The guy that did billions in SBA loans - Yankee Markowitz

Welcome to another episode of the Clappy and Frank show. Today we have with us the world famous Yankee Marowitz, founder and CEO of the SBA loan group, Saba Loan Group. Very >> Saba. >> Why do I Why do I always think of it as Saba? >> Because I look like a delicious food. >> Most people around the world in the Jewish world at least know your beautiful face from every single week. My wife and I read the Ami magazine and we get to see your face every week. So now everybody could see that I'm a real person. I'm not just a model or AI generated. >> And because I hear you're in the Army and the Mishbah magazine, these are not cheap publications to advertise in. People tell me that it's hindering the prices high. I guess it's worth it. And I just got off the phone with a major major banker who does billions of dollars in loans with Yankee. And he tells me that he's at every trade show with a box full of millions of dollars in cash. So his marketing is gorilla and amazing. And it caught my attention. Tell me about the loan industry. Does the government just give away free money? And do you just give away all your money in marketing? Because I love your gorilla marketing campaigns. >> Thank you very much and thank you for having me. It's actually a pleasure to be in Benny Freriedman's studio. Very, very nice. So your question was, does the SBA give out free money? Absolutely not. Nothing is free in this world. There was a point in time where if you met uh certain criteria during COVID, they did give out money and then it could be free. They could have been forgiven. I don't think I have to talk about that because everybody know it's recent. >> We talk about later because it is a hot topic forgiven. People ask people me >> PPP. >> Yeah. >> All right. So, we'll talk about the PPP. Most people think that EIDL is going to be free, but that's not the case. But going back to what we were talking about, >> yeah, what does the government actually do for businesses? >> So, in the 1950s, they decided they have to stimulate the economy. This is coming after World War II. Economy was slowing down. How do they how do they uh boost the economy? So, they said, "We're going to create this program, SBA. We're going to guarantee the banks that if somebody defaults, so you guys take out an SBA loan, let's just say $100,000, $75,000 is guaranteed." This does two things. One, it incentivized the bank to give you money. Number two, it incentivized the bank to give you more money because if the bank would be willing to give you $25,000, they now can give you $100,000 with the same exposure. >> Is that good enough? Did I answer the question? >> SBA stands for small business >> administration. >> Administration. So, the government wants to stimulate the economy. Like you just mentioned, they're going to back the money. Banks are going to give you out money. So, I know that there's trillions of dollars being lent every year on traditional loans. >> Who are your clients that are specifically falling into that category of small business that they can't get traditional loans? What are the advantages of getting an SBA loan that you specialize in versus a traditional bank loan? >> Okay. So, first of all, you spoke about trillions of dollars. That's coming from multiple categories from residential, commercial, and probably bis not probably business as well. SBA is more likely to happen. In the traditional world, it is typically a line of credit. If you're an Amazon company, for example, your inventory is technically not by you. It's by it's by Amazon. If a bank values your inventory, they can't really get it away from Amazon. It's a much harder process. So, ultimately, they'll probably get it. So, if somebody wants a line of credit or an assetbased line, which is you have $7 million of inventory, we'll give you 85% of that. SBA will give you more money. Like I said before, if the bank is willing to give you 200 uh $25,000, they're going to give you $100,000 with SBA. So, traditional loans are a lot harder to get as well. SBA is not easy. I'd say SBA is harder to get. However, in a way, it's easier to get the approval if you jump through the hoops. That's with your consulting of your company. You help people get jump through the hoops. >> Of course. Of course. We're the best. >> How do you get into this lending business? Your family is notoriously the produce, the food, >> the fish. >> Yeah. >> Food. You know, your grandfather sold the food and your father gives out the food. >> Yeah. >> So, how'd you get into landing? What's your background? >> You want the entire career or the entire Yeah. >> And you're also an artist. That's a whole another >> I'm not such an artist. So, I'm a novice, but you're Thank you very much for the compliment. >> You als you you also have an identical twin brother. How do we know the right one showed up to the studio today? >> Well, I can show you the birthark. >> So, start lending. Yeah. >> So, we start how we got into lending. I'll I'll fast forward. Right. Straight into lending. We talk about the past uh maybe a little bit later. >> I wanted to buy a business, a DME business, durable medical supply business. I was looking at it and I really want this is coming after a failure of a different business. So, I wanted to buy something that's stable. This business has been around for 40 years. And the owner of the company said, "By the way, I bought this company from a previous owner." And he bought it with an SBA loan. >> I've heard the name SBA like many people are watching right now. Maybe I've heard it. I didn't know what it was. He explained to me that the bank lends you money. Excellent. I go to the bank. He said, "No, go to another bank. They don't do SBA." I said, "You know what? you have to go to a broker just like a residential or you go to lease a car. So I go to brokers, they don't know anything about SBA. I go to the community council, they don't know anything about SBA. I go to a community counselor in another another neighborhood, they don't know anything about SBA. And I realized if somebody could get a hold of this and understand it, they could actually have a business. And that's how we got into the program or the rather the SBA business. >> How do you get your first client? So my first clients were actually very tough. I would go around to people actually. >> They're always the toughest. What is actually? >> No, today they're harder. Right. Uh once your face is recognized as you said and once people know who you are and you have a reputation and people refer you, which is most of the most of my sources of getting new business, it becomes a lot easier to get clients. Technically, if you really want to get clients, you could just write, "I'm giving out money." you have the phone ring all the time. But we actually write criteria that tells you you have to have this, you can't have this because I don't want anybody to call us for businesses. So I went around asking friends, family, it's a business. I was learning the trade. I didn't know everything taboo subject, right? No one talk about borrowing money. Is it like a little taboo >> or so? It was taboo for the amount of money that you can get, right? When I spoke to people originally, they were shocked. This is how much money I could get. I can't get anything from the bank. nothing. So I will say you asked me before how I get to the clients. I would go around to different shows after speaking to people. It was very hard for me. I didn't have a lot of money. I had to borrow money and I went to different shows. One of the shows I went to was CES. This is after I had a few clients. >> The problem CES is the consumer electronic show in Vegas every year where they introduce all the newest electronics. >> Exactly. So there's a lot of >> Oh, there's probably a lot of young business guys that need monies. There's also seasoned business guys that are there and women. So I was coming off success and failures. What does that mean? I thought I figured it out. Said, "Oh, I know a few banks. I met a few banks and they were interested in SBA loans." I started taking deposits from people. Today I don't take any deposit. I started to take deposits because everybody did that. I took about 40 cases right away. You go and tell somebody, I could get you a million dollars. go ahead and about 30 of them I failed. I realized there's a problem over here. I need to know a lot more than what I know. I went back, I borrowed money, and I paid back to those clients that I couldn't get the financing for. The other ones that were successful, looking back, they could have been more successful, but I was new at the game and I realized that I really have to learn this. So, I sat down like Gamarra. I never learned kumar in my life. Never in my life. I was not a good student. I don't remember which we learned. I opened it up though. I learned it like a gumar back and forth. And I have to say that there are a few bankers out there that help me. They helped me. They explained they explained this. They were like Rashi. And they explained this to me and explained that to me. And I got different deals slowly. I I do have to say and give out a shout out a shout out. There's a business owner here in Crown Heights. His name is Isabelle Rapaort. I met him at a show. He invited me to dinner. He was very, very nice to me. And I really didn't know him at that time. And I spoke to him what I do. He was listening. He said, "I'll give you a chance." And I did. I ended up doing a few loans for them. Whatever the circumstances was, we won't go into it, but we're successful with them. I really have to give him a I'm sorry. I really have to give him a thank you to helping me out in the beginning. And from there, I got referrals. His accountant loved what we did. And then they gave us other referral referrals. Right. >> I've heard so many positive things about him. I don't think I ever spoke to the guy. Maybe in passing >> as real. >> Yeah. >> Philanthropist, nice guy, willing to help everybody. >> I called a friend of mine called me up. He's working for a company for many years and he's doing like he you know he's doing okay but he got another guy offered him a job to potentially buy out a company that does similar work to what he does >> and he was tormented. He didn't know what to do. So I had him speak to a friend of mine and my friend told him what he always tells people is that you should sit down with Israel Raport and get guidance from him. Ultimately his decision was that he shouldn't buy that. He shouldn't move in but I keep hearing his name. Anybody that's in partnerships or people that are starting businesses they want amazing advice. Now, his phone's probably going to be ringing off the hook. I apologize, Laf Freya. But it's so interesting. I keep hearing amazing things about him. >> I could only say good things about him. >> Um, but that also sort of showed me that there is a Jewish market. >> I did not think I would be doing a Jewish market. I met him at the same time. Why didn't I? I just didn't. Again, I looked for a loan. I looked for an SBA loan and there wasn't many people to help me. It could be in my head. that I figured out I or I thought that the reason why there aren't a lot of people doing this is because in the Jewish world, no one uses SBA. So, I had to do advertising in other places. You're familiar with my advertising in the Jewish markets or in the Jewish magazines. I did the same thing in the non-Jewish magazines, in the accounting magazines, in the Yeah. And I spent a lot of money. Once I was a little bit more successful, I went all out. As an entrepreneur, you have to take risks, right? Sometimes people are successful right away. Most people are not. The question is who could get out of the out of the mud. So, I did a lot of marketing in non-Jewish places and thank God a lot of deals. I had a specific niche that I that I acquired, which is dealing with attorneys. Ironically, attorneys need a lot of money. Yeah. Nobody knows this. Uh, and then >> I'm just curious, what do they need money for? Advertising. They need money for advertising. Correct. But that's to acquire cases. When you see like for example, many people may notice Morgan and Morgan. >> They're crazy advertising. Wow. Exactly. >> Gorillas advertising. Right. You go learn from other people. They do a mass tour litigation and they do personal injury. Shalom. God forbid something happens to somebody, who you going to call? Every time you drive five blocks, you see Morgan and Morgan. It's in your head. They do it. So, they need money to pay for that billboard, right? It's not a client, but I'm just giving you an example. >> Not yet. Not yet. >> God willing, yes. So, we got I got into that niche, and thank God we're very successful in that. I can actually give you a story. 90 94% of our business is just SBA. There is a subcategory, especially in the attorney field, that we could get alternative financing. There's a client that in >> don't personal injury guys get money upfront people lend against settlements. >> So it's a very good question upfront. No, it's very hard. Right. There are some people who look at cases and as a combined between their cases that are even settled and basically in a personal injury case doesn't mean you're getting the money tomorrow when you say they have to settle or especially mass tors. They have to go through a process. The attorneys assigned this amount and this amount. the judge has to approve it. But when somebody has a settled case, they can actually get money and borrow money against it. That's their inventory. If somebody has a settled case, the person who is getting the money, right, the client can actually get money up front. And then there are those that look at the cases that they're >> saying. There's a gap between settlement and payout. >> There's a gap between obtaining the client, working through the case, the middle, right? >> Because there's going to be an appeals process. >> That's correct. And not always >> tie it up for years. No. >> Exactly right. Exactly right. And the and the companies that are being sued know that and they try to squeeze the attorneys because they know they're borrowing money to pay for the marketing to get to this place and they put in could be 1020 million into a case and then they they and they have to pay interest on that. Just as an example, this this person who I was speaking about, an attorney in 2014 2015, we got him an SP loan for 150,000. A few months later, we realized it's because he has a problem with cash flow and that kept him afloat. Fast forward about two, three years ago, we got him $ 109 million. >> $109 million. >> NonSBA. Obviously, SBA is capped at $5 million, but this is in the non SBA uh in the nonSBA business that we have, the alternative financing, we got him 109. >> So, his career is flourishing. >> Thank God. >> And you need he needed you years ago for 150 grand to stay afloat. So, you saved him. >> We saved him. And we came back we came back to us for more. >> Didn't Trump raise the limits for SBA? >> So it didn't really change the tra raise the limits. >> I mean I just I'm just quoting headlines. >> All right. So there's two programs in SBA. We deal with both of them. 504 and 7A. 504 is to buy property. A business wants to buy an office space or warehouse. Use 504. 