Category: Consulting & Talent

11
Feb

On Consulting, Lending to the Masses, Seth Godin, Alan Weiss & Hard Work

I’m “lucky.” Lenders, vendors, investors, entrepreneurs… in “the business of lending money to the masses” call me daily. They share their wins, their losses, their challenges, their frustrations and most importantly, their ideas with me.

Why me? I suppose because I’m transparent. I’m straight. I fully admit my agenda and my biases. My reputation is all I really have. Ultimately, that’s all any of us own.

As a result, I have the good fortune to be able to access some of the best minds in our industry.

Make no mistake! I recognize that I’m often “the dumbest guy in the room.” Frankly, I prefer this role. “Always be learning” is my mantra.

Over the years, I’ve “worked” on a multitude of projects with professionals who charge by the hour for their services. I’ve never understood this. The premise that the fee generated by a collaboration between a client and their “hired gun” should be based on time, materials, numbers of participants… some commodity,  is nonsensical.

The real measure of my collaboration with my client is to what extent have I improved my client’s condition. As my mentor, Alan Weiss wrote, “Billing by the hour or day is intrinsically unethical. Lawyers bill by 6 minute increments. We all know how well that works. Time-based billing rewards sloth & lethargy.”

My value is in my advice, my counsel and my network; not in my presence. My clients should not have to make an investment decision [hours billed] every time they need my help.

Example: My client needs a bank! No bank = catastrophe! I jump on a 10 minute call with a banker I know who is willing to provide an operating account for my lender client. If I bill for 10 minutes of my time, what dollar amount does that equate to? $166@$1000/hr? What value did I deliver? I enabled my lender client to remain in business! Think about all the capital, infrastructure, customers served, employees, vendors, tax authorities, commercial property owners, consumer activists 🙂 politicians, lawyers, lobbyists, industry associations… who are dependent on the survival of my client!

I’ve invested 20+ years building relationships with folks smarter than me. Relationships that allow me to solve a bank issue with a short phone call. Relationships enabling me to introduce two unaffiliated lenders – unaware of one another AND YET operating in the same city – to collaborate with one another, solve their individual challenges and achieve an extraordinary ROI that they never dreamed possible.

Hard work by Seth Godin

[Note: I stole the following from another mentor, Seth Godin.]

Consider two loading docks at small companies.

At the first, a tractor-trailer filled with heavy boxes shows up. The sole worker on the dock is tasked with unloading the trailer, asap.

He puts on his gloves and begins hauling the boxes, one at a time. He’s manhandling them off the truck and straining to stack them to the side. Eight hours later, he has a strained back, blisters and an empty truck. A day’s work, hard earned.

At the second dock, the sole worker looks at the truck and then heads next door, to the larger company and their foreman, a woman he met on the bus to work last week. “Can I borrow your hand truck and ramp for an hour?” It took guts to ask, he might have been rejected, but his calm manner and ability to connect worked.

An hour later, the truck is empty.

Who worked harder today?

For most of us, hard work is measured in insight, emotional effort, and connection. It’s been a long time since the economy fairly rewarded people based on brawn alone.

And now, consider the third company, where the person at the dock planned ahead and had everything ready as soon as the truck was scheduled to arrive…

Or consider the keyboard workers, one of whom does a repetitive task all day long, and the other who did the labor to find a plug-in or macro that would do it in a few minutes…

Read Seth Godin on Marketing

Read Alan Weiss on Consulting

How to Start a Loan Business Payday Loans

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29
Sep

The Business of Lending: How to Loan Money to the Masses

The Business of Lending Money to the Masses!

So you know, we’ve been pounding away at the beach cottage with a small group of seriously talented consumer loan operators and lenders the past 17 days.

The results? New guides & reports updated just this week to guarantee your consumer loan business will succeed. You have questions? Challenges?

Need answers about installment lending, car title loan lending, payday loan lending, line-of-credit loan lending… ?

