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  1. #1
    Senior Member Reputation points: 34509 Jstarr's Avatar
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    Angry Yellowstone and Pearl ......Orig Fees

    SO it appears that Yellowstone and pearl have hefty orig fees and such, I'm working on a very small deal that was approved for 11K, after their fees ( that are pulled from Funded ) the merch only rec'd $9,750 - Im not a Fan... not sure if anyone else feels the same way. if your charging 1.45 then you are making plenty of money - The only other reason i can think of is they are brokering it out and trying to make their vig.

    Thoughts.

  2. #2

    Yellowstone and Pearl ......Orig Fees

    We fund about half the deals we originate and the other half we broker out. Not really sure which specific deal this one is so I can't really comment on the specifics without knowing that

  3. #3
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    cresthill capital fees on that 11K funding would have been 50% LESS then the example above! and commissions will be on the RTR (payback).....same on renewals ..



    sign-up today !

    http://cresthillcapital.com/index.html#iso
    Last edited by mcaguru; 11-28-2014 at 01:54 PM.

  4. #4
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    3 thing are certain death, taxes, and Isaac stern working on thanksgiving weekend !!! god bless him!!!

  5. #5

    Yellowstone and Pearl ......Orig Fees

    Sweats!!!!!

  6. #6
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    Quote Originally Posted by Jstarr View Post
    SO it appears that Yellowstone and pearl have hefty orig fees and such, I'm working on a very small deal that was approved for 11K, after their fees ( that are pulled from Funded ) the merch only rec'd $9,750 - Im not a Fan... not sure if anyone else feels the same way. if your charging 1.45 then you are making plenty of money - The only other reason i can think of is they are brokering it out and trying to make their vig.

    Thoughts.
    Welcome to high risk lending. Please sign in at the front desk and enjoy your stay.

  7. #7
    Senior Member Reputation points: 34509 Jstarr's Avatar
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    Yellowstone and Pearl ......Orig Fees

    This isn't my first rodeo, I deal with a slew of high risk lenders and they never charged me origination fees ,I'm also giving them hundreds of thousands of dollars worth of business because of that. On that note they are entitled - they're providing the funds and calling the shots I just wasn't made aware until contract....

    just keeping notes that's all..
    Last edited by Jstarr; 11-28-2014 at 08:27 PM.
    Jerry Starr
    Insource Funding
    433 Plaza Real, Ste 275 Boca Raton, Fl 33432
    P: 800-805-3391 Fx: 561-270-6895
    Jerry@insourcefunding.net | insourcefunding.net

    WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL

  8. #8
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    Quote Originally Posted by Jstarr View Post
    This isn't my first rodeo, I deal with a slew of high risk lenders and they never charged me origination fees ,I'm also giving them hundreds of thousands of dollars worth of business because of that. On that note they are entitled - they're providing the funds and calling the shots I just wasn't made aware until contract....

    just keeping notes that's all..
    Can you please post a few of the 'slew' of the high risk lenders you know of that don't charge points or fees? I would love to make their acquaintance.

  9. #9
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    isn't the factor rate enough to compensate for the high risk of the deal?? I know some lenders are not charging that much, but to charge someone 1000 on a 11k advance is mob like

  10. #10
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    Yellowstone and Pearl ......Orig Fees

    Someone get Jstarr a tissue.

  11. #11
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    bizlender, for one, doesn't charge anything like the others..i use them often. Same day funding and I get paid the same day as funding!!

  12. #12

    Yellowstone and Pearl ......Orig Fees

    If you don't like what funder charges - don't work with them - but to fund get paid and complaint is retarded. The reason they charge because they simply take risk and if you want to take risk yourself fund it and stop complaining

  13. #13
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    Quote Originally Posted by golf2014 View Post
    isn't the factor rate enough to compensate for the high risk of the deal?? I know some lenders are not charging that much, but to charge someone 1000 on a 11k advance is mob like
    LOL. Yes, mob like for sure, but let's keep in mind the people who get the 1.45's and have to go to a Pearl or YSC, typically have a history of borrowing money and not paying it back. Ever seen a Cashcall (now known as Loan Me) amortization schedule? Now that is beyond loan sharking. A 10K loan amount is amortized over 84 months for a payback somewhere in the 70-80K range. Yes, you read that right. Ever have a customer complain about rates? Just send them to Cashcall, they'll call you back in one hour flat to sign your deal. I promise.

