1 00:00:00.360 --> 00:00:03.660 Sean Murray: Hello and welcome to deBanked TV. Miyamo Sean 2 00:00:03.660 --> 00:00:04.140 Murray. 3 00:00:04.140 --> 00:00:08.740 Johny Fernandez: And I'm Johny Fernandez. Sean muy bien 4 00:00:08.770 --> 00:00:09.160 esponal. 5 00:00:09.430 --> 00:00:10.090 Sean Murray: Gracias. 6 00:00:10.090 --> 00:00:12.760 Johny Fernandez: And the reason we're speaking espanol espanol 7 00:00:12.760 --> 00:00:16.750 is because we're going to be talking about lending in Puerto 8 00:00:16.750 --> 00:00:20.560 Rico and the Latin community. So that's going to be the first 9 00:00:20.560 --> 00:00:24.970 topic that we're going to discuss. Last week we had Sonia. 10 00:00:25.930 --> 00:00:26.200 Sean Murray: Alvelo. 11 00:00:26.440 --> 00:00:33.820 Johny Fernandez: Alvelo, Alvelo. The reason I laugh is because I 12 00:00:33.820 --> 00:00:35.740 had to figure out how to pronounce it if you want to 13 00:00:35.740 --> 00:00:39.010 pronounce it the Spanish way, or the American way just have to 14 00:00:39.010 --> 00:00:39.610 figure it out. 15 00:00:40.690 --> 00:00:41.950 Sean Murray: I'll let you lead the way. 16 00:00:41.990 --> 00:00:45.470 Johny Fernandez: Okay, we'll do Alvelo. So we choose you last 17 00:00:45.470 --> 00:00:50.840 week and she spoke to you regarding funding lending in 18 00:00:50.840 --> 00:00:54.860 Puerto Rico. So what do you take away? I mean, obviously, the 19 00:00:54.860 --> 00:00:59.210 Spanish community we know is a community that is growing, you 20 00:00:59.210 --> 00:01:03.800 know, in small businesses in this space. So what number one 21 00:01:03.800 --> 00:01:06.230 what was your big takeaway from speaking with her? 22 00:01:06.480 --> 00:01:08.160 Sean Murray: Alright, so the big takeaway after speaking with 23 00:01:08.160 --> 00:01:10.320 Sonia is that everyone always had the question of who's 24 00:01:10.320 --> 00:01:13.650 funding in Puerto Rico. And when she explained it, that it's not 25 00:01:13.650 --> 00:01:17.040 companies based in Puerto Rico, who are funding small businesses 26 00:01:17.040 --> 00:01:20.760 in Puerto Rico, its businesses. I mean, its funders and lenders 27 00:01:20.760 --> 00:01:24.300 on the mainland. Okay. That are funding the businesses in Puerto 28 00:01:24.300 --> 00:01:28.830 Rico. So for me, it was about that realization that the 29 00:01:28.830 --> 00:01:31.830 funding is coming from, you know, the main the mainland of 30 00:01:31.830 --> 00:01:35.790 the United States versus anyone domestically on the island of 31 00:01:35.790 --> 00:01:36.120 Peurto Rico. 32 00:01:36.390 --> 00:01:39.210 Johny Fernandez: Did you learn anything? The difficulties and 33 00:01:39.210 --> 00:01:42.660 the difference of funding in Puerto Rico in a territory 34 00:01:42.660 --> 00:01:47.190 commonwealth versus a state? You know, New York, Florida, 35 00:01:48.420 --> 00:01:52.410 California. Okay, so what were the differences? And is it 36 00:01:52.410 --> 00:01:53.940 harder to fund in Puerto Rico? 37 00:01:54.380 --> 00:01:56.240 Sean Murray: There's not really any any differences. I mean, 38 00:01:56.240 --> 00:01:58.430 it's part of the United States, the fact that it's a territory 39 00:01:58.430 --> 00:02:02.000 versus the state doesn't really make any difference. At the end 40 00:02:02.000 --> 00:02:05.870 of the day, you're still working with, you know, American banks, 41 00:02:06.200 --> 00:02:08.900 you're still working with American citizens. So there's 42 00:02:08.900 --> 00:02:11.810 really no, there's really no difference. It's more from what 43 00:02:11.810 --> 00:02:17.180 I gathered from her. It's the stigma attached to the unknown. 44 00:02:17.930 --> 00:02:22.490 If you are not physically in Puerto Rico, and you're and or 45 00:02:22.490 --> 00:02:25.820 if you've never even been to Puerto Rico, you may have a hard 46 00:02:25.820 --> 00:02:30.620 time grasping, you know, the particular nuances of the market 47 00:02:30.620 --> 00:02:33.200 there, right? They might, they might face something different, 48 00:02:33.800 --> 00:02:37.040 economically, could be something, you know, weather 49 00:02:37.040 --> 00:02:41.600 related, right, that you might not be thinking about, normally, 50 00:02:41.630 --> 00:02:45.860 but other than other than that, there's no real difference. It's 51 00:02:45.950 --> 00:02:49.850 if you're, if you understand the market, it seems like it's an 52 00:02:49.850 --> 00:02:50.480 opportunity. 53 00:02:50.570 --> 00:02:52.610 Johny Fernandez: Yeah. So let's talk about the growth. I mean, 54 00:02:52.610 --> 00:02:57.350 what has she seen in regards to the growth of people, you know, 55 00:02:57.350 --> 00:03:01.040 doing business there and then crossing over into the mainland? 