If
you've been wanting to get into something that doesn't require
all
of your time, yet could give you an income of $100,000 per
year
or more, a Business Financing Service is definitely
something
you should consider. this is the kind of
business that
requires
no special education or even a storefront office; won't
take
much of your time, yet offers more prestige, power and fast
earning
potential than just about any business opportunity
available
to the ordinary working person.
The
average net profit of people in this kind of business is
$75,000
per year, before taxes. Most began on a part-time basis,
operating
out of their homes. Within a short period of time,
varying
with expenditure of time and effort, most have luxurious
professional
office suites with many clients from all over the
country
calling and asking for help. Perhaps best of all, this is
a
business you can operate with nothing more than a part-time
secretary/bookkepper,
a telephone, and business cards.
There
are many facets of this kind of business, which involve
bringing
lenders and borrowers together for venture capital,
operating
capital, expansion capital, and of course, mortgages of
all
kinds. Concerning mortgages, look at it from this point of
view:
Almost every building in the country---homes, office
buildings,
factories, apartments--- has a mortgage on it, and
somebody
is making some really big commissions bringing together
the
people wanting the money and the people wanting to lend the
money.
A
business financing or money brokerage business is the ideal
sideline
business for real estate brokers, sales persons involved
in
business sales, investment brokers, attorneys, accountants and
retirees
from almost any occupation. This is definitely one of
the
truly recession proof businesses that actually seems to
flourish
in times of tight money.
YOUR POTENTIAL
MARKET:
Each
year, more than 10 million business loan applications are
filed
with banks in this country. It is not uncommon for these
banks
to be working on more then 250,000 business loans each
week,
in amounts ranging from $25,000 to well over a million
dollars.
About 65 percent of the loans actually granted by the
banks
are short-term commercial loans; only 25 percent are for
longer
terms, with fewer than 10 percent granted for construction
projects.
It
should be obvious that the banks in this country are neither
speedy
nor generous in giving loans to beginning or small
business
entrepreneur. Such business people usually ask for loans
of
longer duration than the banks are willing to grant. It is
easy
to see that a beginning business, smaller installment
payments
will reduce pressure on the borrower, and allow him to
put
more of the profit back into the business. In most cases,
these
small business owners need much more than the banks are
willing
to allow without all kinds of guaranteed collateral. And
that,
of course, is the reason why people needing money for their
business
success turn to business financing consultants, which
provides
you the opportunity for success in this field.
You'll
find that beginning or small business persons are always
on
the lookout for professional business financing services. They
always
seem to need more money than they have available, and they
never
seem to get quite the help or satisfaction they seek from
the
banks. The pressing need for more capital is not something
that
plagues only the beginning or new business. IT is an ongoing
need
in almost every growing business also. In fact, the need for
continuing
input of new money is a necessary part of the growth
cycle
of every business. Generally, the "little guy" just doesn't
have
the extra cash from last year; he does not have the money it
takes
to set up a stock market program; and he doesn't have the
time
to devote to (or he doesn't want to attempt to "sell" his
friends)
an investment program in his business.
Sometimes
these small business people will talk with their
accountants,
lawyers or stockbrokers and ask them to help in
finding
people with money to invest. Most accountants, lawyers
and
stockbrokers are in touch with clients who have money they
are
willing to invest in growing businesses, or people with
"sure-fire"
money-making ideas.
Whether
these professional people do or do not have special
clients
with money to invest in special "deals" is of no
consequence.
The important thing is that these people are always
being
asked by someone if they know of a source of money, or if
they
know of someone who can locate an investor for them. With
this
in mind, and once you're set up in business, it will behoove
you
to contact these people---the accountants, lawyers, and
stockbrokers
in your area--to get to know as many of them as you
can,
and to leave your business card, so they will be aware of
your
services.
SETTING
UP YOUR BUSINESS
You
can start from the kitchen table in your home if necessary.
