 00:12:43.320 the hope that they can make this happen. The industry is actually 229 00:12:43.620 --> 00:12:47.850 quite regulated. But you know, that's that's the nuts and bolts 230 00:12:47.850 --> 00:12:50.700 of what is debt settlement, it's typically a third party that 231 00:12:50.700 --> 00:12:52.860 will come in and try to negotiate with the lender on 232 00:12:52.860 --> 00:12:56.550 your behalf to try to lower the outstanding balance and pay off 233 00:12:56.550 --> 00:12:59.640 the one shot that's less than what the outstanding balance is. 234 00:13:00.380 --> 00:13:03.440 Johny Fernandez: So why should one be wary of debt settlement? 235 00:13:05.370 --> 00:13:08.010 Sean Murray: Why should one be wary of debt settlement? So 236 00:13:08.010 --> 00:13:10.650 that's a good question. If you're the if you're the 237 00:13:10.650 --> 00:13:13.230 merchant, if you're the borrower, you should be wary of 238 00:13:13.230 --> 00:13:17.340 debt settlement, because you can't be 100% positive that a 239 00:13:17.340 --> 00:13:21.180 debt settlement company is going to be able to perform exactly 240 00:13:21.210 --> 00:13:25.500 what it is that you want. If you're if you're hopeful that 241 00:13:25.500 --> 00:13:28.140 the debt settlement company is going to you know, settle your 242 00:13:28.140 --> 00:13:31.620 debts for 10 cents on the dollar or whatever, there's a good 243 00:13:31.620 --> 00:13:34.500 chance that they're not going to be able to, right, they're 244 00:13:34.500 --> 00:13:39.180 typically not not lawyers, so they're just an independent 245 00:13:39.180 --> 00:13:44.790 negotiator. Lenders hate them, lenders hate them. So if you're, 246 00:13:44.820 --> 00:13:48.570 if you're if you hire a debt settlement counselor, or advisor 247 00:13:48.570 --> 00:13:51.180 or something, and they're telling you, hey, you're gonna 248 00:13:51.180 --> 00:13:53.220 go save all this money, I'm gonna go and negotiate on your 249 00:13:53.220 --> 00:13:56.160 behalf. Guess what the lender hates that person, the lender 250 00:13:56.160 --> 00:13:58.410 doesn't need to talk to that person, they can just ignore 251 00:13:58.410 --> 00:14:01.710 that person, that person is not a party to the contract, that 252 00:14:01.710 --> 00:14:05.100 relationship on your loan, or whatever type of product it is, 253 00:14:05.100 --> 00:14:07.710 it's between the customer and the funding company. So the debt 254 00:14:07.710 --> 00:14:10.110 settlement company tries to come in and say make, you know, say 255 00:14:10.110 --> 00:14:13.050 all these things, they can just be ignored. Forget the debt 256 00:14:13.050 --> 00:14:16.200 settlement guy, right. So that's why a borrower or a merchant 257 00:14:16.200 --> 00:14:20.610 should be wary of debt settlement. If you're a, if 258 00:14:20.610 --> 00:14:23.790 you're a broker, you should be wary of debt settlement because 259 00:14:23.790 --> 00:14:26.430 you might be thinking to yourself, hey, I have a customer 260 00:14:26.820 --> 00:14:30.270 who I was trying to broker a loan to. They don't qualify for 261 00:14:30.270 --> 00:14:33.810 one, they're in a bad situation, but I still want to make money 262 00:14:33.810 --> 00:14:37.320 off them. So here's what I'm gonna do. I'm going to take them 263 00:14:37.320 --> 00:14:40.080 and bring them to a debt settlement company and try to 264 00:14:40.080 --> 00:14:42.540 get their debt settled for less, and I'm going to make a 265 00:14:42.540 --> 00:14:45.240 commission on that referral. And then if they settle their debts, 266 00:14:45.240 --> 00:14:48.510 I'm gonna go and bring it to a lender and then get them a loan, 267 00:14:48.600 --> 00:14:52.620 right. All sorts of bad things can happen there. One, you could 268 00:14:52.620 --> 00:14:56.520 be helping that merchant, that borrower breach their loan 269 00:14:56.520 --> 00:14:59.460 contract, you could be participating in some type of 270 00:14:59.460 --> 00:15:02.100 thing that's adversarial to the lender. The lender is not going 271 00:15:02.100 --> 00:15:05.940 to like you as the broker if you participated in that debt being 272 00:15:05.940 --> 00:15:09.210 settled for less or attempted to be settled for less. And if you 273 00:15:09.210 --> 00:15:12.120 as the broker want to work with a lender or any lender, and 274 00:15:12.120 --> 00:15:14.610 you're also at the same time going out there and hurting 275 00:15:14.610 --> 00:15:18.180 lenders, by referring clients to debt settlement companies to pay 276 00:15:18.180 --> 00:15:20.430 the lenders less, well, those lenders aren't gonna want to 277 00:15:20.430 --> 00:15:23.850 work with you anymore. So if you are a broker, you typically 278 00:15:23.850 --> 00:15:26.850 can't be bold, you can be a broker of loans, but to also be 279 00:15:26.850 --> 00:15:29.610 a broker of debt settlement is a real slippery slope that I mean, 280 00:15:30.120 --> 00:15:31.530 I don't think anyone should really try it. 281 00:15:31.530 --> 00:15:34.020 Johny Fernandez: It sounds like it can get very messy. 