January 12, 2024 • 34 mins
Unlock the confusing world of lending with Reyes Flores, a seasoned loan broker from Texas who paints a crystal-clear image of the lending landscape. Imagine having a guide who not only helps you navigate the labyrinth of funding options but also boasts the connections to pair you with the ideal lenders. That's the essence of a loan broker and the vital role they play in the lending industry. We bust myths around the lending universe and highlight how brokers increase your chances of securing a loan by speaking the language of underwriters and presenting the right information.
We then voyage on to the realm of underwriters and how they've transformed the funding landscape over the years. Ever wondered why banks have become more restrictive in their lending practices? Or how you can understand the cryptic language of the underwriter? We'll shed light on these questions and more. Plus, we unravel the importance of knowing exactly why you need funds and how to use them. We also share invaluable tips on finding the right loan broker and reveal the advantages of working with them. Tune in to this episode and empower your business or real estate investment by maximizing your resources. Book An Appointment with a Loan Broker at www.tdjequityllc.net
A loan brokerage firm that acquires funding for business owners and real estate investors.
Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.
If you need assistance in obtaining funding, email us at podcast@tdjequityfundinginsiders.net. Tell what the scope of funding is needed and the amount. A broker will contact you to discuss your funding needs. And remember, at TDJ Equity Funding, we do not force your funding needs into a lender's box but find a lender's box that fits you!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:13):
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments, fromexperienced professionals,
including bankers, underwriters,loan officers and industry
(00:35):
experts, as they share theirunfiltered stories and valuable
lessons on securing funds.
Speaker 2 (00:47):
Welcome back to TDJ Equity Funding Insiders, the
podcast that brings you theinside scoop on funding for your
business and real estateinvestments.
I'm your host, jacquelineJackson, the loanbroker guru,
here to serve up a steamingplate of financial wisdom with a
side of reality, introduced byspecial co-hosts.
(01:08):
A loanbroker extraordinairefrom the great state of Texas
with years of experience and adedication to helping people
secure all types of funding, hehas truly become a go-to expert
in the lending industry.
Not only has he assistedcountless individuals to obtain
the financial support they need,but he has also played a
(01:29):
pivotal role in helping otherbrokers grow their own loan
brokerage business.
His expertise and guidance havebeen invaluable and he
continues to be a driving forcein the lending community today.
Let's welcome Reyes Flores toour podcast today.
Welcome Reyes.
Speaker 3 (01:49):
No, thank you very much.
Thank you for letting me be apart of this.
Speaker 2 (01:52):
And we are so happy for you to have.
So we're going to get into thistoday and we want our listeners
to be.
We're bringing somethingspecial to you guys today and it
is about the loan brokerbusiness.
Basically, let you know who weare, what we do and how we can
help you, because a lot ofpeople are not aware of what the
loan brokers are.
Reyes and I was talking earlierhow you have a misconception of
(02:15):
what it is.
Not even you're not reallyaware of the services that you
can get with it.
So hopefully, with this showtoday between him and I says
he's a loan broker, I'm a loanbroker that we can kind of bring
some enlightenment to what thatall is detailed.
Okay, so let's start off withReyes if you would tell us about
you and what brought you towhere you at today with us as a
(02:36):
loan broker.
Speaker 3 (02:37):
Well, thank you again .
I have background as a banker.
I was a business banker for 10years but prior to that small
business I was a small businessowner.
So entrepreneur spirit, alwayslooking to find the way to get
money that starts early.
And becoming a bankerdefinitely provided background
and structure, understanding ofunderwriting, certain products
(03:01):
and tools that you can use.
Leaving the bank actuallyexpanded all those options and
that's really what makes thebrokering fun.
There's all the differentproducts that we can choose from
and not just what the banksoffer, and since we're all
different and individual in theway we operate our businesses,
(03:23):
you have to have different typeof solutions for people's
problems.
Speaker 2 (03:26):
Exactly so always about helping people.
Okay, it's based on what it isand that's understanding.
So let's start off with this,because we know we have some
questions that you and I haveboth have seen and heard before,
so I kind of want to addressthose on this show today.
So let's start off with thiswhat are loan brokers?
What is a loan broker?
Speaker 3 (03:45):
So my definition of a loan broker is an individual or
group that has relationships ina very format.
So you have relationships withbanks but you have relationship
with not traditional funding.
That's a big swath, a lot ofdifferent options there.
So again, everybody'sindividual and some people have
(04:07):
really good credit, they haveeverything in place.
They just don't know where togo and they hear a no from the
bank and they think everything'sover.
And some people don't have goodcredit.
It's so big, broad area.
Having the vast differentresources really allows you to
(04:28):
be able to put that client withthe lender.
That would take that risk andoffer the service.
That's truly what a broker is.
Speaker 2 (04:36):
Right and that's what I see.
Like I said what we do and,like I said, agreeing with
everything that you're saying aswell, we act as like a middle
person between the businessowner and the lenders.
Now I do want to say this, andI know you agree with me we are
available for those who needhelp in getting work in capital.
Yes, you know, that's whatmakes you understand, because
(04:57):
some people don't need our help.
Some people got all the moneythey need, right, you know what
I'm saying.
And some people know everythingthey need to know, but there
are some of us or some people,that's, business owners Like
ours.
We specialize in working withfunding for business owners and
real estate investors.
Okay, those are the ones thatare looking for money and need
to help and guide us on how toget it.
The good thing is, we show themhow to get the money, how we
(05:20):
get the money, and then we alsohelp to actually get them with
lenders that can actually fundthem the money as well, because
a lot of his documentation, alot of people are so intimidated
about that stuff and we kind ofhelp out with that.
So I think that's somethingthat's really good to mention as
loan brokers and to understandthat a broker works on the
behalf of you, trying to matchyou up what works for you.
(05:43):
So it's not like, oh, you workwith the lenders yeah, I do.
But the good side of workingwith lenders is that we know
what they're looking for.
You know what I'm saying.
We know what the underwritingpractices are, and so that makes
it where you can get more, bemore eligible, because we can
tell you what it needs to looklike before we actually send you
out, instead of you justwalking in and how many times
(06:04):
that we throw it against thewall and hope it stick when it
comes to money.
So I think that's somethingthat we need to make sure people
wear.
Now let's ask this otherquestion so, when it comes to
loan brokers, how is it that aloan broker can help with
getting funding?
Speaker 3 (06:21):
So the number one thing that ends up From a loan
broker In comparison to a bankeryeah, so that way we have a
comparison.
The loan broker is gonna seewhat you have and see what
you're bringing to the table,and they're gonna maximize that
the bad and ugly.
(06:43):
But we're gonna maximize that.
We're really gonna see whatyou're looking for, what you
have to offer, and then we'regonna place you, before we start
pressing any buttons and doingany all this stuff, with a
lender that is highly probableto assist you.
Contrast to a banker, they'relooking for things.
If you don't match what they'relooking for, then you're not
(07:04):
gonna get help from them andthat's complete opposite of what
we are.
Personally, I I take ownershipof the file.
It was my loan and it's itbecomes, you like, my challenge
to get the money, mm-hmm,because I know what, what it
actually means, right, if thatfunding happens, then
opportunities continue to openfor these small business owners.
(07:27):
If we don't get funding forthem, it becomes very difficult
sometimes because they'retalking to us because the banks
probably told them no already,so we end up being some of the
last options that they have.
So it becomes crucial.
I mean, it's a very pivotalpoint sometimes and we have to
Breathe, be very invested in inour clients right, and their
(07:48):
longevity right, and it's not aone-stop shop.
As a broker, I'm consistentlywith you, mm-hmm, because I mean
, every business has differentleverage points that we use
right so we can get you moneythis way.
We can get you money this way aslong as we have a great
communication open line and youtell me what your strategies are
.
Then we can line you up for thenext year or two and that way
(08:09):
you have a good plan in place tosucceed to do it and see so
what we do with our broker, justkind of like Similarly you guys
, but we also.
Speaker 2 (08:18):
We look at them and what's good let's.
Because I want to answer thequestion to let me say that
first Let me go back.
How can loan brokers help withgetting funding?
How we help with it is workingcapital.
If you need working capital toexpand, you know we can help you
get that.