You'll
need a telephone and unless you have someone acting as a
secretary,
you should employ a telephone answering service. You
can
probably get with a telephone answering machine, but because
you're
dealing with money, it's important that you project an
image
of success (and a telephone answering machine quickly
identifies
you as being a one-person operation).
In
addition to a telephone, you will also need business cards.
These,
of course, should be a fine quality (this is not a very
large
expenditure). They should be of a fine quality ( this is
not
a very large expenditure). They should simply state your
name,
followed by th name of your services---Business Financial
Services.
You may list your phone number in the upper left-hand
corner,
something such as " Money for Every Need" in the lower
right
corner, and of course your name and firm name centered in
the
middle. Assuming you are working out of your home, once you
have
moved into an office, you would certainly want to make new
cards
showing your business address.
It
wouldn't hurt to have a calculator, a typewriter, and at least
a
small file cabinet as you set up your business. But just as
people
got along before without these amenities, you can make do
until
you can afford this equipment.
Once
you are organized in a work area and with the basics for
operating
your business, the next move will be to get the word
out
that you're ready to offer your services to people needing
money,
and for the people who are willing to invest. This means
advertising,
visiting, making contact in some way with both the
people
needing money, and those wanting to realize a profit in
the
process of lending their money. And don't forget---often
those
who do not go with you for one reason or
another may
supply
with you with fine referrals.
The
more you advertise and talk to people about your services,
the
more successful your business is going to be. So first of
all,
we suggest you run an ad in the classified section of your
local
newspapers. It might read like this:
MONEY AVAILABLE! Business
start-ups,
expansion needs, construction
loans,
cash flow problems. Call 123-4567
You
should run such an advertisement in as many of your area
papers
as you can afford, every day, for at least a month. This
means
that you'll have to have an advertising budget, with the
money
either coming in (or available) to meet these costs before
you
even contract to run your first ad. (This is part of the
necessary
planning that has to be done before you actually open
for
business.)
At
the same time you're running the ad inviting people to come to
you
for their money needs, you should also be running a daily ad
such
as this one:
$350,000 NEEDED! Will pay maximum
interest.
Growing business, excellent profits
and tax
benefits. Call 123-4567.
Now
the purpose of the first ad is to build your list of people
wanting
money---needing loans that you can process. The purpose
of
the second ad is to build your list of investors in your area
with
money to put into some of these business proposals you get
from
the first ad. Obviously, you'll get more people wanting to
borrow
than people to invest; but once you begin running these
two
advertisements, you'll be on your way.
When
you place your first ads, start checking and following up on
similar
ads you see running in your area newspapers. Usually.
they
will be listed under "Financial & loans Wanted", or "Money
to
Loan."However, don't neglect to check the "Business
Opportunities
Wanted" classification as well.
When
someone calls in response to your "Money Available"
advertisement,
whoever is acting as your secretary should get the
name
of the caller, the name of the business, the telephone
number,
amount of money needed, kind of business and most
appropriate
time for a consultation. This can be handled most
efficiently
with preprinted telephone message pads. So you simply
collect
information from all these incoming calls, look it all
over
and start making call-backs.
Basically,
you call-back conversation should sound something like
this:
"hello, John Jones? This is Mr. Money Broker returning your
call
about money for business financing. I understand that you're
looking
for about $100,000 in order to set up an auto tune-up
shop.
You stated that you are already pretty well organized with
a
business plan and location, and that you have pretty good
collateral.
That's very good. Before we talk further, however,
I'd
like to tell you a little about my company.
"We
represent a number of large lending organizations for
business
financing, as well as a number of private investor who
are
looking for new ideas and business to invest in. Their
primary
requirement, of course, is that they will make money from
such
an investment.
"What
I do is work with you preparing you loan or investment
package
so that it will be attractive when it is presented to
prospective
lenders. it is very important that your proposal be
complete
and in the proper order. It is also the greatest
importance
that it "look good," and "sell" the people it is taken
to.
the prospective lender must feel confident in granting you a
loan
or investing in your business. Once we've got your
presentation
together, I then take it to some of my lending or
investment
sources and work toward obtaining you the money you
need.
