[AndyYSCISOdept]

Yah, Zach I definitely only get the deals from the WBL branches to fund at YSC that your guys tell me verbatim, "Get it done Andy"!!! LOL And I do and that creates a nice symbiotic relationship.

[FUNd]

I spent years in residential mortgage lending so answering this is quite simple. The residential mortgage space is loaded with red tape; between conservative underwriting, strict qualifications (income, assets, credit, equity), and constantly changing lender/government regulations both the borrower and loan officer have to jump through hoops just to get to closing. Add in hundreds of pages of documentation, constant re-disclosures, having to provide personal income and asset statements (tax returns are often a killer for self-employed business owners) and most importantly the TIME FACTOR. Many times the experience becomes a lengthy gamble with no guarantee.

The way we operate at WBL is different. It's very easy to tell whether or not a deal will fit our lending parameters. The process is faster and more efficient, getting the client the funds they need at an expedited rate. Is it cheap? No. Does it make sense for everyone? Absolutely not. But for those who need the funds quickly for good reason, we've proven to be a godsend. I'm helping a client now get $450k so he can pay off Chase to avoid foreclosure on his gas station which is valued at $1.25M. Imagine if he lost that? All of that equity just GONE. The guy has stellar credit but he knows he's in a tight spot. Ultimately we're providing a short-term solution through WBL and simultaneously working on finding him a more long-term, sustainable, loan option to take us out in the event he doesn't sell the property to an interested buyer.

In short our average client either does not have the best of credit, can't prove income docs, needs more funds than a typical MCA will allow, operates a business not allowed by some lenders, doesn't have months on end to secure traditional financing (we are an alternative lender after all), and needs funding quickly.





While a primary residence is allowed, I find many own/pledge a commercial property (often which they operate their business out of), or an investment property, even raw/vacant land. Exit strategies are important, we want to help our clients get the capital they need without us getting burned in the process.

Thanks for the detailed response. I understand your product a little better, however having some trouble with the guy in foreclosure. He has stellar credit, loan to value on his gas station using your numbers is well below 50%, and he can't get a mortgage, why? Not trying to be combative, but truly want to understand a little more, beyond what you and Zach have shared about when a client of mine would entertain your product. After all, I am in this to make money, whether it's a check from On Deck, YSC, or WBL, I don't care.

[Zach]

Thanks for the detailed response. I understand your product a little better, however having some trouble with the guy in foreclosure. He has stellar credit, loan to value on his gas station using your numbers is well below 50%, and he can't get a mortgage, why? Not trying to be combative, but truly want to understand a little more, beyond what you and Zach have shared about when a client of mine would entertain your product. After all, I am in this to make money, whether it's a check from On Deck, YSC, or WBL, I don't care.

Fund, I appreciate the question, and I can confide in you it's a question many of my ISO's ask me at first before they sign up.

Why would I use WBL, when there are unsecured products available that won't require collateral for a lower factor rate? Or, why would I use collateral for an ACH loan when my client can qualify for a typical "Hard Money" transaction?

Let me address your concerns individually:

1. Why would I use WBL?

Picture you have a client depositing 100k per month. You are competing on the deal. You ask the client:

"Mr. Prospect, I can secure you $100,000 within the next 48 hours through one of my unsecured lenders. Or, if you have any real estate collateral you'd be willing to use, I can offer you between $200-300K within the next 2-3 weeks. In fact, I can even do a combination and offer you the fast unsecured money, and then pay off and refinance it with the asset-backed, larger loan. This way you gain access to fast, easy money, but also gain access to more money than any of my competitors would ever be willing to offer. What route do you think would benefit your business the most?"

The WBL product can offer high-risk deals a much lower APR than our competitors. We can fund a 476 FICO score a 12-month 1.65, whereas our competitors will offer a 3-month 1.45... Simplistically, the equivalent to a 12-month 2.80. Our product's APR is less than 1/4 of most of our competition in the high-risk space.

2. WBL versus Hard Money

Hard money takes longer, is pickier, and has a narrower credit window than we do. Dakota, Maxim or many real-estate hard-money lenders shy away from deals that WBL would easily fund faster, easier, and with more commission. We don't rely on FICO or other traditional credit underwriting factors nearly as much. If you send me all of your hard-money declines, chances are we will find a deal and make some money together. I recommend to just give us a call or email and let us explain how we can fit into your current lender waterfall. We have a valuable product/sales tool for every ISO to offer their clients.

If you syndicate, picture the prepayment penalties we would help you attain. You fund a client a short term syndicated deal with the intent of using our money to pay it off. It allows you to syndicate with significantly less risk and a much reduced collection time on your yield. That instantaneous interest income would be valuable, no? Let me help you get it.

[AndyYSCISOdept]

Did anybody confirm whether or not this deal got funded? And if so, with whom for how much dinero?

[pmoney]

Thanks for the detailed response. I understand your product a little better, however having some trouble with the guy in foreclosure. He has stellar credit, loan to value on his gas station using your numbers is well below 50%, and he can't get a mortgage, why? Not trying to be combative, but truly want to understand a little more, beyond what you and Zach have shared about when a client of mine would entertain your product. After all, I am in this to make money, whether it's a check from On Deck, YSC, or WBL, I don't care.

The time constraint is the most important factor driving this deal. The borrower has an interested buyer lined up to purchase the property but doesn't want to move forward until the current lender (Chase) is paid off. Many commercial lenders steer clear of gas stations which wipe most traditional financing options off the board, also many alternative lenders. While there are some I know who will entertain the deal, it's going to take more time than we have. Ultimately we're providing a short-term solution to get Chase out of the picture so the borrower can strike a deal with the buyer and unload the property; which would be an optimal exit strategy. We all know that sometimes things don't go as planned so I'm simultaneously working with a few alternative lenders to provide a more long-term solution in the event the property doesn't sell. Under that scenario the new lender would take us out, the borrower gets to retain the property, and is able to open up their cash-flow.

While the above is a unique scenario, one that I've only encountered a handful of times, it's a real life example of how we're able to provide a tremendous amount of benefit and help a client out when their back's against the wall. I will say that a good chunk of the deals I get are either for working capital, consolidation purposes, need loan amounts which surpass those allowed with MCA's, or simply scenarios which don't fit with other lenders. As you said, it's all about making money so why not at least consider running a scenario by WBL to see if we can get it to work? You'd really have nothing to lose.