At the same time, you want topurchase a building, you know we
can help you do that.
Or warehouse, or you want topurchase a truck, so we can do
(08:39):
that too.
So, having a loan broker, wecan come, we can handle
everything that you need to getfinancing and funding for.
We can do with your particularbusiness.
Like you said, we invested inyou, so we know who you are, we
know what you look like.
The other thing we do is, likeyou had mentioned, when people
come in and you can't help them,what we try to do is show you
what you need to be, where youneed to be, so you can get help.
(09:00):
And we've had people come backto us a year later and they say,
okay, I went back and did whatyou did and this is what I look
and we get them funded Right.
So you still have a guidancethere where you can come to us
and we still can help you, leastline you up.
If we can't get you alone, wecan tell you what to do so you
can get a loan and that'ssomething I know.
That you won't get it.
The bank, bank, they just gonnatell you Exactly.
(09:23):
So we're good.
If you're looking for a line ofcredit for payroll, you know.
Or you have a big contract andyou might want to have it
factored, you know we can do thefactor.
It's so much we can do for youas loan brokers.
That's catered to just you andit's putting you putting the
lenders in your box instead ofputting the lenders, putting you
in a box for the lenders, is itcorrectly?
Speaker 3 (09:44):
a hundred percent you said that.
Speaker 2 (09:45):
So that's how we kind of move that.
So there are some benefits werebeing with the loanbroker.
So let's name.
You gonna name some and I'mgonna say but let's name what.
Do you think some of the majorbenefits it is about just going
with a loan broker compared tonot?
Speaker 3 (09:58):
time, the amount of time that you save as a business
owner.
If you come to me a 10, 20minute conversation, it saves
you probably 30 days.
If you go into the differentbanks and processing all this
paperwork and they're like, oh,we didn't need that, we don't
need that and and and.
In the end we deal with so manyfrustrated business owners
(10:22):
because they really think thatthe system has failed them.
And that's the other positiveis a reality check.
You're looking at the wrongsystem Exactly.
Let's find you the right systemand everybody will be happy,
right, right.
So those are two big benefitsTime saver and the fact that
you'll be looking in the rightplace.
Speaker 2 (10:40):
Right, and I want to add to that Some people don't
realize when a bank and I meanmainly everybody know banks and
we'll talk about the other typeof lenders but when a bank, when
usually when people get deniedfrom a bank, they think that's
it, they don't want to go anyfurther, and you don't
understand it's the bank denyingyou is saying you don't qualify
for their bank, but it doesn'tmean you don't qualify for
(11:01):
funding.
And that's what I think, evenwith my paying starting off as
an entrepreneur some years agoover 20, some years ago that
that's what I didn't know.
I thought banks was the onlyplace you can go and get money.
Well, we find out.
You have direct lenders, yougot private lenders.
It's so much other that's outhere alternative lending and all
of that that's out here and weknow it as a brokerage company
(11:22):
and you don't, and that's OK.
That's the reason why you cometo a brokerage company, so you
can see what's your options thething people have to understand.
Even though it's in businessand your credit is not that good
, you have options of gettingsome type of funding and stuff,
and so that's why I think it'sgood to even come to a loan
broker.
So we definitely want tomention that.
The other thing I like about thebenefits that we give people is
(11:44):
and you mentioned too we knowwhat the underwriters are
looking at.
We know how you should look andyou're right, you don't want to
go into a bank trying to getyourself together Because
they're going to.
Because when you come to askfor money and you're correct me,
reyes when you come ask formoney as a business owner, you
should already know what youneed and what you're going to
(12:07):
use it for and how you look.
But most of the time businessowners don't know that, and so
what you do is fill out thisapplication and guess what?
Your applications, yourfinancials, your PF it all shows
you don't know what you'redoing.
Right, that's what it did.
You filled it all out and thenow says you don't know what
you're doing and so they giveyou a denial.
And one thing about a denial forbanks and lenders they don't
(12:29):
have to tell you denial on oneitem, they don't have to explain
themselves.
They can say it's your creditand probably would.
That's the easy one to say whenreally is something else.
So that's where I think, withus, people understand that we
help move that a doubt out,because I know you don't present
a lot of stuff to banks thatyou know ain't going to go
through.
Now, don't get me wrong.
We can present you so far andthen, once they do the
(12:51):
background check and there'scomebacks, other things, other
ways, and that's going to look adifferent way.
But the part that we can do ismake sure you set up to get
funded and if you're backgroundeverything right, you'll get it.
So we don't want to fool withpeople that we're not guessing
either.
We just looking at hey, becauseit's not a guessing game to get
funded, and that's what I wantto explain.
How do you see in your career ofdoing loan brokers, how do you
(13:14):
see the funding working nowcompared to what it was years
ago?
I know you did it before theboom and all of that.
So what do you see thedifference now?
Speaker 3 (13:24):
So one of the biggest difference is right now, in the
current interest rate market at13%.
On some of the things that Isee, banks are really
restrictive.
They still do not want to takethe risk.
They're not, I mean if you arenot within a certain range.
But just that with the bankerMonday and he was telling me
(13:47):
that their minimums on some oftheir products went up to 740 on
the bank scores.
Yeah, I've never seen it at 740.
Speaker 2 (13:54):
That's high, but you and I have lenders that are
lower than that.
Right, I have lenders thatdon't look at.
Speaker 3 (14:01):
So I mean, it's a big old area for opportunity.
One thing you were talkingabout is the underwriter, so I'm
going to add to what you saidis one thing that we do
inadvertently, I guess, but wekind of get the business owners
to start speaking underwriterTerminology.
Okay, Start looking at thingsfrom the underwriting percent.
(14:24):
Okay give me an example thebusiness owner looks at their
business and says I do this,this is what I have and this is
what's important to me.
Okay, right, which is great.
Okay.
And then they turn it over tothe underwriter and the
underwriter is like okay, well,I don't care about this, I don't
care about that, I don't careabout this.
So the business owner has abetter chance of running their
(14:44):
business away.
The underwriter wants to seethe business run Okay, so that
when they do apply for loans,the underwriter says, oh, I like
this, I like this, they'redoing this.
Speaker 2 (14:55):
Yeah, at TDJ Equity Funding, we understand the
challenges you face, whetheryou're expanding your business,
investing in real estate orlaunching a startup.
We've got your back.
Our expertise of loan brokersis dedicated to helping you
secure the funding you need,hassle-free.
Imagine a future where yourbusiness thrives, where
opportunities are endless andworking capital has made a great
(15:17):
difference in your business.
Tdj Equity Funding can make ithappen.
Book an appointment with us aseasy as pot.
Just visit our website atwwwtdjequityllcnet and take the
first step towards yourfinancial success.
Don't let your dreams gatherdust on the shelf.
Seize the opportunity today.
(15:38):
Visit wwwtdjequityllcnet andschedule your appointment with
TDJ Equity Funding.
Let's turn your dreams intodollars.
So are you saying which?
I think you are, and I agreethat business have a tendency to
tell more than they need to yes, more than they need to that
too.
Speaker 3 (15:59):
That too, or they're looking at the wrong thing.
I had an appointment with aliquor distributor today and he
doesn't understand why banksaren't going to help him.
Well, I mean, you're a liquordistributor.
I said what's the bank going todo with this liquor if you
don't pay?
They don't have a license tosell it.
How are they going to get theirmoney back?
They just don't have thatperception, but that's why the
(16:20):
bank's not lending money to you.
Speaker 2 (16:22):
But you have other options on the bank.
Speaker 3 (16:24):
I have other options, yeah, other than the bank you
usually explain the bank to them.
But he didn't.
I mean, they don't get that.
They're like I have a valuablebusiness, $4 million a year.
This is a form of a goodbusiness.
Speaker 2 (16:33):
They kill me saying that I got this much in the bank
.
Why can't I get a loan?
Because it's not about yourmoney in the bank.
Speaker 3 (16:39):
And that's the learning how to look at things
from an underwriting perspectiveRight, right, exactly.
Speaker 2 (16:43):
It will just help a little bit and that's what we
bring.
Speaker 3 (16:46):
We see things from that perspective.
We start underwriting and thenwe start asking questions.