7A is for anything else you could think about. You want working capital, buying inventory, buy a business, buying out a partner, and even buying real estate. That goes up to $5 million. So once you use the $5 million in the 7A program, there's only there used to be only one way to get to 504, which is 504 green, which we could talk about if you want. Now you said, okay, if you're going to go up to $5 million and you used your $5 million allowance and now you want another $5 million to buy a property, that you can do. You get them another five million. >> Another five million for the property. >> Do could someone just some history if someone's doing a start of an idea, could they get SBA money? >> Yes, they can. Somebody wants to start a business. SBA says, "Yeah, let's zero ass zero everything." >> Yes, they will have to put 10% into the project. SBA says that's the rule. However, will the bank do it? You have to remember there's two parts to this funding. There's the SBA who says do this, do that. They're very very free with the money because they're not lending it. SBA does not give you a dollar. What they do do is give the bank a guarantee like we spoke about before. So SBA says give this guy woman a loan to start their business. >> This person >> this person very good. This person I don't have such words. I want to save you some words. Yankee >> thank you very much. So they say give this person a loan and then they they could get it. They could not get it but the banks aren't interested in really doing startups. Hence, we don't deal with startups. So, anybody out there who's listening to the podcast, we don't deal with startups. But it is possible to get. >> You can do credit cards. I personally need credit cards. >> You can swipe credit cards. >> Oh. To start the business. >> I've personally off camera, on camera, I start a lot of my startups all on credit cards. >> Yeah. >> Yeah. Yeah. Yeah. And you also went around to shows if you remember. There was one time you actually were in my booth. >> Yankee was one of the only people to ever use my startup. So, I want to shout out to Yank. Not shout or shout in. >> Thank you very much. Yeah, we had a booth and they filmed people. They asked me >> whose idea was it that in your booth should be a box, a clear box with like a million dollars in cash. >> It was mine. >> Cuz give me an example. You thought of it one day. You're like >> I thought of, you know, there's a famous joke with uh uh Mayo, right? About the window, the storefront. >> We'll get into that, but basically the butcher puts meat in the window, right? the the clock maker puts clocks in the window or watches. What am I going to put? What do I do? Money. So, I put down money and people ask me, "Oh, what is this? You're giving it away?" And I say, "In a way, in a way, is if you qualify, I'll get you the money." >> So, it's a conversation starter. You're at a big business show. I'm not even a business show. Not even a business show. I could be at CES, >> right? >> I could be at uh Prosper show. I could be at uh ASD. I have the booth there. And people are asking me any trade show. Which trade show were we at together? I don't remember what it was. >> Javit Center, maybe construction. >> It could be >> cooperator. >> But every business, every show I go to, they always ask me, "What are you doing here?" >> My consumer electronics sell. What are you doing here? >> Think how many shows you do here? >> Now a lot less than we used to. There's one one year I did 40 shows. >> Yes. >> Shows me my Every week you had a show >> almost. I was I was away a week every month, but I have thank God a great great team. Fant shout out to my team and they're fantastic. So, divide and conquer. >> How many you do now? >> Today we do we just count them about 12 to 14 shows. >> How many do you travel to? >> Um, every show we travel to. You're talking out of the city on a plane. >> On a plane about eight. >> Wow. >> Eight. being that I sat in a um cubicle or on the floor in for 14 years I really didn't really go to any shows I just worked for one particular company >> she in the last year took me to many shows >> most of them were local New York maybe Connecticut ones I have to look back in my calendar >> and sometimes he tells me we're going to a show and I'm like yeah who's going to go to such a show and we go to the show and it's packed >> and there's a good vibe we went to this alcohol show in Industrial City last week what was that show called >> BCB biggest >> B >> BCB liquor show in America. >> And when I got there, the parking lot there was like they were very friendly. There was only a few cars and I thought it's going to be empty. The place was packed. There was a good vibe. Everybody was extra friendly. I mean, they were giving out free alcohol in every booth. People were very people were very happy and friendly. >> When you go to the cannabis show, I'm sure it's very very >> But then we we've gone to some shows, famous big shows. I don't know if I want to give them what I talk about them, but give >> them a plug. No, what was it? um restaurant supply show in the Javit Center. >> So I went to one. It was a cemetery in where was it? Uh in uh >> Chicago. >> Not Chicago. I did go to one in Chicago back in the day, but this one recently I think was New Orleans or something like that. Yeah, we tried that show. >> You're doing this for decades. Are shows lately less crowded, more crowded? You have to know which ones to go to? >> Depending on the show and depending on the year, right? It's it's always a bit of a gamble, but you know, we try and you see if you succeed. It's up to God. Ultimately, everything you do is up to God. >> But I would imagine you could go to a show that's extremely slow and there's nothing going on and then in a day or two you're there and you make two, three good connections and you can make more money than if it was packed and you didn't meet anybody. So from a business point of view, you're right. One of the things I love and I think you've seen it at the booth and there's other booths that do it as well. It's filling. You get filling. If I get at least one fillin, the show is a success. I have different different uh employees who are from a different and now they're asking people you put on tin. No, speak to this guy. They don't want to show after the show. >> What does a typical show cost you? 5 10 >> a typical show it could cost anywhere from $67,000. That's that's probably on the mid-range. And some of them cost $20,000 >> for a 10 x 10. >> For 10 x 10. Yeah. >> Wa. >> Yeah. If you go to attorney shows, they're very expensive. Number one, it's a very um focused show, right? It's it's specific people and you're targeting those people. So, and it's it's small, so there aren't many booths, but if you go to that show, it's about $20,000. >> Do you ship your booth around or it's >> have a I have a warehouse in in Las Vegas. And I have a if I have a show in Chicago, then I have to >> Is that where you keep the cash? >> That's one of the places. So, I have a box of cash here and a box of cash there. Real cash >> on the West Coast. Maybe >> I can't say this a lie. Someone's going to steal it. Actually, I had it stolen twice. >> Yeah, >> it's real cash. >> No, >> it's not. Okay, >> it's not real cash. Or maybe it is. >> Back to Maybe it is. >> I think you once mentioned I remember you once told me that you often have to travel across America. >> Yeah. >> To meet clients potent few clients who actually live in New York. You only meet them in like >> So that also applies to shows, right? A lot of time. Let's say I go to Las Vegas and a lot of the shows are in Las Vegas, right? There are some shows on the West Co in uh in California, but what I found is, let's say you're from New York, right? You could pop into a show for an hour or two hours and and go back to your office, right? If you accomplished whatever you accomplished, if you fly if you flew if you have flown to Vegas just to be at the show, you're not leaving it. >> You're going to be there for at least five, six hours, right? And a lot of the shows are are 10 hours, which I think they should uh if you're listening, cut it down. But >> what's what's the sweet spot? 7 8 hours, 9 to5. >> I'm sorry. >> What would be the sweet spot for a show's hours to be 9 to5? >> The sweet spot, I would say, is probably 10:30, even 11. That may sound late. I'm talking about if this is on the West Coast because everybody on the East Coast, everybody on the East Coast is catching wants to finish their work. It's very busy in the morning. to try to finish that and then they could go to the show and they have time and it's more calm for them. In addition, >> so starting at 11:00 in the West Coast, >> start again going start at 11 and finish at 5:30. >> One day show, two day or three day, >> two day, three day, whatever. If it's a one day show, I could understand you're doing it at 9:00 and you do it to 6:00. If it's a one day show, right? Give it time. But people are coming out of from out of town, they're going to stay there, right? You walk around the hotels, they're going to stay there. In the Jewish market, I walk around the the restaurants, right? I go outside of the restaurants. I invite a lot of people to my table, clients, etc. And then I get a chance or opportunity to meet other clients, potential clients, right? In the non-Jewish world, I can't go to the restaurants. So, when you have cocktail hour, like you mentioned in another show, there's bars. That's when you when it's your opportunity to kind of shine and meet people. It's a lot like doing I'm doing outreach, right? I just want to speak in English for your millions of fans listening around the world. When you're doing outreach, you have to walk over to somebody and say, "Excuse me, are you Jewish?" Yes. Let's do some let's do some uh some fillin. Let's talk about chabas. My daughter is notorious. She goes wherever I'm with her whenever wherever we go airport on the plane in a restaurant outside walking Manhattan she always has nic she always has candles with her and she's asking them and she gives it out how long it take to do a typical loan that you do >> how much how long should people expect it >> it's not a cash event it's 24 hours right >> no it's two to three months the fastest I've ever done it is 11 days >> 11 days from when you filled out the application till they were funded >> till they were funded now there's a don't look at that as the standard. The reason why is they came from a different bank and they were denied. We looked at their file and we saw there's no reason why you should be denied. So I had everything ready. Most of the time the delay is is getting the information from the client. So it's two to three months. The average I'd say what you should what you can do it in six weeks. >> Do you ever get excited about a business and put your own money into the deal? Has that happened to you? >> Yes. Happened a few times. How'd it turn out? >> How'd it turn out? Some good, some great, some not so great. >> Cuz I have a cousin that's an accountant and he told me >> he wants me to put money into his deal. >> No, no, he he co-invests with his clients because he sees their numbers and he sees who's doing well and he gives them money and he's made a lot of money because he knows their finances. I'm sure you have that same view of the business. And sometimes there are clients that cannot get financing, but I see that their financials are strong and they can't get financing for various different reasons. Maybe they had a lawsuit, maybe they have uh bankruptcy in the past or a debt settlement and they can't get financing. So see if they're looking for investors. And then there's those that have great potential or I think they're going to have great potential. And I offer >> just that we should compare apples to apples. a a business that's doing really well and that doesn't fall into the category spec typically that they would get an SBA loan and they they fill out with a big Fortune 500 bank on bank. How long does a regular bank loan take? >> Typically, it depends on what there's a lot of categories in that. If you're doing a business financing or a business loan similar to SBA, it's going to take about the same time. >> So, >> if you're doing a line of credit, it typically takes about 3 weeks to six weeks if that's quick process. In the bigger picture, it's not such a big difference in time really. No, >> a few days. No, because I just want to clar it up that it's not like weeks versus many months. It could be like 30 to 90 days. And a regular bank loan could be sometimes similar. >> Yeah. >> Now, regarding interest rates, >> how how much more or less is an SBA loan traditionally, let's say, a million-doll SBA loan versus a traditional line of credit or typical business loan? >> You can't compare an SBA loan to a line of credit because it's a term loan. You get the money today and you start paying off like a mortgage. Uh, liners of credit are going to be cheaper. The question is if you could get it and a term loan from a bank is going to be cheaper. SBA typically is about 2.75% above prime. Right? Today prime is 6.75. So you're looking at 9 and a half%. It's not a cheap loan. You have to know what you're doing. >> It's a lot cheaper than hard cash. You know, >> slow down one at a time. >> Go ahead. You said it's a lot cheaper than a lot cheaper than your question. >> Um, how does interest rate mark when it's this higher? People >> So, it's based on are is it harder for you to make loans with a higher interest rate? >> Yes. Yes. Because somebody would qualify for a loan at 7%. It's a lot it's a lot more expensive when they're at 9%. Right. So, yes, it's hard to get a loan for a lot of businesses until they're making more money. It happens. But you know, tell them if rates drop then you can go. But if you can't afford it now, and we're very honest about it, if you can't afford it at 9% and rates drop and then they come back up, can you afford it then? >> So they're not locked. They're always floating. >> Always floating. It it adjusts. >> Is always floating. >> Yes. Well, some banks could lock it in. But for the most part, I say it's always floating. >> Is that true? Different banks have different rates even for SBA, so it's not standard. Could you elaborate? >> Yes. So SBA allows for >> SBA sounds like a very structured governmental. So >> well it sounds sounds very inflexible. That's what the documentation it's. It's not flexible. It's uh it's sort of like a chameleon, right? Because there's many different things that you could use it for, right? We spoke about before. So some banks depending on what you're trying to accomplish like let's just say the big banks as you said well not 5,000 but the Fortune 500s maybe even hundreds they have uh they have a much tighter structure. They're only going to do the creme de la creme de creme de creme deals and even that as an example somebody's buying a warehouse or an office space for their for their business if it's under $5 million we could get 100% financing. In the 504 program, you get 90% financing. So the big banks on the program where you can get 100% financing, they want you to still put down 10 15%. And then they're going to get to lock it in. So then what's the point? I get another 5%. I can lock in at a regular conventional loan. The point of SBA when you're buying a building is twofold. One, you put down less money. The other reason the other reason is the the banks don't uh want to give you the funds for your business. Do the banks interview the person or it's all it's all paperwork. >> It's tons of paperwork. Mountains of paperwork and the banks do want to interview the person. >> So the judgment is more data, more person or 70 from who? >> Of the person. >> So you mean of the business? The banks analy. They interview the person but only after they >> So first they want the numbers then interview >> they want to see the numbers. They want explanation of what you do, how did you get to it, what's your background, what's your education, and then after they're willing to to quote unquote do the deal, let's see the let's meet the person and see if they're actually who they say they are, who they say they are on paper. >> How often is that the kicker? They meet the guy like >> or at that point they're ready to sign already. Um I think it happened maybe once or twice that the interview did not go well but we convince the bank to give another interview or you go to a different bank and you get another >> we know who is in English who's smart somebody that sees the future we're a very businessoriented show a lot of people that watch our show are in our higher financial bracket >> people that have small >> Thank god by the way thank god people that have people now that are entering the workforce and are starting businesses like a lot of our viewers >> and they're going to need big loans in the next hopefully