"As
I'm sure you're already aware, it's important that your
proposal
be prepared properly, and presented to the people who
are
in a position to give you the money you're asking for. I work
with
you to see that your proposal is the best my people have
ever
seen, and then I take it to the people who have the money
and
are looking for a good investment. For this, I require a $100
broker's
retainer fee. I then go to work on your specific money
needs.
What we need to do now is to set up a time and date for me
to
meet with you so that I may review your proposal. Would
tomorrow
morning at 10:00 be all right with you, or would 11:00
be
better?"
The
important thing is to be in control of this telephone
conversation;
to tell the prospect only what you want him to
think
about; and to sell him on the idea of getting on with it by
paying
the broker's retainer fee of $100. Only after you have
collected
that, of course, will you start to work on evaluating
his
plan and getting the money he needs.
When
you go to see your prospect, you'll need to have a printed
"broker's
agreement" ready for him to sign at the time he pays
the
retainer fee. An example of a basic or simple broker's
agreement
is shown here.
(Feel
free to use the following form as a pattern for your own
agreement,
or you may even want to cut it out, paste it up, and
have
your printer run off a supply for you. If you do cut out and
use
the form, you will of course place your business name,
address
and telephone number in the space "Your Name and Address"
at
the top. Also, be sure to block out the instructions on the
signatures
lines.)
YOUR
NAME AND ADDRESS
AGGREEMENT
FOR FINANCIAL SERVICE
The
undersigned, (Borrower's Name) , hereby
appoints (Your Name) as his Agent,
authorizes
him to submit to lenders financial
data
and information supplied by the borrower for
the
purpose of the lender making a loan or investment
direct
to the undersigned. The undersigned agrees
to
pay to (Your Name ) a fee of ______%
of
the amount of the loan or investment obtained.
The
undersigned hereby pays to (Your
Name)
$____________
as a non-returnable fee for time involved
in
apprasing feasibility of the loan requested.
This
fee is separate from any other fees due if loan
is
obtained.
______________ ______________________
Date Borrower
Once
you are organized and rolling, you'll find that most of your
day-to
day income will be derived from the packaging of loan
applications.
Once your client has signed the broker's agreement
and
given you his check for the retainer fee, you'll be helping
him
to get his loan or investment proposal together. This is the
first
thing to do, and you HAVE to do this regardless of any
forms
your client has already filled our, or anything he may have
done
relative to a loan proposal.
First
give your client a detailed list of information he'll need
to
have within his loan or investment package. Because
requirements
do change from time to time, you will want to give
your
client the most up-to date requirements in this regard. Go
to
several of the banks in your area and ask their loan officers
for
a copy of their loan application forms. use these forms as
your
guide in making up the detailed list of requirements you
will
use in working with your client. If you need additional
assistance,
write one of the several organizations listed at the
end
of this report.
When
you have the package put together and ready for presentation
to
a lender, take it back to your client and brief him on how to
present
it to the prospective lenders, and generally you would
give
him the names and addresses of the people you feel will be
the
most likely to listen to his presentation. He makes the
presentation
to the local prospects, and contacts your
possible;le
sources by mail. If he needs further help from you,
you
would charge him a per-hour counselling fee, plus consulting
charge
fro any special or extra time spent working for him.
Overall,
you should position yourself and your service to the
client
in order to collect a "finder's fee" of 1/2% to 10% of the
amount
of money actually loaned to or invested in his business. A
flat
fee of $100 to $250 as a broker's retainer fee for helping
him
with his loan presentation when HE does most of the work__
and
outright fee of 1% for total preparation for his presentation
package---and
a consultant's fee of $50 to $100 per hour for any
additional
time expended on the project. These are your "bread &
butter"
services that will establish you as a professional, and
keep
you in business until you score with a big commission from
prehaps
a million dollar loan. You have to involve yourself in
these
services, because they'll make the difference between your
going
broke or really succeeding in the money brokering industry.