So we're crossing our T's anddarting our eyes as we're
progressing down ourconversation Because in time
it's time of essence.
Right right, and the quicker weget you the money, the quicker
you can make money with it.
Speaker 2 (17:03):
Right, that you can do.
And that's the saving part withus, because we've built up,
built up you too.
We've built up relationshipswith our lenders.
They know you, they know youknow them and they're more at.
When your applications comethrough, they pretty much know
it's already going to check offthe list.
Speaker 3 (17:17):
Right.
Speaker 2 (17:17):
It's going to check because it's going to have
everything.
We're going to make sure.
So, like we were joking aboutthe bad, the ugly, we see it, we
are supposed to see it.
We're the loan brokers.
We're going to see what youlook like and correct what you
have you to correct, what youneed to correct or change.
And if you're not ready,believe me, we don't send nobody
through this.
Not ready either, because wedon't want to get marked that we
got bad loans.
(17:38):
So guess what?
We do spend our time to do theloans, to make sure that we
check everything out and that itis Fundable.
Yes, you know.
So we're not trying to wasteyour time either, but, like I
said, there are some things andthere are sometimes.
You have to understand that.
I think that I want to say thisbecause a lot of people
business owners have these mythsof way the lending world works.
(17:58):
Like one, you believe you cangive them the saddest story and
that's going to add to yougetting that money.
It's amazing how many peoplethink you want to talk about
what you had happening a yearago or how COVID attacked you
and that's going to make.
Oh well, let's give you anextra $10,000.
Speaker 3 (18:15):
It doesn't work.
Speaker 2 (18:16):
No it worked that way .
So I think, when you talk aboutthe underwriters, let's talk
about what are some things thatwe think you think business
owners are not really aware ofthat's going on with the
underwriters, that they shouldbe.
Speaker 3 (18:31):
So I'll give you a very clear example.
So I'm just going to use a loanservice.
Speaker 1 (18:36):
Okay.
Speaker 3 (18:36):
So owner loan service has 50 clients.
Okay, does well, these are allcorporate clients and so forth.
So let's just say they do $2million a year.
Speaker 2 (18:48):
Okay.
Speaker 3 (18:48):
Okay, it's good, really well.
And they go to a bank or theygo somewhere and they don't
understand why their businessdoesn't carry value.
Well, nobody tells them to geta service agreement in place.
That service agreement nowbecame accounts receivables.
Sure did that changed theentire perception of your
business.
(19:09):
That one little item, itdepends.
I'm going to tell you that.
No, I mean, but we can Guideyou there and and get that in
place.
You can do factoring.
I mean.
How many doors did that open,just putting that one service?
Speaker 2 (19:22):
agreement in place.
That's a projected income too,man, that you don't even have
yet, but yet in financial worldwe can count it Right, yeah, so
that's thinking of things in anunderwriter perspective.
Speaker 3 (19:32):
So the underwriter sees that accounts receivables
and says oh okay.
Well, you have 200,000 a monthand it counts me some Sure
Exactly.
Speaker 2 (19:39):
That, that's right.
You, you're fundable, that'sright.
Speaker 3 (19:42):
So that little change right there doesn't, that
conversation doesn't happenunless you go to Even some of
these services, don't, don'tnecessarily tell you, and I say
some of these services.
Speaker 2 (19:56):
But uh, that, that's your broker should give you that
type of information.
Let's just call it like it isyou should Be able to get they
should be coming to you from theunderwriter point of view what
they're looking for.
They should be knowledgeableabout that side, right, and
that's what you're saying.
So when you come to us and Iguess, to be honest, ray is we
can just vouch for us, I mean,Right you know, um, you should
(20:19):
get that information, likethat's what you would do and
that's what you're saying.
So when we're looking atunderwriters on that
underwriters, I'm sorry, we'relooking for loan brokers.
We do want the people thatunderstand what the bank won't.
Now, I do want to say thisbecause I I came to a podcast
earlier.
I just came from one we typedid one and I actually the
question that they was asking Ithink the acts would make a good
(20:40):
sense was they want to know whydo not?
And I want you to answer too,because I answered it.
I want to see what you're gonnasay.
Why is it that the banks andthe underwriters just don't tell
us what we should already do?
Speaker 3 (20:54):
What they're a business number one.
People forget that they're afor-profit business, right?
So business owners have certainregulations they have to follow
.
There's certain guidelines thatthey're.
There's certain minimums.
So as a business owner, youwant to get away with the
minimum so that you can make themaximum.
So if it's not required, it'snot required.
(21:17):
There's no laws indicating thatsomebody has to specifically
tell you what's going on.
You get a notice saying hey,you can.
You know something's wrong withyour credit, like you said or
something like that somethingvery vague.
But if you start giving a lot ofdetails, I mean the bigger you
are, the more concerned you areabout legal, and that's that
(21:38):
side.
Speaker 2 (21:38):
And that's now you know and you're talking from the
bank side.
I get that.
No, let me tell you what I said,because I haven't been a banker
.
I just actually been businessdevelopment helping people get
it.
But what I said to them wasthis you have to understand and
I know you can correct me if I'mwrong that the underwriters are
there for the bank.
They want to make sure that theloan that they're given they're
(22:00):
going to get their money back.
Now, if they got to tell youwhat to do in order for that to
happen, they're not going to dothat.
I wouldn't do that.
I mean because you, first of all, if you asking me and I'm just
saying a million dollars but ifyou ask me for 50 dollars, as a
bank, I need to see that you can.
I need to see that you can payit back.
I don't need you to give me asad story.
(22:20):
You're like I said, thepaperwork and the documents they
asked for, those tell the story, yes, and so I should be able
to, as a banker, look at it andsee, oh, like you said, oh, he
got contracts, oh, he can takecare of this loan.
So understand, they're not therefor you, there for the bank, so
they can give the loan to you,but they are responsible for
making sure that you arefundable, but the more important
(22:42):
, that you don't pay it back.
Like you said, who wants theliquor?
Like they don't want your look,they want you to give them back
their money.
So that's why it's a lot.
They don't tell you and whywouldn't?
And let's be something me andyou don't want to talk about,
but we need to.
It is so much fraud out here.
Speaker 3 (22:56):
Yes, okay, 100%.
Speaker 2 (22:59):
Yeah.
So you have to understand wherethey're coming from.
They're like I told one guy hewas talking about man they went
back and checked all thatbecause you know, cavies cover
is like the check that they dofor the student loans.
Okay, we do sba loan, they'llhave a lot of those, that's what
they checked for the studentloans.
The thing is he was like didthey go?
How did they go back and lookat all that?
I couldn't take some youtalking about 1.7 million.
(23:20):
They will check everything byyour dirty ears.
So get ready for that.
Don't think and and this is abig thing, I need everybody's
here to here too there isnothing they're gonna ask you
that they don't already knowthat.
Speaker 1 (23:35):
That's so true.
Speaker 2 (23:36):
So tell me your opinion and your experience
working with them.
I mean, we want to enlightenour listeners to let them know
how it is so they can stopthinking of it.
It's a.
It's a different thing.
Tell me your opinion of how youthink that works when they do
that so From the bank'sperspective yeah, the bank, I
guess.
Speaker 3 (23:53):
So from the bank's perspective, I mean it was
you're not a counselor, you'renot a coach, that's, you're told
that.
I mean they're not training youto be A to get the loan coach.
No, that's true, you know um,and there's nothing wrong with
banks, I'm not saying no.
Speaker 2 (24:09):
No, it's nothing wrong with what they're saying
you can afford to go to a bank.
Speaker 3 (24:12):
You have your cross, your t's crossing, your diet.
I started go to the bank.
Um, we'll send you to the bankif we right, I mean we have bank
relationships, so the um, thebank is just not set up to be a
counselor.
Speaker 2 (24:29):
I mean and I hadn't thought of it like that.
Right, we need to say thatthey're not so there we can
counsel you, right.
Speaker 3 (24:36):
We have a vested interest in you because we're
not gonna get paid unless we canhelp you get paid.
That's right.
The banker is already gettingpaid, right.
That's a big difference as well.
So they're there.
Yeah, they might get a littlebit more money, you know, but in
the end we have to performright.
We have to perform.
So we have to have quality.
