Eric's collection

Eric, great cars! Great pics!

Just watch out for that sub-prime market. Don't want you to end up doing an MC Hammer...
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No, W2's are employee tax forms
here


http://en.wikipedia.org/wiki/Form_W-2#W_series

 

Cool article.

Mark even included VinKing (kwn) in the writeup!

 

I had to include him. He helped me in many different ways for the article. Out of respect for him and what he did for me, it was the least I could do.

 

Two diffferences, i have never done coke, and 90% of what i own is paid for, and what isnt I have sufficant cash reserves to pay it all off, short of the mansion but I have enough minthly recurring income from commercial propertys that we own free and clear to cover that nut, so it will be a cold day in hell before I lose anything short of my health or life.

The Sub-Prime market is the best market when you know how to play that market; lession number one realize your never gonna get paid in the long run, so get $$ up front. They(my customers) are only in the sub-prime market because they didnt pay the last creditor, so dont think your special and gonna get paid, once you realize that and can make a workable business model around that fact you can get rich off that market its HUGE and growing daily. A FICO scoe is only an honesty score the higher it is the less people you lied to at that end of the scale, for my biz I need them @450 below that the collections drop way off. When I filed a chapter 7 BK I never went below 550 how these people get so low is beyond me.

The data bases are getting better and better which just reflects the failure of the public school system and the typical American fat-ass lazy attitude thats becomming ever more popular, i dont like that condition in our society but since I cant change it I might as well get paid.

thanks for the advice it does sound a bit scary depending on the sub-prime market to pay your bills. LOL .

I went broke once like Hammer and wont make that mistake again, the difference was I wanst reckless like him, I had personal guarantees on NNN leases and alot of creditors in a past business, there are 34 pages of creditoes in my articles of my BK and NONE were me being irresponsible with my $$, thats how I bounced back so fast.

 

in addition to my last long post, i never go to any of my businesses, i just stay at home or have meetings with the accounts or Lawyers at resteraunts most of the time, Most of the commericial property I own I went to it when we bought it, and never went back, some we use for our businesses, one property an apartment complex I bought I never have been there, infact i'm not sure wherer it is, its in a very sub-prime area its an 80 door crack house, we just gave the police department a couple units to use for sting operations.

is crime high in Vegas? its the worst and wide spread not limited to the hood either, alot of white collar crime in Vegas its a mecca of crime and in the end the casinos get it all legally.

If you live there long enough and think about it behind those bright lights etc is the worst disease ever...gambling. Thank God I dont have it, I have a friend who is down $40Million in the past 18 months, I have been out with him alot of times when he would win or lose a million like it was nothing, one night he won 5 mil, he was the biggest player in Vegas for about a year but not now, I hope he bounces back he is a great guy. Gambling tears apart people and familys, causes suicides, drinking, drugs to ease the pain of the constant losses. The big players like my friend cut deals with the casions and get aa piece back so they go down slower.

 

Eric:
My wife & I will be in LV in mid-May; staying at Mandaly Bay (think the 14th-17th); any chance you will be in town? Lunch is on me. Send me a PM if you like.
Thanks.
Kevin S.
Orchard Park, NY

 

Very true about gambling, one of the worst problems out there. That's one vice I'm glad I do NOT have. I'm sure living in Vegas you see time and time again people losing their shirts..not worth it.

 

Great write up Eric, any suggestions on a different workable model than yours?

 

People have made it in the sub-prime business. It can be done. Hey, more power to you if you've got a workable model for it.

Up until 18 months ago there was even a fairly robust secondary market where some reasonably significant players were paying good money for sub-prime notes. Go figure.

If you've really made it legitimately in the sub-prime business with your own model, however, the real trick that you could teach people is how to get funding *after* a personal or professional BK.

That's the "value added" that you figured out (presumably). In the top banking circles, there's an adage that from the date you start loaning money again to someone with a prior BK, you've got less than 10 years before they'll declare BK again.

Of course, all "rules of thumb" and industry-wide wives tales are going to have exceptions. That's just how bankers talk when the clients aren't in the room. It's cruel. It's not always true.

One of my favorite bankerisms is when a banker says "...but he's a really great guy!"" The translation is always "we aren't loaning him a nickle."

I've got my own anti-bankerism. It's a long joke with a punchline of "Could have been worse...could have been my money." I get to re-tell it frequently to new bankers. If I see you at some Ferrari event someday, I'll bore you with the whole joke.