282 00:15:34.110 --> 00:15:36.420 Sean Murray: Very, very messy. Yeah. And it's happened there 283 00:15:36.420 --> 00:15:39.180 have been there have been lawsuits and things that have 284 00:15:39.180 --> 00:15:41.820 gone down. It's just it's a, it's a, it's a dangerous game, 285 00:15:41.820 --> 00:15:44.430 anyone out there thinking, I can make a couple extra bucks and 286 00:15:44.430 --> 00:15:47.490 debt settlement as a broker. You know helping someone out all 287 00:15:47.490 --> 00:15:48.990 you're doing is shooting yourself in the foot. 288 00:15:49.050 --> 00:15:52.320 Johny Fernandez: Yeah, it's good to know. So where can you learn 289 00:15:52.320 --> 00:15:54.300 more about merchant cash advances? 290 00:15:54.300 --> 00:15:56.758 Sean Murray: Well, where can you learn more about merchant cash 291 00:15:56.813 --> 00:16:00.123 advances, you can learn more about merchant cash advances on 292 00:16:00.178 --> 00:16:03.433 deBanked.com, DailyFunder.com. Seriously, though, these are 293 00:16:03.488 --> 00:16:06.412 probably the two main places that you can learn about 294 00:16:06.467 --> 00:16:09.833 merchant cash advance. There are other sources of information 295 00:16:09.888 --> 00:16:13.087 online, but I don't know how authoritative they are. And I 296 00:16:13.143 --> 00:16:16.563 don't know if they have any type of bias to them. The one good 297 00:16:16.618 --> 00:16:19.928 thing about us, at least in my opinion, is that we are not a 298 00:16:19.983 --> 00:16:23.349 lender, we are not a broker, we are not an investor in any of 299 00:16:23.404 --> 00:16:26.438 these companies, we don't necessarily have a reason to, 300 00:16:26.493 --> 00:16:29.251 you know, sway your your thoughts and ideas in one 301 00:16:29.307 --> 00:16:32.617 direction or the other other than to make you a good citizen 302 00:16:32.672 --> 00:16:36.147 of the industry itself. And just like let you know what's going 303 00:16:36.202 --> 00:16:39.182 on. So if you're interested in merchant cash advances, 304 00:16:39.237 --> 00:16:42.823 deBanked.com. is great for news. DailyFunder.com is great to kind 305 00:16:42.878 --> 00:16:46.353 of get that daily nitty gritty of what's going on. If you liked 306 00:16:46.408 --> 00:16:49.884 Facebook, and you want to do it all on Facebook, guess what? We 307 00:16:49.939 --> 00:16:53.304 have a Facebook group too. It's called merchant cash advance, 308 00:16:53.360 --> 00:16:56.559 it's operated by deBanked, you can go there and learn more 309 00:16:56.614 --> 00:16:59.924 about merchant cash advance. And those are honestly the main 310 00:16:59.980 --> 00:17:03.014 three places that I would personally recommend to learn 311 00:17:03.069 --> 00:17:04.890 more about merchant cash advance. 312 00:17:06.090 --> 00:17:08.910 Johny Fernandez: So where can you learn more about the small 313 00:17:08.910 --> 00:17:11.820 business lending industry? That is the next question. 314 00:17:12.540 --> 00:17:15.300 Sean Murray: I like how you think, Johny, I like these 315 00:17:15.300 --> 00:17:18.270 questions. Where can you learn more about small business 316 00:17:18.270 --> 00:17:21.330 lending or the small business lending industry? It's the same. 317 00:17:22.170 --> 00:17:24.930 You can learn more about small business lending and the 318 00:17:24.930 --> 00:17:29.760 industry at deBanked.com, DailyFunder.com. And it's not 319 00:17:29.760 --> 00:17:33.210 exactly lending. But there's overlap in terms of the crowd, 320 00:17:33.210 --> 00:17:36.300 you can also go to the merchant cash advance Facebook group that 321 00:17:36.300 --> 00:17:39.000 we operate and learn more about business lending there. The two 322 00:17:39.000 --> 00:17:42.060 industries tend to work very closely together, which is why I 323 00:17:42.060 --> 00:17:45.240 tend to call it the small business finance industry. But 324 00:17:45.240 --> 00:17:47.100 if you're like, hey, I just want to learn about small business 325 00:17:47.100 --> 00:17:51.000 lending. We report plenty about it on deBanked. And people talk 326 00:17:51.000 --> 00:17:53.310 plenty about small business lending on DailyFunder. 327 00:17:53.370 --> 00:17:55.530 Johny Fernandez: That's there's a lot of that on the daily 328 00:17:55.530 --> 00:17:56.310 funder every day. 329 00:17:56.400 --> 00:17:57.540 Sean Murray: A lot of it, a lot. 330 00:17:57.720 --> 00:18:00.840 Johny Fernandez: So good to know, that kind of ties goes 331 00:18:00.840 --> 00:18:04.260 hand in hand with the next question is, where can brokers 332 00:18:04.290 --> 00:18:05.760 meet other brokers? 