Indeed,,
you'll become more efficient with each experience with a
client.
You'll soon recognize which proposals to concentrate your
attention
on, and of course, which ones to scan briefly and hand
back
to a loan seeker. the more you deal with money
professionals,
too, the sharper you'll become---and consequently,
the
more money you will make. Money professionals know what types
of
loans are possible or likely from each of their
different
funding
sources; thus, they'll present only those having the best
chances
of success. You will quickly become well versed in the
current
lending and investment trends, and acquainted with the
lending
rates and requirements of your loan sources. As you
review,
assist and put together each of the request-for-money
proposals,
your knowledge will improve your ability to package
specific
requests, and to "sell" a loan proposal> Just keep in
mind
that every time a loan is approved, or when one of your
sources
decides to invest in a client's business, you'll be
taking
a financial cut right off the top.
Right
here I'd like to assure that you don't have to be either a
financial
genius or a super sales person. All you really have to
know
is how to put together a proposal properly, and acquire a
list
of sources interested in lending money or investing in a
venture
to obtain a profit.
You'll
find that most of the borrowers you sign to assist in
finding
money for are unaware that they will have very ,little if
anything
to say about the terms of the loan that may be finally
granted.
You'll find that most of them are already convinced that
they
have the ultimate idea that most for a
business that will
make
everyone rich. Almost all of them are trying to get started
with
little or no money of their own, and they'll think that
whatever
the prevailing interest rate,it's too much.
Your
first chore will be to screen these people. Explain the
facts
of life to them, and don't waste time with them if you have
the
feeling they'll reject or refuse to accept a loan you line up
for
them because of the interest rates, If they're been to most
of
the regular loan sources in your area, they'll know that when
they
want or need money, it's the lender who dictates the terms
of
the loan. A prospective borrower soon learns the prime rate
that
is published is almost never used. Actually, the prevailing
prime
rate plus two percent is generally a good rate of interest
for
small businesses. In moat cases, such loans have to be well
secured
with collateral not associated with the business.
Most
of your would-be borrowers will not qualify for the prime
plus
two percent rate. Business experience, coupled with the type
of
business involved, will almost always put them in the "high
risk"
loan category. After you have your retainer fee, you have
to
educate your would-be borrowers in this regard. For those who
cannot
face the facts of life about interest rates, you have to
just
forget.
Something
else you'll have to convince your clients of: If he
says
he'll give a share of his business in exchange for the use
of
your investor's money, he'll have to give up a very large
share. Most small business investment corporations
or private
investors
will want at least 25 percent, and more often than not,
up
to 49 percent. In some cases, where a half million dollars or
more
is provided by the investor, he may (reasonably) ask for as
much
as 70 to 80 percent. Thus, it's absolutely essential that
you
learn to qualify your would-be borrower before you get to
deeply
involved or waste too much of your life.
For
those who can't or don't want to pay your retainer fee--I say
skip
them. And those who can't or don't want to pay the high risk
interest
rates when you let them in on the real facts of
life--forget
them too. And those that have been turned down by
practically
every lending institution in the country, I would
advise
you---let some beginner gain practice on them. And these
are
the ones you need to learn to spot wile YOU are a beginner.
You
should determine exactly how much cash and other assets your
client
can or is willing to put into his proposed business.
You'll
have to be satisfied with the character of your client as
a
borrower; his record of paying his bills, how he gets along
with
people, and his overall chances of success. You'll have to
do
the checking of his references and credit record. You'll have
to
judge how he'll make good on the loan if the business goes
sour.
When these questions are answered to your satisfaction, you
can
go with helping him put together a proper loan proposal and
work
toward getting him the money he wants.
Most
successful money brokers charge according to the size and
type
of loan being requested. This is based on the amount of work
they
have to put in to place the loan. If it looks like a pretty
solid
business with a good record on the part of the borrower,
and
good collateral, the fees are usually lower. On the other
hand,
if it's a high risk proposal or if the borrower has a very
little
business experience and you're going to end up doing a lot
of
selling to get the loan approved, your fee should be
accordingly
higher.
