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  1. #1
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    need a cionvetial lender

    Hey, I have a client that is looking for a monthly payment with a term of minimum 18 months.

    Doenst want cash advance but he already have 1 position.

    He have a solid credit, solid deposits and is willing to put his house as colleteral if needed, but I prefer not to in this envirmoent. I'm looking for something unsecrued for a few reasons.

    If someone is intreseted to take a look I will be than happy to chat with you via email, you can comment here or with a privet messege.

    Thank you

  2. #2
    Senior Member Reputation points: 23085
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    Nov 2013
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    If your clients personal credit is weak (<640), or has poor business credit (<80 Paydex) and shows a loss on their financial statements or barely enough profit to handle a long term loan then give them a reality slap in the face. They don't qualify.

    Sell them a MCA with an exit strategy to longer term financing once they improve the above conditions and help them do it.

  3. #3
    Senior Member Reputation points: 216519
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    House as collateral..... what's the mortgage's LTV on the house?
    I'm not saying that it's worth doing, it's just that to squeeze enough money out of the home for any lender would be hard. It's rare to find someone that someone isn't maxed out on their mortgage.

  4. #4
    Senior Member Reputation points: 30747
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    Quote Originally Posted by abfunders View Post
    House as collateral..... what's the mortgage's LTV on the house?
    I'm not saying that it's worth doing, it's just that to squeeze enough money out of the home for any lender would be hard. It's rare to find someone that someone isn't maxed out on their mortgage.
    Question...

    Why do you feel it is rare for people not to be maxed out on their mortgage?

  5. #5
    Senior Member Reputation points: 81655
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    Mar 2014
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    Florida
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    2,854

    Business type?
    Solid Deposits = ?
    TIB?
    Commercial Property

    Residential Equity Loan - put that on that back-burner.

    **Nothing conventional about this file

    **Has he applied for and received any EIDL or PPP $$
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  6. #6
    Senior Member Reputation points: 216519
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    Quote Originally Posted by Winning View Post
    Question...

    Why do you feel it is rare for people not to be maxed out on their mortgage?
    Winning, I meant in the file that I see.
    Most people aren't disciplined enough. How many people keep balances on their credit cards when they could easily pay them down? A lot.
    But most business owners, if they had enough cash to start a business, didn't also have enough cash to buy their home.
    Cash advances are expensive, so why didn't they go to their bank to get a term loan on their home for less than 5%?
    Most people don't have financial / business advisors until it's too late.

    And, finally, people are greedy. They have 20% for a down payment and want to get the biggest house that they can get, even if it's overleveraging themselves on the monthly payments, which stretches it out to 30 years to lower the monthly payment, but the amortization takes a VERY long time to pay down. Then rates go down and the price on the home went up, and their refi at another 30 years at 80% LTV. Then they sell their home and move cities, and do it again with whatever cash they have amassed on the sale, at 80% LTV on the mortgage.

    I am personally at 40-45% LTV with a 30 year amortization on my mortgage after 7 years. The price on my home did go up from when I bought it, and if I could refi now without the penalties from my bank, I would do 20 or 25 amortization instead. I did the mortgage before I knew anything about how loans really work.

  7. #7
    Senior Member Reputation points: 30747
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    Quote Originally Posted by abfunders View Post
    Winning, I meant in the file that I see.
    Most people aren't disciplined enough. How many people keep balances on their credit cards when they could easily pay them down? A lot.
    I'm guilty...
    BUT


    Quote Originally Posted by abfunders View Post
    But most business owners, if they had enough cash to start a business, didn't also have enough cash to buy their home.
    Cash advances are expensive, so why didn't they go to their bank to get a term loan on their home for less than 5%?
    Most people don't have financial / business advisors until it's too late.
    Ok, I can see where you are coming from, makes sense.

    Quote Originally Posted by abfunders View Post
    And, finally, people are greedy. They have 20% for a down payment and want to get the biggest house that they can get, even if it's overleveraging themselves on the monthly payments, which stretches it out to 30 years to lower the monthly payment, but the amortization takes a VERY long time to pay down. Then rates go down and the price on the home went up, and their refi at another 30 years at 80% LTV. Then they sell their home and move cities, and do it again with whatever cash they have amassed on the sale, at 80% LTV on the mortgage.
    Yeah I follow you on this point as well.. But man, when you run the numbers on the total out of pocket cost for the 30 year note vs a 15 year note, the huge difference should make people not be able to sleep at night. When I did that and saw the big difference I couldn't make myself do the 30.

  8. #8
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    Brooklyn, NY.
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    50K+ deposits, 14 months, Autoshop.. I know it's almost not possible to give him what he's looking for but trying doesn't cost money or time... About his property, I didn't ask, because I'm looking for something like loan me just they do hard credit pulls and their process is kidna complicated... I dont think puting your own house as colleteral in this enviroment is a wise move also I still dont think it will help his odds to get longer term and am onthly payment

  9. #9
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    Quote Originally Posted by Winning View Post
    Yeah I follow you on this point as well.. But man, when you run the numbers on the total out of pocket cost for the 30 year note vs a 15 year note, the huge difference should make people not be able to sleep at night. When I did that and saw the big difference I couldn't make myself do the 30.
    Let's just take a 4.5% mortgage. The payments are so low, and the risk of "missing" with higher payments, and when it's early in your career, and you don't have enough stable income yet.... it's so tempting! 30-years 1.82 factor rate vs 1.38 factor rate on the 15 year, and the payments being 1/3 cheaper. Lots of merchants don't care about the rate either, they just care about the daily. If you're a salaried employee vs business owner/commissions, it's also a decision-making factor.

  10. #10
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    Quote Originally Posted by Forgiver View Post
    50K+ deposits, 14 months, Autoshop.. I know it's almost not possible to give him what he's looking for but trying doesn't cost money or time... About his property, I didn't ask, because I'm looking for something like loan me just they do hard credit pulls and their process is kidna complicated... I dont think puting your own house as colleteral in this enviroment is a wise move also I still dont think it will help his odds to get longer term and am onthly payment
    If you don't mind me asking..... what does "SOLID CREDIT" mean?

  11. #11
    Quote Originally Posted by Winning View Post

    Yeah I follow you on this point as well.. But man, when you run the numbers on the total out of pocket cost for the 30 year note vs a 15 year note, the huge difference should make people not be able to sleep at night. When I did that and saw the big difference I couldn't make myself do the 30.

    Normally I would agree... but the money is SO cheap now. If you get 2.25-2.5% on a 30 and invest the cash you are not putting towards the mortgage, it should outperform the savings you would see from a shorter term.

  12. #12
    Senior Member Reputation points: 30747
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    Quote Originally Posted by OC Funder View Post
    Normally I would agree... but the money is SO cheap now. If you get 2.25-2.5% on a 30 and invest the cash you are not putting towards the mortgage, it should outperform the savings you would see from a shorter term.

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