56 00:03:01.040 --> 00:03:03.020 And like, the Hispanic climate growth? 57 00:03:03.810 --> 00:03:05.940 Sean Murray: Yeah, I mean, she definitely has, she definitely 58 00:03:05.940 --> 00:03:09.420 shared that there is more willingness to fund businesses 59 00:03:09.420 --> 00:03:14.460 there. But I gather that there is some hesitation when there's 60 00:03:14.490 --> 00:03:19.170 things like Hurricane, right. Incomes, people say, well, you 61 00:03:19.170 --> 00:03:21.780 know, that's something we have to worry about every time. Yeah. 62 00:03:21.810 --> 00:03:24.750 Now, because that's going to disrupt business. That's going 63 00:03:24.750 --> 00:03:28.560 to disrupt sales. And I think there was even an earthquake, 64 00:03:28.680 --> 00:03:33.480 there. So I think that, even though it seems to me that there 65 00:03:33.630 --> 00:03:37.590 has been an increase in funding there, you end up with 66 00:03:37.590 --> 00:03:40.830 situations where there's, there's a pullback. Yeah. Once 67 00:03:40.830 --> 00:03:44.430 you have some sort of, you know, climate related event that 68 00:03:44.430 --> 00:03:46.290 people are woah, you know, this is this is something we have to 69 00:03:46.290 --> 00:03:47.100 watch out for every time. 70 00:03:47.100 --> 00:03:48.780 Johny Fernandez: Yeah. So what was? 71 00:03:49.020 --> 00:03:50.040 Sean Murray: Have you ever been to Puerto Rico? 72 00:03:50.070 --> 00:03:50.700 Johny Fernandez: I've been once. 73 00:03:50.730 --> 00:03:52.140 Sean Murray: I've never even been to Puerto Rico. 74 00:03:52.140 --> 00:03:53.980 Johny Fernandez: It's, it's interesting, cause it's pretty 75 00:03:53.980 --> 00:03:57.820 much it's America, but when you get there, you know, they 76 00:03:57.820 --> 00:04:02.230 primarily speak Spanish there. So it's, you know, I'm fluent, 77 00:04:02.230 --> 00:04:04.630 so I do know, like, I was able to get around and stuff, but 78 00:04:04.630 --> 00:04:09.310 it's, it doesn't. It feels like America, it feels like mainland 79 00:04:09.310 --> 00:04:12.790 America, but also there's differences, that there's still 80 00:04:12.790 --> 00:04:19.000 traits of you know, I guess like Spanish culture, you know, like, 81 00:04:19.480 --> 00:04:22.180 a lot of people in Puerto Rico like they they just speak 82 00:04:22.180 --> 00:04:25.840 Spanish, but they also have things like regular restaurants 83 00:04:25.840 --> 00:04:30.160 like Burger King and McDonald's and Chipotle and you can order 84 00:04:30.160 --> 00:04:30.640 in English. 85 00:04:30.640 --> 00:04:31.930 Sean Murray: Kinda like Miami though, in a way. 86 00:04:32.160 --> 00:04:34.380 Sean Murray: There's entire neighborhoods that are 100% Spanish. 87 00:04:34.380 --> 00:04:34.530 Johny Fernandez: It is. 88 00:04:34.530 --> 00:04:37.490 Johny Fernandez: Yeah, yeah. I mean in you know, Miami is 89 00:04:37.610 --> 00:04:39.800 called a gateway of of Latin America. 90 00:04:39.800 --> 00:04:40.730 Sean Murray: Texas. You know what I mean. 91 00:04:42.500 --> 00:04:45.350 Johny Fernandez: But it it's awesome. I mean, it it's it's 92 00:04:45.560 --> 00:04:48.440 one of those things that you know, you go and you visit, 93 00:04:49.010 --> 00:04:52.910 you'll get a grasp for like, okay, like, it makes sense why 94 00:04:52.910 --> 00:04:57.350 people would come live there you know, with similar tax benefits 95 00:04:57.350 --> 00:05:02.150 if not less and you get like the great weather and whatnot. But I 96 00:05:02.150 --> 00:05:05.810 enjoyed my time there. But I understand why doing business 97 00:05:05.810 --> 00:05:09.500 there would be a little bit scary, because, you know, they 98 00:05:09.500 --> 00:05:13.370 have things that we deal with here, but it is dealt 99 00:05:13.400 --> 00:05:14.480 differently down there. 100 00:05:14.480 --> 00:05:16.100 Sean Murray: Yeah, you know, I will add to all this 101 00:05:16.100 --> 00:05:20.840 conversation that there is also some sort of stigma attached to 102 00:05:21.110 --> 00:05:25.190 Alaska and to Hawaii. Even though they're states, it's 103 00:05:25.190 --> 00:05:29.690 because they're far away. And because they're their in their 104 00:05:29.690 --> 00:05:34.130 geography encounters, and an entirely different set of events 105 00:05:34.160 --> 00:05:36.680 that might not be experienced in the mainland, like in, you know, 106 00:05:36.680 --> 00:05:40.400 Alaska, they're gonna have a very elongated winter. Yeah. And 107 00:05:40.970 --> 00:05:43.640 if there's some type of like, prolonged power outage, or 108 00:05:43.640 --> 00:05:47.870 something or. Yeah. Who can't go out for months at a time, or