Remember
that not all loans are approved, even though they might
have
looked good to you in the beginning. With this in mind, you
have
to charge for your services and makeup for the time you
spend
with those proposals that don't get approved by charging
and
collecting on those that do get approved. An example of the
typical
commission charges is shown below.
LOAN
AMOUNT YOUR FEE COMMISSION
$5,OOO,OOO+ 1/2% $25,000
$2,000,000 1%
$20,000
$1,000,000 1.5% $15,000
$500,000 2% $10,000
$100,000 3% $ 3,000
$50,000 4% $2,000
$30,000 5% to 10% $1,500 to $3,000
Under
$30,000 10% #750 minimum
As
we started earlier, you can start this kind of business from
the
comfort of your own home or apartment, and do very well.
However,
just as soon as you can possibly afford to, it would be
your
benefit to set up an office with access to general public.
Your
success and gross income will definitely benefit with an
office.
You
should set up your operation in a prestige location within or
fairly
close to the business and financial district in your area.
Basically,
this will be for impressing your clients, but a the
same
time, by locating in or near your local loan sources, you'll
quickly
come to know th important people on a first name basis.
Perhaps
the best idea would be to sublet space in a suite of
offices
used by an insurance company, accounting firm, or a group
of
lawyers. An arrangement can often be made for their
receptionist
to answer your phone calls and receive your clients.
With
a little bit of finesse, you might even be able to have one
of
their secretaries handle your typing and filing.
Your
office should be neat and functional, but still impressive.
A
large desk, comfortable chair and a credenza; perhaps a
four-drawer
file cabinet also. the image you project is of great
importance,
and being associated with a big name firm, even if
only
on the basis of sharing their suite of offices, will
definitely
be to your advantage in gaining ultimate success.
You
should try to cover the walls of your office with your
certificates
of awards, courses completed,
association
memberships
and seminar courses completed over the years.
Documents
of affiliation with civic groups or even reproductions
of
national write-ups should be framed and displayed on your
office
walls.
Don't
forget: when planning and furnishing your office, you
should
also include a least one, preferably two, visitor's
chairs.
A small sofa would be desirable, but really isn't
necessary
until you've really firmly established. The thing is,
you
want to project the impression of affluence and
professionalism
to anyone coming into your office.
The
ideal situation is to have a two-person team--someone on the
outside
doing the selling, and someone on the inside handling all
the
processing. If you have the marketing skills, and enjoy
selling,
you might you for a sharp and impressive appearing
person
to handle the processing for you. Or if you've got the
processing
know-how, you might keep your eyes open for a
professional
appearing person who could be your "outside arm" and
do
most of the selling for you. Basically, and excepting for the
actual
preparation and selling of loan packages, most of the
inside
work can be handled by clerical personnel.
As
you grow, however, you'll find it in your best interest to
have
a full-time secretary. You would train her to field incoming
telephone
calls, take care of filing, and do your personal typing
for
you. A typical loan proposal usually
requires about eight
hours
of typing.
Regardless
how you get started, and even after you've moved into
a
suite of plush offices, you'll have to advertise to keep your
business
coming in. Besides running regular advertising your
local
newspapers, you should also advertise in the local
financial
publications as often as you can afford Once you get
your
business rolling, you should expand your advertising
coverage
to include such national publications as the Wall Street
Journal
and the business opportunity publications.
Regarding
the type of advertisement to run in these publications,
we
recommend that you look at money brokerage ads in these
publications.
Clip out some of those especially like and have
your
local typesetter make one up for you, using these you've
clipped
as patterns.
Any
ad you run should include or list a minimum loan amount
you'll
handle, that is, a statement such as "$50,00 minimum to
$...."