Here they are:

1)  “Consumer Loan Business/Payday Loan Proforma Excel Spreadsheet Tool.” We provide a solid foundation with realistic consumer lending metrics and via the Excel Spreadsheet/Macros you change them to reflect your “secret sauce.”

2) “A Guide to Consumer Loan Company Valuations.” Valuation approaches and considerations for buyers, sellers and Startups of payday loan, installment loan, check cashing, car title loan… virtually any company funding consumer loans.

3) “How to Get Your Money.” This is one of Miro’s Powerhouse Courses for helping you to collect your consumer loan bad debt. No B.S. here from Miro. Just straight “real world” collection techniques for lenders.

4) “Tribe Sovereign Nation Documentation, Term Sheets and More.” A complete package of ALL the legal docs required by tribes, lawyers, lenders, management groups, marketer/servicer teams… to successfully launch a Tribal Lending Enterprise.

5) “Texas CAB/CSO Analysis and Docs.” A complete description of how the CAB Model works, sample docs, agreements, contracts, 3rd Pary lender introductions… Everything you need to enter the HIGHLY LUCRATIVE Texas CAB/CSO consumer loan industry.

For detailed descriptions of each new “consumer loan business tool” we just created and have them delivered into your Inbox IMMEDIATELY:
http://www.PaydayLoanIndustryBlog.com/buy-now/

 

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13
Mar

Seed/Angel Funding with Tribe Lending Enterprise [TLE] & Experienced Servicer

  • The Opportunity: Seed/Angel Funding with Tribe Lending Enterprise [TLE] & Experienced Servicer A highly experienced Team of two founders & a TLE are launching a tribal online loan portfolio in the USA. FOUNDERS’ DETAILS:
  • Founders’ contribute $1.1M cash to this launch
  • Founders’ contribute their lead aggregator company having generated 500K sub-prime consumer leads/month
  • This is not their first rodeo
  • U.S. based Team
  • Tribe lending model with a multi-pay installment loan product in 45 states.
  • Founder(s) previously successfully launched and exited tribe online loan portfolio
  • Founder(s) previously launched a highly successful online loan platform/portfolio in the most competitive, complicated state in the USA
  • Founder(s) previously serviced $20M sub-prime loan portfolio and 40K loans
  • Founders’ are family oriented – obligations, dependents, motivated, strong willed, driven, impeccable credentials… [I always favor these conditions when I collaborate.]
  • Founders’ know their loan product KPI’s. Realistic. Experienced. Well versed in Cost per Funded Loan, First Time Defaults, Customer Acquisition Costs, Lead metrics/costs…
  • Founders’ loan management software platform provides investors with 100% transparency hourly, daily, weekly, monthly… access to all accounting, reports…
  • In-house call center with highly experienced call center operations manager on Team
  • Tribe [TLE] Marketing/Servicing agreement in place with a large, sophisticated TLE – several $10M/$30M+ portfolios. • Supremely customer focused loan product offering financial literacy and credit building
  • ACH, bank accounts, CRA’s, EIN, lead generation… in place.
  • Founders have commissioned compliance officer, TLE employee(s), call center, accounting… Investor(s) • Provide $3M to be deployed year 1
  • Interest rate for investors = 15% to 24% paid quarterly
  • 15% to 50% equity to investors
  • Investor funds to be returned year 5
  • End of year 5, Investor return is $7.4M on $3M investment plus investor maintains their negotiated 15% – 50% equity in the enterprise.
  • OBVIOUSLY NO GUARANTEES:
  • Conservative performance estimates!

Year 3 = 80% return on loan portfolio

Year 4 = 100%

Year 5 = 125%

Year 5 Stabilize new investment money inflow = annuity of $750K/year.

As they say, “Your results may differ.”

• Exit strategy: maintain the portfolio as an “annuity” [estimated at $938K/year] or sell the loan portfolio for 2.2X. NEXT STEP?

• Email your contact information to: TrihouseConsulting@Gmail.com

• Conference call(s) • Meet each the Founders!

• Fall in love

• Nail down a Term Sheet.