you 109 00:05:47.870 --> 00:05:51.110 know, it's a lot of limited economic activity, but you have 110 00:05:51.110 --> 00:05:53.090 to understand the Alaskan market, if you're going to fund 111 00:05:53.090 --> 00:05:55.910 in Alaska. Yeah. And you have to understand the Hawaii market, if 112 00:05:55.910 --> 00:05:58.250 you're gonna fund in Hawaii, right. Yeah. They could have 113 00:05:58.250 --> 00:06:01.940 like, you know, they could have shortages of supplies, because 114 00:06:01.940 --> 00:06:06.980 everything has to be shipped in or flown over. Right. So I think 115 00:06:06.980 --> 00:06:10.640 that what I learned from that the whole conversation was that 116 00:06:10.910 --> 00:06:15.980 Puerto Rico is really not all that different. It's just that 117 00:06:16.250 --> 00:06:19.340 people just need to get comfortable with that particular 118 00:06:19.340 --> 00:06:19.790 market. 119 00:06:19.840 --> 00:06:23.680 Johny Fernandez: Yeah. So let's talk about, you know, people 120 00:06:23.680 --> 00:06:28.420 that either are hesitant, hesitant to fund there, or they 121 00:06:28.420 --> 00:06:32.170 haven't grown their business is this area an opportunity for 122 00:06:32.380 --> 00:06:36.790 lenders to go and really work the market are people do people 123 00:06:36.790 --> 00:06:38.770 want it there? I mean, did she speak? 124 00:06:38.770 --> 00:06:41.270 Sean Murray: It seemed like they did, she said that bank lending 125 00:06:41.300 --> 00:06:45.650 was pretty, pretty scarce. So there's plenty of opportunity. 126 00:06:45.650 --> 00:06:48.620 And if you're someone who's looking to expand your business, 127 00:06:48.620 --> 00:06:50.960 I mean, there's a whole other whole other part of the country 128 00:06:50.960 --> 00:06:53.030 that you could be. Yeah. Catering to. 129 00:06:53.060 --> 00:06:54.590 Johny Fernandez: Yeah. That's good to know. 130 00:06:54.620 --> 00:06:55.970 Sean Murray: Yeah, it's better than trying to do something 131 00:06:55.970 --> 00:06:58.190 International. Because once you go international, then you have 132 00:06:58.190 --> 00:07:00.830 to deal with an entirely different set of laws, different 133 00:07:00.830 --> 00:07:03.440 currency, you know, all the different complexities that go 134 00:07:03.440 --> 00:07:05.480 with that here you're just still part of United States, you just 135 00:07:05.480 --> 00:07:07.100 got to get comfortable with the market. That's it. 136 00:07:07.240 --> 00:07:09.910 Johny Fernandez: Yeah. That's good to know. So so you're out 137 00:07:09.940 --> 00:07:14.620 getting good, being good. But talk about what great what makes 138 00:07:14.620 --> 00:07:21.790 a great ISO or ISO, we talked about this a lot. But I think 139 00:07:21.790 --> 00:07:24.430 it's always one of those reoccurring themes that end up 140 00:07:24.430 --> 00:07:27.430 coming up, because everyone has different definition of, you 141 00:07:27.430 --> 00:07:31.000 know, what makes a great ISO. So the first thing let's talk about 142 00:07:31.000 --> 00:07:35.320 recruitment, I mean, someone that wants to be a good ISO 143 00:07:35.320 --> 00:07:38.080 someone that's recruiting a team, what would be the 144 00:07:38.080 --> 00:07:39.400 qualities they would look for? 145 00:07:40.380 --> 00:07:42.630 Sean Murray: If their recruiting an ISO? Yeah. If you're, if 146 00:07:42.630 --> 00:07:47.340 they're the funder of the lending company? It seems like 147 00:07:47.760 --> 00:07:50.010 from you know, just the people we've talked to that 148 00:07:50.400 --> 00:07:54.240 transparency and honesty count for a lot. No lender ofrfunder 149 00:07:54.240 --> 00:07:57.330 wants to work with somebody who's dishonest or not 150 00:07:57.330 --> 00:07:59.820 transparent about all the communication they have with, 151 00:08:00.150 --> 00:08:03.360 you know, with the, with the customer at the end of the day. 152 00:08:04.170 --> 00:08:08.280 And if you're if you're someone who's not honest, like, what are 153 00:08:08.280 --> 00:08:10.200 you gonna end up? What's it gonna end up happening too is 154 00:08:10.200 --> 00:08:12.690 you're gonna end up bouncing around from funder to funder or 155 00:08:12.690 --> 00:08:15.240 lender, to lender, to lender, because you know you're gonna 156 00:08:15.240 --> 00:08:17.850 have relationships sour. And you're gonna have to find new 157 00:08:17.850 --> 00:08:21.720 partners constantly. And sometimes you will find this is 158 00:08:21.720 --> 00:08:24.000 definitely not all the time, but I feel like sometimes you will 159 00:08:24.000 --> 00:08:28.530 find those that complain that they weren't paid, or you know, 160 00:08:28.530 --> 00:08:32.550 got screwed by the