O/T... Starting a new business..

[Growman]

Go for it Cauthen. Just make sure you are properly financed and you get the training you need to run that type of business. And don't feel bad about anything, I made hundreds of thousands selling sub prime loans during the refinance boom and I sleep fine at night. The government wanted everyone to be able to own a home?!? ok so I sold the loans... if I didn't someone else would have.

As far as going out on your own if you really want to make it and free yourself that's what you need to do, start a business. First day of business school at Northeastern University they told us there is only 2 ways to create wealth, own your own business or be an investor. And most people cant reach the level of job where you make enough to invest seriously, so you need to start a business.

I have had 2 great runs in my 10 year career. The mortgage thing lasted 4 and when the economy tanked I was out on my ass. Then when I was in the Hotel Group travel business working for a major chain it lasted 2 years and they let me go because they were going in another direction. Now im finally starting my own thing in the group travel business. If your gonna bust your ass you may as well make all the money...

 

[Marvin Martian]

Cauthen -

Shoot me a PM man.. I am a mortgage banker very close to you.. Would like to talk to you about something..

 

[Marvin Martian]

Go for it Cauthen. Just make sure you are properly financed and you get the training you need to run that type of business. And don't feel bad about anything, I made hundreds of thousands selling sub prime loans during the refinance boom and I sleep fine at night. The government wanted everyone to be able to own a home?!? ok so I sold the loans... if I didn't someone else would have.

As far as going out on your own if you really want to make it and free yourself that's what you need to do, start a business. First day of business school at Northeastern University they told us there is only 2 ways to create wealth, own your own business or be an investor. And most people cant reach the level of job where you make enough to invest seriously, so you need to start a business.

I have had 2 great runs in my 10 year career. The mortgage thing lasted 4 and when the economy tanked I was out on my ass. Then when I was in the Hotel Group travel business working for a major chain it lasted 2 years and they let me go because they were going in another direction. Now im finally starting my own thing in the group travel business. If your gonna bust your ass you may as well make all the money...

Grow - you are DAMN right... D.C wanted everyone to own a home and in fact we were HIGHLY encouraged to finance everyone... You and I didn't write the UW guidelines and I don't feel the least bit bad for closing and selling those loans.. I am still in the business and honestly I can see the sub loans creeping back in... The thing that pissed me off was that Barney Frank and the Boo Boo Crew were the ones shouting from the rooftops that "everyone in the US deserves a right to home ownership" then when that went south they had the balls to come after the people that followed THEIR regulation???????

 

[Growman]

Grow - you are DAMN right... D.C wanted everyone to own a home and in fact we were HIGHLY encouraged to finance everyone... You and I didn't write the UW guidelines and I don't feel the least bit bad for closing and selling those loans.. I am still in the business and honestly I can see the sub loans creeping back in... The thing that pissed me off was that Barney Frank and the Boo Boo Crew were the ones shouting from the rooftops that "everyone in the US deserves a right to home ownership" then when that went south they had the balls to come after the people that followed THEIR regulation???????

Amen to that brother, couldn't agree with you more. I was a CW guy, the biggest company out there, also a Direct lender. When the government makes rules and regulations and then there is something to sell, young hungry kids right out of college are going to sell it. And sell it we did...

It wasn't our fault that home values sky rocketed either... it gave people with shitty credit access to cash they never imagined they could have, what did you think they weren't going to fuck that up with their 520 fico ?!? I mean come on it was built to explode.

The business allowed me to live a great life and do things and go places most kids in their 20's cant even dream of, and for that I am grateful. But I couldn't hold on I had to get out I couldn't wait for it to come back.

Funny how when the shit hit the fan they pointed the finger at all the kids who were selling the loans making tens or hundreds of thousands... not the people who set it up who made millions and billions. Why? Bc those guys are untouchable...

 

[Big Dave Smith]

Sounds like a great plan. I'd love to own my own business some day.


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[kinglewy]

I have a friend who owns a BHPH car lot and he does very well. The down payment on the car is usually what he got it at auction for. The weekly payments are all just profit. I remember he told me that the weekly payments are where its at because if the payment is not made that week he grabs the car back and then they have to pay $200 extra plus the current payment to get it back.

 

[cauthen96]

I have a friend who owns a BHPH car lot and he does very well. The down payment on the car is usually what he got it at auction for. The weekly payments are all just profit. I remember he told me that the weekly payments are where its at because if the payment is not made that week he grabs the car back and then they have to pay $200 extra plus the current payment to get it back.

Yep.. always plan payment on paydays.. 50 a week or 75 a week sounds better anyway..

And doing it like he does you eliminate most of the risk because if they never pay you still do not lose much..

