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10-22-2015, 01:59 PM #6
Reputation points: 23750
- Join Date
- Aug 2014
- Posts
- 194
I don't know too many funders that can be very profitable with a 15% default rate.
A-B paper default rate should be 5 - 8%
C-D paper default rate should be 9 - 13%
From my experience once you go over 13% default rate it is very hard to turn a profit. Cost of money, overhead, commissions, advertising etc... Will not allow you to have a default rate above 13%. Unless your average turn time on deals is under 5 months, closer to 3 months then maybe the D paper shops can stomach 13% + default rates because they're turning their money 2.5 - 3.5 times a year
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