 

thanks it was somewhere between 4-7 am and I had a terrible backache and couldnt sleep when i wrote that, the pain pills make me about 50 I.Q. points stupider on the days I take them I dont take alot and dont have an addiction thank goodness, but I hate them because hadI been taking pills I couldnt write like that. I stay in Bed if I have real important meetings bedcause when i'm hrizontal I have little pain. on to the topic...

If I/we there are 2 of us 50/50 on the gig could figure out another model we would be all over it. Because we have the data. But the Sub-prime market is a well protected market by our Govt. A few years ago they got on this agenda to "Protect the least sophiscated consumer" That gave them alot of lattitude to write laws that have lose interpations. Thus the law makers had a field day and knocked out most of the sub-prime lending etc, my biz(catalogs) , "call-for -cash" and payday loans are all thats left, the "call for cash guys" are next to get busted. I dont see how they are going to make it, the reason why is consumers must have full disclosure before any contact with the business is made. We do that,(the call for cash guys dont) we didnt in 97 when we got popped. We settled with the Govt. Back then it was easier and we signed a concent decree to engage in specific business practices-we live to the letter of that today, It was a licence to print $$$ if we followed it perfectly as we have. the payday loan guys have a few years left. We havent heard a word from the govt in years but are ready if we do.

We get alot of bad press because sub-prime borrowers scream and cry instead of paying their bills they know if they yelll fraud they will get immeadate relief of debt, therre are websites that teach them how to get relief of debt by cryinr, unlike myself I just cringe and pay my taxes and wait longer for a second Enzo. The bad press costs us $$$ to what extent we dont know because our business has hit equalibrium all around, the credit bureau's and banks we work with now have done their due dilligence on us one took 18 months, now were like a financial instution, because we buy names from banks etc. report our customers to the bureau's etc.

So when somebody says i'm ripping off people I ignore them, besides if I was a crook I wouldnt have all these titled assetts on the table for the Govt to cease if I step 1 inch out of line. I'd lease everything and live in a penthouse apt somewhere if i was worried.

When I started my gig I sold a house with about 100K in equity in 96 and put it into the biz, I hated the house and the worse thing that could happen is I would lose the house and I could get an apt, I was 30 so it didnt matter, I could awalys put togther another $100K doing something.

Its different now, the Govt wouldnt ever give a concent decree with enough room for anyone to run a business that caters to the sub-prime market, i dont want to go flat, i have way too much to lose. I really dont see any legitimate way to market the subprime market with out pissing off some govt, regulator. If I had nothing to lose like before I would take a shot but not now, I wish I could with the data I have, it would be easy ti make a million or more a month with a second sub-prime product.

 

Thanks! I used to have a payday loan, auto loan business with a regulated loan License, until the state made it all but impossible to make money. Even though they still allowed banks from different states to do the same thing. So its wrong for me to charge 500% a year but its OK for a Delaware bank to charge that out of their store a block away.

So, I understand that in most cases you are doing most of these people a favor by lending them money, that's what most people do not understand. They didn't pay anybody but they want you to finance a $10,000 truck for them, 2 days after there last one is repoed!

OK, OK, million a month! give me that other Idea I will do it.

 

Nice cars Eric---All look great!!!

 

You're doing the **Seller** a favor. Seller might even (in some cases) be paying the fees for the sub-prime borrower. Close the loan and the Seller is whole...paid in full with no financial risk going forward.

I know a case from last year where a Seller was paying everything for a college student to "own" a prime beach-front property. Loan closed. Seller got paid. College student turned out to just be paying (a greatly discounted) rent to live there. Seller gets out whole, paid in full 'cause the sub-prime loan got approved anbd funded...and the FBI goes in after the Seller for setting the whole thing up.

 

Just saw the article in L&E. Truly a inspiration.

Thanks for sharing your collection

 

+1. Saw it Saturday. Cool article Eric!

 

i was asking to me, are you happy?

 

what truck do you drive? Can't be the hummer, thats a bit obvious...haha

 

i have some blue Dodge i dont know the model

 

Ram?

 

am i happy? no

 

yeah ist a Ram something full sized, i like it, i havent used it much as I have my previous trucks because i'm stuck in bed with a ackache all day most of the time and I was out of the country 4 months this year, i also spent at least that long in LA so I havent been in Vegas much and thats a good thing, hell its been a year sisce i went to my mailn business, and 3-4 months since I was in the photography studio for 15 minutes.

 

why you ve got all you want? if your reply is too much personal by PM
feel free no matter if no reply.

 

Thats not nice to read.

 

Please explain to a simple english man what sub prime is