they're going to need big loans to growing hope in the next three four five six years. What steps or like Mushi would say what to be but I don't know how many steps but what steps should a young business >> right now be doing that when they're going to want to get their eight n$10 million loan in a few years from now and they're going to call SBA loan group Yankee and you're going to have to start filling out all the documents. You're watching now >> they're watching it this week. what should they be doing to make their life easier in a few years from now. >> So the first thing I tell any business or any entrepreneur and they want to start their business or they're already in their business, you got to learn take it like Gamar like I said what I did you have to study and understand your business better than anybody else or at least in your mind better than anybody else and then you have to study it again. ask people. There are people who call me that want to get into the SBA business. And they said, I said, with pleasure. I'm more than happy to tell somebody. >> You're not scared of competition? >> I'm not scared of competition. Again, God runs the world. >> Um, and I'm not scared of competition. Number one, it's going to take anybody two to three years just to get a handle of SBA. Remember, we're doing this for almost 15 years to understand it thoroughly. SBA changes the rules every year. It's a 400page book to understand what they're doing. >> Yes. And it's not the most uh entertaining read. >> It's not an easy read. >> It's definitely not an easy read. It's not entertaining at all. So, I have no problem to help anybody. Anybody out there wants to get into business, feel free to call me. I don't have a problem with that. But what I tell these >> young work for me >> maybe. Maybe. Remember the interview could kill everything. So the what I tell these uh young entrepreneurs again is let's make sure you understand everything then as you start making money do not invest in other things do not invest in other businesses you have to have a reserve as we see when interest rates went up and people who have SBA loans they have to be able to afford it they have to keep their business afloat make sure you have that reserve you can invest it back into your company to a certain degree you got to slowly slowly build that up. That's number one. Number two, you do that again. Keep on doing that and as you grow and God willing, you'll be a very successful person. You come to us for a loan and you have another you're able to get a big loan. That means you've made it because you cannot get an SBA loan unless you are successful. Then you could start thinking about other businesses >> as the most pro one of the most prominent marketing people in the f world. >> Yeah. to me >> to you. Yeah. >> Um, first of all, >> you're are a very artistic person. Your ads do not necessarily reflect that. Is there a reason for that, Yankee? >> Yeah. So, a lot of people come over to me and they recommend >> only Yankee. If you were an artist and if you didn't have a very artist I wouldn't like whatever. I wouldn't expect anything, but you're It doesn't perhaps align. >> They're very my personality. >> They're very simp They're very simple ads. It just says like your picture of SBA woman. There's not a lot going on. very tacky and like >> sometimes sometimes there's a little bit um a little bit of a story, but most of the times it's if you have this credit, if you don't have this problem, if and again I'm very specific because I'm targeting specific people. I'm not targeting the the person who doesn't have a business. I'm only targeting people who have a business. Now, going back to the ad saying it's very simple. A lot of times it's not pretty. And you know, thank you Kasa for allowing me or enabling me to do this. Canva. >> Kasa. Oh, Canva. Yeah. Not Kasa. Canva. Thank you for correcting me. So, >> and that's where I make it. >> You do yourself. I do it myself. Do it on Canva. >> U. I used to have a very bad picture. I don't know if anybody remembers. >> So, I decided I want to do it simple. I don't need to spend a ton of money. My message comes across. So, people come over to me just like you're asking me right now and they say, "Can I ask you one question? I don't want to use the language I use, but why is your ad so >> look why doesn't it look so great? Why can't you make something pretty? Or or what's wrong with your ad, right? Who does it for you? So I say, I hear what you're saying. It's not a bad idea, but I have one question. How do you know to come over to me and tell me that my ad is not pretty? And they I get the point. They got it. >> So it's intentional. >> It was intentional. Yeah, it's intentional. First of all, I'm getting straight to the point. Number two, it's more it's catching, right? When you see going through the thing and you see beautiful, oh, artistic, oh, and all of a sudden they they start pulling. They think maybe it's a pamphlet that's inside there. It's not part of the magazine. And they're like, what? And they read it. And thank God. >> Thank you. If you have $100 >> Yeah. Yeah. >> To spend on marketing with with your, you know, with how with how much you market >> $100. >> If someone has $10,000, how how do you allocate pay-per-click Google versus social media versus trade show versus paper for magazine ads? How would you tell someone to allocate their $10,000? So as someone who spends probably hundreds of thousands that's my guess my guesstimate >> my guess is hundreds of thousands a year >> I can neither I neither can control >> or did I >> where's the best like if someone's trying to grow their business there obviously >> you know clapping and fring podcast is the best spend but after that right well >> we'll find out right after that so I always tell people it's a loop Right. It's a circle as you said. You put it here, I put it there. So, you have it in the magazines. You have it on LinkedIn. You have it on Instagram. You have it on Clappy and Frank. You have it on uh Did I say Instagram? Yes. You have it on paper click. I did all of that. I still do most of it. Paperclick I have a problem with. I spent tens of thousands on paperclick. Didn't work. I didn't get one deal for it. Then I had a marketing company who came to me and that's why I avoid marketing companies and they said >> we could do pay-per-click properly and we could do Facebook and $10,000 later it's gone. Nothing happens. So if you ask me I would take half of that money. Again depends what your business is. If you're you obviously have to be in a service business and if you're selling products you're on retail, right? You're not putting advertisements for whole wholesaler the way I advertise. That's a different place. I find out just like I said before I go to accountants. So instead of putting in instead of going to a show that I could potentially meet clients, I want to meet clients who could potentially give me clients. That's for me. Whatever whatever industry you're in, you do the same thing, right? You go to that. So I would do it's a combination of going to the shows and at the shows you get to speak to people and you see what they actually need, right? How you could help them and that could uh fine tweak your marketing. And then I would do uh paper marketing. People think it's outdated. I think it I heard a famous joke that they asked the CEO of Coca-Cola who spends a billion dollars a year on marketing um is it is it successful? So he said half of it works. So he said why don't you drop half? He says I don't know which half works. >> Does that is that make if you have a you thank God you have a growing company and it's doing well you do a ton of advertising and it's paying off. So even if you can't figure out exactly or pinpointing everyone the recipe is pretty much working. >> So that's actually a very very good story. I do a lot of LinkedIn now. I used to do a lot of LinkedIn in the past and I took a break for a year. >> Paid LinkedIn or organic? >> What do you say? Paid LinkedIn. >> You you pay to boost your posts or you just put >> I don't even know what that is. So obviously no, we don't pay. I don't pay. Um >> you put energy and time into LinkedIn. >> Yeah. So well actually what I do and you can do what's called a shout out to I have a content writer for me. So I sit down once a week or twice a week, twice in in in a month >> and I go through what I want to say, what rel what uh what uh trending >> not what's trending what what do I want to put out there in the world what do I want to say what is my message >> and then he comes back to me >> and he writes a whole bunch of different posts based on what I want to say different stories and then I edit it because I need it to be me. I don't like the I'm not going to use chat GBT or AI to write my my content smell and then I post Yeah. And then I post one every single day after it's edited and and he has to correct my spelling because I'm from Malra and I do not know how to spell. I'm just telling everybody right now and uh that's how I do the LinkedIn. So I start when I did it two years ago and three years ago and four years ago I almost got nothing. No nothing. I didn't. And now every day my inbox is is that it's called inbox or D? >> Yeah, inbox for your for your messages. Your inbox I have a lot of requests. I have bankers who are coming to me and that's another thing. Once you're in the industry for a while, bankers come to you, right? I used to chase after banks and you know ask them to take my business. I know what I'm talking about. And it's a small world. So SBA, they come to you. At least in my world >> in general. I mean, that's what I'm finding in my short career so far is that success generates success. I used to be nervous that like when I had a big deal or we got a big sponsor, like, oh, like, you know, it's like we're going to get comfortable and maybe now people are not going to want to come because we already have sponsors. But I find that when I do something really well in my Judeic or art business or in the podcast business, more and more people come and they want to join. >> So, one 100%. Once I got recognized and and there's something called a CDC, Community Development Corporation. They are like the Mashk, the gateway to SBA. They have to verify that you're SBA eligible. They have a bank who's willing to sponsor your loan and they go further. So I had to deal with a few CDC's around the country. One of which is the largest CDC in New Jersey and second largest CDC in New York. Arbbeck plug. So after doing it called our bank it's not like another agency. >> It's a it's another step before you get the SBA. We actually are direct lenders for up to $350,000 but that's another story. >> So they approached me and they said look you know what you're talking about. >> We would like to have you on the board and we'd like to have you on the loan committee. So when a deal comes through to them from New Jersey or New York, obviously I can't vote on my own deals, right? That would be a problem. So a big big Yeah, it would be a conflict. That would be cool, but it would be a conflict. Um I I I am one of the people who look at it and decide if it's approved. >> Wow. >> Speaking of sponsors, Clap >> Speaking of sponsors, first of all, um Prime Prime Day is starting tomorrow. >> Tomorrow? Yeah. >> I think tomorrow a couple of days. >> I want to cong congratulate Clappy for his first viral commercial paid ad ever. Right. It's interesting that it's not the content, but the ad itself is the content. Yes. So, it's >> it's probably your face. >> I told him it's like Super Bowl quality content. In the Super Bowl, people watch the ads just for watching the ads. >> You mean watch the the game? >> They watch the No, people send around the advertisements of the Super Bowl. The advertising $8 million for 30 seconds or 7 million, whatever. People >> So, the creative is so like they think about it, overthink it a five trillion times. >> Question. How much prep did I have for that video? Zero. you your whole life 40 39 years class >> I've read a lot >> 39 years >> I basically said that everybody's going to be spending money on Amazon week or day whatever you have to it's like you had what did you buy >> right >> so it's but it's very dangerous you could get burnt you get burnt because if you don't have the hecture of PZ deals that it's a good deal you're going to end up getting ripped off >> you got to wear your cap lower or maybe where yeah there you go >> so anyways so I said that if you don't want to get burnt and have show buyers problems don't buy anything on prime day and week if it's not PZ deals approved. They have thousands of links for all types of amazing products. >> Want to check them out. >> So, PZY Deals is a very proud corporate sponsor of our show. Great shout out to my friends at PZY Deals. This entire extended and second days of this whole prime situation. Make sure every deal is a PZD uh deal. >> You now I know that the PZ deal your video did well and I realized in life how you know you're when you're doing well being successful >> by the way translation in general in life. Go ahead. is that people gives you hate. I got this morning a hate message from one of PZ Deal's quoteunquote competitors. How whatever just hate mail. >> They're jealous. Never. >> And then I realized in life instead of getting a certificate from the successful uh um organization of the world, people just send you hate and that's how you know you're doing well. >> Interesting. >> That's what I learned. Took me time. >> I have to keep working on it. >> You never got hit, Yankee. >> Not that I could remember. >> You have you have ways to go, Yankee. No, you do have hate. I'm sorry. >> Yeah. >> A what? >> You do do I've heard. Should I say your thing? No, I can't say on the show you're hate, right? >> The what? >> I said, should I say your hate? People hate you or No, >> no. Nobody hates Yankees. Too lovable. >> I don't know. It could be. They haven't told me. Kobe in the in the back, you know, back of >> Did I tell you the Yankee Marowit story with the uh with the video shoot? I need you to do a couple hour video shoot for Art >> who has a beautiful home in Kronite that's going to be welcoming. Somebody said, "Ask Yankee Marowitz. He's too nice to say no. Which I feel bad for nice people. They get tooken advantage of when a guy says cool. He's too nice to say. >> Well, I didn't say no because I'm so nice. Uh I'm sorry. I didn't say yes because I'm so nice. It's because uh you're a good guy. >> Thank you so much. >> And the project. I really was in I really appreciated the project, right? It was Zman Climbing. >> Climbing. Yeah. Yeah. >> Hey, I know my nephews if they want to have a good benmas, they all end up in your house. So, it's more to the story. and your legendary grandfather, Mik. >> Yeah. And grandmother. >> Grandmother. >> My father. Some >> We're gonna We're gonna get there. We're going to get there. So, you we have to hydrate. The summer's coming. People need to drink. You have to drink all day long. But what do you drink? You buy these carbonated beverages that are just loaded with sugar. The best thing is aloe. People get sunburns. What do they do? Aloe vera. Everything is aloe. It's one of the most natural and healthy things to have. Now to find aloe with a good hasher and what >> it's only the only >> regular aloe has grape in it and it's all not kosher >> all it's hard to make it kosher very hard so this sish guy who's a big and uh he makes kosher aloe and it's so delicious the last show I was like a dick that I was drinking it the entire show I couldn't stop clients >> are you allowed to drink I thought aloe is for something like that >> so this is >> you turn it into a drink >> wow You don't offer your guests anything? >> No. >> Pass them out. It's so It's so addictive. >> It's m It's delicious. >> Cup is full. >> Every flavor. It's available. I asked the owner where it's available. He said in all haimeish supermarkets. >> And they make it in two sizes. They're like regular 17 ounce. You know, you walk in the street. And for the Shabas table of 50 ounce. >> Wow. >> Very well priced, very delicious, very nutritious. >> Clap our original sponsor. My son's going to Ghanas roll tomorrow and he's into healthy things. I got him two I got him two cases of uh beef jerky. He did not get teriyak. He got barbecue and um and spicy >> from CH Butcher. >> Yeah, I went to CH Butcher. Full cases. 