333 00:18:07.010 --> 00:18:11.270 Sean Murray: Where can brokers meet other brokers? Okay, 334 00:18:11.270 --> 00:18:14.060 interesting question. So, you know, networking is very 335 00:18:14.060 --> 00:18:19.040 important. If you're a broker, it's one thing to try to meet 336 00:18:19.040 --> 00:18:23.450 lenders, but I think there is value in a broker. Having a 337 00:18:23.450 --> 00:18:25.910 dialogue and knowing other brokers, they can kind of 338 00:18:25.910 --> 00:18:29.270 compare their notes on on the industry, learn, learn from each 339 00:18:29.270 --> 00:18:32.240 other, you know, build a camaraderie, camaraderie with 340 00:18:32.240 --> 00:18:36.290 each other, so where can brokers meet other brokers. So if we're 341 00:18:36.290 --> 00:18:39.980 talking about online first, I would say DailyFunder, 342 00:18:40.550 --> 00:18:46.100 DailyFunder.com has a lot of actual real life brokers from 343 00:18:46.100 --> 00:18:50.180 the industry talking with each other every single day. Yeah. So 344 00:18:50.180 --> 00:18:53.420 if you want to meet other brokers, and you're a broker, 345 00:18:53.600 --> 00:18:56.900 going on DailyFunder is an essential. You don't have to 346 00:18:56.900 --> 00:19:00.680 post on there plenty of people use the dms, right and talk to 347 00:19:00.680 --> 00:19:04.220 each other that way. There's a lot more people who view the 348 00:19:04.220 --> 00:19:08.510 site and then even post. Yeah. There's literally 1000s of 349 00:19:08.510 --> 00:19:14.030 brokers on on daily funder. So whether or not you agree with, 350 00:19:14.420 --> 00:19:17.270 you know, the kind of the atmosphere of how to 351 00:19:17.270 --> 00:19:20.570 communicate, it is invaluable and getting to know how your 352 00:19:20.570 --> 00:19:24.110 competitors think. Right? You can learn from them for sure. 353 00:19:24.950 --> 00:19:28.100 You can also as as mentioned before, go to the merchant cash 354 00:19:28.100 --> 00:19:32.570 events Facebook group online, that group is mostly brokers too 355 00:19:32.660 --> 00:19:35.930 I would say it's mostly brokers asking basic questions like 356 00:19:35.930 --> 00:19:38.720 these, I imagine some of them are probably coming from from 357 00:19:38.720 --> 00:19:41.840 Facebook, right? A lot of people go to Facebook to ask basic 358 00:19:41.840 --> 00:19:45.410 questions because they might be too afraid, you know, daily. Or 359 00:19:45.410 --> 00:19:47.780 the real world or on DailyFunder where they're afraid they know 360 00:19:47.780 --> 00:19:52.790 that the pack will attack right so we do find that people will 361 00:19:52.790 --> 00:19:55.520 ask basic questions like these on Facebook and even in their 362 00:19:55.520 --> 00:19:58.550 Merchant Cash events Facebook group, but if we're talking 363 00:19:58.550 --> 00:20:02.480 about offline where it can you meet brokers, officially, you 364 00:20:02.480 --> 00:20:05.300 don't have to plug our conference Broker Fair, the 365 00:20:05.300 --> 00:20:08.870 annual show we do every year is probably the best place for a 366 00:20:08.870 --> 00:20:12.860 broker to mingle with another broker. We do more than one 367 00:20:12.860 --> 00:20:16.670 conference per year in the non non COVID, you know non COVID 368 00:20:16.670 --> 00:20:21.920 environment. But we do one show one show that's specifically 369 00:20:21.920 --> 00:20:25.610 aimed at brokers. Yeah. Hundreds and hundreds of brokers all in 370 00:20:25.610 --> 00:20:28.010 one place, you can take the relationship that you made 371 00:20:28.040 --> 00:20:32.120 online, and you can meet these people in person. The next 372 00:20:32.120 --> 00:20:35.060 Broker Fair we're doing is on December 6, in New York City, 373 00:20:35.390 --> 00:20:36.860 the home where all the brokers are. 374 00:20:36.890 --> 00:20:38.960 Johny Fernandez: Yeah, Broker Fair. 375 00:20:39.020 --> 00:20:41.150 Sean Murray: Look, I am wearing a Broker Fair shirt. Okay, yeah, 376 00:20:41.630 --> 00:20:44.600 you can just go to BrokerFair.org. The next one 377 00:20:44.600 --> 00:20:47.690 will be Broker Fair 2021. And you will be able to meet plenty 378 00:20:47.690 --> 00:20:50.360 of brokers there. And it can help your career whatever it is 379 00:20:50.360 --> 00:20:52.700 you're trying to do. If you just want to learn from your peers, 380 00:20:52.730 --> 00:20:55.010 or even see what your competitors are up to, I highly 381 00:20:55.220 --> 00:20:56.270 recommend Broker Fair. 382 00:20:56.570 --> 00:20:58.430 Johny Fernandez: The next question is, how can lenders 383 00:20:58.430 --> 00:20:59.540 meet brokers? 