funder, the lender, sometimes it has 161 00:08:32.550 --> 00:08:35.700 something to do with what the broker what the ISO what the ISO 162 00:08:35.700 --> 00:08:39.810 is doing, that caused that to happen. And they're like, you 163 00:08:39.810 --> 00:08:42.120 know, the funder did this, and they screwed me out of my 164 00:08:42.120 --> 00:08:44.670 commission. Yeah. But at the end of the day, it could be 165 00:08:44.670 --> 00:08:48.600 something that they did. And, you know, now they're lashing 166 00:08:48.600 --> 00:08:51.750 out. Yeah. And then they then they work with someone else. And 167 00:08:51.750 --> 00:08:54.000 then it happens to them again, you know what I mean, and 168 00:08:54.000 --> 00:08:57.420 they're like, I'm this big victim. And I think that if 169 00:08:57.420 --> 00:09:01.350 you're a good, honest, transparent person, you know, 170 00:09:01.350 --> 00:09:04.020 the, I don't think the funders out there, you know, are looking 171 00:09:04.020 --> 00:09:08.640 to screw people over, I think you're primed to have a good 172 00:09:08.640 --> 00:09:12.090 long term, long lasting relationship, if you're someone 173 00:09:12.090 --> 00:09:13.620 who does the right thing at the end of the day. 174 00:09:13.690 --> 00:09:18.100 Johny Fernandez: Yeah. So let's talk about you know, when ISO's 175 00:09:18.100 --> 00:09:21.190 like when they're on LinkedIn, and you know, they're trying to 176 00:09:21.190 --> 00:09:24.550 build their business make a name for themselves. Sometimes what 177 00:09:24.550 --> 00:09:29.710 we've noticed, I've noticed is that sometimes names may not be 178 00:09:29.710 --> 00:09:33.250 there like legitimate names or, you know, certain pictures go 179 00:09:33.250 --> 00:09:36.640 online and it's not clear so let's talk about a little bit 180 00:09:36.640 --> 00:09:41.770 about that. I guess like, why is that done? I mean, if they're 181 00:09:41.770 --> 00:09:44.560 trying to make a reputable business and and make it you 182 00:09:44.560 --> 00:09:49.480 know, trustworthy and transparent. Why go that. Why do 183 00:09:49.480 --> 00:09:50.410 people go that route? 184 00:09:50.900 --> 00:09:54.860 Sean Murray: You know, so why do they sometimes use what are you 185 00:09:54.890 --> 00:09:57.800 saying like, a fake a fake picture? Yeah. Like a fake 186 00:09:57.800 --> 00:10:03.230 photo? Yeah. Or like a fake name? Yeah. All right, so this 187 00:10:03.230 --> 00:10:07.760 does happen sometimes the fake photo thing I don't get. Yeah. 188 00:10:07.790 --> 00:10:10.490 That doesn't, you shouldn't be using a fake photo out there. 189 00:10:10.520 --> 00:10:14.000 That's a terrible way to make a name for yourself in this 190 00:10:14.000 --> 00:10:17.180 business, terrible way to establish your reputation sends 191 00:10:17.180 --> 00:10:20.000 a huge red flag to everyone that you work with. Don't use fake 192 00:10:20.000 --> 00:10:24.410 photos. That's that that makes no sense at all. Yeah. Now there 193 00:10:24.410 --> 00:10:30.830 are those that will change their name. And they might, they might 194 00:10:30.830 --> 00:10:37.280 do it for the purpose of sounding more memorable to the 195 00:10:37.280 --> 00:10:40.460 customer. Right? If your name had if your last name had like 196 00:10:40.490 --> 00:10:46.400 47 letters, and you're competing against three other people? Is 197 00:10:46.400 --> 00:10:48.920 the customer going to remember the name with the 47 letters? 198 00:10:48.920 --> 00:10:50.900 Maybe they'll remember you as the person with the name of 47 199 00:10:50.900 --> 00:10:54.170 letters. Right. But it might not roll off the tongue. Yeah. 200 00:10:54.200 --> 00:10:59.090 Right. And so there are those who for purposes of sales, if 201 00:10:59.090 --> 00:11:01.460 especially a lot of it is done online will shorten their last 202 00:11:01.460 --> 00:11:07.010 name, or Americanize their last name, just so that it rolls 203 00:11:07.010 --> 00:11:10.700 better off the tongue in the sales process. I'm not condoning 204 00:11:10.700 --> 00:11:12.980 any. I'm not condoning it. I'm not advocating for it. But I 205 00:11:12.980 --> 00:11:16.490 know that I know that it happens. Yeah. And you will see 206 00:11:16.490 --> 00:11:20.330 it sometimes with those who have a particularly ethnic name, that 207 00:11:20.330 --> 00:11:24.800 they try to Americanize thinking perhaps that it will help them 208 00:11:24.830 --> 00:11:29.210 in the sales process. You know, maybe maybe it does work. Yeah. 209 00:11:29.210 --> 00:11:31.610 I don't know. But fake photos. That doesn't make any sense to 210 00:11:31.610 --> 00:11:34.730 me. If you're out there using fake photos. You know, you know, 211 00:11:34.760 --> 00:11:39.530 because you think if you look more attractive or something 212 00:11:40.130 --> 00:11:42.320 that it's going to help you. I think it's just gonna damage 213 00:11:42.320 --> 00:11:44.270 your credibility once people find out it's a fake photo, 214 00:11:44.270 --> 00:11:48.770 because you can do a reverse Google image search and find 215 00:11:48.800 --> 00:11:51.380 this photo was used somewhere else. And if it's not you, 216 00:11:51.560 --> 00:11:54.080 people are going to call you out on it. And it happens. Yeah. 217 00:11:54.710 --> 00:11:57.590 Johny Fernandez: On places like The Daily Funder. 