12 come in a pack in the white cardboard boxes. You could open it up partially like Oh, you see, you know, he puts it in his cubby. >> All protein. >> And on the day that he's not in the mood eating a meal and he wants to have something healthy, all protein. There were many flavors, by the way. I don't even remember those. I >> think I've had that. delicious. >> It was like a wall full of flavors. >> Also, um American um beef. This is not Argentinian, South America. American Angus, the best in the world. >> And you look at it, one gram of fat and and a little bit of sugar, a lot of protein, very healthy. No, everything's done well. Good as well. Good. So, it's kosher, healthy, well priced, couple of bucks a bag. and if it supplements for a meal. Now that's for their butcher shop. If you want to go to their fivestar restaurant, >> I was here today. They have rotisserie chicken. Even though he says it's not a deli, it is. >> They have the rotisser. >> Maybe it is a stickle deli. So the ch Butcher has a gorgeous five-star restaurant on Troy Avenue and then their butcher deli on Albany Avenue. The best prices, the best, the best customer service. We also have wheels to lease. You want to get We have a banker on today. People are conscience of their hard-earned dollars. If you have to lease a car, you have to go to wheels to lease. Saul and Izzy get you the best set of wheels for the lowest price to your driveway. By the way, the same way they got to the guy in Connecticut, if you're upstate in the country and you realize you need a second car cuz your husband's all week in New York, they will come to the Bungalow Colony with your brand new car. >> Not everyone has a driver like you do. with all the paperwork and the approvals. Remember, I always say the story, they called up the guy's company. They got him a $200,000 line of credit for his uh for through one of these big financial companies. >> Not me. >> It it wasn't an SBA loan. They got them a line of credit with the car company. All the workers were able to get their cars within two hours. Great deals on the Pilot, great deals on the Siennas, great deals on the Nissan Sentas, whatever you need. And like I always say, And there's never a deal in the >> always if there's a I always tell you the people never know what they're paying there. I say why? And they said because the customer service is so good and the numbers are so low we stop price checking them. We know that whatever goes through their paperwork and underwriting is the best deal. Make sure to call my friends at wheels to lease and ask for Saul or Izzy. I was telling you about that alcohol show. I was telling you about that alcohol show. I met this um owner of Bakan. the nicest guy you ever met. And >> Ricardo, >> Ricardo. Now, this thing is is made out of a um the sugar cane, >> the natural sugar cane, the highest quality sugar cane liquor. And it's so delicious. >> Right now, >> you have it in your >> You want to add some to your coffee, please? >> It's so delicious. >> What is this? What kind of a guardiane? >> It's a guardiane. He had there at the show all the steps that it goes through the roots and the leaves and how they make it in such a natural delicious way. >> Has a smell. It's like a black licorice. >> Sure. >> May I have some? >> You have a your cup is empty. >> Is empty now. >> It has a delicious taste and an amazing heir. It's under the OU. >> I would think that it has a heer if you're drinking it. >> A lot of people don't don't have on the uh >> distributed by in the US by Royal Wine. >> Royal the best. Best best of the best. Now, let me try this. We already made a braha. >> It comes with two bottles inside, two different types. >> It's a gift box, but uh we strongly recommend people that if you're going to say, say it on something kosher with a good hexure that has a family story to it, >> produc produced by them. >> And it's just a very, very upscale, high quality product. >> It's very, very smooth. >> Very smooth. >> Made in Colombia. >> Makes my coffee taste a lot. >> Yeah. I don't know why I'm drinking coffee. This is amazing. >> Uh, I'm sure it wakes you up. >> Barashem, we bar, we have a problem that we don't know if we covered all our sponsors every week. >> Is that it or you want to look through the yellow pages and find something else? >> So, >> but someone told me people just like people like watch your ads. People love the ad part of our show. >> I have a guy show me he calls me up every single week to go over the show with me. Were you in the car with me when he called me out last week? >> Yes. Yes. >> Did I say his last name? No, >> not calls me up. So, a couple of weeks ago, he calls me up and his says his daughter is also an avid listener. >> Um, and she says, "Is it okay if I mention a comment, whatever?" She's like, "You know, there's another competitor, not a competitor, another famous podcast, and they do it so professional where they stop the show, they press the button, and they have a video just where they talk about the advertisements." I said, "Thank you, but no thank you." >> Sounds like one of my advertisements. >> Thank you, no thank you. Our sponsors are part of the Clappy and Frank family. We're proud of them. We don't need to have some generated thing in a studio like, "Oh, go to Wheels to Lease. We're the least." No, we believe in the product. The products keep our show afloat and we're proud to be, you know, it's like that's the opposite. She's like, "Oh, just my suggestion. I really like it." And then she actually she must be a new listener because she's like, "Do you have women on?" I'm like, "Some of the best episodes were women like Kenya Lane." like outstanding outstanding interview. >> Great aunt. Great aunt. >> The feedback, by the way, she has such a following. Shabas, I was walking my uh 10-year-old home from my sister's house. >> A lady stops me and she tells me, "I listen to your show, but you should just know that I'm Ha Lane's best friend." I didn't even ask her name. I should have asked her name. They're my best friend. But um yeah, that show was just the feedback is tremendous. Someone this past Shabas Gil introduced me to his son who's 12 years old. He said he's Frank show like what is the 12-year-old kid? He every single night goes to sleep with Clappy and Frank. >> I asked the r I asked the r of my show if he watches I asked the r of my show if he watch >> your show is boring basically. >> I asked the r my show if he listens to my show. He says I don't know but whenever I take the iPad my son's history it's just all clappy and frank. >> That's good. Apparently I we have a f like a young someone told me today you learn we have a strong following with uh late teenagers like 1920 as well. I didn't know that cuz our data shows >> I told you >> our data is showing more like 20 to 60 male. That's our our YouTube data and he's telling me even under 20. >> My parents neighbor's grandson um tells me he's 24 years old. He works for corporate kabad and he is officially an alterak in 770. He tells me that amongst 770 bak 23 to 25 we're the topic. >> Wow. >> So we have a father good. Good for you. Is that good? >> I think it's always good. Anybody that's listening it's beautiful. And the reason why the show is successful is only because of our guest. Our incredible incredible guest. I wanted to talk a little bit about your upbringing. >> Okay. Um, growing up I knew Gatsy was like a great older than me, but he didn't go out with her. But Gatsy Marowitz, Rabbi Getsy, >> who I spend PES with every single year, and it's the highlight of my PE. >> Is it? >> It is my highlight of my >> He's your highlight or the food. >> No, no, no. He's he's the highlight. The food, you know, it's >> I've heard that from many people, by the way, >> because whenever I see him in the hallway drama, >> whenever I see him in the hallway, it's a gishmaka gishmaka conversation. Gets you started. >> He's always smiling. Yi, what's >> He's a great conversation. I know a place where you could have a great conversation. >> Did I tell you he started a pes moderation where he moderation he moderates a guard he has dab of the pes program himself on a panel every year it gets more and more and more and more packed >> and it starts like one o'clock in the morning. >> Wow. >> Maybe it starts at 12:00 whatever. It starts late after the meal. this year like two three o'clock in the morning. I'm like, "Oh, I'm the I stayed till like 2:30, 2:45 and whatever it went till 7 o'clock in the morning. I was long gone." >> Sounds like >> just people are buying into what he has to say. He's he's a tremendous he's well read and he speaks. >> I'm not I just went to one person in the family. >> Well, you have to have the 400page SBA group and the laws that they change. You have to read it all. True. >> And like you said, it's not an easy read. It's not. It's not. >> But he I'm saying your your you have a twin brother >> and he's he's in he's a businessman. >> Your father was always in trucking and all the amazing things. Um and you have a sister that's she's what what she's in catering. >> She's in catering. She makes uh beautiful boards. >> So what is this? One person in the family had to become it of like what happened? >> Yeah. What was your first business? >> We're talking about for a moment. Slow down. >> What was it? you guys decided that one guy has to be the rough in the family. >> Uh it's it becomes it comes naturally, right? If you're that person that has the gift and he has the gift >> thank god we're all uh I would love to go on. I'm just not uh I'm not capable of learning with people. >> Well, you said you did. You bring >> we do a lot of tulin. We do a lot of and that we've done you know since we're kids we're trained for that and that's part of I think a lot of the community success right we are fearless to speak to strangers in you have you have to be >> it's a good point it's not about it's >> I have to know the basics and if I for the basics I have to call my brother for the basics it would be a little bit weird I'm going to be speaking to one of the balabatim right to one of the congregates and they >> it's possible you put on more people than many >> it possibly >> it could be a few years ago um I had a campaign so a friend of mine hers shalom uh he was not well and I actually s so I would bring fill to my booth but I went to his booth at a at a show and I saw a pil with their logo on it and I thought that was very cool so when he was not well I asked him if I could make a campaign using his name for a foola And what I was going to do and what I did is I gave out tillin to business owners. I used to go take my pure twillin, right? I'd be in the hotel, I'm in Las Vegas, I go down, I have to slap my phone back up or if you're in a store or retail shop, I would give away a pier of twillin. If there's a store owner or a business, a business that that has an office space or even a an Uber, I would give them a pair of fillin if they if they guarantee me or they promise to us that they're going to try to put on film with people. So, we gave out many pairs. Of course, eventually it comes out that there's a soldier in Artisol who would put on fill in in Israel. >> How many have you given out to date? >> To date. >> What? Today itself? >> To date? >> To date. >> Up till today. Yeah, >> a lot. >> Over 100. >> I No, not over 100, but in the tens, 20s and 30s, right? There was a it was a campaign. Um, so I did it with in his honor and you know, you got to practice what you preach. Today I have uh people again from other I can tell you who was a client and he heard the story and he asked to put phone on in his in his office and I will tell you something very interesting. I get even pictures of somebody who looks very religious and they put on I was once at a show and I'm asking the person, "Are you Jewish? Excuse me. Sorry, you Jewish. Did you put on film today? Did you put on film today? Did you rap? Did you rap?" I don't know why it came to my head. I saw a client of mine walking by a religious Jew. I said, "You put on film today with a half grin and he froze." And he said, "No, he didn't." I I looked him. Do you want to rap? He says 100%. Let's go. And right there at the show, he took our prayer filling and he prayed the entire morning prayer. >> By the way, you just you just brought a memory. Two and a half years ago, my wife and I were we ran to the hospital. She went into labor and it turned out being like a 19-hour complicated labor. And I never dreamt that like when I went to the hospital 10:00 at night that I'm not going to be home at like 5 in the morning or 6:00 in the morning to watch the other kids and then have to send another babysitter to take over. And I'm in Lennox Hill and I call Ashriak and he's like I'm getting back in a few hours and whatever. And I started watching the day go by and I really needed to put on filming and I you were in Manhattan whatever but my wife needed me whatever. So yay you will he ended up calling him up because the other wasn't able to. I called Yay Wilhelm and he had a crazy busy schedule and he came running over with this talisman and he said I'll come back in an hour. He went out of the way. But Labavatures, we need to tell them also sometimes% the emissaries of the labb they're amazing. They're spread out throughout the entire world. So everybody who's watching this podcast has a place or knows that all you have to do is Google of whatever location they're in and they could find an emissary who's more than happy to help them with their religious needs and even their physical needs like food. Y you someone who needs your service >> are people who have proven to have either asset or sales or numbers to do certain well. You're not dealing with startups. >> We don't deal with startups but again it is possible to get it start primarily dealing with successful people right their sales have to be what minimum >> it's not about their sales it's about what they could afford. So it's a net profit. >> What's a minimum? You want to have at least a 1.15 debt service coverage ratio, not about million. >> If your loan is, if your payments are $100,000 a year, you want to see that you could afford or you have the the cash flow to afford $115,000. >> You deal primarily with very successful people. I would say you have one of the best views >> of successful people because you're and you have very wide spread of different types of business. Mhm. >> So my question is what would you say top three personality traits of successful people? >> Top three personality traits. That's a very very good question. Top three traits. Top three traits. One. Very hardworking. Very hardworking. And they keep their ego at the door. Meaning they're they they could work uh 10 12 hours. I know. Not that I'm the successful person. I always tell people you could call me till 11 o'clock at night even one o'clock in the morning and I'll answer and some people test and then and they call me you know so if person is into into their business yeah with pleasure test me test me if some my phone is connected to my office so some for some reason people call at uh 1 2 o'clock in the morning one time I happen to be up at 2 o'clock in the morning I answered the phone and it was silent hello group I I I didn't think someone would answer the phone. I just want to leave a message. Oh, I'm available. So, what can we do? So, the first thing is they have to be a hard worker. That's number one. Number two, delegation. Stop thinking that you're the only person who can do it. As they say, the cemetery is filled with replace with irreplaceable people. Right? Delegation. Number three, as we said before, and it's not necessarily in that order. Number three, as I said before, know your business. Know what your competition is doing. Study what they're potentially