(24:58):
We we have to maintain acertain amount of good loans,
like you're talking about.
So all this is a positive forthe, for the client, because at
that point we're making surethat they're they're looking
really good.
Yeah, and we're using the rightpoints to their for them to work
at that.
Speaker 2 (25:14):
That's right, so that's great, so we appreciate
it.
So let's ask some otherquestions and see that we had to
come through that.
I do want to ask as a loanofficer or loan broker I'm sorry
I have are there any fundingopportunities that you've seen
that was especially successfulfor bars right now?
Any type of funding you seethat works pretty good for bars
(25:34):
at this point?
Speaker 3 (25:35):
real estate.
Real estate is still strong.
I mean that lending in the realestate market has continued,
even though the interest rateshave gotten extremely high.
Right, the qualifications areactually being retracted because
of the stability of theinterest rates not going up.
Hmm, and the housing market isreally really, really tight
still.
Even though prices haven't, youknow, dropped much, the demand
(25:59):
is really high.
So just two days ago, we werenotified of the the reduced
Qualifications for some of ourcommercial builders to build
houses.
So if the banks are doing that,they're telling you that that's
their focus.
They're focused, since therates aren't going up, they're
really focused back on on good,strong asset.
The house is always a good,strong asset right, right.
Speaker 2 (26:20):
So yeah, anything with assets, right, I got you
big.
Speaker 3 (26:23):
Pig it back on that and saying it's it's really what
you're bringing to the table.
Well, if you're making aproduct, that's an asset, mm-hmm
.
If your service provider, youneed to create it as an asset,
not just reference.
Speaker 2 (26:33):
I don't make that and that's what the contract.
So that's the car.
That is such a smart point thatcreates an asset for the
business.
Speaker 3 (26:40):
But you really have to understand that all lenders
are asset based lenders, eventhe ones that use your bank
account.
They're they're they're basingyour asset as the volume coming
into your bank account.
Speaker 2 (26:55):
Yeah, they look at the revenue.
They count.
Your revenue, your futurerevenue Is what they're looking
at.
And you're right, it is anasset.
So we have it where collateralrise and then they say is non
collateral or unsecure secure.
But the unsecure, like you said, you still look at that revenue
.
That's, that's.
I'm basing my judgment Right.
I got you, I got you.
So that's based on how thatworks.
So that that's a good.
(27:15):
That's a good, that's a goodthing you made, I think, for
them to see and understand thathow that works.
So let me ask you is would you,when it come to Lending or
funding and it come to businessowner, what are some top tips or
some tips you would like togive them when they're trying to
get funding for their business?
Speaker 3 (27:35):
I Understand what you're gonna use the money for.
Okay, I mean number one be veryclear Don't mix it.
So if I'm gonna use money forimprovements on the building,
don't mix it with.
Oh, I need a higher person.
There's two different productsfor them.
Speaker 2 (27:50):
You actually apply.
Speaker 3 (27:50):
Two different things and and that gives you a higher
probability Of getting that loan, both of the loans right.
Right, I mean it.
There's served two differentpurposes right.
I'll use the liquor distributor.
Okay, you don't need a loan,you need a line of credit.
You need to work on onlinecredit because you're going to
spend the money, you're going toreapply, spend the money,
reapply that that's that doesn'twork that way.
(28:13):
So it's the product you know,really understand what you're
going to use the money for andthat dictates the product that's
going to be used.
To help you with that.
Speaker 2 (28:22):
Right, and that's where we come in.
As long broke to kind of helpyou that, because I had a client
to the K men and he wantedworking capital and once he
qualified for so much he's like,oh well, I could probably pay
my house off with the rest of it.
No no we don't pay house offwith that.
I understand it's a lot.
You know he's a old, withinwhat are.
(28:43):
You know that's like.
That's what we're going to talkabout the use of funds.
You know, we just had thatdiscussion.
That's why I realized a lot ofpeople don't realize that that
he didn't either.
Because he like well, I need toget a truck.
Well, that's a whole differentloan.
You don't take an 800,000dollar working capital and go
buy a truck.
You use the food workingcapital Right, and then what we
do is go get a loan for thetruck.
(29:03):
At the same time he needed topurchase a warehouse.
So he said Well, I got thismoney, I can actually go.
The warehouse is 500,000.
I just go get.
No, your working capital isyour working capital and I think
people don't properly know howto use the money once they get
it.
That's a whole differentpodcast for you and I.
But we definitely want you touse it for what you should be
(29:24):
and we try to say that you don'thave to use that working
capital for everything.
We have loans for everything.
So for that truck, thatwarehouse and everything you
want, we have separate loans forall of that and it doesn't come
out that 800.
So guess what he gets to keepthat 800 and really deal with
working capital, you know,payroll and everything else.
And yet he still have awarehouse and we still was able
to get more truck.
Speaker 3 (29:42):
That's the best use of your time, effort and
resources, exactly, I mean,that's well put.
Speaker 2 (29:49):
So we need you all to know that that's out there and
I, like I said, I think theyreally don't understand.
As loan brokers, we providethose questions or those answers
to those questions that youhave.
So it's good to reach out to us.
Like Sam, you can reach out tous on this show, as you know, on
the podcast, or you canactually in your area.
You can Google and see whatline brokers you could you know,
(30:11):
loan brokers you can find andgo and, based on the
conversation we have, you shouldget you got an idea of pretty
much what you're probablylooking for when you talk to
them and then they can kind ofcater to you and your situation.
Now, one thing I like that Ilove and I know you're the same
with.
You've been in this for a while.
You have how many clients youhave worked with over the years
that you probably haven't evenseen them but you've been
(30:32):
working with them all over thenation.
I mean, how much do we reallyhave this like that?
And I think I feel we have alot of people you think.
Speaker 3 (30:40):
Yeah, yeah, we're nationwide, yeah, I mean there's
.
I was lucky.
My son graduated in Florida,right, so I went and picked him
up and we drove back.
Well, we took the opportunitystop in Gainesville and so I
could meet one of my clients,right, and on the way back in, I
mean, but that's an oddity,yeah, to get you know.
(31:02):
So a lot of it is digital phone.
There's good communication.
In the end, it's being all openand honest and we're not here
to judge, we're here to help.
I mean, it's the opposite.
You know, it's really theopposite.
Again, because I personallyknow how it is to go to the bank
and be told no, right, you knowit can be really downer because
(31:26):
you're up here Great idea, andthe bank doesn't want to help me
.
I was like wait, I mean, butyou're just talking to the wrong
people.
Speaker 2 (31:34):
That's all and you have.
You have options with a loanbroker.
So we definitely want to saythat, that we are optioned for
you guys, that you candefinitely reach out to us also
to know how we are done.
Like you had mentioned it early, for his pay, we get paid based
on a percentage of what youreceive.
Yeah, you know what I'm saying.
So that's the good thing peoplethink because, as one of my
(31:54):
clients told me, if you get methree thousand, three million
dollars, paying you 90,000 isnot going to be a problem, right
, and so that's the way you haveto look at it.
You know, because we get it andit's done, and he's turned
around in four weeks and he'sgone and he didn't have to leave
his chair to do anything.
We did all day, every lifting.
So that's what we're here for.
We want you all to know that.
(32:14):
So the wrap up everything, ifyou would.
Is it anything you would liketo tell our listeners that you
want them to be aware of?
Speaker 3 (32:23):
Yes, talk to somebody , get your ideas out there,
especially with another broker,but really have somebody punch
hole in your ideas.
Speaker 2 (32:33):
Hmm.
Speaker 3 (32:33):
Punch holes in your ideas.
It only makes your ideastronger, and when you do end up
presenting it to somebody, youalready have all those pitfalls
covered.
Speaker 2 (32:42):
Right, and that's a.
That's a great, that's a greattip, great tip.
Well, we want to thank you forcoming.
Oh, thank you very much.
As always I love talking to youand hopefully you can come back
and we can do some morediscussions on other things that
can kind of help enlightenpeople on some stuff.
So definitely want you all tobe a part of it.
If you all are interested inbeing or doing loan brokers, he
(33:03):
does, like we said earlier, heactually works with brokers and
helping to develop him gettingcontact with us.
We'll definitely get you withReyes where he can actually work
with.
