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" ad vertisement,
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