384 00:21:00.230 --> 00:21:03.440 Sean Murray: How can lenders meet brokers? Well, if we're 385 00:21:03.440 --> 00:21:09.080 talking about offline, Broker Fair, obviously, right? If 386 00:21:09.080 --> 00:21:11.030 you're if you're a lender, and you want to meet brokers, I'm 387 00:21:11.030 --> 00:21:13.220 assuming you're talking about in person, you have to come to 388 00:21:13.220 --> 00:21:15.830 Broker Fair, you can probably come to our other shows, too. We 389 00:21:15.830 --> 00:21:18.980 call the other shows deBanked Connect. They're not as broker 390 00:21:18.980 --> 00:21:22.520 centric, but we do get a lot of brokers at them by virtue of 391 00:21:22.520 --> 00:21:26.420 where we hold the shows. We hold them in broker heavy communities 392 00:21:26.510 --> 00:21:30.020 in the country. And we do have a pretty large following from 393 00:21:30.020 --> 00:21:33.860 brokers. So if you're a lender who wants to meet brokers, I 394 00:21:33.860 --> 00:21:37.130 highly recommend a deBanked conference and specifically 395 00:21:37.130 --> 00:21:37.850 Broker Fair. 396 00:21:38.570 --> 00:21:40.760 Johny Fernandez: So the next question is, how can I market my 397 00:21:40.760 --> 00:21:42.200 business to brokers? 398 00:21:42.530 --> 00:21:43.730 Sean Murray: Johny I'm loving these questions. 399 00:21:46.580 --> 00:21:47.900 Johny Fernandez: You're a legend, you know these things. 400 00:21:49.580 --> 00:21:53.210 Sean Murray: Okay, so how can I market my business to brokers? 401 00:21:53.240 --> 00:21:55.460 That is that what it was? Yeah. Okay, how can I market my 402 00:21:55.460 --> 00:21:58.970 business to brokers? Okay, so that's an that's an excellent 403 00:21:58.970 --> 00:22:01.280 question. Because it's the question that every single 404 00:22:01.280 --> 00:22:06.110 lender or funder has, who works with brokers. It's great that 405 00:22:06.140 --> 00:22:09.890 you have capital. It's great that you know how to underwrite 406 00:22:10.190 --> 00:22:13.490 but you can't do it without brokers. And so even if you're 407 00:22:13.490 --> 00:22:16.940 not a sales oriented, and that's why you're on the funding side, 408 00:22:17.150 --> 00:22:20.270 unfortunately, you still have to know how to market yourself, you 409 00:22:20.270 --> 00:22:23.870 still have to know how to do sales, you can't avoid that, by 410 00:22:23.870 --> 00:22:27.110 not being by not being a broker, even if you're a funder or 411 00:22:27.110 --> 00:22:29.780 lender, you gotta you gotta know what to do. So where can you, 412 00:22:29.810 --> 00:22:32.510 where can you market your business? I mean, I would have 413 00:22:32.510 --> 00:22:35.090 to say, honestly, you gotta go where the brokers are. Yeah. 414 00:22:35.360 --> 00:22:40.400 Like hands down, to plug ourselves is, you know, I have 415 00:22:40.400 --> 00:22:43.490 to because we are probably the number one sources for where 416 00:22:43.490 --> 00:22:46.430 brokers go for information, or and to talk with other people. 417 00:22:46.430 --> 00:22:49.790 So if you want to market your business to brokers, I highly 418 00:22:49.790 --> 00:22:52.520 recommend deBanked.com. That's where they go for their news, 419 00:22:52.940 --> 00:22:55.490 DailyFunder.com, that's where they go to talk to each other. 420 00:22:57.710 --> 00:23:00.050 And we could you could do our newsletters, you can do email 421 00:23:00.050 --> 00:23:02.780 blasts, you can be a sponsor of our events. You gotta go where 422 00:23:02.780 --> 00:23:05.120 the brokers are. So some people, you know, they get in their 423 00:23:05.120 --> 00:23:08.690 mind, I'm going to advertise on Google. And I'm going to do I'm 424 00:23:08.690 --> 00:23:10.910 going to do this and it's going to be so smart. And I think they 425 00:23:10.910 --> 00:23:13.940 kind of outsmart themselves because they might be they're 426 00:23:13.970 --> 00:23:17.270 spending money to target an audience is so broad, that very, 427 00:23:17.330 --> 00:23:19.250 a very small percentage of them is actually going to be a 428 00:23:19.250 --> 00:23:22.460 broker. Yeah. Right. So if you want to target just the brokers, 429 00:23:23.210 --> 00:23:24.590 we're really the place to do it. 430 00:23:26.660 --> 00:23:29.690 Johny Fernandez: The next question is, what do points on a 431 00:23:29.690 --> 00:23:30.980 deal mean? 432 00:23:30.980 --> 00:23:32.910 Sean Murray: What do points on a deal mean? Okay. So points on a 433 00:23:32.910 --> 00:23:40.140 deal. They're just percentage. It's percentage points, right? 