[On My Way]

I am pretty new to selling merchant cash advances, almost 4 months now and it is very competitive and sometimes the rates are difficult to sell but the hardest part is how many other people call the same prospect and trying to compete with them. I know I will get better over time and make more.

I am confident in that. But I was just talking to someone that said they were doing this for like 2 years and now they are selling hard money and it is a lot easier and they said they are making more. I don't know much about what hard money is (high interest real estate lending according to google) but am wondering what everyone else on here would think about doing that or if anyone has any experience doing that, and can you make more money doing it?

I am only 23 and eager to learn and acknowledge that I don't know it all but don't want to waste 2 years doing something that will go nowhere or miss out on something that could be better. Also how long does it take the average person to start doing well selling merchant cash advances?

[Steven_O]

Levels to this hustle, young one... so, the short answer is: master one, do both.

Your A-paper (good credit) guys are not going to swallow an MCA, and your high risk guys aren't going to have collateral to pledge.
Find a reputable hard money partner here to work with, vet them with references of REPUTABLE people, and have the option to pass business over when available.

One of the most important things that has served me well in this business, is knowing where to PLACE a file.
Sometimes, I am the point guy... sometimes, I am not.

Get UW guidelines...study them... build a matrix of sorts... learn where to place files (which will come with experience, which will come with volume, which will come from mistakes).

Good luck. This isn't an easy business, but it's rewarding.

[SFC]

I am pretty new to selling merchant cash advances, almost 4 months now and it is very competitive and sometimes the rates are difficult to sell but the hardest part is how many other people call the same prospect and trying to compete with them. I know I will get better over time and make more.

I am confident in that. But I was just talking to someone that said they were doing this for like 2 years and now they are selling hard money and it is a lot easier and they said they are making more. I don't know much about what hard money is (high interest real estate lending according to google) but am wondering what everyone else on here would think about doing that or if anyone has any experience doing that, and can you make more money doing it?

I am only 23 and eager to learn and acknowledge that I don't know it all but don't want to waste 2 years doing something that will go nowhere or miss out on something that could be better. Also how long does it take the average person to start doing well selling merchant cash advances?

Nothing like MCA! Do you have anyone helping you? There are plenty of Super ISO's in the space who can help. And there are some really great people on this forum who will help if you just ask (look for people with high reputation points to weed out the BS).

Like anything else, it's tough at first but can be super rewarding. Anything worth doing isn't usually easy at first.

If you think selling MCA is hard (no collateral) then convincing someone to risk their properties (lots of collateral) won't be much easier. They take weeks or longer to close vs MCA which can take hours or days. And MCA commissions as a % far exceed that of hard money RE. Like 10X.

Just ask for help and this forum will swarm you with it! Good luck!

[omegafund]

You have to develop a relationship and know how to package and present a hard money deal. But for a guy selling 35k MCAs and make the leap to placing 1M dollar RE deals it may take some time. Make the easy calls doing MCA and work with someone who does hard money deals and has experience. Happy to look at any hard money deals you get

[On My Way]

I am sorry for the late reply! I didn't realize I would get a response. Thank you for all of the advice.

Another question and sorry if it's obvious. Do you need a real estate license to sell hard money?

[abfunders]

I am sorry for the late reply! I didn't realize I would get a response. Thank you for all of the advice.

Another question and sorry if it's obvious. Do you need a real estate license to sell hard money?

Depends on the state. California, yes. Otherwise, only if it's a primary residence would you need a license.
Omega is right about the packaging.
It's also about knowing what you mean by "hard money" if it's just a catch-all phrase to mean non-bank loans, or 12% I/O payments. There are many private lenders who offer 30-year mortgages at higher rates than the bank, but at more favorable underwriting.

[WestCoastFunding]

My personal advice is to learn as much about all the financing options. MCAs, equip financing/leasing, SBAs (full 7(a) and 504 programs), A/R financing (LOCs/factoring), Hard money, longer term CRE financing, etc.

Just having knowledge of these other products will help with a MCA sale. No business owner really wants to make a MCA their first option, but at the time it may be only option. If they feel like they’re talking with someone knowledgeable who can’t at least try all the options, it builds credibility and helps them deal with the fact that the MCA is the only option after your tried others.