This procedure will screen out the people looking for
small
personal loans. At the same time, it's a good idea to list
a
maximum amount you're capable of handling--for instance,
"$50,000
minimum to $10,000,000." This will attract those who are
looking
for large business financing.
In
addition to your local newspapers, business publications and
national
distributed papers, newsletters and magazines, it will
be
to you advantage to to run an advertisement in the yellow
pages
of your local telephone book and in area business
directories.
Besides"regular"
advertising you should be sending out direct
mail
letters, letting people know that you can help them with
their
money problems. Some money brokers have a combination
letter-display
ad made up and printed on the back of postcards.
This
is quite a bit less expensive than sending out letters, and
could
possibly downgrade your image somewhat, but on the other
hand,
those money brokers using postcards say they're very
effective
because the recipients are more likely to save a
postcard
than a letter.
A
general description of the way the direct mail system works is:
You
mail out your letters or postcards to real estate brokers and
small
businesses in your area. Then a couple of days later, you
follow
up with a phone call to these people. You identify
yourself,
ask if the card or letter had been received, and ask
how
things are going--if perhaps you can be of any help to them,
Finally,
you ask them to keep you in mind, and to be sure to let
you
know if something comes up that you can handle.
About
one third of the people you talk to will say that they
don't
immediately need money, but they know of individuals or
businesses
looking for help. When you do get a referral, be sure
to
elicit as much information as possible, then make a contact
with
them.
You
can also send out letters in search of lenders or private
investors.
All of these efforts are helpful in
establishing and
building
your business.
When
you have a loan or an investment proposal together,and you
intend
to sell it to a lender, you should first call the lending
officer
or the head of that lending organization. If you want to
present
your package to a private investor, you will more likely
have
to call his attorney, broker or investment counselor.
The
purpose of your telephone call is to set up an appointment in
order
to present your package in person. Thus, during the course
of
this telephone call, you should brief the lender on the
highlights
of your client's loan proposal. If he's interested,
he'll
probably want you to send him a written summary. After he's
received
the summary and decided he's interested, he'll get back
to
you and set up and interview with you, and then you and your
client.
You
and the borrower should rehearse the entire loan proposal ad
have
all examples, charts and graphic illustrations ready to form
a
winning presentation. Any lender willing to listen at all wants
to
hear the full story, and when they have a question, they want
the
answer without hesitation. So be sure you're ready when they
show
up for that loan-selling interview with
a COMPLETE
presenation.
Once
you start processing loan applications, you'll find that
about
80 percent of the loans granted to small businesses are
made
by commercial banks. A few more than ten percent are made by
friends
or relatives of the borrower, and about three percent by
finance
companies. Another three percent will be granted by
insurance
companies. This will give you an idea of possible money
sources
for your clients.
You
must remember, when a prospective borrower tells you how much
money
he needs, and wants to use it for, it is your job to
evaluate
his proposal and match his particular proposal with
sources,
likely to be interested. As you build your list of money
sources,
you will find those that specialize in specific
categories
of loans---for apartment buildings, medical
facilities,
recreation setups, and a myriad of others.
Most
money brokers cultivate the savings and loan companies,
union
pension funds, life insurance trust companies, credit
unions,
private investor groups, and even the small loan
companies.
The important thing to remember is that if you're
going
to bring together people needing money and people with
money
to lend, you have to continually develop contacts in order
to
build your list of money sources. It is very helpful to get to
know
your local bank officials because often times they can refer
you
to a person you can really serve, because he doesn't qualify
for
a bank loan.
You
will learn also that most sources of VENTURE capital,money
for
business startups--want an equity share of the business. They
generally
don't require that the money they put up be repaid,
because
they're hoping to make their profit from a share of the
business
as it grows and becomes more and more profitable. They
especially
like to get in on the "ground floor" of a small
companies
who plan to issue public shares of stock when they
begin
to grow.