434 00:23:40.440 --> 00:23:43.770 So if the commission on a deal, let's say, let's say it's a 435 00:23:44.130 --> 00:23:48.870 $100,000 deal that you brokered, the merchant is getting 100 436 00:23:48.870 --> 00:23:54.390 grand, the commission is 10%. Hypothetically. Right. So that's 437 00:23:54.480 --> 00:24:01.890 10% of 100,000. Is 10,000. That 10% In this world would be 10 438 00:24:01.890 --> 00:24:07.770 points. Every percentage is a point. So if you made 5000 on 439 00:24:07.800 --> 00:24:12.930 $100,000, deal, you made five points, you made $10,000 on 440 00:24:12.930 --> 00:24:17.580 $100,000 deal, you made 10 points. And so it's really just 441 00:24:17.580 --> 00:24:20.820 percentage points, and people like to use the term points. 442 00:24:21.780 --> 00:24:23.130 Johny Fernandez: So percentage. 443 00:24:23.520 --> 00:24:26.070 Sean Murray: It's really just a percentage. Yeah. Is it the same 444 00:24:26.070 --> 00:24:27.270 in real estate or is it different? 445 00:24:27.300 --> 00:24:30.390 Johny Fernandez: So it's percentage, that's like what it 446 00:24:30.390 --> 00:24:36.420 is in real estate. So like to 2.5% of this closing deal is, 447 00:24:36.990 --> 00:24:38.160 you know, what you end up getting. 448 00:24:39.210 --> 00:24:40.200 Sean Murray: I like points better. 449 00:24:40.530 --> 00:24:42.450 Johny Fernandez: Sounds, it sounds a little bit easier. 450 00:24:42.450 --> 00:24:46.290 sounds. It sounds like a like a gaming system. Like you get five 451 00:24:46.290 --> 00:24:47.910 points, two points. Three points. 452 00:24:47.970 --> 00:24:49.890 Sean Murray: It does. Yeah, it does. It does kind of sound that 453 00:24:49.890 --> 00:24:50.220 way. 454 00:24:51.330 --> 00:24:54.090 Johny Fernandez: So the next question is what is a bankruptcy 455 00:24:54.090 --> 00:24:57.180 dismissal versus a bankruptcy discharge? 456 00:24:58.440 --> 00:25:00.120 Sean Murray: Okay, getting technical here. 457 00:25:00.120 --> 00:25:01.260 Johny Fernandez: Yeah, a little technical. 458 00:25:01.260 --> 00:25:04.120 Sean Murray: Asking the tough questions now, what is the 459 00:25:04.120 --> 00:25:08.650 bankruptcy dismissal versus a bankruptcy discharge, I will say 460 00:25:08.650 --> 00:25:13.120 from my my non lawyer perspective, the reason it's 461 00:25:13.120 --> 00:25:16.150 important to know these things, whether you're a broker or an 462 00:25:16.150 --> 00:25:19.270 underwriter is because it could have an impact on the financial 463 00:25:19.270 --> 00:25:23.290 standing of the applicant, or of the borrower or the customer, 464 00:25:23.320 --> 00:25:27.400 whatever they are at that point in time. If the bank, all right, 465 00:25:27.400 --> 00:25:32.320 so if you are broke, you file for bankruptcy, right. And then 466 00:25:32.320 --> 00:25:35.440 what essentially is happening is, you're trying to negotiate 467 00:25:35.470 --> 00:25:39.010 with all of your creditors, for them to take less than what 468 00:25:39.010 --> 00:25:41.350 they're owed, that's what's happening in bankruptcy, you 469 00:25:41.350 --> 00:25:43.570 don't have enough to pay everybody, right. And so you're 470 00:25:43.570 --> 00:25:47.470 going to a formal, organized legal process for them to all 471 00:25:47.470 --> 00:25:50.530 get something or they're all kind of, you know, they're all 472 00:25:50.530 --> 00:25:54.790 kind of accepting together, what they're each going to get, and a 473 00:25:54.790 --> 00:25:58.150 lot of it is based upon what type of credit they extended to 474 00:25:58.150 --> 00:26:01.870 you. So like the the people who lent against collateral will be 475 00:26:01.870 --> 00:26:05.110 first and like the unsecured lenders, like you know, would be 476 00:26:05.140 --> 00:26:11.080 would be last in line. But if the bankruptcy goes as planned, 477 00:26:11.110 --> 00:26:15.760 and you are truly, you know, truly so, you know, broke, 478 00:26:16.090 --> 00:26:19.960 right, and you follow all the rules that are required of you 479 00:26:19.960 --> 00:26:22.870 during the bankruptcy process, you can get the bankruptcy 480 00:26:22.900 --> 00:26:26.740 discharged, essentially, that would be a an agreement and 481 00:26:26.740 --> 00:26:30.970 actual agreement for those lenders to take those creditors 482 00:26:31.150 --> 00:26:35.320 to take less money, right. And so anything beyond that, you're 483 00:26:35.380 --> 00:26:38.470 you're free and clear, you don't owe anything more to those 484 00:26:38.470 --> 00:26:41.680 creditors beyond what was agreed, agreed upon, in that 485 00:26:41.680 --> 00:26:45.850 bankruptcy process. If you are the lender, that could be a good 486 00:26:45.850 --> 00:26:50.320 thing, because though that applicant no longer owes any 487 00:26:50.320 --> 00:26:53.590 money to those creditors. On the flip side, it could indicate 488 00:26:53.590 --> 00:26:56.740 this is the type of person who leveraged