If you're interested in that,you can go through our website
and contact us atwwwTDJEquityLLCcom.
Okay, in the meantime, thankyou for coming out again.
Speaker 3 (33:25):
Thank you very much for having me.
It's been fun.
Speaker 2 (33:27):
And it is.
Thank you so much, and to ourlisteners.
If you like the information andwould like to learn more,
please subscribe to YouTubechannel at youtubecom.
Backslash Tdj.
Equity funding insiders.
Until next time, thank you andtake care.
Speaker 1 (33:45):
We hope you enjoyed this episode of Tdj equity
funding insiders podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet, forward slash
podcast or email us at podcastat tdjequityfundinginsidersnet.
Until next time, take care.
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments, fromexperienced professionals,
including bankers, underwriters,loan officers and industry
(00:35):
experts, as they share theirunfiltered stories and valuable
lessons on securing funds.
Speaker 2 (00:47):
Welcome back to TDJ Equity Funding Insiders, the
podcast that brings you theinside scoop on funding for your
business and real estateinvestments.
I'm your host, jacquelineJackson, the loanbroker guru,
here to serve up a steamingplate of financial wisdom with a
side of reality, introduced byspecial co-hosts.
(01:08):
A loanbroker extraordinairefrom the great state of Texas
with years of experience and adedication to helping people
secure all types of funding, hehas truly become a go-to expert
in the lending industry.
Not only has he assistedcountless individuals to obtain
the financial support they need,but he has also played a
(01:29):
pivotal role in helping otherbrokers grow their own loan
brokerage business.
His expertise and guidance havebeen invaluable and he
continues to be a driving forcein the lending community today.
Let's welcome Reyes Flores toour podcast today.
Welcome Reyes.
Speaker 3 (01:49):
No, thank you very much.
Thank you for letting me be apart of this.
Speaker 2 (01:52):
And we are so happy for you to have.
So we're going to get into thistoday and we want our listeners
to be.
We're bringing somethingspecial to you guys today and it
is about the loan brokerbusiness.
Basically, let you know who weare, what we do and how we can
help you, because a lot ofpeople are not aware of what the
loan brokers are.
Reyes and I was talking earlierhow you have a misconception of
(02:15):
what it is.
Not even you're not reallyaware of the services that you
can get with it.
So hopefully, with this showtoday between him and I says
he's a loan broker, I'm a loanbroker that we can kind of bring
some enlightenment to what thatall is detailed.
Okay, so let's start off withReyes if you would tell us about
you and what brought you towhere you at today with us as a
(02:36):
loan broker.
Speaker 3 (02:37):
Well, thank you again .
I have background as a banker.
I was a business banker for 10years but prior to that small
business I was a small businessowner.
So entrepreneur spirit, alwayslooking to find the way to get
money that starts early.
And becoming a bankerdefinitely provided background
and structure, understanding ofunderwriting, certain products
(03:01):
and tools that you can use.
Leaving the bank actuallyexpanded all those options and
that's really what makes thebrokering fun.
There's all the differentproducts that we can choose from
and not just what the banksoffer, and since we're all
different and individual in theway we operate our businesses,
(03:23):
you have to have different typeof solutions for people's
problems.
Speaker 2 (03:26):
Exactly so always about helping people.
Okay, it's based on what it isand that's understanding.
So let's start off with this,because we know we have some
questions that you and I haveboth have seen and heard before,
so I kind of want to addressthose on this show today.
So let's start off with thiswhat are loan brokers?
What is a loan broker?
Speaker 3 (03:45):
So my definition of a loan broker is an individual or
group that has relationships ina very format.
So you have relationships withbanks but you have relationship
with not traditional funding.
That's a big swath, a lot ofdifferent options there.
So again, everybody'sindividual and some people have
(04:07):
really good credit, they haveeverything in place.
They just don't know where togo and they hear a no from the
bank and they think everything'sover.
And some people don't have goodcredit.
It's so big, broad area.
Having the vast differentresources really allows you to
(04:28):
be able to put that client withthe lender.
That would take that risk andoffer the service.
That's truly what a broker is.
Speaker 2 (04:36):
Right and that's what I see.
Like I said what we do and,like I said, agreeing with
everything that you're saying aswell, we act as like a middle
person between the businessowner and the lenders.
Now I do want to say this, andI know you agree with me we are
available for those who needhelp in getting work in capital.
Yes, you know, that's whatmakes you understand, because
(04:57):
some people don't need our help.
Some people got all the moneythey need, right, you know what
I'm saying.
And some people know everythingthey need to know, but there
are some of us or some people,that's, business owners Like
ours.
We specialize in working withfunding for business owners and
real estate investors.
Okay, those are the ones thatare looking for money and need
to help and guide us on how toget it.
The good thing is, we show themhow to get the money, how we
(05:20):
get the money, and then we alsohelp to actually get them with
lenders that can actually fundthem the money as well, because
a lot of his documentation, alot of people are so intimidated
about that stuff and we kind ofhelp out with that.
So I think that's somethingthat's really good to mention as
loan brokers and to understandthat a broker works on the
behalf of you, trying to matchyou up what works for you.
(05:43):
So it's not like, oh, you workwith the lenders yeah, I do.
But the good side of workingwith lenders is that we know
what they're looking for.
You know what I'm saying.
We know what the underwritingpractices are, and so that makes
it where you can get more, bemore eligible, because we can
tell you what it needs to looklike before we actually send you
out, instead of you justwalking in and how many times
(06:04):
that we throw it against thewall and hope it stick when it
comes to money.
So I think that's somethingthat we need to make sure people
wear.
Now let's ask this otherquestion so, when it comes to
loan brokers, how is it that aloan broker can help with
getting funding?
Speaker 3 (06:21):
So the number one thing that ends up From a loan
broker In comparison to a bankeryeah, so that way we have a
comparison.
The loan broker is gonna seewhat you have and see what
you're bringing to the table,and they're gonna maximize that
the bad and ugly.
(06:43):
But we're gonna maximize that.
We're really gonna see whatyou're looking for, what you
have to offer, and then we'regonna place you, before we start
pressing any buttons and doingany all this stuff, with a
lender that is highly probableto assist you.
Contrast to a banker, they'relooking for things.
If you don't match what they'relooking for, then you're not
(07:04):
gonna get help from them andthat's complete opposite of what
we are.
Personally, I I take ownershipof the file.
It was my loan and it's itbecomes, you like, my challenge
to get the money, mm-hmm,because I know what, what it
actually means, right, if thatfunding happens, then
opportunities continue to openfor these small business owners.
(07:27):
If we don't get funding forthem, it becomes very difficult
sometimes because they'retalking to us because the banks
probably told them no already,so we end up being some of the
last options that they have.
So it becomes crucial.
I mean, it's a very pivotalpoint sometimes and we have to
Breathe, be very invested in inour clients right, and their
(07:48):
longevity right, and it's not aone-stop shop.
As a broker, I'm consistentlywith you, mm-hmm, because I mean
, every business has differentleverage points that we use
right so we can get you moneythis way.
We can get you money this way aslong as we have a great
communication open line and youtell me what your strategies are
.
Then we can line you up for thenext year or two and that way
(08:09):
you have a good plan in place tosucceed to do it and see so
what we do with our broker, justkind of like Similarly you guys
, but we also.
Speaker 2 (08:18):
We look at them and what's good let's.
Because I want to answer thequestion to let me say that
first Let me go back.
How can loan brokers help withgetting funding?
How we help with it is workingcapital.
If you need working capital toexpand, you know we can help you
get that.
At the same time, you want topurchase a building, you know we
can help you do that.
Or warehouse, or you want topurchase a truck, so we can do
(08:39):
that too.
So, having a loan broker, wecan come, we can handle
everything that you need to getfinancing and funding for.
We can do with your particularbusiness.
Like you said, we invested inyou, so we know who you are, we
know what you look like.
The other thing we do is, likeyou had mentioned, when people
come in and you can't help them,what we try to do is show you
what you need to be, where youneed to be, so you can get help.
(09:00):
And we've had people come backto us a year later and they say,
okay, I went back and did whatyou did and this is what I look
and we get them funded Right.
So you still have a guidancethere where you can come to us
and we still can help you, leastline you up.