218 00:11:57.690 --> 00:11:59.280 Sean Murray: It happens on Daily Funder. Yeah. I've seen it 219 00:11:59.280 --> 00:11:59.970 happen on Daily Funder. 220 00:11:59.970 --> 00:12:02.654 Johny Fernandez: Yeah. So speaking of Daily Funder, there 221 00:12:02.723 --> 00:12:06.953 was a question on there that I think is very interesting. And 222 00:12:07.023 --> 00:12:10.837 it blew our mind. Because I guess this is an area where 223 00:12:10.906 --> 00:12:14.651 personally, I never really thought it would need help. 224 00:12:14.720 --> 00:12:18.881 Because in my mind, it's like, all lawyers are like well off 225 00:12:18.951 --> 00:12:22.696 and they're rich. But the question on the on the Daily 226 00:12:22.765 --> 00:12:26.718 Funder was, who can fund attorneys? And we do know that a 227 00:12:26.787 --> 00:12:31.226 couple months ago, we had one of our guy our reporter here, Adam 228 00:12:31.295 --> 00:12:34.971 wrote a story about Idea Financial down in Miami, and 229 00:12:35.040 --> 00:12:39.062 they ended up helping out with lawyers, the program called 230 00:12:39.132 --> 00:12:43.154 Level Esk, and it pretty much assists lawyers and it helps 231 00:12:43.223 --> 00:12:47.523 them out. But let's talk about funding lawyers. Like I said, I 232 00:12:47.592 --> 00:12:51.684 never thought they would really need the money, because you 233 00:12:51.753 --> 00:12:55.984 always assume that I assume that they're well off and life is 234 00:12:56.053 --> 00:13:00.006 great. But the person on the Daily Funder was asking, you 235 00:13:00.075 --> 00:13:02.850 know, he needs help funding an attorney. 236 00:13:03.170 --> 00:13:08.510 Sean Murray: Yeah. So attorneys, you know, they they are a law 237 00:13:08.510 --> 00:13:12.980 firms. Yeah. Are businesses too. So the idea that a law firm 238 00:13:12.980 --> 00:13:15.950 would need money to do things like expand or hire or whatever. 239 00:13:16.550 --> 00:13:20.060 In that regard. They're just like any other business. So and 240 00:13:20.060 --> 00:13:23.180 they're not all rich. Yeah. Despite, I guess what you think, 241 00:13:23.360 --> 00:13:26.210 not all, not all lawyers are rich, perhaps if you work for a 242 00:13:26.210 --> 00:13:29.660 really big firm and you're a partner, you might be pretty 243 00:13:29.660 --> 00:13:32.420 well off. But even that doesn't mean that the firm itself 244 00:13:32.420 --> 00:13:37.040 wouldn't need capital, right? Individual income does not mean 245 00:13:37.040 --> 00:13:40.310 that the business itself has the income that it requires. Yeah. 246 00:13:40.370 --> 00:13:43.280 To grow, expand, pay a bill, whatever, whatever it is. So 247 00:13:43.280 --> 00:13:46.910 yeah, law firms do need money, and they do apply for 248 00:13:46.910 --> 00:13:51.170 alternative financing. That definitely happens. But as the 249 00:13:51.170 --> 00:13:56.060 question on the forum, suggest, it's difficult to get them 250 00:13:56.060 --> 00:13:56.630 funded. 251 00:13:56.840 --> 00:13:57.260 Johny Fernandez: Why? 252 00:13:57.980 --> 00:14:00.200 Sean Murray: Well, let me tell you, Johny. 253 00:14:00.470 --> 00:14:00.860 Johny Fernandez: Please tell me. 254 00:14:00.860 --> 00:14:04.067 Sean Murray: Because because it can be difficult. If you have a 255 00:14:04.133 --> 00:14:08.042 disagreement over the terms to cost effectively work it out. 256 00:14:08.042 --> 00:14:08.107 Johny Fernandez: And I'm the lawyer, so I know. 257 00:14:08.107 --> 00:14:11.886 That's because they are the lawyers. And you're gonna need 258 00:14:11.952 --> 00:14:15.601 your own lawyers to work out whatever it is they have an 259 00:14:15.666 --> 00:14:19.705 issue with. Yeah. Which means it's going to cost you money. So 260 00:14:19.771 --> 00:14:23.550 let's say let's use a $10,000 example. Okay. Law Firm only 261 00:14:23.550 --> 00:14:23.615 Sean Murray: Yeah. So or so you didn't know that, you know, but 262 00:14:23.615 --> 00:14:27.720 needs 10 grand. All right. I'm the funder. You're the law firm. 263 00:14:27.785 --> 00:14:31.695 Okay, yes. Yeah. $10,000. I'm gonna give you 10 grand. Okay. 264 00:14:31.760 --> 00:14:35.669 Everything started off okay in the beginning. Okay. And then 265 00:14:35.735 --> 00:14:39.840 you felt like something happened, that shouldn't have happened. 