00:00.000 --> 00:02.640 Johny Fernandez: The next question is in 2015, you wrote 00:02.640 --> 00:07.020 an article that said, should you start an ISO or an ISO with only 00:07.020 --> 00:11.580 $2,000? And you said, No. Do you still agree with that? 00:12.920 --> 00:15.440 Sean Murray: So I did write that article. Yes. Should you start 00:15.440 --> 00:21.440 an ISO with only $2,000? Man, that was that was a long time 00:21.440 --> 00:26.600 ago. So you know, the answer, I don't think changes. I think, if 00:26.600 --> 00:33.140 anything, I would be more firm in my no. Okay. Versus 2015. The 00:33.140 --> 00:39.500 reason being is that technology has come so far, the industry 00:39.500 --> 00:45.530 has gotten so much more competitive. And good leads more 00:45.530 --> 00:51.440 scars, right? And $2,000 there's, there are so many 00:51.440 --> 00:54.800 things that go into starting an ISO, some people think it's just 00:54.800 --> 00:58.430 about I need a phone, I need an email. Some paper. And some 00:58.430 --> 01:02.240 paper and, you know, boom, you know I'm an ISO, boom, you know, 01:02.450 --> 01:05.750 I'm a broker now, right. And that's, and that's all you need. 01:05.750 --> 01:09.560 Right. And so the rest is just relationships, etc. But it's a 01:09.560 --> 01:13.100 lot more than that. Yeah. You should, you know, you should be 01:13.670 --> 01:16.700 organizing yourself legally, you know, forming an LLC, or 01:16.700 --> 01:20.420 whatever, you know, going through the practice of forming 01:20.420 --> 01:23.300 an official business that can cost a couple 1000 bucks, just 01:23.300 --> 01:25.820 just doing putting all the things in place that you would 01:25.820 --> 01:29.510 need to do, legally, you know, getting a registered agent, 01:29.750 --> 01:33.980 these type of things, getting a dedicated business phone number, 01:34.010 --> 01:36.500 possibly getting an office unless you plan to work from 01:36.500 --> 01:40.580 home. But when it comes down to it, you're gonna need leads, you 01:40.580 --> 01:44.750 could just cold call random people, I guess. But you know, 01:44.750 --> 01:47.960 that can be quite tricky, because you have to, you have to 01:47.960 --> 01:50.840 comply with all the, you know, the telemarketing laws, and so 01:50.840 --> 01:56.390 forth. And so you're going to spend 1000s of dollars just on 01:56.390 --> 01:59.480 leads to get off the ground. Like, if you're like, hey, I 01:59.480 --> 02:02.810 want to try these leads, you can't just buy 20 bucks worth, 02:02.990 --> 02:05.330 they're gonna ask you to, they're gonna ask you for like 02:05.360 --> 02:09.680 $500 $1,000 $2,000 worth to try a batch. And if they don't work, 02:09.980 --> 02:12.740 well guess what if $2,000 was the whole starting budget, for 02:12.740 --> 02:15.920 an ISO, you're done, so you're gonna need a lot more than 02:15.920 --> 02:20.900 $2,000. So my answer is to start an ISO with $2,000 2021 answer 02:20.900 --> 02:24.290 is definitely no. And I guess the answer in 2015 was also no. 02:24.650 --> 02:27.620 Johny Fernandez: And I think, to your point for nowadays, to 02:27.620 --> 02:32.840 start an ISO, know your stuff, be ready to buy leads, and they 02:32.840 --> 02:37.070 may not work out. And just make sure you're in the know when it 02:37.070 --> 02:40.160 comes to the legal stuff. Cause I think that's something we 02:40.160 --> 02:43.130 talked about that a lot of people think that they're never 02:43.130 --> 02:45.590 gonna get sued. And like, all you need is a pen and a paper 02:45.590 --> 02:47.300 and you're in business. 02:47.300 --> 02:49.727 Sean Murray: Yeah. And, you know, the other side of it is, 02:49.781 --> 02:53.316 okay, so you're an ISO, you have no money, and you're like, I can 02:53.371 --> 02:56.471 still navigate this, Sean is wrong, right? I'll tell you, 02:56.525 --> 02:59.788 I'll tell you where they're gonna get you, I'm going to tell 02:59.842 --> 03:03.106 you where they're gonna get you, you're gonna sign up with a 03:03.160 --> 03:06.477 lender or a funding company, and they don't know who you are. 03:06.532 --> 03:09.686 You're Joe Schmo, you work by yourself from your home, and 03:09.741 --> 03:12.786 they're gonna give you a contract that's 100% one sided, 03:12.841 --> 03:15.723 that's designed for all your deals, all the deals you 03:15.777 --> 03:19.095 generate, to eventually become fully theirs. So that's what's 03:19.149 --> 03:22.304 gonna happen, no matter what, you're gonna get a one sided 03:22.358 --> 03:25.458 contract, and guess what you're gonna need. From the very 03:25.512 --> 03:28.939 beginning, you're gonna need a lawyer to redline that agreement 03:28.993 --> 03:31.549 to protect your interests. Because here you are 03:31.603 --> 03:34.921 bootstrapping yourself up from the very beginning, saying you 03:34.975 --> 03:37.749 can do it, and then you get scammed, not scam taken 03:37.803 --> 03:41.067 advantage of, taken advantage of, you know, by the lender of 03:41.121 --> 03:44.112 funder who knows they can do it. And is also protecting 03:44.166 --> 03:47.430 themselves, you know, I mean, they want to put themselves in 03:47.484 --> 03:50.475 the best position. It makes sense, I get it, but you're 03:50.530 --> 03:53.956 gonna have to spend some money possibly $2,000 on a lawyer just 03:54.010 --> 03:57.219 redlining the agreement, just to get started, right. And if 03:57.273 --> 04:00.700 there's any disagreements, how much how much more is that gonna 04:00.754 --> 04:04.071 cost, right? And lawyers are expensive. They're expensive. We 04:04.126 --> 04:07.335 I see it on DailyFunder all the time, someone says that the 04:07.389 --> 04:10.706 lender or funder, the broker says the lender or funder didn't 04:10.761 --> 04:14.187 live up to what they said they were gonna do, they did this but 04:14.242 --> 04:17.396 my contract says this, what should I do? And the answer is 04:17.450 --> 04:20.822 if you've already appealed to them, and they haven't done what 04:20.877 --> 04:23.922 you wanted to, your only recourse at that point is going 04:23.977 --> 04:27.185 to be to sue them. And if you don't have the resources, you 04:27.240 --> 04:30.340 know what I mean to do it or even make them feel like you 04:30.394 --> 04:33.766 can, well you are going to be screwed. The ISO with $2,000 and 04:33.820 --> 04:36.540 that's it is fresh meat for the kill for a lender.