Results 1 to 6 of 6
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05-08-2015, 05:00 PM #1
- Join Date
- May 2015
- Posts
- 1
How to get started with giving the advances?
Hi.
I'm interested in MCA activity. I've looked into it, but there is one glaring problem: I have money to lend, but what do I do to make sure I get a cut of sales? Is there an external agreement I need to make with their bank? How does that even work?
Appreciate the help guys, thanks.
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05-08-2015, 05:06 PM #2
If you had truly looked into it, then you would know how syndication works and when and where people collect their splits.
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05-08-2015, 05:11 PM #3
Wowzers, talk about starting from scratch.
I would suggest working in the business in other capacities first to get your feet wet, maybe as a syndicate for an existing funder or ISO or something. How did you intend to generate deal flow? Money is unfortunately not a real advantage at this point. It's like saying "I have a phone, so I want to start an ISO." Marketing and infrastructure are the nuts and bolts of the business.
When you "looked into it," what/who did you look into exactly?
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05-08-2015, 06:07 PM #4
- Join Date
- Nov 2013
- Posts
- 600
Money to lend is 20% of the problem, 80% is originating a good deal. My professional opinion is to find and/or originate deals to put money into and syndicate with a reputable lender that handles the A to Z of lending.
You will not only avoid legal issues with contract law and collections, but will also have a fully automated accounting systems.
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05-11-2015, 10:11 AM #5
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
There's no shortage of people with money to lend in this industry. Everyone wants to make a 15-30% APR on their money. The problem is being able to find enough deals to apply the cash to. You won't be able to just walk in off the street and start participating in deals unless you can bring something to the table in terms of deal flow. Aside from that, your best bet is to team up with a reputable broker who already syndicates their own deals with funders and work out a separate arrangement with them. The broker will probably charge you a management fee but that's a small price to pay to participate in this industry.
Last edited by MCNetwork; 05-11-2015 at 10:21 AM.
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05-11-2015, 10:32 AM #6
- Join Date
- Dec 2013
- Posts
- 4,713
If your looking for a Funding House for your B/C/D/(even A-) then it would be a good idea to sign up with Cresthill Capital (we will set you up with an Account Manager that will make it as easy as possible during your learning curve) as far as syndicating.... we don't operate the model since we take 100% of the risk and pay our ISO's "Double Digit Commissions"
Keep in mind Syndicating in a file can be like buying a raffle ticket (at best it may be a raffle with few other tickets being sold), its the wild west darting wires across the country and you need to be working with sharpshooters to stand a chance.
See link below for ISO Agreement!
http://cresthillcapital.com/index.html#isoLast edited by mcaguru; 05-11-2015 at 10:39 AM.
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