266 00:14:45.380 --> 00:14:50.270 you have you have a good faith argument to make, or might not 267 00:14:50.270 --> 00:14:52.640 even be it might not even be accurate. But yeah, you know, I 268 00:14:52.640 --> 00:14:54.470 can make the argument. Yeah. That's a lot of times, that's 269 00:14:54.470 --> 00:14:57.110 how lawyers are. Yeah. You know, I can make the argument that. 270 00:14:57.200 --> 00:15:00.050 Okay. Okay. So you're the lawyer. Yeah. I gave you only I 271 00:15:00.050 --> 00:15:03.320 only gave you 10 grand. Okay. You felt like something happened 272 00:15:03.320 --> 00:15:05.960 that shouldn't have happened in the transaction. Okay. You send 273 00:15:05.960 --> 00:15:09.830 me a legally worded letter to let me know, perhaps that I'm 274 00:15:09.890 --> 00:15:13.460 potentially in breach of the agreement. Okay. Now, what do I 275 00:15:13.460 --> 00:15:17.090 do? You call your lawyer. I have to call a lawyer. Yeah. The 276 00:15:17.090 --> 00:15:21.530 lawyer says, okay, let me take a look at at their letter. All 277 00:15:21.530 --> 00:15:23.840 right, this something I can help you with, I'm gonna need a 278 00:15:23.840 --> 00:15:28.550 retainer of $10,000. You're like, but, but the whole, the 279 00:15:28.550 --> 00:15:32.420 whole deal is only 10,000. And the profit I stand to gain is 280 00:15:32.420 --> 00:15:37.100 only like 1200 bucks on this deal. I gotta pay you 10 grand 281 00:15:37.100 --> 00:15:40.820 for the retainer, to work out a deal. I can only make 1200 on? 282 00:15:41.750 --> 00:15:44.090 And you're like, okay, well, the principle of the thing, right? 283 00:15:44.600 --> 00:15:48.950 So you, you pay 10 grand to the lawyer. And then he goes through 284 00:15:48.950 --> 00:15:51.410 it and he's like, okay, this is the actual, you know, this is a 285 00:15:51.650 --> 00:15:55.940 a complex commercial litigation type situation, if this if this 286 00:15:55.940 --> 00:15:59.120 continues to go out from here, and they end up suing, you know, 287 00:15:59.120 --> 00:16:02.180 this could go to court and be hung up in court for years, this 288 00:16:02.180 --> 00:16:04.910 could end up costing a couple $100,000, just want to prepare 289 00:16:04.910 --> 00:16:06.650 you ahead of time. That's what your lawyer is telling you. And 290 00:16:06.650 --> 00:16:07.100 you're like. 291 00:16:07.640 --> 00:16:09.170 Johny Fernandez: This here only cost $10,000. 292 00:16:09.200 --> 00:16:09.950 Sean Murray: That was the retainer. 293 00:16:09.980 --> 00:16:10.190 Johny Fernandez: Yeah. 294 00:16:10.190 --> 00:16:10.760 Sean Murray: That's just to get on. 295 00:16:10.760 --> 00:16:11.540 Johny Fernandez: No, no, no, just. 296 00:16:11.870 --> 00:16:13.340 Sean Murray: That's just to get them on that's just to get. 297 00:16:13.340 --> 00:16:15.500 Johny Fernandez: No, no, no, but but just in general, like, this 298 00:16:15.500 --> 00:16:17.900 all started with like, hey, I just need $10,000. 299 00:16:18.020 --> 00:16:19.400 Sean Murray: Yeah, that was that was just the yeah. 300 00:16:19.400 --> 00:16:20.900 Johny Fernandez: And now it's gonna cost 100 grand. 301 00:16:20.930 --> 00:16:22.880 Sean Murray: Now, it could potentially the lawyer will tell 302 00:16:22.880 --> 00:16:26.870 you 10 grand for me to work on it. Now. Now, this party says, 303 00:16:26.870 --> 00:16:29.090 you know, I still don't agree with what your lawyer says, I'm 304 00:16:29.090 --> 00:16:31.670 going to sue and your lawyer says, okay and before we move 305 00:16:31.670 --> 00:16:34.430 forward, I need to let you know, we're looking at it potentially, 306 00:16:34.610 --> 00:16:37.730 if this goes that, you know, gets prolonged, I'm confident 307 00:16:38.000 --> 00:16:40.610 in, you know, in your position here that you'll that you will 308 00:16:40.610 --> 00:16:43.430 be victorious. However, going to the court system could cost 309 00:16:43.430 --> 00:16:46.910 about 100 grand, you're like, okay, I almost didn't make about 310 00:16:46.910 --> 00:16:51.890 1200 bucks on this deal. How did we get to this point? What am I 311 00:16:51.890 --> 00:16:55.010 doing? I don't want to be in this. Okay. Why the heck did I 312 00:16:55.010 --> 00:16:57.950 work with a law firm? Why did I fund the law firm, made no 313 00:16:57.950 --> 00:17:00.830 sense. Now, let's just back up. Pretend you didn't even send me 314 00:17:00.830 --> 00:17:05.510 a warning letter. You just sued me. You sued