 

[G.I.Bro]

Old simple rule... When there is easy, fast money being made, someone is getting fucked. It's just that simple.

BHPH car lots with rates of 24-28% are the "pay day loan" companies of the auto sales industry. It is absolutely predatory lending. Make no mistake. You're making obscene profits off poor, uneducated and usually stupid people. It's all profit because it's a bad fucking deal for Joe consumer.

You can spin the business model anyway you want, but that's what it is. When a blood sucking personal injury attorney looks down on it, you know it's grimey, lol. That said, it's the American way. If you're cool sleeping with it, have at it. Hungry people don't stay hungry for long. I can't tell you not to get yours. But personally, I think that mentality is what got this country where it is today though. I can praise your drive and hunger, but I can't praise seeing an exploitation of people and wanting to be part of it to make fast money.

State AGs and new legislature are closing doors on payday loan companies state by state, the car lots doing the same will follow. I'm guessing you're in a southern state, poorer area. The feeding frenzy does have an expiration date though.

 

[Marvin Martian]

Cauthen - dont let anyone discourage your drive and determination... GI - I appreciate your concern for others but its pretty elitist and condescending to take the attitude that we need to protect the poor stupid southerners from themselves... Profit is not bad and did you know that up until the last couple decades - home mortgage rates were in the high teens low 20's... Was that immoral?? Is it immoral for a furniture maker to build a couch that cost $50 yet sell for $1000?? A designer to make jeans that cost $2 and yet sell for $200.. How about the actors that love to preach liberal BS - yet make millions - freaking pretending to be someone they aren't... How is THAT not immoral???

My point is that everything is relative and to judge someone and believe that you are somehow superior is immoral in my opinion...
Dont take this personally.. I disagree with your opinion but we need to learn in this country that you can vehemently disagree on issues but its NOT personal and doesn't mean that you dislike the man..

 

[Giants83]

Hey Cauthen, good luck with your new business. I used a bhph when I had bad credit. I knew I was paying extremely high interest but I also knew that was my own fault and I didn't have to live that way forever. But when I did really need it, it helped. It helped get me to work which helped me payoff my debts which allowed to have 700+ score today. People can say you're being predatory but if they don't go to you then they're going to go somewhere else. And they have the ability to better themselves to pay lower interest rates. You can still be honest and helpful while protecting your interests. This society is built on credit and people know this.
I would check for any active legislation or even press releases from politicians from your area because things are changing. Here in New York bhph days are limited and elsewhere as well. Maybe back yourself up and offer traditional loans as well. Find a few good banks to deal with and offer both. Again good luck bro.

 

[cauthen96]

Old simple rule... When there is easy, fast money being made, someone is getting fucked. It's just that simple.

BHPH car lots with rates of 24-28% are the "pay day loan" companies of the auto sales industry. It is absolutely predatory lending. Make no mistake. You're making obscene profits off poor, uneducated and usually stupid people. It's all profit because it's a bad fucking deal for Joe consumer.

You can spin the business model anyway you want, but that's what it is. When a blood sucking personal injury attorney looks down on it, you know it's grimey, lol. That said, it's the American way. If you're cool sleeping with it, have at it. Hungry people don't stay hungry for long. I can't tell you not to get yours. But personally, I think that mentality is what got this country where it is today though. I can praise your drive and hunger, but I can't praise seeing an exploitation of people and wanting to be part of it to make fast money.

State AGs and new legislature are closing doors on payday loan companies state by state, the car lots doing the same will follow. I'm guessing you're in a southern state, poorer area. The feeding frenzy does have an expiration date though.

I respect your opinion and see why you would say that.. Right now I work at a Ford dealer and I see people pull out paying 28% interest to Capital One or whatever lender every day..

If someone NEVER PAYS any bills and then determines they have to get a car with a 410 fico score it is what it is .. they made the bed. and the lenders risk is high as is the rate..

Numerous lenders across the nation are getting rich.. who runs america.. the banks. go to any town and tell me the biggest nicest building.. usually banks.

all im doing is becoming a bank.

 

[Marvin Martian]

Basic rule of finance - Risk=Rate

 

[michael0077]

Speaking from a guy who own a few businesses and still does. Everything seems easy on paper and when you talk about it. Actually doing that business is a whole another story. I see that business giving you more headaches then you know.

