[anonymous]

John. Let's assume he figures out who is who in the space and develops an adequate funding network. First off, how long did that take you? Second, do you think he is going to get the same quality approvals as an office with real deal flow and long-time relations? I feel like there is a lot of value to working with the right firm. The energy is flowing, people are making money around you, everyone is making each other better, and all you have to focus on is closing. As far as the commission split question - it all depends on the value that brokerage has to offer. You can make more money on a 25% payout at one place than another paying 70%, it's all relative.

[jotucker1983]

John. Let's assume he figures out who is who in the space and develops an adequate funding network. First off, how long did that take you?

Not long. I started out only sending files to one Funder based on a strategy of targeting higher premium clients with better rates than the general market. I realized fast that I would need to add more lenders who took on lower credit grades in exchange for higher factor rates. I started to figure out that some files were A paper, some were B/C paper, and some were C/D paper, so would have 1 - 2 reliable sources for each type of paper I would get.

Plus back then, as a new entrant into the space, I didn't have a Forum like Daily Funder or a major industry resource such as deBanked, that pretty much has exposed a lot in terms of the industry and how to operate within it.

A new entrant today has exposure to all of this information to where they can honestly "train" themselves pretty quickly on the products. Plus, considering that a lot of Funders usually will allow you to broker their products if you just have a heartbeat and a pulse lol, there's no high barrier to entry.

Second, do you think he is going to get the same quality approvals as an office with real deal flow and long-time relations?

I'm not sure why he wouldn't? An A Paper file is an A Paper file, an B/C Paper file is an B/C Paper file, I'm not sure why a Funder would not want to approve a particular file based on it's risk profile grade just because it's coming from a new Broker? If the file works out, it should be approved based on the Funder's regular/normal operating standards no matter if the Green Rookie brought it in or if the 8 year Vet brought it in.

I feel like there is a lot of value to working with the right firm. The energy is flowing, people are making money around you, everyone is making each other better, and all you have to focus on is closing.

Well, I know MCNetwork mentioned this to me before, that there's Large Broker Shops in New York that brokers apply to work for because those shops have huge marketing budgets, and all brokers need to do is come in, sit down, call warm leads, and "close".

If that's the setup, then that would make sense to be a Broker to a Broker, because they are providing a competitive advantage that you can't easily duplicate.

But if you have to go out and do your own marketing, generate your own leads, pay for your own dialer, etc., then why be a Broker to a Broker?