doing. Know what's coming out in the market. What's new? As example at CES, consumer electronic show, the new products are being presented. You have to know what the market is interested in, right? By doing the best research you can and see what's coming out. What's your most do you also being in your seat? Do you see the trends of which businesses are doing well in qualif for for loans right now in general? So are you a resource for that? like knowing what's hot, what's not. >> It's a very good question as well. And what is the hot businesses today? >> I know the question coming. So there is no hot business today. I would say when you invest in a company, when I invest in a company, I'm not investing in a company. I'm investing in the person. So I've seen Amazon companies that are still doing well and I've seen Amazon companies that have failed. Amazon changed a lot of the rules. I don't know if you had anybody on the on the podcast with >> I I was just in Israel for a few weeks. I mean for a week and a half and I met a guy, a young guy was doing extremely well, beautiful family, lived in Florida and he tells me that Amazon literally based on rules and regulations bankrupted him and put him completely out of business. >> Yeah. Unfortunately a lot of that >> and and Mishi had people brought people on to the show. when we worked together, but we had people on and the guy's like, "Don't believe it. In every industry, there's winners and losers." But you know what? The sob stories I keep hearing from people that Amazon with the flip of a button literally bankrupted young families and you're meet with thousands of business people. You've given out billions of dollars of loans. Is there truth to that? >> So, I'd say there's truth to your guest who said that that some businesses will fail and some businesses will be successful. depends on can you roll with the punches and it goes back to what we said know your business know what your competition is doing in Amazon's world what is Amazon potentially going to do and if they change something get on top of that right away so I've seen Amazon businesses >> but you're saying we're blaming the victim they're saying people that say they lost everything overnight they could have done something they could have done >> yes they could have rolled with the punches right sometimes you have a product that you can't do anything about not everything let's remember at the end of the day there's one person or one one entity in charge God. >> Correct. So if they want you to fail, if he wants you to fail, you're going to fail, >> but you have to do whatever you can, right? To make a vessel for the success. So there are people that are able to be successful. And I see them. And then there's some clients unfortunately that are defaulting because they have that problem. Now, going back to your your question, it's across the board. Like I said, Amazon, I started to say Amazon, there's some Amazon companies that are not doing well. There's some wholesale distribution companies that are not doing well. There's some restaurants that are not doing well. And then there's some that are doing fantastic. I was at the loft last night. I don't know if I'm allowed to say that. Say whatever you want. Okay. I don't want to step on CH Butcher's uh toes. >> And Bar Hashem, thank God they're doing great. Right. >> I don't know if you've ever been there. I I >> I've been there many times. >> Very good. No. >> Yeah. Always a good experience. >> Um you have some wholesale companies that are doing fantastic. You have some retail companies that are doing fantastic. They want to open up another and a third, a fourth location, and they call us for that. Then you have some that are calling us unfortunately because they need help. They're drowning. They're struggling and we can't help them, right? It's already it's already too late. But if I have the money, I could do X, Y, and Z and then, you know, they'll turn it around. >> So, you're not going to say there's any trends of what's successful businesses today that are qualified for your services? >> There's no trends. I I will tell you something else. >> There are many. You're good. Y Okay. >> Maybe you want to take some more of that. Uh >> aloe. Aloe. Hello. Um, there are many business out there that are doing well. Now, if you're in the restaurant business or you've been in the restaurant business or you're in the wholesale business, there are many, many uh companies, baby boomers that are retiring. They're looking to retire. So, look at which business is successful. And there's many I I don't know them personally, but there's brokers out there that can help you find these businesses and see who who wants to retire and buy that business that's successful. We always say that but when it comes to restaurants, successful business with good numbers could be financed by SBA, right? >> You can get 90% financing to buy a business. >> About restaurants, I'm convinced and Moshi also was convinced because I heard him telling it to people. Unlike other businesses, people come into the restaurant a lot of the times it's for that personality. That particular personality, >> that guy that runs this deli, he is the star of the show and people want to talk to him and smoo with him. If you buy out that restaurant and you're not going to be there. It's just another acquire acquisition. I don't know necessarily that it's going to do so well. >> Okay, I hear your point. And there's some businesses I could tell you that I've been to reserve cut many times and I've never met the owner, >> right? The product if the product is that good. I guess if the Yeah. >> Yeah. It's not about And when the owner can't be there for a week and a half or two weeks when he goes on vacation, does the sales go down? >> Right. >> No. But you do have to look at the business owner and say is this business based on their relationship. Right? I think if the restaurant as the example is tasty and and uh clean and good service, people will come back. If it's a business that has let's just say four clients, right? And one of them represents 40% of the business and it's this relationship that the the owner or the seller has. You can't buy that. >> That's a commodity. >> Yeah. Yeah, he could say that. >> Are there business owners that take out cash advances? Very hot topic. That take out cash advances under crazy terms that if they would have called you a day before, you could have walked them through on a normal traditional loan. >> Yes. >> Oh, I feel bad. Feel bad for those. >> And until recently, remember I said SBA changed the rules. Until recently, till this year, we were able to refinance that debt. Now SBA says, "No, we cannot refinance that debt." It's because if you are in a position you have to take the cash advance then you're not the greatest company for us to to finance. >> Tell me a little bit about I know it's not your industry. What's going >> I will say I'm sorry there are some cash advance companies that work with us and they send them they send us deals that they believe is payworthy. >> I know it's not your industry but what is going on with the cash advance business that every single 19year-old this shabas I met a 19-year-old in my sister's house. I asked him what are you going to do? He says, "Well, I'm out of yeshiva. I plan on going into business and being successful, and I really my goal was to get into real estate, but just to have a cash flow, I'm going to do a year or two of cash advance." >> I said, "Didn't the rebbit tell people that in America you don't need money to get into real estate?" I said, "Why are you going to waste a few years doing these shady shark deals, cash advances, when you could probably get into real estate tomorrow for free, just mentoring people that will teach it to you? What What is your opinion of what's going on in the world, the cash advance guys? And are there clean, kosher, cash advance guys? Should they get maybe consider traditional lending as well? >> What do you mean? Should they get >> They should get into SBA lending, work with the bank, get lines of credit. >> Some, like I said, there are some some cash advance companies that do send us deals. And those cash advance companies, I would say for me, in my personal uh uh experience and view, they are not really hurting people so much. They're definitely charging higher rates than I, but if you negotiate with them, depending on how strong your company is, you could get as low as 26 24%. I've seen a deal where it was 18%. >> Like a credit card. >> Like a credit card. Yes. So, I'll tell you there is a need in certain certain scenarios. Just give you a quick example. Somebody is in the Amazon business and they know their Amazon business has a a trend. You know, October, November, December, seasonal. >> They need the money. So they need money for 3 months just to buy the inventory and in 3 months they're going to sell it or a restaurant a restaurant their oven breaks their refrigeration breaks right they need chairs without that piece of equipment they don't operate there is no business and they need it today quick or tomorrow >> and they could do the next with two days right these guys the next day >> they could do it two days within one day I I think it's possible I don't know u my son went into it >> and uh he couldn't handle the Saab stories, right? He was sensitive to the Saab stories, so he left. And now he's in he works for Monotex. Ari Marowitz, you need security camera, whatever you need. >> Rect um I don't know who Sam is, but this is Monet. >> I know a guy that works in Monotex guy for years. There's >> only one. >> No, no, no. I've heard the name. I've heard the name. I've heard the name. >> I'm not g I'm not giving away any free shoutouts. No, no, no. It's It's a very reputable company. They're they're big. I passed by huge development sites that have them. >> Yes, they do. >> For a home security, >> but clear difference is Yankees telling that for SBA or traditional loan, it will take two to three months a cash events, >> it's tomorrow, >> in a day or two. So if you need quick money in between or let's say a big deal comes, you get a crazy deal on I don't know 10 trillos of Coca-Cola. >> Right. Right. >> And you're going to make so much money whatever deal. Yeah. >> Yeah. It doesn't make a difference. >> Somebody needs to buy a property and the seller doesn't give them more than 30 days. Hey, what's your favorite type of business to finance? >> My favorite type of business to finance >> or is it a favorite type of person? >> Anything that could be funded? Anything that could be funded. Every single deal. There is no deal that doesn't have a crisis. It doesn't have an issue you have to overcome. So, every deal that we close is is excellent. Right. That's that's that's for us or for me the best thing. >> So, best business. >> I just I want to go back. You said if there the baby boomers are retiring >> if you have zero business experience just walking out of Shiva and zero everything and you want to buy let's say a guy's produce distribution business in New Jersey >> right >> could you be financed by SBA yes or no what's the terms and conditions so if it's a large transaction I would tell you no you'll have to have more experience if it's a small transaction you could potentially get away with it right you could also work for 3 months and say you have the experience and if the seller is willing to work with you, you have the experience. If you have somebody in your family that has the experience, but you do not, we've gotten that approved as well. So to say you want to walk out of uh out of kilo or you just graduated from high school 90% you said financing to buy a new business. >> Buy a business. So 10% down or 90% >> 10% down 90% financing 10ear term >> and that business has to have good books I'm assuming right two years >> that business has to qualify the same thing you want to see a business >> two years what's what do you need for >> so technically if you went to a bank >> by yourself and you went to the chases of the world a bank of America because of the world >> bank popular >> bank of popular they want to see at least two years of cash flow as you said of capability of repayment at least two years if you're in business you just it's a it's a startup right But somebody's in not in business for two years, they will not get them uh not give them a loan. I could tell you that we could do it. As long as you're in business for one year and you have the profitability to afford the loan, within just that one year, we'll get you financing. >> What percent of the people call you within a minute or two? You >> you tell them we cannot be of service to you. >> Percentage wise, >> yeah. How many people? Um >> 60 70 >> a day >> overall. Overall, yeah. So >> you mean you tell them within two minutes? >> I could tell within two minutes. I'm still going to give them the 10, 15 minutes, sometimes even 45 minutes to explain to them why and what they have to do, which that is the point. If there's somebody who I see >> so what percents are slow down, slow down. Slow down. You answer that. Let me answer your question. >> If somebody has potential, I can see that they have to do X, Y, and Z. Well, sometimes I've worked with a company for two years. They had to build it up. they can just jump to the to the spot where they'll be qualified and I work with them. So if within two minutes I see that there's potential continue going even if not I tell them what they have to do I not necessarily working with them come back to me this next December and we see what you could possibly get. So if you ask me the question if I had to put a percentage on it I'd say 55%. >> Are are not qualified >> are not qualified that call that call me. If someone has a cash hot dog stand, could they and they're I mean, how does it work with uh >> they have to report every single penny income? We our our client our viewers all follow the law. Every every four months you need to file sales tax in the state of New York. So, every penny is documented and you know exactly how much money. >> Some businesses don't make as much money. So, they they're they're >> So, what if someone's running a cash business? They're not bankable. Correct. >> Correct. Okay. if they don't have in the cash advance world I think you can if you have uh statements right I I don't know but in SBA world it's not qualified >> Yankee how many employees do you have >> we have 15 >> 15 that's it's a big company >> I I I have to apologize and I have to make a mask I do pay $8 every month and I have a subscription to the New York Times >> okay >> so I'm sitting in the bathtub this morning probably not the best place to read the New York Times because my phone could drop >> No I don't get I don't get paper I I don't have no room. I have no room for paper. >> I'm not in the paper. I'm not in the online one. I'm in the in the paper one. >> The kids are >> You're in it. You >> top article, long proper article written about the New York Times investigating hundreds of businesses. >> Hundreds of businesses. And they go through the details how they came to this study about inhome work like companies that make you work in the office >> remote. >> Remote. No, no. Coming into the office or being able to work remote. A lot of all companies went fully remote um during COVID for two years and then a lot of them said come back a few days a week, come back four days, work Fridays, weekends from home, blah blah blah. Now a lot of companies and CEOs are saying come back to the office fully. >> Right? >> So the New York Times said they did a very extensive uh invest study and investigation into is forcing all your workers to come back to the office full-time profitable or not profitable because you're going to say it's for the companies on the line and they said it's 100% false. What's your opinion about that? >> No, no, I want to just say they said that they did the study and it's not profitable. >> They say to force your workers to come back to the office is not profitable because you're going to lose on average 30% of your top employees when they force to come back to