Johny Fernandez: The next question is in 2015, you wrote
an article that said, should you start an ISO or an ISO with only
$2,000? And you said, No. Do you still agree with that?
Sean Murray: So I did write that article. Yes. Should you start
an ISO with only $2,000? Man, that was that was a long time
ago. So you know, the answer, I don't think changes. I think, if
anything, I would be more firm in my no. Okay. Versus 2015. The
reason being is that technology has come so far, the industry
has gotten so much more competitive. And good leads more
scars, right? And $2,000 there's, there are so many
things that go into starting an ISO, some people think it's just
about I need a phone, I need an email. Some paper. And some
paper and, you know, boom, you know I'm an ISO, boom, you know,
I'm a broker now, right. And that's, and that's all you need.
Right. And so the rest is just relationships, etc. But it's a
lot more than that. Yeah. You should, you know, you should be
organizing yourself legally, you know, forming an LLC, or
whatever, you know, going through the practice of forming
an official business that can cost a couple 1000 bucks, just
just doing putting all the things in place that you would
need to do, legally, you know, getting a registered agent,
these type of things, getting a dedicated business phone number,
possibly getting an office unless you plan to work from
home. But when it comes down to it, you're gonna need leads, you
could just cold call random people, I guess. But you know,
that can be quite tricky, because you have to, you have to
comply with all the, you know, the telemarketing laws, and so
forth. And so you're going to spend 1000s of dollars just on
leads to get off the ground. Like, if you're like, hey, I
want to try these leads, you can't just buy 20 bucks worth,
they're gonna ask you to, they're gonna ask you for like
$500 $1,000 $2,000 worth to try a batch. And if they don't work,
well guess what if $2,000 was the whole starting budget, for
an ISO, you're done, so you're gonna need a lot more than
$2,000. So my answer is to start an ISO with $2,000 2021 answer
is definitely no. And I guess the answer in 2015 was also no.
Johny Fernandez: And I think, to your point for nowadays, to
start an ISO, know your stuff, be ready to buy leads, and they
may not work out. And just make sure you're in the know when it
comes to the legal stuff. Cause I think that's something we
talked about that a lot of people think that they're never
gonna get sued. And like, all you need is a pen and a paper
and you're in business.
Sean Murray: Yeah. And, you know, the other side of it is,
okay, so you're an ISO, you have no money, and you're like, I can
still navigate this, Sean is wrong, right? I'll tell you,
I'll tell you where they're gonna get you, I'm going to tell
you where they're gonna get you, you're gonna sign up with a
lender or a funding company, and they don't know who you are.
You're Joe Schmo, you work by yourself from your home, and
they're gonna give you a contract that's 100% one sided,
that's designed for all your deals, all the deals you
generate, to eventually become fully theirs. So that's what's
gonna happen, no matter what, you're gonna get a one sided
contract, and guess what you're gonna need. From the very
beginning, you're gonna need a lawyer to redline that agreement
to protect your interests. Because here you are
bootstrapping yourself up from the very beginning, saying you
can do it, and then you get scammed, not scam taken
advantage of, taken advantage of, you know, by the lender of
funder who knows they can do it. And is also protecting
themselves, you know, I mean, they want to put themselves in
the best position. It makes sense, I get it, but you're
gonna have to spend some money possibly $2,000 on a lawyer just
redlining the agreement, just to get started, right. And if
there's any disagreements, how much how much more is that gonna
cost, right? And lawyers are expensive. They're expensive. We
I see it on DailyFunder all the time, someone says that the
lender or funder, the broker says the lender or funder didn't
live up to what they said they were gonna do, they did this but
my contract says this, what should I do? And the answer is
if you've already appealed to them, and they haven't done what
you wanted to, your only recourse at that point is going
to be to sue them. And if you don't have the resources, you
know what I mean to do it or even make them feel like you
can, well you are going to be screwed. The ISO with $2,000 and
that's it is fresh meat for the kill for a lender.