1 00:00:00,000 --> 00:00:02,640 Johny Fernandez: The next question is in 2015, you wrote 2 00:00:02,640 --> 00:00:07,020 an article that said, should you start an ISO or an ISO with only 3 00:00:07,020 --> 00:00:11,580 $2,000? And you said, No. Do you still agree with that? 4 00:00:12,920 --> 00:00:15,440 Sean Murray: So I did write that article. Yes. Should you start 5 00:00:15,440 --> 00:00:21,440 an ISO with only $2,000? Man, that was that was a long time 6 00:00:21,440 --> 00:00:26,600 ago. So you know, the answer, I don't think changes. I think, if 7 00:00:26,600 --> 00:00:33,140 anything, I would be more firm in my no. Okay. Versus 2015. The 8 00:00:33,140 --> 00:00:39,500 reason being is that technology has come so far, the industry 9 00:00:39,500 --> 00:00:45,530 has gotten so much more competitive. And good leads more 10 00:00:45,530 --> 00:00:51,440 scars, right? And $2,000 there's, there are so many 11 00:00:51,440 --> 00:00:54,800 things that go into starting an ISO, some people think it's just 12 00:00:54,800 --> 00:00:58,430 about I need a phone, I need an email. Some paper. And some 13 00:00:58,430 --> 00:01:02,240 paper and, you know, boom, you know I'm an ISO, boom, you know, 14 00:01:02,450 --> 00:01:05,750 I'm a broker now, right. And that's, and that's all you need. 15 00:01:05,750 --> 00:01:09,560 Right. And so the rest is just relationships, etc. But it's a 16 00:01:09,560 --> 00:01:13,100 lot more than that. Yeah. You should, you know, you should be 17 00:01:13,670 --> 00:01:16,700 organizing yourself legally, you know, forming an LLC, or 18 00:01:16,700 --> 00:01:20,420 whatever, you know, going through the practice of forming 19 00:01:20,420 --> 00:01:23,300 an official business that can cost a couple 1000 bucks, just 20 00:01:23,300 --> 00:01:25,820 just doing putting all the things in place that you would 21 00:01:25,820 --> 00:01:29,510 need to do, legally, you know, getting a registered agent, 22 00:01:29,750 --> 00:01:33,980 these type of things, getting a dedicated business phone number, 23 00:01:34,010 --> 00:01:36,500 possibly getting an office unless you plan to work from 24 00:01:36,500 --> 00:01:40,580 home. But when it comes down to it, you're gonna need leads, you 25 00:01:40,580 --> 00:01:44,750 could just cold call random people, I guess. But you know, 26 00:01:44,750 --> 00:01:47,960 that can be quite tricky, because you have to, you have to 27 00:01:47,960 --> 00:01:50,840 comply with all the, you know, the telemarketing laws, and so 28 00:01:50,840 --> 00:01:56,390 forth. And so you're going to spend 1000s of dollars just on 29 00:01:56,390 --> 00:01:59,480 leads to get off the ground. Like, if you're like, hey, I 30 00:01:59,480 --> 00:02:02,810 want to try these leads, you can't just buy 20 bucks worth, 31 00:02:02,990 --> 00:02:05,330 they're gonna ask you to, they're gonna ask you for like 32 00:02:05,360 --> 00:02:09,680 $500 $1,000 $2,000 worth to try a batch. And if they don't work, 33 00:02:09,980 --> 00:02:12,740 well guess what if $2,000 was the whole starting budget, for 34 00:02:12,740 --> 00:02:15,920 an ISO, you're done, so you're gonna need a lot more than 35 00:02:15,920 --> 00:02:20,900 $2,000. So my answer is to start an ISO with $2,000 2021 answer 36 00:02:20,900 --> 00:02:24,290 is definitely no. And I guess the answer in 2015 was also no. 37 00:02:24,650 --> 00:02:27,620 Johny Fernandez: And I think, to your point for nowadays, to 38 00:02:27,620 --> 00:02:32,840 start an ISO, know your stuff, be ready to buy leads, and they 39 00:02:32,840 --> 00:02:37,070 may not work out. And just make sure you're in the know when it 40 00:02:37,070 --> 00:02:40,160 comes to the legal stuff. Cause I think that's something we 41 00:02:40,160 --> 00:02:43,130 talked about that a lot of people think that they're never 42 00:02:43,130 --> 00:02:45,590 gonna get sued. And like, all you need is a pen and a paper 43 00:02:45,590 --> 00:02:47,300 and you're in business. 