the office every day will lose. >> They said it work camaraderie whatever they said is also not true because >> what do you mean not true? What do you mean by workar? >> Because a lot of people will still have good social interactions with people that they're not in the office with every single day. >> They say they lose that. >> Yeah. Though people say you have to come back because you work better as a team. there's more social commodity. They say it's also not true. >> He say it's overrated >> and they overrated and they said that it boils down to one thing. It says it boils down that the CEOs >> that force you to come back are sociopaths >> and they're power hungry individuals that want to have totalitarian control. They also said in the article that they want to like be in their corner office and workers have to pass by them and look at them. >> Narcissistic narcissist. They said narcissist stuff to the highest degree. And then they and they went on to say they went on to say that it only hurts the company. So I want to ask you a question. >> You're a case study. You're a case study. You're a case study. You're 15 workers. >> Yeah. >> Are they in office full-time, parttime? >> Are you a psychopath or not? >> Are they a lot of work from home? >> With that introduction, are you a psychopath or not? >> No, I'm not a psychopath. Right. >> So >> what's your opinion? >> My opinion is that's New York Times. I had opin this opinion uh before COVID right before everybody ran away from the offices. Now if you're work for us and you want to work from home, no problem. It's up to you. I personally find myself more productive going into the office. If you're a person that finds yourself productive no matter where you are or if you work better at home, stay at home. As long as the work gets done, I don't care. It doesn't bother me. So I don't know which CEOs. I guess they're narcissists. So that's what they do. But it's all about money. Can you close the deals by me? That's my my business. Can you sell your products if you're home? That's what it is. >> What percent of your team is sales? >> I would say there isn't really sales, right? There isn't really sales because you might say that I deal with a lot of sales in terms of marketing, but who doesn't want money? >> Who doesn't want money? >> It's No, it's not all inbound, right? I go if I walk to let's take a walk in Williamsburg you know they know me from different publications like oh the labavatur lang right the the labavaturure with the long beard uh if I walk in in my oh again they recognize me like you said before you walk into a restaurant they they recognize me I was in I'm trying to remember where it was a guy came over to me and said can I take a picture with you I just want to show my son that you're real said no problem so that's kind of the marketing right but if you had to say mark um salesperson I'd say three. >> Oh, you're saying your ads generate most inbound? >> The ads going to the shows, most of the sales, most of the referrals, mostly referrals is what feeds our business. Referrals, referrals, referrals. >> I have a I have a >> I would say one more thing. You don't have to close a deal to get referrals. As I said before, I'll spend 15 minutes to 45 minutes with a client or potential client or a client that is not qualified and then they're going to tell their friends or their family members, "This guy gave me the time. He was such a nice guy. >> It's funny you said that the does picture convert to real life in recognition >> because I have >> I I know a guy who probably equally spends as much money as you on ads and he told me a lot of people don't recognize him in real life because the picture look is not the same as a video look. >> The picture look is not the same as the video >> as a real life. >> I'm sitting here. Do you think I look like my picture? >> I think so. You tell me what's >> people recognize me, right? People come over to me and ask about the ad, why it's so not great, right? So people do recognize this guy told me it converts horribly. >> I don't know. >> He was like complaining. I do all these ads and in person no one. So I think video in term in terms of that conversion and recognition is a lot better than picture. Just my humble as video people. >> So like for me >> I get rec clap much more. I get recognized all day long because I think I'm in a video form. It's more real versus a picture is flat. >> Ah, okay. >> Twodimensional, whatever. It's not alive. >> So, the problem, >> that's my humble opinion. >> One of the problems with video, it adds 30 pounds, right? Just this is not my whatever you're seeing right now is not the actual look. So, it adds 30 pounds. So, people may not recognize me or they say, "You lost a lot of weight." A lot of that's just a joke. Um, I've done other podcasts. I've done uh inerson events and the recognition comes from that and on cameras on from print they recognize me >> on camera I guess they also recognize me remember I've done podcasts in the non-Jewish world most of my business originally was non-Jewish >> what percent is Jewish 80 >> of of now I'd say between 60 and 80 depending on the year >> what's interesting is that I met a very very famous watch personality gazillions of views. He told him even though he gets millions and millions of views, most of his clients are Jewish and from so even though he's recognized as an international star, his most of his business is is Orthodox Jewish people through >> it doesn't mean Orthodox >> Jewish Orthodox >> a lot of a lot. >> So in the attorney world, right, in the law the world of law, there's a lot of Jewish people as well, right? Ironically, dentists as well. So if you ask so maybe the the question should be framed a little bit differently. How many orthodox uh or religious people are in of my clientele? I'd say probably more like 40 to 55. Would you say Jewish attorneys are more likely to be have their own business independent versus corporate fancy law and they'll >> No. I mean >> I've seen it both ways. >> You've seen them both ways. Remember, even if you're corporate, a small corporate. >> No, I'm talking about top like Whit and Case and Davis Pulse. >> These are like the you walk into the door, they pay 250K a year. >> I'm assuming >> I I don't know. I deal with mostly personal injury. >> No, no, no, no. Other companies as well, corporate corporate litigation, um, real estate. There's >> personal injury advertising. They don't stop advertising. You have to up the number when you say you walk into the firm day one you're making 250k a year in our community it sounds like a struggling family. >> No just >> by the way I know four I'm not going to say the names. I know four identical twin sets >> and they're all extremely extremely successful. >> Is it being an identical twin make you competitive that you're more successful in life? >> And what does your brother do for a living? >> I don't I don't First of all I don't look at it as competitive. >> Are you older? >> I am older but I don't look at it as uh competitive. How many minutes? >> How many minutes? Three minutes. >> Those three minutes gave you a head start. >> A lot of threes. I was born at 303. At least that's what's on the birth table. And he was born at 306. So 33 33. Um I don't think it's it's uh about competitiveness. Um I think it's more about the will, right? Because I'm not competing I'm not competing against anybody or at least originally I wasn't competing against anybody. I was competing against myself. Like I said, after I've gotten into the business, there are many copycats, right? Without saying any names, there's many copycats. And I'll tell you that quite a few of those copycats are just doing marketing like the attorneys. They send me the deals. >> So, I do the deal for them. I white label it and >> you're the wholesaler. >> Yeah. Do you think your show is successful because of of your competition? >> No. >> So, what's it what makes it successful? It's our own recipe. >> It's your own recipe. So, sorry you have a question. >> No. Yeah. Listen to >> I'm switching the table. I'm flipping the table right now. Right. Right. But I know that you have different businesses. I know that you have different businesses. Which one are you more successful in? >> Whatever I'm passionate about. >> So, all of them. I imagine. That's a that's a very good point. When you're involved in a business, passion. That may be the fourth thing that you you asked earlier. A business owner. Passion. passion is is I love my business. I love my business not only because we make money, but because I'm helping people. I'm literally helping people. I have clients who I give that's $150,000 that the lawyer was able to make it to to get to the point where he could use $109 million and be qualified for that. I have clients who I give $350,000. There was a client I remember I was chasing. Someone told me, "This guy needs money. He's looking for a loan. Go after him." I was chasing him. I'm working with my bank. Don't worry. Two weeks later, I'm working. It's almost deal with my bank. Four, two months, three months. Finally, he calls me back. And I literally called him every day. A month before he called me back, he says, "Do me a favor, Yankee? I'm not trying to be mean, but there's no reason for you to call me." Okay. I finally got he called me. He was looking for $350,000 loan. I gave him close to $900,000. I got him. I didn't give it. He turned that $900,000 into a warehouse into doubling tripling his business. He is a big philanthropist does very very well with him. We also he got he bought a building, excuse me, he bought a building by growing his business. He needed a building, needed a warehouse, etc. So, it's very satisfying to watch a business grow and actually help. I have an addiction that people that always say no when I'm selling high-end Judeica and fine arts, they say, "I don't buy. I don't buy." And I keep spamming them. And then after like five years of spamming them regularly, like one time they buy like a package of two items and now they continue messaging me, we don't buy. And I'm like, "No, you do buy." And I still spam. >> So that's why you're still spamming. >> So yeah, because No, what I'm saying is is that it's like there's a certain thrill of like the guy that says, "I don't buy." And then one time you show him a small silver McGill like in a little case and he gives you like five grand. And now it's like now I got to continue spamming them. But then they write no we don't buy. And now it's like I can't stop. >> A lot of people don't buy for investment. Right. I spoke to many art dealers you both know and you know me I don't like I should have I should have listened to a lot of people right and I should have bought the flu and but I didn't because I only buy what I like. So the same thing as your clients probably. >> How often do you misjudge business owners? Like you think the guy is qualified or he's totally not qualified. You're like it comes to like how often do you judge or misjudge or you less judged? >> At what stage? >> I I don't I don't really I don't really judge anybody until I really speak to them. I will say though a lot of people you speak to and they tell you these are their numbers. They don't know what they're looking at. They have no clue how to look. >> You speak to their bookkeeper. They have no idea >> exactly or their accountant which is also very beneficial for me because I have to speak to their accountant. The accountant sees what we can do. >> They have other clients. >> You spoke about delegating >> like recently with all my filings in my company. I tell my bookkeeper that does my booking stuff to talk to my accountant directly. So I think that a lot of times I mean you know this a lot of the time I say you guys speak and you guys tell me what I got to do and who I need to write checks out to because I feel like a lot of times you probably speak to a business owner and you give them your 15 to 45 minutes because you're just a nice guy and you want to help them and then you speak to their CFO and you see all the paper and you're like ah he completely it's a good question my process is is uh let's call it three stages but first stage is I speak to somebody I speak to hear what they have to say what are they doing if it's something that we think is qualified or something that may even may be qualified but we're not sure based on the conversation I'll send them a list of items we need to see once I have those list of that laundry list I'm able to analyze it I'll even pass on to one of my guys this is something you know you first start off a business you're one person you're two persons you're three and I don't want to handle I don't think you could do a a good today my my employees some of them do everything better than me literally I'll call them for for a question sorry Because the loans are quote unquote assisted by the government, does that mean the default rate is higher than traditional loans? >> It's not assisted by the government, right? It's just it's backed >> which means assisted, right? It's a >> it's a plug-in assistance. >> It is assisted because you said they give 75% more the banks. They're giving 75% more than they would have given. So they're not a that's a concept. But yes, they will give more. So it is back if you want to say what was the word you use? >> Assisted. >> Assisted. You could use that word. I wouldn't use that word. But what I say >> is it a default rate higher because it's quote artificially assisted that the bank themselves wouldn't extend this credit but they are now because it's backed by the government. >> So no yes no first first of all in terms of their default rate. SBA historically has between a three and 7% default rate. >> Is that is that higher or low compared to a regular bank a regular traditional loan? >> So someone once told me a banker once told me if you don't have defaults you're not doing enough loans. you're not giving out enough money, right? So, every bank is different. I know banks that are at 11 12% default. Yeah, it's a that's a high number, but some years they're 0% default. Most of the time there's 0% default. And in terms of the question is what type of collateral they had, then they could be in in a good situation. Going back to your question, the bank has to charge or rather the SBA charges about 3% per loan, a origination fee. It's called an SBA guarantee fee that covers their default. Essentially, that's what covers their their their product or their I should say their program. So, the default rate >> collecting it from every single client and that covers the few percent that default. >> Correct. And therefore, it's one of the only programs I know that's self-funding. The government >> only successful. >> One of I I'm not big uh into >> Yankee. Who pays you? How do you make money on the loans? >> So, we charge the client a fee. They're paying interest on the loans. Somebody's always paying for something, but the question is who they're paying. >> My father always said there's no free parking, right? There's no free parking sometime. You're going to have a ticket, you're going to get uh >> we could talk about I guess SBA got it biggest prominence during co >> Yeah. >> Can we talk recognition? >> Yeah. Can we talk about what loans were offered then? >> What is forgiven? What's not forgiven? Because I'm seeing seeing now people in the news, people losing money, defaults, this. Can you tell us what was offered? what is what is could be uh dis written off whatever it's called forgiven >> could be forgiven >> versus knock you just tell us >> sure so really the only program that was able to be forgiven which was a brand new program it didn't exist before or not that I know of was the PPP >> to pay your workers >> yes exactly so they gave you a loan based on how much you're paying workers I believe if I remember correctly it was two months worth and after after you paid your workers and you proved that you paid your workers, you would be forgiven and that came from banks as well. SBA did not pay it directly. >> But it's such such a wasteful spending. I saw billion dollar