With all that having been said, it’s about the path of least resistance. 8 years ago MCAs were so damn easy. No one stacked, and damn near everyone renewed. Now this whole industry is saturated to the point merchants are getting 3-5 calls a day from different brokers. Whereas with hard money, there are way fewer brokers. On top of that, it’s just a cleaner business.

[WestCoastFunding]

There are plenty of Super ISO's in the space who can help. And there are some really great people on this forum who will help if you just ask

This is solid advice. I know everyone wants to make their full commission on your own. But if you’re a new broker and you’re only signed up with YSC, EBF and a few others, you aren’t going to beat our seasoned brokers. A good “superbroker” not only knows how to properly place deals, they also have the relationships with the best funders, and with those relationships comes the ability to get underwriting to bolster offers that a newbie would never get.

No shame in using a solid one. Instead of getting 12 points on a deal, you may only get 6-8. But if a superbroker is able to get a merchant $100,000 paying you 8, it sure beats a situation where you were only able to get them approved for $50,000 paying 12 points on your own.

[Richard Gomez]

I am sorry for the late reply! I didn't realize I would get a response. Thank you for all of the advice.

Another question and sorry if it's obvious. Do you need a real estate license to sell hard money?

I do more "hard money-private money" refinancing of commercial & residential properties than MCA's every month. To answer your question, no you do not need any kind of license to sell refinancing of any type of property as long as your lender is a private institution, be it a primary or secondary property. If you are trying to get a mortgage loan from Wells Fargo & any kind of bank then you would need your MLO license. Try doing both, it's easy, MCA pays great, it's a lot faster, a typical refi should not take longer than 3 weeks, an MCA shouldn't take longer than 3 days. I am doing three MCA's at the moment totaling 45k compared to residential refi's that add up to 2.64mm, in CA & MA. Learn your craft, make it an obsession in the beginning, LISTEN TO WHAT THEY NEED, if you don't know how to get them to the promised land then ask around on how to get there. You should be making around 8k monthly after you get your feet wet, after 4-6 months. Best of luck!

[Sachip24]

you seem to be selling rate. stop selling rate sell value. NO ONE gives a **** about paying more for something if they did luxury items wouldn't exist. Sell the value of the money not the rate and you won't have a problem closing any deals. You're job is to attach enough value to that money that it makes sense when you get someone interested, if they see enough value...cost on the money won't matter.

[giveme]

you seem to be selling rate. stop selling rate sell value. NO ONE gives a **** about paying more for something if they did luxury items wouldn't exist. Sell the value of the money not the rate and you won't have a problem closing any deals. You're job is to attach enough value to that money that it makes sense when you get someone interested, if they see enough value...cost on the money won't matter.

Do you have any specific suggestions of explaining the value to attach to the money vs. the rate to a merchant?

[BB_Cooper]

I am pretty new to selling merchant cash advances, almost 4 months now and it is very competitive and sometimes the rates are difficult to sell but the hardest part is how many other people call the same prospect and trying to compete with them. I know I will get better over time and make more.

I am confident in that. But I was just talking to someone that said they were doing this for like 2 years and now they are selling hard money and it is a lot easier and they said they are making more. I don't know much about what hard money is (high interest real estate lending according to google) but am wondering what everyone else on here would think about doing that or if anyone has any experience doing that, and can you make more money doing it?

I am only 23 and eager to learn and acknowledge that I don't know it all but don't want to waste 2 years doing something that will go nowhere or miss out on something that could be better. Also how long does it take the average person to start doing well selling merchant cash advances?

RESPECT for the clear coachablity, humility & hustle embodied in this post!!!

If you want an MCA funder's perspective on this market, please feel free to reach out-

Robert S Bloink
EVP of ISO Partnerships
Direct: 248-341-9477
Email: bb@cooperasset.com
Web: www.cooperasset.com

[Sachip24]

Do you have any specific suggestions of explaining the value to attach to the money vs. the rate to a merchant?

the merchant will tell you how to close them if you pay attention to what they are saying. The minute they show interest you ask them what is the money going to be used for and how much profit can they make on this. That is your leverage to use. sell the profit side of it (benefit) not debt side (rate, lower payment etc etc etc)