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How to make big money with your own business finan
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,
oper-ating 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 satis-faction 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 authorizehim to submit to lenders financial data and information supplied by the borrower for the purpose ofte lender making a loan or investment direct to the undersigned. The undersigned agrees to pay to _(our Name)__ a fee of _____% of the amount of the loan or investment obtained. The undersigned heebypays to __(Your Name)__ $_________ as a non-returnable fee for time involved in appraising feasbiliy 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 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 too 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 office 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, 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, 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 publica-tions,
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 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 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!
American Finance Association American Institute of
Graduate School of Business Administration Financial Brokers
New York University 221 N. LaSalle Street
100 Trinity Place Chicago, IL 60601
New York, NY 10006
American Institute of Professional Consultants
American Professional Center
201 S. Lake St., Suite 500
Pasadena, CA 91109
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