  14. #14

    Yellowstone and Pearl ......Orig Fees

    well put slav. Brokers are getting to preoccupied with the fees lenders charge and avoiding one simple truth in sales a product is worth what someone is willing to pay for it

  15. #15
    Member Reputation points: 723 CHAMP3's Avatar
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    This industry is evolving.. The capital is not a Fannie or Freddy MAC type loan. This is a business loan that typically has no collateral to protect the investor which always means a premium will be paid. You can still provide a solid value for the customer by helping them with the financing they need to grow there business. It is tough out there for many of these business owners since the majority are still not aware of this Alternative financing option. There is still many companies out there that have predatory business practices such as charging additional commitment agreements up front from borrowers even if they are not really approved by lenders and then keeping the fee, all while soliciting the merchant way of fax marketing (WHICH IS ILLEGAL) My advise is to actually learn this business as a whole, learn who the real players are in the space and stick to good business practices and the sky is the limit!!

  16. #16
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    Quote Originally Posted by FUNd View Post
    LOL. Yes, mob like for sure, but let's keep in mind the people who get the 1.45's and have to go to a Pearl or YSC, typically have a history of borrowing money and not paying it back. Ever seen a Cashcall (now known as Loan Me) amortization schedule? Now that is beyond loan sharking. A 10K loan amount is amortized over 84 months for a payback somewhere in the 70-80K range. Yes, you read that right. Ever have a customer complain about rates? Just send them to Cashcall, they'll call you back in one hour flat to sign your deal. I promise.
    If you slapped the APR equivalent of a 1.45 factor on an 84 month amortization, you'd have a payback in that range too.

  17. #17
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    lendini is best...

  18. #18

    Yellowstone and Pearl ......Orig Fees

    The number 1 thing that pisses brokers and their clients off is this undisclosed initiation fee. I hear it all the time. try Payroll Financing www.fundmypayroll com. 973-917-2019. They have no initiation fee, factor rates as low as 1.30, and they get a lot of deals funded.

  19. #19
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    Quote Originally Posted by jason View Post
    If you slapped the APR equivalent of a 1.45 factor on an 84 month amortization, you'd have a payback in that range too.
    Yeah and a "low" 4% mortgage rate on $300K costs you over $700K P & I over a 30 year term. What are we talking about here?

  20. #20
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    Quote Originally Posted by FUNd View Post
    What are we talking about here?
    The issue here isn't what we are talking about, but rather who we are discussing things with. The industry, and by the transitive property this board, is plagued by people chasing cash selling a product they barely understand, based on underwriting they barely grasp, to borrowers that understand it even less. Think back to some of the threads you're seen. My favorite was the one asking how to calculate yield on investment.

    On topic: I am not surprised in the slightest that Pearl and YSC are charging additional/undisclosed/junk fees.

  21. #21
    All Yellowstone fees are disclosed in the contacts and again on the funding call so even if the merchant does not read the contract which some do not he has to agree to the fees again on a recorded call

  22. #22
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    On internal & outsourced deals?

  23. #23

    Yellowstone and Pearl ......Orig Fees

    We only do recorded funding calls on internal deals

  24. #24
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    Jstarr,

    Are the fees high, absolutely. But you are failing to grasp the main reason for this. Put yourself in the high-risk market, these deals are dirtier than a pig in mud. Bad credit, bad cash flow, risky industry, seasonal, tax liens, criminal background. Before you fund a high-risk deal through yellowstone or pearl etc...the question you should be pondering is "would i fund this merchant with my own money?" My bet is 99x the answer would be no. Yet they get funded, commissions go into your account.... If anything you should be thanking them.

    Side Note: So many of these deals go sour fast, so they take additional money off the top to offset the bad debt ratio.

    Just a thought
    Second place? Set of steak knives.

  25. #25
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    Quote Originally Posted by Jstarr View Post
    SO it appears that Yellowstone and pearl have hefty orig fees and such, I'm working on a very small deal that was approved for 11K, after their fees ( that are pulled from Funded ) the merch only rec'd $9,750 - Im not a Fan... not sure if anyone else feels the same way. if your charging 1.45 then you are making plenty of money - The only other reason i can think of is they are brokering it out and trying to make their vig.

    Thoughts.
    Were they paying any prior advance off....$1250 is steep even for YS/Pearl. I believe they are both about $500(give or take) so there is either some type of special circumstance or the Merchant owed a few hund to another lender or they rolled in a prior balance?

    To answer your question-no, I am not a fan, but I am pretty sure there was a legit reason in this case and, for the most part the UW fees are pretty reasonable. In my opinion 2% is a fair amount +$299 ACH Fee.

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