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21
Nov

CFPB-Unsecured Loan Industry to Prosper Under New CFPB Head

CFPB

This originally appeared on Mortgage News Daily-by BY: ROB CHRISMAN  here: Here’s something to think about. If the CFPB “dials things back,” wouldn’t the states step in and increase their consumer-focused regulatory levels? Multi-state lenders certainly wouldn’t like that. Since the state regulators have been in regular communication with the CFPB and knowledgeable as to the Bureau’s regulations and impact upon consumers (the protection of whom the states have always viewed as their primary function) it can be expected that we will see more state regulation as the CFPB’s role is reduced. In Pennsylvania, for example, a recent bill supported by the Department of Banking and Securities to license mortgage servicers, incorporated the CFPB servicing regulations. This is a trend that may become viable for other states regarding those CFPB regulations that might be eliminated or reduced in effect.  This is, of course, speculative at this point but it should be considered as we move ahead representing the industry in the states.

Payday Loan ConsultantsAccording to media sources, President Trump is expected to select Mick Mulvaney, the current Director of the White House Office of Management and Budget (OMB), to serve as the interim Director of the CFPB upon Richard Cordray’s resignation at the end of this month. The CFPB is not going away, and neither is Dodd-Frank, although policies and procedures may change. And do we really want it to, given that lenders and vendors in the industry spent billions of dollars implementing the Dodd-Frank framework in our businesses.

Mulvaney is a former South Carolina congressman and served on the Financial Services Committee. Mulvaney had previously been quoted during interviews as being dissatisfied with the CFPB’s performance and even said its lack of accountability showed it to be a “joke”. He was one of those in Congress who reportedly wanted the CFPB to be eliminated. Certainly, the administration intends to reduce federal regulations and the CFPB would make a prime target.

Julian Hebron of The Basis Point issued his thoughts on the future structure of the CFPB.

Ever heard of Think Finance? It doesn’t matter – the CFPB has. On November 15, the CFPB announced it had filed a complaint against Think, a Texas-based service provider, alleging that it had assisted in the collection of loans that were, in whole or in part, void under state law. The complaint filed in the U.S. District Court for the District of Montana alleges that the service provider, which provided services to three tribal lending entities engaged in the business of extending online installment loans and lines of credit, along with two companies responsible for the collection process (collectively defendants), assisted in the collection of loans that consumers were not legally obligated to pay based on identified states’ usury laws or licensing requirements.

Rob Chrisman began his career in mortgage banking – primarily capital markets – 27 years ago in 1985 with First California Mortgage, assisting in Secondary Marketing until 1988, when he joined Tuttle & Co., a leading mortgage pipeline risk management firm. He was an account manager and partner at Tuttle & Co. until 1996, when he moved to Scotland with his family for 9 months.
He returned to the United States in mid-1997 and ran Secondary for Standard Financial, a sub-prime lender in northern California. In late 1997 Rob was hired by CrossLand Mortgage to start, and be the president of, a sub-prime company named OnCall Mortgage (a division of CrossLand). OnCall Mortgage was in existence until Wells Fargo purchased First Security Bank (the owner of CrossLand) at the end of 2000.
Rob then joined CMG Mortgage, a wholesale mortgage bank, as the Director of Secondary Marketing. In early 2003 and re-joined Tuttle Risk Management Services, Inc. TRMS (now Compass) provides mortgage pipeline risk management for mortgage companies and thrifts that seek to originate and sell loans into the secondary mortgage market. In November of 2006 Rob left TRMS to become the Director of Capital Markets for RPM Mortgage, a retail residential lender, leaving there in late 2008 to focus on not only publishing a widely read daily market commentary on current mortgage events but also on his family.
He is on the board of directors of Peoples Bank, a mid-sized depository in Kansas, and of IFC, a financial services company which advances capital to heirs, He is also an associate of the STRATMOR Group, a member of the California Mortgage Bankers Association, and of the Mortgage Bankers Association of the Carolinas and its membership committee. Rob has provided expert witness services for mortgage and real estate-related cases, has lectured to groups around the country.
Rob holds a BS from Cal Poly, San Luis Obispo, and an MBA from UC Berkeley.
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23
Jan

Highly Experienced Short-Term Lending Executive Available – Do You Need Help?