Still
another angle that money brokers should develop is contact
with
a number of people who might be interested in investing as
silent
partners in a new or growing business ventures. Silent
partners
invest in a business without assuming any liability
relative
to debts the business may incur, while still sharing in
the
total profits of the business. In most areas of the country,
there
are always a number of wealthy people around who are
interested
in investing small amounts of money in any number of
business
ventures--sometimes as many as they can get in on.
Until you've actually placed a few loans,
you're undoubtedly
going
to occasionally spend a lot of time attempting to sell a
loan
that just can't be sold. You will have to develop your skill
in
evaluating from the facts the borrower gives you, the
possibility
of obtaining a loan for him. Your evaluation will be
based
upon how much he wants, for how long, and terms (time
period
and interest rate), his past business experience, and the
feasibility
of his plan for success in the planned business.
While
it does take some time and concentration to differentiate
the
"winners" from the "losers" be aware from the beginning,
and
you
will be less likely to be caught up in efforts to place a
loan
that just can't be placed.
Of
primary importance to your lenders is your client's collateral
which
would assure repayment of the loan in the event of failure
of
the business. Lenders won't even listen to, or bother to look
at
a proposal that is not backed up with realistic collateral to
support
the loan. And you may count on this: They will call you
on
ay profit projections based only on the borrower's glowing
predictions.
These are the things you as a money broker must
evaluate
before getting too deeply involved. If the loan doesn't
have
the look of at least an even chance of being approved,
better
to give it to your client straight. It will save him grief
in
the long run, and will allow you to go on to another proposal
with
a better chances of success.
When
you go into the matter of collateral with a client, by all
means
be thorough and inquisitive in working with him. Many
borrowers
have collateral they have never thought of in terms of
security.
For instance, antiques, coin or stamp collections, life
insurance
policies, even a wealthy friend or so who would sign as
guarantor(s)
of a loan. Remember also any accounts receivable,
promissory
notes, machinery and equipment, and real estate
equity.
When
you've listed all the collateral that can be dug up, you
have
to demonstrate very clearly just how the loan is going to be
paid---and
particularly if the business fails. Collateral is a
necessary
part of any loan transaction, but it usually is not
enough
to satisfy the entire face value of the loan. Thus, in
addition
to collateral, the borrower has to have a clear and
provable
plan for repaying the money he borrows.
So
long as you work through the commercial banks, you shouldn't
need
any kind of broker's license. But to be sure, you will want
to
check with your local licensing authorities. In the end,
you'll
probably want to get a real estate broker's license,
because
in many cases, real estate will figure into the loan in
one
way or another. However, you can get started without one. If
you
run into an immediate need for a real estate broker's
license,
you can always make an arrangement with someone who has
one
and let him be the "licensee of record."
Finally--and
possibly the NUMBER ONE requisite for success in
your
Business Financing Service venture is this: You are going to
need,
and really must have, enough money available or coming in
from
some outside source(s), to sustain your daily living for at
least
the first three months BEFORE you open your business.
It
will probably take you two to three weeks to put together each
of
your first loan proposals. You're working (investing your
time)
but the money won't be coming in until you finish the job.
But
even when everything is ready and you begin trying to place a
loan,
it could take you anywhere from three weeks to three months
to
get the final approval.
So
the best way to get started as a money broker is, as we
discussed
earlier in this report, to start on a part-time basis
while
you are still holding down a regular job. Remember, you can
work
out of your home, do some careful planning and become
efficient
with your time; concentrate on getting those "retainer
fees"
and proceed with packaging the loan proposals.
There
is no effortless way to start this or any other business.
You
have to start small, do all or most of the work yourself, and
addition
to investing your time, you'll have to "prime the pump"
with
money of your own. However, it can be done, and most
assuredly
this particular kind of business can take you from
pauper
to wealth in a short time.
Businesses
in every city and town in this country would like to
have
more money than they are currently have available. You can
become
rich beyond your wildest dreams by helping them. You
identify
those with money needs and bring them together with the
people
or organizations with money to invest.
All
it takes is the know-how we've passed along within this
business
start-up manual, and ACTION on your part--it's up to
you!
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