First week of October was the four (4) month anniversary, that’s right it’s been a short 135+ days in a row which I have been smashing my head into a brick wall trying to find a $2 Million dollar equity partner/investor for my new ‘Next-Generation Subprime’ Wholesale Lending opportunity. It's been some adventure, that’s right, all day morning ’till night, every single day working to locate the $$$$. Somebody's gotta do it (and not a bunch of amateurs like the last decade was, with one stupid loan type after another - that kind of thinking got us into this mess in the first place); at the moment having only the Government (ever changing) programs operating only at the margins (Fannie/Freddie at one end and FHA at the other) severely restricts consumer choices ... who's looking out for all those borrowers in-between them? And, ya know what else - most potential investor/partners I've spoken with don't seem to much care about serving that group alone right now either!
Ok then, what sort of results have I accomplished? Well, for one thing, I now know far more than YOU! As of this morning, I know exactly 1,000+ things that don’t work. So … if you were to try and raise $2 Million in these 'interesting' financial times for such a venture, you’re gonna make those 1,000 mistakes too – like I already have. Therefore, I am fairly happy that I have learned those lessons … however now that reality has “taught me a lesson” I’m finally ready to hammer the check :-)
What's in it for you? Well, for one thing how would you like me to hand you a small brown paper sack with Fifty Grand in small unmarked bills inside it? Take a look at the right side-bar and read all about it!
CHANGING PRODUCT MENU
As I've indicated above raising the initial $2 Million equity capital from a potential investor/partner has been challenging to say the least during these uncertain financial times.
Given the liquidity difficulties in the subprime secondary market, and today’s fashionable alternatives of FHA and Conforming loan products which have become almost ubiquitous, it has become necessary to modify our singular vision and offer the broader range of lending alternatives to fit the range of applicants the company’s future loan broker customers are seeing today.
Once the capital acquisition has been achieved, we will immediately develop a series of related subsidiaries due to the synergizes and quality control of those firms: (the engine which will drive the entire organization) an FHA, ‘Next Generation’ Subprime & Conforming nationwide wholesale residential real estate mortgage lending subsidiary, a public escrow company, a mortgage servicing operation, an equipment finance lease subsidiary, an insurance agency, a mortgage professional educational & training facility, and at IPO (3 or four years down-stream) an FDIC insured national commercial Bank (except for the IPO part, all of these are a duplicate of what I've done several times during my career).
At the end of this adventure into the capital raising sector of Wall Street, we’ll have a solid and well position organization which will stand the test of time, and one both our customers and employees will be proud to be a part of.
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