Does your de novo or established short-term lending enterprise need a talented, experienced, executive?

 

[Name Redacted by Jer at Trihouse Consulting] has nine years of experience in the short-term financial industry. He brings extensive knowledge in multiple lending products including payday, installment and line of credit platforms. He has vast implementation experience with both the State-by-State and Tribal business models.

He has extensive relationships and intricate knowledge of the Tribal lending model. [Name Redacted by Jer at Trihouse Consulting] was the first to partner with and develop the lending platform for the [Name Redacted by Jer] Nation located in [Name Redacted by Jer at Trihouse Consulting].

He has a clear understanding of the compliance landscape needed to successfully operate in the short-term lending environment today. He has worked with one of the top compliance firms in the country, Hudson Cook LLP, to develop all collection and billing protocols that adhere to all Federal regulations and the Fair Debt Collection Practice Act. He has vast experience in all areas of call center development, from initial setup to daily management protocols and oversight.

 

[Name Redacted by Jer at Trihouse Consulting] brings all the critical business components, as well as, his business relationships including; knowledge of multiple loan management systems (LMS), specialized in lead purchasing tiers from $1 -? $100, credit risk services, banking relationships, ACH and debit card processing, underwriting and collection protocols, internal call center operations and protocols, outsourcing call center solutions with three different locations in the Philippines and Costa Rica, daily compliance protocols, QA guidelines, staff performance, profit and loss, budgeting and much more.

 

[Name Redacted by Jer at Trihouse Consulting] founded his first short term lending company in 2008. He grew that business into $10 million dollar “PRINCIPAL” portfolio, which represented hundreds of millions of dollars in revenue to the company. He oversaw the implementation of seventeen State licenses and eventually moved the company to a Tribal partnership. During his tenure, he was instrumental in developing his proprietary Loan Management System (LMS) along with multiple software applications that became the backbone of his service platform. Three years into the process, he began to license his software and also used his call center to service other financial portfolios. He’s been directly involved in starting and growing an additional six portfolios, ranging from “principal” of one million to twenty million U.S. dollars and has built three call centers from infancy to maturity.

 

The majority of micro lending companies – including so-called FinTech lenders, are crunching multiple sources of data in an attempt to analyze and predetermine default risk. In an industry with zero collateral and high interest rates, determining which customer is a better credit risk is a serious challenge. [Name Redacted by Jer at Trihouse Consulting] realized early on, there had to be a better way to determine payment risk. Through trial and error he began to test a different approach utilizing payment data from employers. Through months of testing he formulated, created software and mastered a “Patent Pending” innovation that is cutting edge. This innovation bypasses traditional credit scoring methods to determine payment risk using only the customer’s employer information. The approach of “Employer Risk Modeling” is the first loan program designed at the employer level. His company has amassed one the largest employer databases in the country connecting lenders, employers and customers. Being an innovator is one of many strong suits [Name Redacted by Jer at Trihouse Consulting] possesses.

 

During the past several years, this payment process has created over one hundred thousand checks from employers representing millions in additional revenue for portfolios.

 

Employer Risk Model

Propritary-V1

[Name Redacted by Jer at Trihouse Consulting] brings a wealth of knowledge, experience and contacts to the short-term lending industry. He has established a track record of success and understands how to build an organization one employee at a time.

 

If your organization is in need of a seriously talented executive having “in-the-trenches” operational experience in the short-term lending industry, reach out to Jer at Trihouse Consulting for an introduction today. 

[Name Redacted by Jer at Trihouse Consulting] is willing to relocate and explore all opportunities and scenarios! 

To schedule an introduction:

Call Jer at 702-208-6736 – Cell (PDT) or Jer@TrihouseConsulting.com You may request this Bio as a PDF…

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