If we can't get you alone, wecan tell you what to do so you
can get a loan and that'ssomething I know.
That you won't get it.
The bank, bank, they just gonnatell you Exactly.
(09:23):
So we're good.
If you're looking for a line ofcredit for payroll, you know.
Or you have a big contract andyou might want to have it
factored, you know we can do thefactor.
It's so much we can do for youas loan brokers.
That's catered to just you andit's putting you putting the
lenders in your box instead ofputting the lenders, putting you
in a box for the lenders, is itcorrectly?
Speaker 3 (09:44):
a hundred percent you said that.
Speaker 2 (09:45):
So that's how we kind of move that.
So there are some benefits werebeing with the loanbroker.
So let's name.
You gonna name some and I'mgonna say but let's name what.
Do you think some of the majorbenefits it is about just going
with a loan broker compared tonot?
Speaker 3 (09:58):
time, the amount of time that you save as a business
owner.
If you come to me a 10, 20minute conversation, it saves
you probably 30 days.
If you go into the differentbanks and processing all this
paperwork and they're like, oh,we didn't need that, we don't
need that and and and.
In the end we deal with so manyfrustrated business owners
(10:22):
because they really think thatthe system has failed them.
And that's the other positiveis a reality check.
You're looking at the wrongsystem Exactly.
Let's find you the right systemand everybody will be happy,
right, right.
So those are two big benefitsTime saver and the fact that
you'll be looking in the rightplace.
Speaker 2 (10:40):
Right, and I want to add to that Some people don't
realize when a bank and I meanmainly everybody know banks and
we'll talk about the other typeof lenders but when a bank, when
usually when people get deniedfrom a bank, they think that's
it, they don't want to go anyfurther, and you don't
understand it's the bank denyingyou is saying you don't qualify
for their bank, but it doesn'tmean you don't qualify for
(11:01):
funding.
And that's what I think, evenwith my paying starting off as
an entrepreneur some years agoover 20, some years ago that
that's what I didn't know.
I thought banks was the onlyplace you can go and get money.
Well, we find out.
You have direct lenders, yougot private lenders.
It's so much other that's outhere alternative lending and all
of that that's out here and weknow it as a brokerage company
(11:22):
and you don't, and that's OK.
That's the reason why you cometo a brokerage company, so you
can see what's your options thething people have to understand.
Even though it's in businessand your credit is not that good
, you have options of gettingsome type of funding and stuff,
and so that's why I think it'sgood to even come to a loan
broker.
So we definitely want tomention that.
The other thing I like about thebenefits that we give people is
(11:44):
and you mentioned too we knowwhat the underwriters are
looking at.
We know how you should look andyou're right, you don't want to
go into a bank trying to getyourself together Because
they're going to.
Because when you come to askfor money and you're correct me,
reyes when you come ask formoney as a business owner, you
should already know what youneed and what you're going to
(12:07):
use it for and how you look.
But most of the time businessowners don't know that, and so
what you do is fill out thisapplication and guess what?
Your applications, yourfinancials, your PF it all shows
you don't know what you'redoing.
Right, that's what it did.
You filled it all out and thenow says you don't know what
you're doing and so they giveyou a denial.
And one thing about a denial forbanks and lenders they don't
(12:29):
have to tell you denial on oneitem, they don't have to explain
themselves.
They can say it's your creditand probably would.
That's the easy one to say whenreally is something else.
So that's where I think, withus, people understand that we
help move that a doubt out,because I know you don't present
a lot of stuff to banks thatyou know ain't going to go
through.
Now, don't get me wrong.
We can present you so far andthen, once they do the
(12:51):
background check and there'scomebacks, other things, other
ways, and that's going to look adifferent way.
But the part that we can do ismake sure you set up to get
funded and if you're backgroundeverything right, you'll get it.
So we don't want to fool withpeople that we're not guessing
either.
We just looking at hey, becauseit's not a guessing game to get
funded, and that's what I wantto explain.
How do you see in your career ofdoing loan brokers, how do you
(13:14):
see the funding working nowcompared to what it was years
ago?
I know you did it before theboom and all of that.
So what do you see thedifference now?
Speaker 3 (13:24):
So one of the biggest difference is right now, in the
current interest rate market at13%.
On some of the things that Isee, banks are really
restrictive.
They still do not want to takethe risk.
They're not, I mean if you arenot within a certain range.
But just that with the bankerMonday and he was telling me
(13:47):
that their minimums on some oftheir products went up to 740 on
the bank scores.
Yeah, I've never seen it at 740.
Speaker 2 (13:54):
That's high, but you and I have lenders that are
lower than that.
Right, I have lenders thatdon't look at.
Speaker 3 (14:01):
So I mean, it's a big old area for opportunity.
One thing you were talkingabout is the underwriter, so I'm
going to add to what you saidis one thing that we do
inadvertently, I guess, but wekind of get the business owners
to start speaking underwriterTerminology.
Okay, Start looking at thingsfrom the underwriting percent.
(14:24):
Okay give me an example thebusiness owner looks at their
business and says I do this,this is what I have and this is
what's important to me.
Okay, right, which is great.
Okay.
And then they turn it over tothe underwriter and the
underwriter is like okay, well,I don't care about this, I don't
care about that, I don't careabout this.
So the business owner has abetter chance of running their
(14:44):
business away.
The underwriter wants to seethe business run Okay, so that
when they do apply for loans,the underwriter says, oh, I like
this, I like this, they'redoing this.
Speaker 2 (14:55):
Yeah, at TDJ Equity Funding, we understand the
challenges you face, whetheryou're expanding your business,
investing in real estate orlaunching a startup.
We've got your back.
Our expertise of loan brokersis dedicated to helping you
secure the funding you need,hassle-free.
Imagine a future where yourbusiness thrives, where
opportunities are endless andworking capital has made a great
(15:17):
difference in your business.
Tdj Equity Funding can make ithappen.
Book an appointment with us aseasy as pot.
Just visit our website atwwwtdjequityllcnet and take the
first step towards yourfinancial success.
Don't let your dreams gatherdust on the shelf.
Seize the opportunity today.
(15:38):
Visit wwwtdjequityllcnet andschedule your appointment with
TDJ Equity Funding.
Let's turn your dreams intodollars.
So are you saying which?
I think you are, and I agreethat business have a tendency to
tell more than they need to yes, more than they need to that
too.
Speaker 3 (15:59):
That too, or they're looking at the wrong thing.
I had an appointment with aliquor distributor today and he
doesn't understand why banksaren't going to help him.
Well, I mean, you're a liquordistributor.
I said what's the bank going todo with this liquor if you
don't pay?
They don't have a license tosell it.
How are they going to get theirmoney back?
They just don't have thatperception, but that's why the
(16:20):
bank's not lending money to you.
Speaker 2 (16:22):
But you have other options on the bank.
Speaker 3 (16:24):
I have other options, yeah, other than the bank you
usually explain the bank to them.
But he didn't.
I mean, they don't get that.
They're like I have a valuablebusiness, $4 million a year.
This is a form of a goodbusiness.
Speaker 2 (16:33):
They kill me saying that I got this much in the bank
.
Why can't I get a loan?
Because it's not about yourmoney in the bank.
Speaker 3 (16:39):
And that's the learning how to look at things
from an underwriting perspectiveRight, right, exactly.
Speaker 2 (16:43):
It will just help a little bit and that's what we
bring.
Speaker 3 (16:46):
We see things from that perspective.
We start underwriting and thenwe start asking questions.
So we're crossing our T's anddarting our eyes as we're
progressing down ourconversation Because in time
it's time of essence.
Right right, and the quicker weget you the money, the quicker
you can make money with it.
Speaker 2 (17:03):
Right, that you can do.
And that's the saving part withus, because we've built up,
built up you too.
We've built up relationshipswith our lenders.
They know you, they know youknow them and they're more at.
When your applications comethrough, they pretty much know
it's already going to check offthe list.
Speaker 3 (17:17):
Right.
Speaker 2 (17:17):
It's going to check because it's going to have
everything.
We're going to make sure.
So, like we were joking aboutthe bad, the ugly, we see it, we
are supposed to see it.
We're the loan brokers.