themselves too much, 489 00:26:56.890 --> 00:27:00.490 and is likely to get into trouble and declare bankruptcy 490 00:27:00.490 --> 00:27:02.920 again, although you have to wait. You have to wait a certain 491 00:27:02.920 --> 00:27:04.900 period of time before you can declare bankruptcy again, you 492 00:27:04.900 --> 00:27:07.330 can't just constantly, you can't just declare bankruptcy every 493 00:27:07.330 --> 00:27:10.480 year. Yeah. But I think the question was, you know, what's 494 00:27:10.480 --> 00:27:12.580 the difference? So the other the other side of it is a bankruptcy 495 00:27:12.580 --> 00:27:16.780 dismissal, a bankruptcy dismissal if you're a broker, or 496 00:27:16.780 --> 00:27:20.860 an underwriter could actually be worse than a discharge, because 497 00:27:20.860 --> 00:27:25.000 it means that the bankruptcy process itself have failed. 498 00:27:25.120 --> 00:27:30.430 Yeah. For whatever reason, maybe maybe the the person in 499 00:27:30.430 --> 00:27:34.000 bankruptcy didn't follow the the rules, right? Maybe they were 500 00:27:34.000 --> 00:27:36.460 hiding money on the side, they weren't being honest or being 501 00:27:36.460 --> 00:27:39.010 straightforward. Or maybe they're not actually bankrupt. 502 00:27:39.040 --> 00:27:42.790 Yeah. And they were just trying to, you know, trying to cut cuts 503 00:27:42.790 --> 00:27:46.810 are creditors out of all the money that they're making. So a 504 00:27:46.810 --> 00:27:50.380 bankruptcy can be dismissed, can be dismissed. And the problem 505 00:27:50.380 --> 00:27:54.220 with that is, if you're a underwriter, you now have to 506 00:27:54.220 --> 00:27:58.450 worry about this particular applicant, still owing all that 507 00:27:58.450 --> 00:28:03.400 money to their creditors, well, and not being able to, right, 508 00:28:03.430 --> 00:28:07.990 but not being able to get out of it. So they are still high risk. 509 00:28:08.020 --> 00:28:10.660 You know, it goes back to what we were talking about before. If 510 00:28:10.660 --> 00:28:14.080 your applicant had a recently dismissed bankruptcy, that would 511 00:28:14.080 --> 00:28:16.330 be probably a red flag and something that would make them 512 00:28:16.330 --> 00:28:19.450 high risk, because they try to get out of the debt. Yeah. They 513 00:28:19.450 --> 00:28:22.510 failed, they still owe it. Now they're coming to you. Now you 514 00:28:22.510 --> 00:28:25.360 have to decide if this is the risk, you know, you you'd want 515 00:28:25.360 --> 00:28:25.810 to take. 516 00:28:26.430 --> 00:28:28.770 Johny Fernandez: That's really good to know. The next question 517 00:28:28.770 --> 00:28:33.030 is in 2015, you wrote an article that said, should you start an 518 00:28:33.030 --> 00:28:38.820 ISO or an ISO with only $2,000? And you said, No. Do you still 519 00:28:38.820 --> 00:28:39.600 agree with that? 520 00:28:40.950 --> 00:28:43.440 Sean Murray: So I did write that article. Yes. Should you start 521 00:28:43.470 --> 00:28:49.440 an ISO with only $2,000? Man, that was that was a long time 522 00:28:49.440 --> 00:28:54.630 ago. So you know, the answer. I don't think changes. I think, if 523 00:28:54.630 --> 00:29:01.140 anything, I would be more firm in my no. Okay. Versus 2015. The 524 00:29:01.140 --> 00:29:07.500 reason being is that technology has come so far, the industry 525 00:29:07.500 --> 00:29:13.530 has gotten so much more competitive. And good leads more 526 00:29:13.530 --> 00:29:19.770 scarce, right? And $2,000 There's, there's so many things 527 00:29:19.770 --> 00:29:22.800 that go into starting an ISO, some people think it's just 528 00:29:22.800 --> 00:29:27.360 about I need a phone, I need an email, and some paper and you 529 00:29:27.360 --> 00:29:31.350 know, boom, I'm an ISO, boom, you know, I'm a broker now, 530 00:29:31.380 --> 00:29:34.530 right? And that's, that's all you need. Right? And so the rest 531 00:29:34.530 --> 00:29:38.820 is just relationships, etc. But it's a lot more than that. Yeah. 532 00:29:39.750 --> 00:29:43.320 You should, you know, it should be organizing yourself legally, 533 00:29:43.350 --> 00:29:45.960 you know, forming an LLC or whatever, you know, going 534 00:29:45.960 --> 00:29:49.590 through the practice of forming an official business that can 535 00:29:49.590 --> 00:29:52.530 cost a couple 1000 bucks, just just doing putting all the 536 00:29:52.710 --> 00:29:55.980 things in place that you would need to do legally, you know, 537 00:29:56.070 --> 00:30:00.150 getting a registered agent, these type of things. Getting a 538 00:30:00.180 --> 00:30:03.210 dedicated business phone number, possibly getting an office 539 00:30:03.240 --> 00:30:06.420 unless you plan to work from home. But when it comes