companies, multi-billion dollar companies getting hundreds of millions of dollars like they didn't need it and they're just capping taxpayer money. It's like it's like almost not fair. >> So the large >> I'm a capitalist by the way. I'm just saying it just it doesn't look right. the large companies, some of the large companies that didn't have to show shut down or didn't uh weren't affected by co they yes they I don't say they took advantage but they did what's legally allowed right >> PPP was forgiven >> PPP was forgiven you had to file your paperwork I think was in two years and you got forgiven there's other loan which is disaster program they call EIDL in that program the government it exists just did before, you're able to get up to $250,000. If a business was affected by something, a fire, hurricane Sandy, right? Businesses uh lost product, they would lend up to $250,000 >> at low interest. >> At low interest, relatively low interest. I don't know what it was beforehand because I don't deal with that program. I never dealt with that program and I didn't deal with it during COVID. Why? Because I had no idea what's going to happen. They changed it drastically. You get up to $2.5 million. Click a button. Here you go. People are buying houses and now >> not houses. A guy told me in the bungalow colony. He's like, "I'm living rentree." He's like, "I took a business loan. I bought this bungalow." He says, "Show them." >> Yeah. Yeah. Unfortunately, so there were people with just an LLC and they got EIDL loans and they went and bought a a summer home, right? They bought a car, they paid for whatever vacation. Now they can't pay it. And it's a very very low interest rate. It's 3.75% fixed. Fixed. So right now I'm getting calls every single day at least five to seven calls that while we're sitting here I probably got your calls >> where people have defaulted and they're now charging 30% on top of it. >> Oh, if you once you default they hit you 30% like a bad credit card. >> This collection agency >> and there's a I had a person call me up. Just an interesting story. He called me up and he said that he had a he has a $2.3 million yellow and now he's he didn't pay pay it and now he's being attacked 30% more. He doesn't want to he that's astronomical. So I said, "Listen, the only thing I could tell you is based on my knowledge of the 7A program and regular loans that I deal with. Call them up, try to negotiate, try to, you know, cooperate with them." He goes, "No, you don't understand. I'm very wealthy. I in fact I didn't even touch the money. It's sitting in the same account. So I said, "So why didn't you pay it?" He says, "Cuz someone in a synagogue told him that if you stop paying it, they're going to forgive it." I said, "So why are you calling me?" Says, "Because you're the king of SBA, so I want to know your opinion." So why don't you call me before you listen to that guy? Right? So it's a terrible situation. I I I don't know. I can't help people yet. I'm trying to myself in the background figure out a way and if there's some type of possibility or if there's somebody, you know, there's people who help you with debt and bankruptcy attorneys. I have in if you are one of these people, give me a call and show me that you have been successful and I will give you a lot of business. >> So there's no as of today in 2026 there's no real answer to how EIDL EIDL loans are going to be worked out if they're going to forgive any of them or >> I don't not that I know of. But there's also criminal. Actually, >> a guy called last Friday in the car and told you he wants to stop paying his EIDL and you called a guy from the bank and he said he's going to speak to them. Do you know what the end of the conversation was? >> But there's also criminal elements. Where are the criminal stuff show up with this EIDL stuff? >> Anybody who had an LLC and it wasn't a real business. >> They just did it. People backdated uh probably their their or for or forged their documents. It was it was nothing. You put it inside, you file what you you typed in what you made. Over time it got a little bit stricter but even then there's so much fraud. I personally think that's why they're charging 30%. >> To make up for all the all the defaults. >> How many different banks would you say you deal with? >> I deal with about today it's about 48 different banks. Used to be like 52. We deal with 48 but there's always your five to 10 banks that you really really deal with. The reason why you have so many other banks and you have to have relationships with them is because every bank has different criteria. They have different boxes as we say. this is what I'll do. I either want more collateral, I want more cash flow, I want to be in this area. We've done we've done loans in every single state. Every single state. And every every loan is different. So you have banks that are different. And a bank, say in New York, won't necessarily fund in Utah. So you have to have relationships. Again, it's typically five, 10 banks that everybody has their their if you're in the if you're in the mortgage world, if you're in the financing world, you have those five 10 banks. >> Somebody sees your ads in the Ammy magazine. They're a small business, let's say three employees, they sell something online or they manufacture a product and sell it to distributors and they need a couple of million dollars. You said you're good up to five million except sometimes you could do two different types and you could do buying a business, but let's say they see you. I want to know like a regular I asked we started a new series where I ask people what their average day works looks like. >> Okay. >> So you wake up at nine o'clock in the morning and a guy Sima Finkelman from Bar Park he >> well actually 17 he meets the criteria shave he was eating cha he saw your beautiful ad in I magazine he might be a guy that needs a nice good professional >> saw the ad on he's a future sponsor he's adact calls you up he calls you up on a Monday morning. What does a regular day look like? He calls you up on a Monday morning and he says, "I'm trying to get a $3 half million." >> What does Finkele's day look like? >> Your day. >> I got lost. I have no idea what he >> What does a tradition I'm saying a traditional day? You're in the office at 9:05 and the guy calls you. >> Tell him what he's You were telling him what time is there. >> I'm saying let's say 9. Let's say 9 It's a double question. What does a traditional day look like? And what does it look like when a guy asks you a a good example, a case that's going to get approved from when he calls you until he gets funded? because we have tens of thousands of people going to be watching the show that are thinking, should I call them up for my loan? What's going to be what's the process going to look like? >> What's the criteria? >> It's two it's two questions. We'll start with the first question. A guy calls you up. He's the right guy from when he calls you until the money's in his bank account. What does those few weeks or months look like? >> So, we kind of went through this before, but we'll go through it again. And this guy, >> I have a conversation. Finkelstein, he So, he was great. He was very, very cordial. He knew his numbers, you know. So, a guy calls me up or a person calls me up and again they want to talk about a loan. In this case, a $3 million loan. I have a conversation with them. What's your business? What do you do exactly? What's your niche? How many clients do you have? How much money is your What's your top line? What's your bottom line? How much money you take home as a salary? Once we establish that he has the financial strength to do this, then I take his information. I don't ask for anything in terms of paperwork until I know those >> two years tax returns. >> Three. Three years. >> Three years tax returns, interimm financials, year-to- date P&L, balance sheet, accounts receivables, accounts payables, broken 30, 60, 90, aging, personal financial statement, real estate schedule, debt schedule. It's not easy to get a loan. There's a lot to go through and that's why I have a job. Thank God, right? Uh so we get that information, we go through it. There's first a bird's eye view. From a bird's eye view, we see this could be a deal, could not be deal. That's after two, three hours of work. Then we take another day, two days to go through it thoroughly. We'll ask our own underwriting questions as if we're the bank. Then we decide to tell him, Mr. What's his name? >> Pinklestein. >> Pinklestein. Mr. Fle was so many years ago. >> Pinkleman. Pinkleain, right? Finkelstein was not the greatest. >> That's his brother-in-law. >> Yeah. So, this is what we believe we can get you. >> If you're going to come on board, come on board. If not, you could try. You could go to a bank and try yourself and see if you get that amount of money. and if not, come back to us. Say 98% of people actually sign up if they're looking for money. Then we take that application, we we take those that paperwork, we put into a file. We're called packagers in the SBA world. We're packagers, not brokers. We put it into a file and we get the rest of the paperwork. Everything from the application to uh licenses, anything that you need, the history. Then we package it and we're typically typically going to know within a day once we understand the business which bank it's going to or which banks it's going to or mo most likely going to do it. Again, that's why you need many different banks. And once we know that we're going to talk to the banks and say this is the project, this is the deal. Can you fund it and what the rate is going to be? And between two or three, we pick what's the best rate. At the same time, what is the easier process? We could have a conversation, Mr. Finlewan or whatever his name is and we see what he wants to what they would like to do and then we go through the process submit it to the bank. The bank has their underwriting questions most of which we can answer without even speaking to the client because we already are familiar with their file goes back and forth. Then some questions we can answer. We have to speak to the accountant. We have to speak to uh the client. Then comes the interview. And the interview most of the time is it's a lot of fun actually, right? to see sometimes or I should say most of the times you end up knowing the business better than the client. So he sees answers hopefully they they they are fine which 90% 95% it's fine and then we continue to commitment and then once commitment is done that means they're approved we start working on the closing closing checklist deal with the attorneys deal with the the searches the title we take them through closing and then we get paid >> you have these guys from certain communities that don't speak any English >> how do they do in the interview >> so I'll give a plug plug. I'm involved in another company. It's called Fluent Talk. And what they do is they >> You're involved. You're a partner. >> I'm Yeah. Okay. >> Yeah. So, what they do, I don't know if you're familiar with it or not. >> Fluent Talk. Yes. >> Yes. >> Yes. So, what they do is they help people speak English. A lot of times, let's say you come from Russia or you come from uh >> Monroe. Monroe and you come from Crown Heights, but your vocabulary is not correct. Meaning you go to certain communities in Williams will bring Monroe forget vocab. They don't speak English. >> So I speak Yiddish, >> right? I'm saying the bank they look at them as a little not so sophisticated. No, because they built up this business, right? They obviously could speak. Nobody there isn't I haven't met somebody who can't speak any English, right? I I would never get past them. I I would never get past. I speak Yiddish but they always speak they call me up and say is best sir English I say whatever you want right but my English is and so I'm sorry for the people they said what's better for you to speak in Yiddish or to speak in English so I tell them my Yiddish is different than your Yiddish so understand >> Hungarian polish >> yes so typically they'll turn into English but once in a while it goes to Yiddish >> you're saying all business guys at Williamsburg all speak enough English >> they speak enough English to go pass it Enough English. >> Enough English. Very good. Um, but in fluent a lot of them are fluent talk. I'm not going to forget about a plug. >> I meet a lot of clients in Fluent Talk and they I've seen throughout the just the application process they become better and better and better. >> Um, do I refer them? Not so much. I don't want to insult >> anybody about their English. Um, but we have, you know, they have clients from religious or communities. >> Bump into fluent talk through do they come? Before you go into fluent talk, what is fluent talk? >> They teach people how to speak English better. >> So give me an example. That's a course you take. >> So you could use it very well, very much. They teach you how to speak English properly. You are assigned to a specific teacher and there's about 30 >> guy or something, right? >> No. >> A lot of them from Oxford. >> No, a lot of them are graduates, you know, professors who are looking for Yeah. looking for a part-time job, >> extra cash flow. A lot of them are in Israel. We we employ a lot of people in Israel, thank God, and uh they're your tutor. And you work on you work with them every 15 minutes. I'm sorry, for 15 minutes at a time. 15 sessions, not every 15 minutes. Once, twice a week, it's up to you. >> And you have progress reports. >> How do you meet him? Did they come for a loan? >> I met him in SP World. >> I did ask you earlier in the show >> that you end up investing in companies that come to you for a loan. >> Yeah. Yeah. So, one of them is Fluent Talk. I think we spoke about that. We just spoke about that. Um so fluent talk we meet a lot of businesses and some of them only want financing and some of them actually either I'm interested in in financing them myself right personally and investing in the company uh or I would ask them if you want to investor serve a loan. So it's one of the companies that I I felt very strong about. I enjoy what they do. They're actually helping people and again I like being involved with something that helps people. Obviously it makes money. I'm not going to I'm not going to say it's all volunteer work, but it makes money and I like the fact it really helps people. It changes their life. >> Nikki, would you say you're in general, our viewers, young people who have business ideas, they're looking for funding that they're not qualified for SBA, you'll consider looking at the deal. >> I would consider looking at a lot of deals, but don't flood the market because most don't flood your inbox. If you're startups, most likely I am not going to be invested, right? You could feel free to call me, but I'm not going to most likely I'm not going invest. I want companies that already has some type of traction. Yes. You have you have some type of revenue. I can see that you're going somewhere or I can see that I could add value to it going somewhere. >> You invest in the jockey and not the horse. >> Yes. >> Yankee. We This is a fluent talk is to help people that have poor English skills get it to the next level. >> Yeah. A lot of people are making millions and billions of dollars with very poor English, with very poor dressing skills and vocabulary, etc., etc. Mishi always tells me, "Stop being professional. Just produce content. Stop making sure the cameras and the audio and the vocabulary." Might say Chabas, I had a conflicting situation because I was writing an Instagram post >> and my bar mitzvah boy, my son said, "Hey, Ta, you know your grammar, you have to change this and you have to change this." And I like to give my kids, you know, a part and be involved and I fixed it and I and I said to myself, I've done thousands of social media posts and I'm usually my spelling is okay, but this has to do with apostrophes. It was wasn't really that the word >> I re I mess up all the time. Don't worry. >> No. And and I was like, how many times do I make a mess