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04-07-2016, 06:19 PM #1
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PSF, junk fees-is there a commonly accepted rate?
And any other info...
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04-07-2016, 06:30 PM #2
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- Mar 2016
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- 657
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04-07-2016, 08:00 PM #3
We charge the absolute minimum fees on all deals, usually between 2-3% in TOTAL fees, and allow ISO's to charge their own fee on our contract.
Wall Funding ISO Team
646-979-2161
partners@wallfunding.com
http://wallfunding.com/
30 Broad St, New York, NY, 10004
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04-07-2016, 08:19 PM #4
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- Jul 2015
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04-07-2016, 08:25 PM #5Wall Funding ISO Team
646-979-2161
partners@wallfunding.com
http://wallfunding.com/
30 Broad St, New York, NY, 10004
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04-07-2016, 08:28 PM #6
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- Jul 2015
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- 1,202
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04-07-2016, 08:32 PM #7
Deducted, the same as most other funders.
Wall Funding ISO Team
646-979-2161
partners@wallfunding.com
http://wallfunding.com/
30 Broad St, New York, NY, 10004
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04-07-2016, 08:33 PM #8
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- Jul 2014
- Location
- Online
- Posts
- 965
Ah, the PSF.
If you are keeping the buy rate low or appeasing your merchant (of course this depends on the amount funded) I always saw and enforced a 3% cap. If there is any ethics in that.
I've seen 8% on top of Funder fees and originations that brought down an advance amount by $12k- netting a whopping $38k. Sad. Sad. Sad. Did I mention they were making 7 pts?! - P.S. I had nothing to do with the deal and when the Funder found out, the ISO was cut off by them and warned about to others in their network.
Word of Advice: This Industry is so big yet so very very small. Use common sense.Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
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04-07-2016, 08:36 PM #9
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- Jul 2015
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- 1,202
Wall Fees.JPG
Up front.
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04-07-2016, 08:41 PM #10
Pretty sure that says 'No Upfront Costs', which is what I said.
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04-07-2016, 08:48 PM #11
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- Jul 2015
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- 1,202
I understand Funder Mark. To the merchant, it is very clearly an upfront fee. For which the broker has to answer for above and beyond their own commission.
ie. Mr merchant, you were approved for this $. LESS this and this....
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04-07-2016, 09:07 PM #12
PSF, junk fees-is there a commonly accepted rate?
I have seen 23% on one deal !!
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04-07-2016, 09:49 PM #13
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- Nov 2015
- Posts
- 12
That looks like an advertisement pertaining to no due diligence fees or application fees, things like that. Closing fee that's different. Most every lender has some sort of a closing fee at funding time.
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04-07-2016, 10:14 PM #14
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- Jul 2014
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- 1,746
Junk fees are bull****. CAN charges NONE and they are the best in the biz. Lender is making 30-90% APR and you have to charge fees on top too? Pure unadulterated greed.
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04-07-2016, 10:59 PM #15
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- Nov 2015
- Posts
- 12
I actually agree very much with that. One of my favorite go to lenders also does not charge any fees. Just sayin, most do
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04-08-2016, 08:05 AM #16
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- Sep 2012
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- New York, NY
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Last edited by MCNetwork; 04-08-2016 at 08:08 AM.
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04-08-2016, 09:19 AM #17
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04-08-2016, 09:26 AM #18
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- Sep 2012
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- New York, NY
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Thanks FUNd. That's why when I charge an extra few points on a deal I don't feel bad as long as I'm adding value to the merchant. Closing costs are an inevitable part of the financial landscape. Just take a look at your mortgage or commercial loan for example...
Having said that, closing costs are fully negotiable and I'm willing to drop them to zero to seal the deal. This is a sales job after all and the goal is to maximize revenue from every deal while still having a great relationship with the customer. As a rule of thumb I'll charge anywhere from 1-3% in closing costs as long as the funding company is okay with that. I NEVER charge closing costs if the funder doesn't approve of them. Let's face it, closing costs are gravy in your pocket and if you're not charging any you're missing out on a lot of income. Every industry has their version of junk fees. Why should ours be any different? You go into Best Buy and buy that extra 2 year extended warranty on the 65 inch flatscreen? You're paying junk fees...Last edited by MCNetwork; 04-08-2016 at 09:39 AM.
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04-08-2016, 10:22 AM #19
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04-08-2016, 10:25 AM #20
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- Oct 2013
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04-08-2016, 10:30 AM #21
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- Jul 2014
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04-08-2016, 10:31 AM #22
most lower tier funders that fund d and c paper or chase junk deals charge junk fees. If you have A paper your funder should not be charging any fees.
As a broker 1-3% on some deals, not all. 10% used to be the standard but merchants don't like 10% everytime they got funded so they got a new broker.
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