We're going to see what youlook like and correct what you
have you to correct, what youneed to correct or change.
And if you're not ready,believe me, we don't send nobody
through this.
Not ready either, because wedon't want to get marked that we
got bad loans.
(17:38):
So guess what?
We do spend our time to do theloans, to make sure that we
check everything out and that itis Fundable.
Yes, you know.
So we're not trying to wasteyour time either, but, like I
said, there are some things andthere are sometimes.
You have to understand that.
I think that I want to say thisbecause a lot of people
business owners have these mythsof way the lending world works.
(17:58):
Like one, you believe you cangive them the saddest story and
that's going to add to yougetting that money.
It's amazing how many peoplethink you want to talk about
what you had happening a yearago or how COVID attacked you
and that's going to make.
Oh well, let's give you anextra $10,000.
Speaker 3 (18:15):
It doesn't work.
Speaker 2 (18:16):
No it worked that way .
So I think, when you talk aboutthe underwriters, let's talk
about what are some things thatwe think you think business
owners are not really aware ofthat's going on with the
underwriters, that they shouldbe.
Speaker 3 (18:31):
So I'll give you a very clear example.
So I'm just going to use a loanservice.
Speaker 1 (18:36):
Okay.
Speaker 3 (18:36):
So owner loan service has 50 clients.
Okay, does well, these are allcorporate clients and so forth.
So let's just say they do $2million a year.
Speaker 2 (18:48):
Okay.
Speaker 3 (18:48):
Okay, it's good, really well.
And they go to a bank or theygo somewhere and they don't
understand why their businessdoesn't carry value.
Well, nobody tells them to geta service agreement in place.
That service agreement nowbecame accounts receivables.
Sure did that changed theentire perception of your
business.
(19:09):
That one little item, itdepends.
I'm going to tell you that.
No, I mean, but we can Guideyou there and and get that in
place.
You can do factoring.
I mean.
How many doors did that open,just putting that one service?
Speaker 2 (19:22):
agreement in place.
That's a projected income too,man, that you don't even have
yet, but yet in financial worldwe can count it Right, yeah, so
that's thinking of things in anunderwriter perspective.
Speaker 3 (19:32):
So the underwriter sees that accounts receivables
and says oh okay.
Well, you have 200,000 a monthand it counts me some Sure
Exactly.
Speaker 2 (19:39):
That, that's right.
You, you're fundable, that'sright.
Speaker 3 (19:42):
So that little change right there doesn't, that
conversation doesn't happenunless you go to Even some of
these services, don't, don'tnecessarily tell you, and I say
some of these services.
Speaker 2 (19:56):
But uh, that, that's your broker should give you that
type of information.
Let's just call it like it isyou should Be able to get they
should be coming to you from theunderwriter point of view what
they're looking for.
They should be knowledgeableabout that side, right, and
that's what you're saying.
So when you come to us and Iguess, to be honest, ray is we
can just vouch for us, I mean,Right you know, um, you should
(20:19):
get that information, likethat's what you would do and
that's what you're saying.
So when we're looking atunderwriters on that
underwriters, I'm sorry, we'relooking for loan brokers.
We do want the people thatunderstand what the bank won't.
Now, I do want to say thisbecause I I came to a podcast
earlier.
I just came from one we typedid one and I actually the
question that they was asking Ithink the acts would make a good
(20:40):
sense was they want to know whydo not?
And I want you to answer too,because I answered it.
I want to see what you're gonnasay.
Why is it that the banks andthe underwriters just don't tell
us what we should already do?
Speaker 3 (20:54):
What they're a business number one.
People forget that they're afor-profit business, right?
So business owners have certainregulations they have to follow
.
There's certain guidelines thatthey're.
There's certain minimums.
So as a business owner, youwant to get away with the
minimum so that you can make themaximum.
So if it's not required, it'snot required.
(21:17):
There's no laws indicating thatsomebody has to specifically
tell you what's going on.
You get a notice saying hey,you can.
You know something's wrong withyour credit, like you said or
something like that somethingvery vague.
But if you start giving a lot ofdetails, I mean the bigger you
are, the more concerned you areabout legal, and that's that
(21:38):
side.
Speaker 2 (21:38):
And that's now you know and you're talking from the
bank side.
I get that.
No, let me tell you what I said,because I haven't been a banker
.
I just actually been businessdevelopment helping people get
it.
But what I said to them wasthis you have to understand and
I know you can correct me if I'mwrong that the underwriters are
there for the bank.
They want to make sure that theloan that they're given they're
(22:00):
going to get their money back.
Now, if they got to tell youwhat to do in order for that to
happen, they're not going to dothat.
I wouldn't do that.
I mean because you, first of all, if you asking me and I'm just
saying a million dollars but ifyou ask me for 50 dollars, as a
bank, I need to see that you can.
I need to see that you can payit back.
I don't need you to give me asad story.
(22:20):
You're like I said, thepaperwork and the documents they
asked for, those tell the story, yes, and so I should be able
to, as a banker, look at it andsee, oh, like you said, oh, he
got contracts, oh, he can takecare of this loan.
So understand, they're not therefor you, there for the bank, so
they can give the loan to you,but they are responsible for
making sure that you arefundable, but the more important
(22:42):
, that you don't pay it back.
Like you said, who wants theliquor?
Like they don't want your look,they want you to give them back
their money.
So that's why it's a lot.
They don't tell you and whywouldn't?
And let's be something me andyou don't want to talk about,
but we need to.
It is so much fraud out here.
Speaker 3 (22:56):
Yes, okay, 100%.
Speaker 2 (22:59):
Yeah.
So you have to understand wherethey're coming from.
They're like I told one guy hewas talking about man they went
back and checked all thatbecause you know, cavies cover
is like the check that they dofor the student loans.
Okay, we do sba loan, they'llhave a lot of those, that's what
they checked for the studentloans.
The thing is he was like didthey go?
How did they go back and lookat all that?
I couldn't take some youtalking about 1.7 million.
(23:20):
They will check everything byyour dirty ears.
So get ready for that.
Don't think and and this is abig thing, I need everybody's
here to here too there isnothing they're gonna ask you
that they don't already knowthat.
Speaker 1 (23:35):
That's so true.
Speaker 2 (23:36):
So tell me your opinion and your experience
working with them.
I mean, we want to enlightenour listeners to let them know
how it is so they can stopthinking of it.
It's a.
It's a different thing.
Tell me your opinion of how youthink that works when they do
that so From the bank'sperspective yeah, the bank, I
guess.
Speaker 3 (23:53):
So from the bank's perspective, I mean it was
you're not a counselor, you'renot a coach, that's, you're told
that.
I mean they're not training youto be A to get the loan coach.
No, that's true, you know um,and there's nothing wrong with
banks, I'm not saying no.
Speaker 2 (24:09):
No, it's nothing wrong with what they're saying
you can afford to go to a bank.
Speaker 3 (24:12):
You have your cross, your t's crossing, your diet.
I started go to the bank.
Um, we'll send you to the bankif we right, I mean we have bank
relationships, so the um, thebank is just not set up to be a
counselor.
Speaker 2 (24:29):
I mean and I hadn't thought of it like that.
Right, we need to say thatthey're not so there we can
counsel you, right.
Speaker 3 (24:36):
We have a vested interest in you because we're
not gonna get paid unless we canhelp you get paid.
That's right.
The banker is already gettingpaid, right.
That's a big difference as well.
So they're there.
Yeah, they might get a littlebit more money, you know, but in
the end we have to performright.
We have to perform.
So we have to have quality.
(24:58):
We we have to maintain acertain amount of good loans,
like you're talking about.
So all this is a positive forthe, for the client, because at
that point we're making surethat they're they're looking
really good.
Yeah, and we're using the rightpoints to their for them to work
at that.
Speaker 2 (25:14):
That's right, so that's great, so we appreciate
it.
So let's ask some otherquestions and see that we had to
come through that.
I do want to ask as a loanofficer or loan broker I'm sorry
I have are there any fundingopportunities that you've seen
that was especially successfulfor bars right now?
Any type of funding you seethat works pretty good for bars
(25:34):
at this point?
Speaker 3 (25:35):
real estate.
Real estate is still strong.
I mean that lending in the realestate market has continued,
even though the interest rateshave gotten extremely high.
