HOW TO MAKE BIG MONEY WITH YOUR OWN BUSINESS FINANCING SERVICE
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/bookkeeper, 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 the banks in
this country. It is not uncommon for these banks to be working on more than 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 about 25 percent are for longer terms, with fewer than ten
percent granted for construction projects.
It should then be obvious that the banks in this country are neither speedy nor generous
in giving loans to the 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 in a beginning business, smaller installment payments will reduce pressure on
the borrower, and allow him to put more of the profits 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 a 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.
THE SERVICES YOU'LL PROVIDE:
Generally, the money broker or person operating a business financing service will work
with his or her clients in putting the loan application package together in such a way that
it will receive favorable consideration by the lender. You'll have the names, addresses
and telephone numbers of lenders from all over the world, people and firms interested in
investing in all kinds of different business ideas and for virtually any amount of money.
When you have a complete loan application ready for presentation, you'll select the
lenders or firms interested in that kind of business or investment. Either send or
present the loan application package to them. One thing is most important: When you
present a loan application package to a lender, be sure to have the date and time of
your presentation certified by a notary public. When you send a loan application to a
lender, be sure to certify the mailing of your package with the Post Office.
Once you "open your doors" for business, there will be no shortage of people coming to
you for their money needs. The problem will be electing just the requests you know,
logically, stand a reasonable chance of approval. Everybody wants and needs
money; once you announce that you can get loans for people who need them, you will
be overwhelmed with requests. It will be up to you to utilize your time, expertise, and
effort according to the greatest profit potential.
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 to act as a secretary, you should employ a telephone
answering service. You can probably get by 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 of a fine quality (this is not a very large expenditure). They, should simply state your
name, followed by the 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-hand 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 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 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 money than
people with money 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, who ever 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 your call-backs.
Basically, your 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 feel you have pretty good collateral. That's very good. Before
we talk any further, however, I'd like to tell you a little about our company.
"We represent a number of large lending organizations for business financing, as well
as a number of private investors who are looking for new ideas and businesses to
invest in. Their primary requirement, of course, is that they be assured of getting their
money back, but further that they will make money from such an investment.
"What I do is work with you in preparing your 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 of 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 most 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 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 him 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 signature
lines.
YOUR NAME AND ADDRESS
AGREEMENT FOR FINANCIAL SERVICE
The undersigned, __________(Borrower's Name), hereby appoints ________(Your
Name)as his Agent, and authorized 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 appraising 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 in come 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 prospective lenders, and
generally you would give him the names and addresses of the people you feel will be
most likely to listen to his presentation. He makes the presentation to the local
prospects, and contacts your other possible sources by mail. If he needs further help
from you, you would charge him a per-hour counselling fee, plus consulting charge for
any special or extra time spent working with 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 - an outright fee of 1% for the total
preparation of 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 perhaps 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 for a business that will make everyone involved 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 to o much.
Your first chore will be to screen these people. Explain the facts of life to them, and don't
waste your time with them if you have the feeling they'll reject or refuse to accept a loan
you line up for them because of interest rates. If they've 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 most small businesses. In most 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 up 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 too deeply involved or waste too much of your
time.
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 while 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 on 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 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 make
up 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
$5,000,000 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 stated 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 to your benefit it to set up an off ice with access to the 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 at the same time, by locating in or near your local loan sources, you'll quickly
come to know the 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, comfort
able 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, extra-
curricular 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 at least
one, and 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 to be 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 look 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 you 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 the 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 of how you get started, and even after you've moved into a suite of plush
offices, you'll have to advertise to keep new business coming in. Besides running
regular advertising in your local newspapers, you should also advertise in the local
financial publications as often as you can afford it. 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 you
especially like and have your local typesetter make one up for you, using those 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 "$50,000 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 nationally distributed
papers, newsletters and magazines, it will be to your advantage to run an advertisement
in the yellow pages of your 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 the 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 then 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 business 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 put 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 than 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 an interview with you, and then with you
and your client.
You and the borrower should rehearse the entire loan proposal and have all examples,
charts and graphic illustrations ready to go for 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 you show up for
that loan-selling interview - with a complete presentation.
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 what he 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 go ing 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 oftentimes 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 start-ups -
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 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 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 your 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 any profit projections
based only on your 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 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 any 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 repaid - 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 "licence of record."
Finally - and possible 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 for 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 in 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 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!
REFERENCE ASSOCIATIONS:
American Finance Association
Graduate School of Business Administration
New York University
100 Trinity Place
New York, NY 10006
American Institute of Financial Brokers
221 N. LaSalle Street
Chicago, IL 60601
American Institute of Professional Consultants
American Professional Center
201 S. Lake St., Suite 500
Pasadena, CA 91109
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