[mcashark]

So Doug just wrote this article today https://www.nj.com/opinion/2018/12/a...-a-lender.html , Doug made his fortune selling a mortgage company to Deutsche Bank AG months before the U.S. housing market collapsed. https://www.futureofcapitalism.com/2...-deutsche-bank Dougy Fresh!!!

[J.Celifarco]

So Doug just wrote this article today https://www.nj.com/opinion/2018/12/a...-a-lender.html , Doug made his fortune selling a mortgage company to Deutsche Bank AG months before the U.S. housing market collapsed. https://www.futureofcapitalism.com/2...-deutsche-bank Dougy Fresh!!!

Talk about throwing stones when you are standing in a glass house. Do they think there is much difference between a COJ or securing the funding with a property? SMH

[Michael I]

Talk about throwing stones when you are standing in a glass house. Do they think there is much difference between a COJ or securing the funding with a property? SMH

seriously , i never understood how their product is even legal . charge a guy 300% collateralize by property

[WestCoastFunding]

I’d much rather be associated with Yellowstone than the criminal enterprise known as Deutsche Bank.

[swiftcloser]

....

[Davincinc]

wbl model
50% LTV of a low ball appraisal
Loan amount = 50% of your monthly Business deposits
factor rate, not APR = 1.50

so 1,000,000 property (including primary residence option) = up to 500k loan amount based on ABL
50k a month in deposits = 25k max loan amount
with a 45k payback in 12 months.

Plus coj....

to lose a 1m home or property for a 75k MCA factor....

How is this not the topic of bloomberg?

[J.Celifarco]

wbl model
50% LTV of a low ball appraisal
Loan amount = 50% of your monthly Business deposits
factor rate, not APR = 50%

so 1,000,000 property (including primary residence option) = up to 500k loan amount based on ABL
50k a month in deposits = 25k max loan amount
with a 75k payback in 12 months.

Plus coj....

to lose a 1m home or property for a 75k MCA factor....

How is this not the topic of bloomberg?

They have a coj in their contracts?

[Davincinc]

last offer i got 2 yrs ago did, before they bought bizfi.

let me see if I can find the contract i had, brb

[WestCoastFunding]

wbl model
50% LTV of a low ball appraisal
Loan amount = 50% of your monthly Business deposits
factor rate, not APR = 1.50

so 1,000,000 property (including primary residence option) = up to 500k loan amount based on ABL
50k a month in deposits = 25k max loan amount
with a 75k payback in 12 months.

Plus coj....

to lose a 1m home or property for a 75k MCA factor....

How is this not the topic of bloomberg?

Not to mention all the upfront fees they charge.

[J.Celifarco]

Not to mention all the upfront fees they charge.

YEP, giant glass house

[HDF]

Didn't this self-rightous fool get smacked for taking advantage of the move to Jersey to take advantage of putting lower income folks to work - then ****ting on them? # NY post Minority Hiring Trick

[FroFunds]

I have a guy making $18-20k per month. WBL gave him a $50k secured daily payment loan at $453 a day; about 50% of monthly revenue in payments. That's absurd.

I don't understand their business model. Fund to repossess?

[Davincinc]

I have a guy making $18-20k per month. WBL gave him a $50k secured daily payment loan at $453 a day; about 50% of monthly revenue in payments. That's absurd.

I don't understand their business model. Fund to repossess?

what was the value of the property and ltv offered?

[WestCoastFunding]

I have a guy making $18-20k per month. WBL gave him a $50k secured daily payment loan at $453 a day; about 50% of monthly revenue in payments. That's absurd.

I don't understand their business model. Fund to repossess?

Isnt tbe state of NJ subsidizing their employees (not joking)?

[WestCoastFunding]

Didn't this self-rightous fool get smacked for taking advantage of the move to Jersey to take advantage of putting lower income folks to work - then ****ting on them? # NY post Minority Hiring Trick

Yeah, this.

[FroFunds]

what was the value of the property and ltv offered?

I never asked. I'll try to find out next time I speak with him considering the underwriting model you quoted above.

[Jess]

It’s funny who self righteous about these articles. Loves the head of risk from streetshares commenting on how great they are on LinkedIn. Streetshares who lost 3 MILLION on 2 million of revenue last year. You have to try really really hard to generate those results.

[Don Dolla]

I can’t help but laugh at this guy Doug. Such an asshole . First He moves his whole company from NY to NJ... then promptly gets hit with a lawsuit for defrauding the state of NJ out of millions in tax credits... then the state legislature turns around labels all his financial products as outrageous.... he’s already being regulated , funny how he takes the idea (just like he takes peoples homes). And acts like it belonged to him in the first place LOL.

[Cfairbank]

wbl model
50% LTV of a low ball appraisal
Loan amount = 50% of your monthly Business deposits
factor rate, not APR = 1.50

so 1,000,000 property (including primary residence option) = up to 500k loan amount based on ABL
50k a month in deposits = 25k max loan amount
with a 45k payback in 12 months.

Plus coj....

to lose a 1m home or property for a 75k MCA factor....

How is this not the topic of bloomberg?

Because Bloomberg already hit them in 2014.....https://www.bloomberg.com/news/artic...business-loans

[fundingsmbs]

all of these new practices, massive cojs, collateral of property, none of this was around when this industry was much cleaner and a true mca industry based on future sales. sure, much more is funded because of cojs and collateral, but, what is the cost to the public signing away their assets with rates so high and so deep in debt that the only place that goes is defaults.

[GoodCustomerService]

WBL had the right idea, just the wrong intentions. They were predators! And they allowed MCA brokers who no **** about collateralized loans to sell their products (no disrespect to those who know both). They used an MCA loophole on a loan. Big no no. If you plan to use collateral in your deal, it's a loan and subject to usury laws. If you can't lend at the usury line, then you DON'T LEND! And WBL wasn't just dealing in real estate...I remember the stories of the boats, jewelry, classic cars, sports memorabilia, etc. that was used as collateral to get approved for a loan amount at 4 times the affordable rate for the client. They set people up to default so they could confiscate ****. Like THUGS! I hope they burn for what they've done!

But don't let what WBL did change your mind on introducing sub prime real estate loans to MCA clients. There is a MASSIVE market for sub prime collateralized loans that a tremendous amount of MCA merchants can benefit from if they work with the right people. Especially on MCA consolidations. Just stay below the Usury line and give the merchant the honest approach. "Mr. Merchant, you suck really bad and your credit blows! So unfortunately this piece of commercial property you own, although you have solid equity, is worthless because nobody is crazy enough to give you money against it cause, as I said, you suck and are a monster credit risk. So your dreams of a 9-10% hard money loan just died, and don't mention that SBA bank in Nevada that has had your file for 2 months and hasn't called you back. But guess what...not all is lost! I'll take a shot on you and charge you the MAX usury rate and MAX fees your state allows me to. Why? Cause I f*cking deserve it for being the only crazy bastard to take a shot on you! Now don't f*ck me, and we will help flip you into something more conventional when the time is right and you don't look like such a goober to every mortgage bank, SBA provider, etc out there." MCA was made to be short term. These kind of loans can be short term as well if done properly. NOT like WBL.

And lastly, not every state has favorable usury rates for sub prime lending. So stay out of them if you can't make money! That simple.

[fundingsmbs]

if you look at the backgrounds running some of these companies, most were already doing some type of subprime product whether mortgages, or, payday loans. they flocked to this industry because it was booming

[SmartAdvanced]

I wonder why WBL is the only company doing MCA on property. If it’s sooo booming why isn’t there any competition?

[fundingsmbs]

don't think if there are, they are charging wbl rates