Right, the qualifications areactually being retracted because
of the stability of theinterest rates not going up.
Hmm, and the housing market isreally really, really tight
still.
Even though prices haven't, youknow, dropped much, the demand
(25:59):
is really high.
So just two days ago, we werenotified of the the reduced
Qualifications for some of ourcommercial builders to build
houses.
So if the banks are doing that,they're telling you that that's
their focus.
They're focused, since therates aren't going up, they're
really focused back on on good,strong asset.
The house is always a good,strong asset right, right.
Speaker 2 (26:20):
So yeah, anything with assets, right, I got you
big.
Speaker 3 (26:23):
Pig it back on that and saying it's it's really what
you're bringing to the table.
Well, if you're making aproduct, that's an asset, mm-hmm
.
If your service provider, youneed to create it as an asset,
not just reference.
Speaker 2 (26:33):
I don't make that and that's what the contract.
So that's the car.
That is such a smart point thatcreates an asset for the
business.
Speaker 3 (26:40):
But you really have to understand that all lenders
are asset based lenders, eventhe ones that use your bank
account.
They're they're they're basingyour asset as the volume coming
into your bank account.
Speaker 2 (26:55):
Yeah, they look at the revenue.
They count.
Your revenue, your futurerevenue Is what they're looking
at.
And you're right, it is anasset.
So we have it where collateralrise and then they say is non
collateral or unsecure secure.
But the unsecure, like you said, you still look at that revenue
.
That's, that's.
I'm basing my judgment Right.
I got you, I got you.
So that's based on how thatworks.
So that that's a good.
(27:15):
That's a good, that's a goodthing you made, I think, for
them to see and understand thathow that works.
So let me ask you is would you,when it come to Lending or
funding and it come to businessowner, what are some top tips or
some tips you would like togive them when they're trying to
get funding for their business?
Speaker 3 (27:35):
I Understand what you're gonna use the money for.
Okay, I mean number one be veryclear Don't mix it.
So if I'm gonna use money forimprovements on the building,
don't mix it with.
Oh, I need a higher person.
There's two different productsfor them.
Speaker 2 (27:50):
You actually apply.
Speaker 3 (27:50):
Two different things and and that gives you a higher
probability Of getting that loan, both of the loans right.
Right, I mean it.
There's served two differentpurposes right.
I'll use the liquor distributor.
Okay, you don't need a loan,you need a line of credit.
You need to work on onlinecredit because you're going to
spend the money, you're going toreapply, spend the money,
reapply that that's that doesn'twork that way.
(28:13):
So it's the product you know,really understand what you're
going to use the money for andthat dictates the product that's
going to be used.
To help you with that.
Speaker 2 (28:22):
Right, and that's where we come in.
As long broke to kind of helpyou that, because I had a client
to the K men and he wantedworking capital and once he
qualified for so much he's like,oh well, I could probably pay
my house off with the rest of it.
No no we don't pay house offwith that.
I understand it's a lot.
You know he's a old, withinwhat are.
(28:43):
You know that's like.
That's what we're going to talkabout the use of funds.
You know, we just had thatdiscussion.
That's why I realized a lot ofpeople don't realize that that
he didn't either.
Because he like well, I need toget a truck.
Well, that's a whole differentloan.
You don't take an 800,000dollar working capital and go
buy a truck.
You use the food workingcapital Right, and then what we
do is go get a loan for thetruck.
(29:03):
At the same time he needed topurchase a warehouse.
So he said Well, I got thismoney, I can actually go.
The warehouse is 500,000.
I just go get.
No, your working capital isyour working capital and I think
people don't properly know howto use the money once they get
it.
That's a whole differentpodcast for you and I.
But we definitely want you touse it for what you should be
(29:24):
and we try to say that you don'thave to use that working
capital for everything.
We have loans for everything.
So for that truck, thatwarehouse and everything you
want, we have separate loans forall of that and it doesn't come
out that 800.
So guess what he gets to keepthat 800 and really deal with
working capital, you know,payroll and everything else.
And yet he still have awarehouse and we still was able
to get more truck.
Speaker 3 (29:42):
That's the best use of your time, effort and
resources, exactly, I mean,that's well put.
Speaker 2 (29:49):
So we need you all to know that that's out there and
I, like I said, I think theyreally don't understand.
As loan brokers, we providethose questions or those answers
to those questions that youhave.
So it's good to reach out to us.
Like Sam, you can reach out tous on this show, as you know, on
the podcast, or you canactually in your area.
You can Google and see whatline brokers you could you know,
(30:11):
loan brokers you can find andgo and, based on the
conversation we have, you shouldget you got an idea of pretty
much what you're probablylooking for when you talk to
them and then they can kind ofcater to you and your situation.
Now, one thing I like that Ilove and I know you're the same
with.
You've been in this for a while.
You have how many clients youhave worked with over the years
that you probably haven't evenseen them but you've been
(30:32):
working with them all over thenation.
I mean, how much do we reallyhave this like that?
And I think I feel we have alot of people you think.
Speaker 3 (30:40):
Yeah, yeah, we're nationwide, yeah, I mean there's
.
I was lucky.
My son graduated in Florida,right, so I went and picked him
up and we drove back.
Well, we took the opportunitystop in Gainesville and so I
could meet one of my clients,right, and on the way back in, I
mean, but that's an oddity,yeah, to get you know.
(31:02):
So a lot of it is digital phone.
There's good communication.
In the end, it's being all openand honest and we're not here
to judge, we're here to help.
I mean, it's the opposite.
You know, it's really theopposite.
Again, because I personallyknow how it is to go to the bank
and be told no, right, you knowit can be really downer because
(31:26):
you're up here Great idea, andthe bank doesn't want to help me
.
I was like wait, I mean, butyou're just talking to the wrong
people.
Speaker 2 (31:34):
That's all and you have.
You have options with a loanbroker.
So we definitely want to saythat, that we are optioned for
you guys, that you candefinitely reach out to us also
to know how we are done.
Like you had mentioned it early, for his pay, we get paid based
on a percentage of what youreceive.
Yeah, you know what I'm saying.
So that's the good thing peoplethink because, as one of my
(31:54):
clients told me, if you get methree thousand, three million
dollars, paying you 90,000 isnot going to be a problem, right
, and so that's the way you haveto look at it.
You know, because we get it andit's done, and he's turned
around in four weeks and he'sgone and he didn't have to leave
his chair to do anything.
We did all day, every lifting.
So that's what we're here for.
We want you all to know that.
(32:14):
So the wrap up everything, ifyou would.
Is it anything you would liketo tell our listeners that you
want them to be aware of?
Speaker 3 (32:23):
Yes, talk to somebody , get your ideas out there,
especially with another broker,but really have somebody punch
hole in your ideas.
Speaker 2 (32:33):
Hmm.
Speaker 3 (32:33):
Punch holes in your ideas.
It only makes your ideastronger, and when you do end up
presenting it to somebody, youalready have all those pitfalls
covered.
Speaker 2 (32:42):
Right, and that's a.
That's a great, that's a greattip, great tip.
Well, we want to thank you forcoming.
Oh, thank you very much.
As always I love talking to youand hopefully you can come back
and we can do some morediscussions on other things that
can kind of help enlightenpeople on some stuff.
So definitely want you all tobe a part of it.
If you all are interested inbeing or doing loan brokers, he
(33:03):
does, like we said earlier, heactually works with brokers and
helping to develop him gettingcontact with us.
We'll definitely get you withReyes where he can actually work
with.
If you're interested in that,you can go through our website
and contact us atwwwTDJEquityLLCcom.
Okay, in the meantime, thankyou for coming out again.
Speaker 3 (33:25):
Thank you very much for having me.
It's been fun.
Speaker 2 (33:27):
And it is.
Thank you so much, and to ourlisteners.
If you like the information andwould like to learn more,
please subscribe to YouTubechannel at youtubecom.
Backslash Tdj.
Equity funding insiders.
Until next time, thank you andtake care.
Speaker 1 (33:45):
We hope you enjoyed this episode of Tdj equity
funding insiders podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet, forward slash
podcast or email us at podcastat tdjequityfundinginsidersnet.
Until next time, take care.
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