down to 540 00:30:06.420 --> 00:30:10.170 it, you're gonna need leads, you could just cold call random 541 00:30:10.170 --> 00:30:14.460 people, I guess. But you know, that can be quite tricky because 542 00:30:14.700 --> 00:30:17.700 you have to, you have to comply with all the, you know, the 543 00:30:17.700 --> 00:30:22.560 telemarketing laws and so forth. And so you're going to spend 544 00:30:22.590 --> 00:30:27.060 1000s of dollars just on leads to get off the ground, like, if 545 00:30:27.060 --> 00:30:29.820 you're like, hey, I want to try these leads, you can't just buy 546 00:30:29.850 --> 00:30:33.000 20 bucks worth, they're gonna ask you to, they're gonna ask 547 00:30:33.000 --> 00:30:37.050 you for like $500, $1,000, $2,000 worth to try a batch and 548 00:30:37.050 --> 00:30:40.410 they don't work. Well guess what if $2,000 was the whole starting 549 00:30:40.410 --> 00:30:43.860 budget for an ISO, you're done. So you're gonna need a lot more 550 00:30:43.860 --> 00:30:46.680 than $2,000. So my answer is, should you start an ISO with 551 00:30:46.680 --> 00:30:50.520 $2,000 2021 answer is definitely no. And I guess the answer in 552 00:30:50.520 --> 00:30:52.290 2015 was also no. 553 00:30:52.650 --> 00:30:55.620 Johny Fernandez: And I think to your point for nowadays, to 554 00:30:55.620 --> 00:31:00.870 start an ISO, know your stuff, be ready to buy leads, and they 555 00:31:00.870 --> 00:31:05.070 may not work out. And just make sure you're in the know when it 556 00:31:05.070 --> 00:31:08.040 comes to the legal stuff, because I think that's something 557 00:31:08.040 --> 00:31:11.340 we talked about, a lot of people think that they're never gonna 558 00:31:11.340 --> 00:31:14.490 get sued. And like, all you need is a pen and a paper and you're 559 00:31:14.490 --> 00:31:15.300 in business. 560 00:31:15.330 --> 00:31:18.300 Sean Murray: Yeah, and you know, the other side of it is, okay, 561 00:31:18.300 --> 00:31:23.040 so you're an ISO you have no money, and you're like, I can 562 00:31:23.040 --> 00:31:26.160 still navigate this, Sean is wrong, right? I'll tell you, 563 00:31:26.160 --> 00:31:28.440 I'll tell you where they're gonna get you, I'm going to tell 564 00:31:28.440 --> 00:31:30.480 you where they're gonna get you, you're gonna sign up with a 565 00:31:30.480 --> 00:31:33.810 lender or a funding company, and they don't know who you are. 566 00:31:34.200 --> 00:31:37.230 You're Joe Schmo, you work by yourself from your home, and 567 00:31:37.230 --> 00:31:40.260 they're gonna give you a contract that's 100%, one sided, 568 00:31:40.650 --> 00:31:43.680 that's designed for all their deals, all the deals you 569 00:31:43.680 --> 00:31:48.270 generate, to eventually become fully theirs. So that's what's 570 00:31:48.270 --> 00:31:50.880 gonna happen, no matter what, you're gonna get a one sided 571 00:31:50.880 --> 00:31:53.640 contract, and guess what you're going to need, from the very 572 00:31:53.640 --> 00:31:56.640 beginning, you're going to need a lawyer to redline that 573 00:31:56.640 --> 00:31:59.430 agreement to protect your interests. Because here you are 574 00:31:59.460 --> 00:32:02.610 bootstrapping yourself up from the very beginning, saying you 575 00:32:02.610 --> 00:32:06.030 can do it, and then you get scammed, not scam, taken 576 00:32:06.030 --> 00:32:09.420 advantage of taking advantage of, you know, by the lender or 577 00:32:09.420 --> 00:32:12.180 funder who knows they can do it, and is also protecting 578 00:32:12.180 --> 00:32:13.830 themselves. You know, what I mean, they want to put 579 00:32:13.830 --> 00:32:17.190 themselves in the best position, it makes sense, I get it, but 580 00:32:17.220 --> 00:32:20.640 you're gonna have to spend some money, possibly $2,000 on a 581 00:32:20.640 --> 00:32:24.090 lawyer, just redlining the agreement, just to get started, 582 00:32:24.120 --> 00:32:26.910 right? And if there's any disagreements, how much how much 583 00:32:26.910 --> 00:32:28.290 more is that going to cost, right? 584 00:32:28.500 --> 00:32:29.760 Johny Fernandez: And lawyers are expensive. 585 00:32:29.760 --> 00:32:32.360 Sean Murray: They're expensive. We I see it on DailyFunder all 586 00:32:32.360 --> 00:32:36.110 the time, someone says that the lender or funder broker said, 587 00:32:36.110 --> 00:32:38.210 the lender of funder didn't live up to what they said they were 588 00:32:38.210 --> 00:32:42.050 going to do. They did this, but my contract says this, what 589 00:32:42.050 --> 00:32:45.800 should I do? And the answer is, if you've already appealed to 590 00:32:45.800 --> 00:32:49.520 them, and they haven't done what you wanted to, your only 591 00:32:49.520 --> 00:32:52.580 recourse at that point is going to be to sue them. And if you 592 00:32:52.580 --> 00:32:55.250 don't have the resources, you know what I mean, to do it or 593 00:32:55.250 --> 00:32:58.130 even make them feel like you can well, you are going to be 594 00:32:58.340 --> 00:33:03.230 screwed. The ISO is $2,000. And that's it is fresh meat for the 595 00:33:03.230 --> 00:33:04.640 kill for a lender. 