I have been in business for a bit as well, put on your seat belt and get ready for a ride. Finances, employees, money, irs, advertising, work comp, accountants, bookeepers, haters, fear, and no one to blame but yourself. Lots of sleepless nights and relationship issues. But, in the end if your able there is no other feeling like it in the world. Im 45 and heading overseas for a bit, a business is like a machine it has to eat...and it don't care who or what it just takes..good luck..seriously

 

[cauthen96]

I have been in business for a bit as well, put on your seat belt and get ready for a ride. Finances, employees, money, irs, advertising, work comp, accountants, bookeepers, haters, fear, and no one to blame but yourself. Lots of sleepless nights and relationship issues. But, in the end if your able there is no other feeling like it in the world. Im 45 and heading overseas for a bit, a business is like a machine it has to eat...and it don't care who or what it just takes..good luck..seriously

Thanks brother.. My wife makes 6 figures so that def helps until I have a strong cash flow.. and im prepared for the worst and hoping for the best.. In 20 years even if i fail miserably i can look back at say at least I tried

Got my logo designed yesterday..

 

[G.I.Bro]

Regardless of our differing opinions on whether legislature should outlaw this type of high rate predatory lending or not, I wish you the best. I'm not a socialist. Drive, motivation and balls should be rewarded. And I hope in your case, they will be. Good luck and keep us updated. I'm curious to see how it all develops and what pitfalls you discover. Many people are envious and wish they could start their own business someday.

 

[michael0077]

Shit, frick, holy heck, dude...listen I have an idea. I think we all could use your expertise in this area, man you know how many times ive lost my ass on car deals. If I had a friend I could pm or email or call just for a bit of help at that crucial moment shiiiiiiiiiiiiiit....just a thought.. I just bought a 2013 lambo and im pretty sure I lost my ass, well we all know I did. But, im so tired of not knowing, wondering and having that funny feeling as you drive away and the salesman are giving themselves high fives. This last guy ran on and on about the kardashians, and actually paid more attention to my wife than anything else. I heard this ad thing NOW YOU HAVE A FRIEND IN THE DIAMOND BUSINESS, what if you became YOUR FRIEND IN THE CAR BUSINESS. Or at least our friend, some pm brother will proably buy a car today and you could save him thousands, hundreds just by a simple couple of keystrokes,,just sayin

 

[cauthen96]

Thanks brother I will def keep everyone posted as to how it goes in the future..

And just to be clear Im not opening a bhph lot persay.. Im opening a high class lot with alot of $20-40k cars/trucks... with a group of typical lenders doing 2-5% on vehicles for prime customers. but if some one comes in with bad credit needing a car and a bank wont touch them I will have a few that I will owner finance. This once again is a worst case scenario

 

[richiec]

Unsecured credit ALWAYS carries a high interest rate, due to it being unsecured. I don't think you should charge what other dealerships are charging, upwards of 25%.
It's not predatory if you offer them a decent interest rate. When you start gouging the IR, then it becomes predatory IMO.
Guys, let's not go down the road of "if they don't get it from me/you, they'll get it somewhere else" crap. That's is the weakest argument you can have to justify doing something wrong. I used to use that line when I sold dope

 

[1234trew]

What is your ultimate goal for your customer?

Do you want to keep taking cars back and breaking them with fees or do you want them to actually pay for the cars and follow through with the purchase?

In the market that I currently like, BHPH is huge and very competitive. The down given is MUCH less than others are quoting, but they get them on payment plans (such as weekly or biweekly pay). There are also several companies that will tier the interest rate, interest rate goes down with on time payment milestones (these guys tend to get good reputations).

GPS monitors and monitoring are also a real cost and you have to take into account that cars will disappear.

In my city the illegal immigrant population drives the business. They cannot get loans and get paid in cash, so its easy for them to pay weekly. If there is no work it is common for them to just turn the car back in.

 

[cauthen96]

What is your ultimate goal for your customer?

Do you want to keep taking cars back and breaking them with fees or do you want them to actually pay for the cars and follow through with the purchase?

In the market that I currently like, BHPH is huge and very competitive. The down given is MUCH less than others are quoting, but they get them on payment plans (such as weekly or biweekly pay). There are also several companies that will tier the interest rate, interest rate goes down with on time payment milestones (these guys tend to get good reputations).

GPS monitors and monitoring are also a real cost and you have to take into account that cars will disappear.

In my city the illegal immigrant population drives the business. They cannot get loans and get paid in cash, so its easy for them to pay weekly. If there is no work it is common for them to just turn the car back in.

My goals is to just have 50-100 bhph cars on the road.. the bread and butter of my biz will be higher end car/trucks for people with 800 ficos.. bhph is just a worst case scenario..

You can let someone walk out with 3000 cash and go somewhere where they CAN get financed or you can take the risk and get the reward..

And down here we have a huge poultry industry and are swamped with illegals/immigrants.. and they good thing about them is they PAY EARLY most of the time.. they want ZERO problems