[wallerbusiness]

I am not here seeking ISO's I have my own sales guys and we harvest our own leads. However why do ISO's send me the worst of the worst. I know that I am new to being a direct lender and have been a broker before direct lending but I am not dumb. Ive been in banking and alot of other things but at least send me 1 or 2 files that are at least C or B paper. LOL....... I made the leap in NOV to just lend my own money and underwrite my own deals... My question is to all the Business Development and Recruiters of ISO's - Is it this commom for ISO's to send over bad and sometimes fradulent paper? PLEASE HELP!

[fundnow]

What's the name of your company? How quick does it take to get offers? How fast can you fund? How many points do you pay?

[dpFund]

Hang in there Waller. There is at least one good broker for every five or ten brokers that fit the description you wrote. Many of them are on this site. Just a matter of weeding through and finding the good ones. Then the 80/20 rule kicks in (80% of your good deals come from 20% of your brokers). Or sometimes...it is the 95/ rule. :-)

We started funding deals with our own money in 2008 and it was a painful learning curve.

My experience is that it comes down to effective time management. One of the things I do to combat the massive time waste on the front end is to require a handful of docs up front before I will speak with the broker or client. That way I can review the file and typically know in ten minutes if there is a chance I can fund. If so, then I have my assistant set up an interview with the client. Interviews ONLY happen if the client passes muster with the initial review.

Now I have my assistant doing much of the front-end review AND setting the appointment. That stated, the brokers who understand my business model and send (even slightly) pre-screened deals get the majority of my attention. Back to the 80/20.

While you cannot prevent somebody from sending junk, this process certainly helps to lighten the effect it has on your time. And time is by far the most important commodity you have.

Here is an exercise that will help a lot:

1.) Study how you spend your time during the work day, and break it down to PRODUCTIVE time (like reviewing files or interviewing clients) vs. unproductive time (like talking too long on the phone, responding to senseless chatter on forums :-), lunches that are too long, etc.) I find that I have a maximum of 5 hours of productive time per day.

2.) Determine how much money you make on a monthly basis, on average.

3.) Divide the amount you earn on a monthly basis by the average number of PRODUCTIVE hours per month. The result is the REAL value of your time.

Doing this simple exercise is a real eye opener. Pretty soon you find yourself getting extremely protective of your time.

As an advanced efficiency/profit maximization technique, look VERY CLOSELY at every task you perform. Decide which tasks can ONLY be done by you and nobody else. Outsource every other task and focus only on the things that only you can do.

Once you perfect this process, do the exercise (above) again and you will find that your average hourly income has jumped, likely significantly.

Another tip: Limit all meetings to no more than 30 minutes (less if possible). If it can't be accomplished in 30 minutes, there is a problem.

I know my answer is probably a little off what you are originally asking, but I can tell you beyond the shadow of a doubt that it can make you a wealthier man in 2016.

Hope this helps, at least a little.

Best,

Dan Page
Dan@fundingstrategypartners.com

[brokerCompany]

Dan quick question, why do you have a finders fee agreement if you are a direct lender?

[dpFund]

Dan quick question, why do you have a finders fee agreement if you are a direct lender?

Um...I'm not sure what this has to do with the conversation above, but here is my answer:

Because my personal money is invested in our fund and I do not pull any out. It rolls over and is funding my kids college, retirement, etc. The only way I keep food on the table is by charging a small fee on the front end, payable only upon funding.

[brokerCompany]

ok, some guys do it differently.
MOst direct lenders even the private ones we used just have the upfront fee in the closing docs , not a finders fee. As a broker I use finders fee

thanks

Um...I'm not sure what this has to do with the conversation above, but here is my answer:

Because my personal money is invested in our fund and I do not pull any out. It rolls over and is funding my kids college, retirement, etc. The only way I keep food on the table is by charging a small fee on the front end, payable only upon funding.

[Michael I]

I am not here seeking ISO's I have my own sales guys and we harvest our own leads. However why do ISO's send me the worst of the worst. I know that I am new to being a direct lender and have been a broker before direct lending but I am not dumb. Ive been in banking and alot of other things but at least send me 1 or 2 files that are at least C or B paper. LOL....... I made the leap in NOV to just lend my own money and underwrite my own deals... My question is to all the Business Development and Recruiters of ISO's - Is it this commom for ISO's to send over bad and sometimes fradulent paper? PLEASE HELP!

if you are not offering something better then the rest you won't see the better paper from the better iso . plain and simple

[mcaguru]

Mr. Waller -
Please be careful out there.... I remember as a kid leaving the circus (i can not recall one act but remember the following) Do not attempt anything you saw here today at home

[J.Celifarco]

the bottom line is that ISO's and sales guys in general have trouble letting deals go especially big ones. So when they sign up with a new bank the firs thing they do is go through the old decline files and send them all over to you too see what they might get done. Whenever I speak to anyone in different bizdev departments across the industry this is something I hear all the time. You you as a new funder it is just a matter of weeding through the garbage to try and find the good ISO's.