me. You're a law 315 00:17:05.510 --> 00:17:08.750 firm. You came up with all these big legal arguments, sound 316 00:17:08.750 --> 00:17:13.460 really scary, right? And now I have to answer. And the lawyer 317 00:17:13.460 --> 00:17:16.160 that you hire looks at it and says, all right, you know that 318 00:17:16.490 --> 00:17:20.360 it this is going to be $25,000 retainer, just because we're 319 00:17:20.360 --> 00:17:24.950 already in the court system. Right. And then so you pay 25 320 00:17:24.950 --> 00:17:27.230 grand to retain the lawyer, you're still fighting over 1200 321 00:17:27.230 --> 00:17:30.080 bucks. Yeah. There's like nothing you can do. Yeah. Now, 322 00:17:30.080 --> 00:17:33.500 if you have a general counsel, you might be might be in a 323 00:17:33.500 --> 00:17:35.450 better position, because you might not have to pay your 324 00:17:35.450 --> 00:17:38.540 general counsel to do some of the legal work. But as soon as 325 00:17:38.540 --> 00:17:42.170 you drive along a third party. Yeah. Lawyers that handle your 326 00:17:42.170 --> 00:17:45.350 contract dispute with the law firm, there's no way you're 327 00:17:45.350 --> 00:17:48.500 going to make any money on this deal. This has happened. 328 00:17:48.650 --> 00:17:50.960 Johny Fernandez: Okay, that sounds I get stressed out just 329 00:17:50.960 --> 00:17:53.810 hearing at it. Cause I'm like, oh, man, I just, I don't want to 330 00:17:53.810 --> 00:17:55.460 work with these guys. But let me ask you. 331 00:17:55.460 --> 00:17:57.050 Sean Murray: That's exactly how people feel like they get 332 00:17:57.050 --> 00:17:58.310 stressed out and like it's not worth it. 333 00:17:58.340 --> 00:18:02.630 Johny Fernandez: Yeah. So when it comes to that, specifically, 334 00:18:04.790 --> 00:18:08.510 what do you what do lenders do? What funders do what law 335 00:18:08.960 --> 00:18:11.600 attorneys do? What do you do? 336 00:18:13.160 --> 00:18:14.780 Sean Murray: Oftentimes, they just say we don't work with 337 00:18:14.780 --> 00:18:15.410 attorneys. 338 00:18:15.590 --> 00:18:17.000 Johny Fernandez: So what like if an attorney wants to. 339 00:18:17.000 --> 00:18:19.340 Sean Murray: Which is why we have the question, I guess. Who 340 00:18:19.340 --> 00:18:23.000 funds them. Who would want to fund them? Because it's it's 341 00:18:23.000 --> 00:18:25.760 such a pain in the neck if something goes wrong, now, 342 00:18:25.760 --> 00:18:27.680 you're betting on the fact that the customer is going to 343 00:18:27.680 --> 00:18:30.650 actually pay it, then you're going to actually get paid, and 344 00:18:30.650 --> 00:18:32.930 everything's going to be fine. But there are plenty of 345 00:18:32.930 --> 00:18:35.600 situations throughout the history of this small business 346 00:18:35.600 --> 00:18:39.380 finance industry, where the law firms. They take a bunch of 347 00:18:39.380 --> 00:18:43.580 these things, and then they weaponize their, their own 348 00:18:43.580 --> 00:18:46.190 skill, or their own their own their own business against you. 349 00:18:46.190 --> 00:18:49.220 Yeah. And then they launch an attack. And you have to sit 350 00:18:49.220 --> 00:18:53.060 there and immediately count how much money is it goinna cost me 351 00:18:53.060 --> 00:18:55.100 versus how much we're fighting over, we're fighting against 352 00:18:55.100 --> 00:18:57.410 someone who doesn't have to spend anything. Some law firms 353 00:18:57.410 --> 00:19:00.110 will hire their own law firms, right. But in the beginning, 354 00:19:00.410 --> 00:19:03.200 they might not have to, so all their legal work is being done 355 00:19:03.200 --> 00:19:06.530 for free. It's a nightmare. You might be better off doing law 356 00:19:06.530 --> 00:19:08.840 firms that are really big. That way, if you give them a couple 357 00:19:08.840 --> 00:19:14.510 100 grand, and the dispute is a few $100,000. And your law, your 358 00:19:14.510 --> 00:19:17.780 lawyer says, you know $25,000 retainer is now out of control 359 00:19:17.780 --> 00:19:20.240 and ridiculous. Yeah. Because the profit on the deal stands to 360 00:19:20.240 --> 00:19:23.570 be more than what your legal fees could be. Right. So I think 361 00:19:23.900 --> 00:19:26.510 working with a small law firm, it's one of the hardest to deal 362 00:19:26.510 --> 00:19:29.900 with, because if they say, I'm unhappy with this, you know, 363 00:19:29.900 --> 00:19:34.250 this is going to go to court. This is and by the way, if a law 364 00:19:34.250 --> 00:19:36.770 firm is out there watching this might be like, Aha, so hopefully 365 00:19:36.770 --> 00:19:38.690 hopefully they're not watching it but. Yeah. This is the this 366 00:19:38.690 --> 00:19:40.730 is the inherent risk. Yeah. Of lending a law firm. 367 00:19:40.910 --> 00:19:43.460 Johny Fernandez: Man. Good to know. That question. Literally, 368 00:19:43.520 --> 00:19:46.400 I was like, wow. 369 00:19:46.570 --> 00:19:48.820 Sean Murray: But think but also think about it right? Even if 370 00:19:48.820 --> 00:19:51.160 you're wrong. I didn't I didn't say anything about whether or 371 00:19:51.160 --> 00:19:55.030 not you were going to prevail. Yeah. On your legal argument. 