596 00:33:05.330 --> 00:33:07.910 Johny Fernandez: But that's good to know. Sean, thanks so much. 597 00:33:07.940 --> 00:33:12.560 You are so wealth of knowledge in you in here. 598 00:33:12.680 --> 00:33:13.370 Sean Murray: In there. 599 00:33:14.140 --> 00:33:17.590 Johny Fernandez: Not in here. No, but yeah, no, I appreciate 600 00:33:17.590 --> 00:33:20.260 that. Because I feel and I believe, you know, what we've 601 00:33:20.260 --> 00:33:22.690 been seeing is that people are genuinely interested in these 602 00:33:22.690 --> 00:33:25.300 videos. And just getting to know the nitty gritty of the 603 00:33:25.300 --> 00:33:27.880 business. You know, how to start, how much do I need to 604 00:33:27.880 --> 00:33:31.120 start? How am I going to get screwed over? Or what am I going 605 00:33:31.120 --> 00:33:33.040 to get screwed over? Because it's going to happen, but it's 606 00:33:33.040 --> 00:33:38.170 covering all your bases. So I think, and he doesn't know what 607 00:33:38.170 --> 00:33:42.640 I'm about to do this, is if you have any questions, let us know. 608 00:33:43.750 --> 00:33:45.430 Sean Murray: Yeah, I didn't know where I don't know where you're 609 00:33:45.430 --> 00:33:47.950 good where you're going with that one. I thought maybe you 610 00:33:47.950 --> 00:33:48.850 we're gonna propose to me. 611 00:33:48.880 --> 00:33:53.680 Johny Fernandez: No. But if you have any questions, let us know. 612 00:33:54.220 --> 00:33:56.350 Because we definitely want to make sure we answer your 613 00:33:56.350 --> 00:33:59.740 questions that you know, people have, and if you have it at 614 00:33:59.740 --> 00:34:03.340 home, then someone else has it. And then other people have it. 615 00:34:03.370 --> 00:34:08.020 And then we just end up figuring out a solution to bring people 616 00:34:08.020 --> 00:34:08.530 answers. 617 00:34:08.560 --> 00:34:10.960 Sean Murray: Yeah, you can ask, you can ask Johny and Johny, 618 00:34:10.960 --> 00:34:13.450 will you know, will pass along the question or maybe he'll 619 00:34:13.450 --> 00:34:16.120 answer himself, you know, it depends. Or maybe it's both, 620 00:34:16.120 --> 00:34:19.870 right. You can look Johny up on on social media. 621 00:34:19.870 --> 00:34:22.000 Johny Fernandez: LinkedIn, Twitter, Instagram email me, 622 00:34:22.000 --> 00:34:22.480 etc. 623 00:34:22.510 --> 00:34:24.070 Sean Murray: If you don't want to talk to me, I won't be 624 00:34:24.070 --> 00:34:26.410 offended. It's okay. You can reach out to Johnny, I 625 00:34:26.410 --> 00:34:32.800 understand it better looking at the two of us. This, is this 626 00:34:32.800 --> 00:34:34.510 where the proposal comes now? Okay. 627 00:34:36.360 --> 00:34:38.888 Johny Fernandez: But yeah, but also to learn about our, like 628 00:34:38.946 --> 00:34:41.768 the latest updates on our website, you can go to 629 00:34:41.827 --> 00:34:45.414 DailyFunder.com. You can check us out on Facebook, Instagram, 630 00:34:45.472 --> 00:34:48.882 Twitter, or LinkedIn, we're all we are on all social media 631 00:34:48.941 --> 00:34:52.586 platforms. And something that Sean stressed out is if you want 632 00:34:52.645 --> 00:34:56.173 to meet other brokers, Broker Fair, that's the way to do it. 633 00:34:56.232 --> 00:34:59.935 We still have some spots left, December 6. It's gonna be great. 634 00:34:59.994 --> 00:35:03.581 It's gonna be huge. It's gonna be the place to be if you're a 635 00:35:03.639 --> 00:35:07.461 broker or a lender, and you want to build those relationships and 636 00:35:07.520 --> 00:35:11.106 network, this is the place to do it because it's hard to like 637 00:35:11.165 --> 00:35:14.457 meet other people other than online. And I think at this 638 00:35:14.516 --> 00:35:17.808 point, people want to meet people in person and pass out 639 00:35:17.867 --> 00:35:21.512 the business card and, you know, just network. Yeah. So that's 640 00:35:21.571 --> 00:35:25.216 definitely the place to do it. And yeah, that's pretty much it 641 00:35:25.275 --> 00:35:26.040 for us today. 642 00:35:26.940 --> 00:35:28.605 Sean Murray: All right. Well, thanks for tuning in and 643 00:35:28.646 --> 00:35:30.920 listening to the latest lightning round. I'm Sean Murray 644 00:35:30.961 --> 00:35:31.530 from deBanked. 645 00:35:31.530 --> 00:35:33.540 And I'm Johnny Fernandez. And we'll see you guys next time.