44 00:02:47,300 --> 00:02:49,727 Sean Murray: Yeah. And, you know, the other side of it is, 45 00:02:49,781 --> 00:02:53,316 okay, so you're an ISO, you have no money, and you're like, I can 46 00:02:53,371 --> 00:02:56,471 still navigate this, Sean is wrong, right? I'll tell you, 47 00:02:56,525 --> 00:02:59,788 I'll tell you where they're gonna get you, I'm going to tell 48 00:02:59,842 --> 00:03:03,106 you where they're gonna get you, you're gonna sign up with a 49 00:03:03,160 --> 00:03:06,477 lender or a funding company, and they don't know who you are. 50 00:03:06,532 --> 00:03:09,686 You're Joe Schmo, you work by yourself from your home, and 51 00:03:09,741 --> 00:03:12,786 they're gonna give you a contract that's 100% one sided, 52 00:03:12,841 --> 00:03:15,723 that's designed for all your deals, all the deals you 53 00:03:15,777 --> 00:03:19,095 generate, to eventually become fully theirs. So that's what's 54 00:03:19,149 --> 00:03:22,304 gonna happen, no matter what, you're gonna get a one sided 55 00:03:22,358 --> 00:03:25,458 contract, and guess what you're gonna need. From the very 56 00:03:25,512 --> 00:03:28,939 beginning, you're gonna need a lawyer to redline that agreement 57 00:03:28,993 --> 00:03:31,549 to protect your interests. Because here you are 58 00:03:31,603 --> 00:03:34,921 bootstrapping yourself up from the very beginning, saying you 59 00:03:34,975 --> 00:03:37,749 can do it, and then you get scammed, not scam taken 60 00:03:37,803 --> 00:03:41,067 advantage of, taken advantage of, you know, by the lender of 61 00:03:41,121 --> 00:03:44,112 funder who knows they can do it. And is also protecting 62 00:03:44,166 --> 00:03:47,430 themselves, you know, I mean, they want to put themselves in 63 00:03:47,484 --> 00:03:50,475 the best position. It makes sense, I get it, but you're 64 00:03:50,530 --> 00:03:53,956 gonna have to spend some money possibly $2,000 on a lawyer just 65 00:03:54,010 --> 00:03:57,219 redlining the agreement, just to get started, right. And if 66 00:03:57,273 --> 00:04:00,700 there's any disagreements, how much how much more is that gonna 67 00:04:00,754 --> 00:04:04,071 cost, right? And lawyers are expensive. They're expensive. We 68 00:04:04,126 --> 00:04:07,335 I see it on DailyFunder all the time, someone says that the 69 00:04:07,389 --> 00:04:10,706 lender or funder, the broker says the lender or funder didn't 70 00:04:10,761 --> 00:04:14,187 live up to what they said they were gonna do, they did this but 71 00:04:14,242 --> 00:04:17,396 my contract says this, what should I do? And the answer is 72 00:04:17,450 --> 00:04:20,822 if you've already appealed to them, and they haven't done what 73 00:04:20,877 --> 00:04:23,922 you wanted to, your only recourse at that point is going 74 00:04:23,977 --> 00:04:27,185 to be to sue them. And if you don't have the resources, you 75 00:04:27,240 --> 00:04:30,340 know what I mean to do it or even make them feel like you 76 00:04:30,394 --> 00:04:33,766 can, well you are going to be screwed. The ISO with $2,000 and 77 00:04:33,820 --> 00:04:36,540 that's it is fresh meat for the kill for a lender.