372 00:19:55.060 --> 00:19:57.520 Yeah. You can make the argument for whatever it is you're 373 00:19:57.520 --> 00:20:02.530 unhappy about. Yeah. And lose and be you know, and be in a 374 00:20:02.530 --> 00:20:05.920 strong position to lose, but I'm going to have to spend the money 375 00:20:06.010 --> 00:20:09.670 to get the win. And that money could cost more than whatever I 376 00:20:09.670 --> 00:20:13.030 stood to make having worked with you to begin with. So they they 377 00:20:13.030 --> 00:20:16.000 can know it's a doomed argument. Yeah. And still put you through 378 00:20:16.000 --> 00:20:18.580 the wringer. And so at the end of the day the funders, lenders, 379 00:20:18.580 --> 00:20:19.540 are like not worth it. 380 00:20:19.570 --> 00:20:22.120 Johny Fernandez: Yeah. Oh, man, that's good to know. Thank you 381 00:20:22.120 --> 00:20:24.160 for the breakdown, because that's a very interesting 382 00:20:24.160 --> 00:20:24.790 breakdown. 383 00:20:25.990 --> 00:20:27.640 Sean Murray: And if you're out there wondering why people don't 384 00:20:27.640 --> 00:20:29.530 fund law firms, they're like oh, it seems like an untapped 385 00:20:29.530 --> 00:20:31.330 opportunity. That's the risk. 386 00:20:31.540 --> 00:20:34.090 Johny Fernandez: Yeah, that's big risk. That's a huge risk. 387 00:20:34.090 --> 00:20:37.210 Sean Murray: Don't worry not no one's suing you. You seem like 388 00:20:37.210 --> 00:20:38.920 you're rat your rattled from that one. 389 00:20:39.340 --> 00:20:40.990 Johny Fernandez: That one's a lot. Because I think I think I 390 00:20:40.990 --> 00:20:43.330 think as a business owner, as a lender or funder, you're like, 391 00:20:43.360 --> 00:20:46.930 oh, there may be this untapped world out there. But then it's 392 00:20:46.930 --> 00:20:50.410 like, wait a minute, they're just gonna use. It's kind of 393 00:20:50.410 --> 00:20:51.880 counterintuitive in a way. It's like. 394 00:20:51.910 --> 00:20:52.780 Sean Murray: It's like you can't win. 395 00:20:52.780 --> 00:20:55.210 Johny Fernandez: So yeah, there is no winning. So that's 396 00:20:55.210 --> 00:20:55.810 interesting. 397 00:20:56.170 --> 00:20:57.130 Sean Murray: Very, very difficult. 398 00:20:57.160 --> 00:21:01.240 Johny Fernandez: Yeah, that's good to know. But you know, for 399 00:21:01.240 --> 00:21:04.240 the questions people have, they can put it on the Daily Funder, 400 00:21:05.080 --> 00:21:09.100 or just reach out to us. And let us know what questions you guys 401 00:21:09.100 --> 00:21:13.030 have. Also follow our social media platforms, Instagram, 402 00:21:13.030 --> 00:21:16.180 Twitter, Facebook, and LinkedIn. We'll have all their different 403 00:21:16.180 --> 00:21:18.640 clips from our stories. And also, don't forget, we have 404 00:21:18.640 --> 00:21:21.610 Broker Fair coming up on December 6. If you have not 405 00:21:21.610 --> 00:21:24.640 signed up yet, please do. We have all that information 406 00:21:24.640 --> 00:21:30.070 online. Also on our screen. And it's coming up, I mean, I think 407 00:21:30.070 --> 00:21:30.550 we're. 408 00:21:30.630 --> 00:21:31.320 Sean Murray: Like a month and a half away., 409 00:21:31.320 --> 00:21:32.430 Johny Fernandez: Were like a month and what yeah, it was like 410 00:21:32.430 --> 00:21:35.910 two months, no a month and a half. Yeah, it's coming up. So I 411 00:21:35.910 --> 00:21:39.450 definitely suggest if you haven't planned it out, please 412 00:21:39.630 --> 00:21:41.400 do so, so. 413 00:21:41.460 --> 00:21:43.440 Sean Murray: All right. Well, great show. 414 00:21:43.500 --> 00:21:46.080 Johny Fernandez: I know yeah, it is it was a good one. So thanks 415 00:21:46.080 --> 00:21:50.760 for your knowledge. You're always Wizkid All right. 416 00:21:50.760 --> 00:21:54.540 Sean Murray: Okay. Adios. 417 00:21:55.110 --> 00:21:57.630 Johny Fernandez: See you later. Hasta luego. 418 00:21:57.720 --> 00:21:58.590 Sean Murray: Hasta luego. 419 00:21:58.680 --> 00:22:00.510 Johny Fernandez: All right. I'm Johny Fernandez with deBanked. 420 00:22:00.570 --> 00:22:01.260 Sean Murray: I'm Sean Murray. 421 00:22:01.320 --> 00:22:02.280 Johny Fernandez: We'll see you guys next time.