up? And also I was thinking to myself like, do I have to be so careful or not so careful? If the video is good, if there's a typo in how I wrote it, it's okay. You know what I'm saying? >> Yeah. >> How professional should people be? >> Oh, to each their own. Like I said before, I have a very bad advertisement. I am not great at writing. I I even tell tell the the person who helps me with the content who writes it for me. I said if I correct it and there's spelling mistakes, don't necessarily correct it. I want it to be genuine. So there are like you said many who um aren't well uh what's the word I'm looking >> spoken >> well spoken but uh don't have a great vocabulary or their translation you know comes up short and they're very successful. So do they change that or not? I could tell you that a lot of them want to change it. they don't feel maybe they feel that they're going to be uh much better or much more successful >> on that I think fluent talks should definitely be a sponsor just an idea came up my head >> is that who your audience is that people >> fluent is it you said that your investor >> should we have subtitles affordable languages it's very affordable to join >> what fluent talk yeah >> yeah it's very affordable prices don't know what you're not asking prices >> okay >> you don't no we're not going to talk about prices >> you don't talk about okay no problem >> no because I don't Thought you know your numbers. You did due diligence with what I handle >> back then. I knew what the numbers are. I mean, I look at the top of line. I don't I I don't deal. But thank God we have a great partner and he does a great job and he knows numbers. >> He has great energy. Benty. >> Oh, you know him. >> Crazy energy. Lives in Vegas. Where's he? >> He lives in Las Vegas. >> Yes. Oh, so you get to check up on him every every show. >> When we go to shows, we have uh >> You probably sleep in his house. It was more You save money in hotels. No, that's why you invested in the company. >> No, I never I never he actually when he when he came to us and we partnered, he was living in Israel. He was living in Israel. >> So, Las Vegas came later on. But I did spend Shabbasim at his house. I spent the Sabbath at his house and he's a tremendous host. >> And his wife, >> is it harder to be from when you're traveling on a trade show? >> These days, it's much it's much more easy. It's much more easy. When I first started, again, we're going back to it was still better than it was back in the day. Take Las Vegas as an example. When I first started a go, there was two options. Today, there's six or eight. >> I don't even know them. >> Do you see from people having struggling with keeping being from on the show? Is that something you see or experience? >> What do you mean by keeping? >> I know. You're around doing these shows. You see other from people >> struggling. Is it >> you mean we want to talk about the the dirt? No. No. I'm not saying specific. Just in general, >> you have to be more specific. What do you mean by general? If they're having a problem with it, >> are they eating kosher? >> Do I see do I see people at the tables? >> Is that where you talk table? >> Is you're allowed to go to the tables. Climbing >> gambling. >> Not a gamble. >> Not allowed to gamble. User >> user. >> I know people make a joke out of it. You're not allowed to gamble. You're pass away >> for the stock market. You're allowed to >> first of all. >> Would their wives let them gamble away their hard earned money? >> You saying you're saying now now buy every issue. Gambling is every issue. >> So is the stock market gambling? >> It's a whole different story. If it's done through a financial adviser with low risk, you know, S&Ps, I don't know. But going guys, I go to tables. I saw I went with my wife to the Bahamas two summers ago. >> We were staying in the hotel and there's a casino. My wife wouldn't let me put $1. I didn't never in my life put a dollar on a table. She wouldn't let I said not even a joke. $5, nothing. >> I saw from Yidden were at THE TABLE THE WHOLE NIGHT. >> I was 3 in the morning. THEY WERE STILL SITTING AT THE TABLES. >> You got married. Is that a gamble? Loris, >> I will tell you there's a few companies that don't allow their their employees to go to Las Vegas without their spouses. >> Yeah. Yeah. And there's a great Everybody knows B&H, right? B&H actually makes uh provides food >> by C by CS. They give everybody free. >> Every show, almost every big show, >> they give everybody free food. You could come there, no questions asked. But whatever you put on your plate, you better eat it. Whatever you put on the plate, you get you better better eat it. And they have a hotel if you like to stay stay over there. And it's a tremendous tremendous >> Mickey. So on that note, could you give us as a welltraveled person trade shows give us some tips or from people to help them travel just nothing to do with as just >> so sunglasses. >> The question is where are you going? So if you go to a place and I used to go to for example Utah there isn't there used to be a kosher restaurant especially during the season of skiing >> the canyon still know in the winter >> um in the winter yes >> park city >> but there's been times where I went and it was closed happens to be Trader Joe's has kosher food kosher meat >> I think Trader Joe's from any other grocery store chain in the world has the most stuff with a >> but the joke the meme going around is that they have millions of nobody ever heard of like an elephant K and a pig K and so like you're going a little far. >> No, I'm saying cuz like they have a lot of brand names and you don't even know what they're tips. >> Yeah. >> From business traveler >> again you have to know where you're going. So number one from business traveler always always always dress accordingly. Don't be embarrassed of who you are. If you have you make I love it when you come to the to the airport and you're standing by the terminal and we have a minion we have a minion whatever time you're going. So be yourself right as a don't be embarrassed who you are. I see guys put on the caps and they think they're hiding. It's like an elephant with sunglasses, right? You think you don't know who you are. Yes, we know who you are. Don't don't hide. So be yourself, right? That's for a yid and you'll probably get more business that way. Number two, I always travel with a few cans of tuna fish just in case there isn't anybody, you know, any kosher kosher restaurants. You could always buy uh Helman's mayonnaise wherever you go. It's a very easy, very easy meal and actually nutritious and delicious. A third thing I would say is make sure you know you look at the reviews of a hotel you're staying in before you go to that hotel. Right? That is very very very important. What percent of someone's budget a year should they allocate for marketing? >> I couldn't tell you. Everybody has their own their own success. I look at it like this. I allocated when I did 40 shows, I allocated a lot of money per show, right? But I saw that it wasn't successful. Certain shows weren't successful, so I don't go back to them. I saved money on marketing, but I allocated X amount of money. Is it 30% or 20% depending on what type of business you're in? Number one, if you're in wholesale business, how do you market the wholesale business? >> If you're a distributor, how do you market that? >> Anybody? >> Wholesale? >> Yeah. >> So, I I would like to say, >> well, you actually have a product. So, how did you how do you market that? >> No, I want to talk about Schneer Hersh, his company, Modway. >> Yeah. >> I uh marketed their they have another branch of the company where they do warehousing as a service. >> Mhm. >> I put on my Instagram. >> 3PL. I put on my Instagram and I got crazy leads and closed a bunch of deals for them. >> That's fantastic. >> So, which is weird. >> So, it cost you nothing. Just it cost them a commission, >> right? LinkedIn I thought would be the place for someone like this. >> I walked into office, you remember, on Flapish Avenue. I said, "How'd you find, you know, how'd you find this ad for the 3PL?" He said, "Oh, my father." He's like 78-y old guy found on Instagram then gave it to his son and the son gave it to them. >> But what I told you before every person who sees every person you speak to is a referral. >> Yeah. So I'm saying that my Instagram drove all the leads ironically. So it's not wasn't leaked. LinkedIn nothing came from LinkedIn weirdly and I have 10,000. >> But there are people that swear to me that all their business comes from LinkedIn. I had multiple people tell me that. >> That's why you have to do the circle. Like I said before the loop. I built my >> Instagram, LinkedIn, uh, publications. Again, I don't believe in paper click. >> I, ironically, I built my beverage brand on LinkedIn. People know me as a guy from LinkedIn. That's where I started. So, I got stuck there in that world. And then by mistake >> after LinkedIn, what else did you do? >> What else? >> Yeah. To publicize your brand. >> My brand? >> Yeah. >> So, I can tell you you came with me to trade show. Yeah, I did trade shows. The drink or my tech startup? >> Your drink? I which show did I do? I forgot. >> You went to I think it was Kosha Rica or another >> kosher show. >> Was it a kosher show? A food show. Yeah. >> I did a lot of shows. People ask me the same thing like you. Why do you why are you giving out samples you drink at a construction show? >> Right. >> So my idea was people in construction are always eating out lunch here that they're eating out more than most industries. So they're if they see and they try it at the show it would work. But any point of contact and my show, my drinks at the time were more premium, more expensive. So people at a show are generally the mid or higher executives, right? Generally, would you say >> typically? Yeah. That's why I go to the shows, >> right? >> Most shows if you could get out of work, it means that you're senior enough or you decide to go to the show or they need you at the show, right? >> Yeah. But even if they're employees, they're salespeople, >> right? They met someone, you know, sometimes they know what's going on in the back of of the company, believe it or not. See, here's my thing. I met a guy with a million dollars cash. Somebody you want to talk to. >> Here we go. >> Right. So, shows in general are >> could be a great source for leads. Um I I I remember I want to ask you, you're the show professional, 40 shows a year. Um walking the show versus exhibiting, Yankee, what's your opinion? Could you save 10 grand walking or people don't take you serious? What was your experience? >> Basically having the booth or not having a booth? You No, we had the follow-up question is is that even when you're at your booth, should you leave your booth for a few hours and still exhibit and get around the people that didn't come to your booth? >> Is there a follow-up to the follow-up? >> I'm just curious. No. Do people that spend 12 grand on a booth, do they just sit by their booth all day or you want to get around and meet people that don't come to your booth? >> That's all top booth versus no booth, Yankee. >> Okay. It's both. That's the That's the answer. So I first started I only walked the show. When I met Ezrael as I was walking show I didn't have a booth and I would again you have I have that uh I don't want to call talent just the training to speak to people. >> Charm looks goes without you don't have to say that right. >> I was me and Clappy were models for for a different industry. So I would walk the shows. I would walk to the booths that are not the massive, you know, Panasonic and I talk to whoever was there and if it was the owner, great. If it's not, I hand my card and continue. After that, I realized I'm going to booths, right? People are going to booths. How do I attract people? By having a booth, right? People aren't walking over to me and saying, "What are you doing? I'm walking over to them." So, I I paid to have a booth and I said, "How am I going to attract them?" As you see, as you saw, I have a box full of money. And that's very very attractive to somebody who is a business owner. That attracts people. And yes, while you're at the booth, if it's a little slow, but we I try to have three people at the booth at least. So each one could take a few hours off and deal with the work that you have to work with, right? You can't just take off three days. When all three is in the when all three are available, one of us will walk around, go to different booths, talk to them, and see if it's right. So the answer is both. is would you say there's no point or a point of walking let's say you can't afford a booth you're just starting >> should you still go to a show >> yes again that's how I started that's what I did you could say it was a risk for me but it was it's worthwhile now I could tell you if somebody's starting out and they want to meet people and they don't have the funds to have a booth which I did not walk the show if you are timid and you can't approach somebody and ask them how you doing what do you or walk to booth and say and they're going to start selling to you. You have to flip the table on them and say, "Uh, what do you do?" I like to say, >> I going be being that I've gone to maybe 10 shows in the last year. I see that there's some big Fortune 500 companies that have booths at these shows and they if they the CEO would know how worthless it is because the person behind the booth is literally sitting there playing tic-tac-toe on their phone. >> I feel like companies are not putting the right people in booths. Is it like they think that just by having a booth, if the person behind is not engaging and not meeting people, shaking hands, trading cards, and smoozing? So, if you're a Fortune 500 company, yeah, you don't care about it. Everybody who's at CES is going to Sony. They're going to Panasonic. They want to see what their innovations are. And then really, the sales people don't have to do much. Most of the people who are coming are never going to do business with them. They're just uh yentes, >> right? But then if you go to the smaller booth, not the Fortune 500 company, they're trying whatever they can do to get clients to come to them, hence a box of money. Some people have a bar at their booth, free alcohol, right? Some people giving free free gifts. Some people are have a race car in front of their booth, right? They have models in front of their booth. Everybody's trying to celebrities. Exactly. Magicians, everybody's trying to attract them. And those, believe me, those uh employees are not not working. They're working, right? And a lot of them are sales people, so they want to they want to get as much business as they can. >> Yankee, what do you think about the etiquette of there's 5,000 signs saying do not approach the exhibitors to sell to them. >> How do you feel about being a booth? No solicitation. No solicit. What do you feel about as a guy walking the show who can't afford a booth and now you're and now you're the other side exhibiting paying all that money. >> Are you sensitive or desensitized or angry or not caring if someone comes to your booth trying to sell you something? >> I have no problem. I love sales people. I love sales people. I love when they come to talk to me. I'm going to listen to them and I'm going to hear their whole spill and then I'll give them my comments and tell them, "Listen, it's not for me." >> You don't get angry when some tried to sell you at >> I don't I don't >> they know some guy's exhibit. I was at this restaurant show actually one of the produce distributors there starts yelling, screaming, "I spent gazillion dollars to be here to sell my produce and find accounts. your bother selling me about you to pay a penny about yelling and I felt I felt horrible. >> So what's your >> Okay, you felt horrible. No, >> I felt horrible for this poor guy who got yelled at. >> Why do you feel horrible? Maybe he didn't listen to you and didn't give you the opportunity to speak to them and maybe the product you had or the product you have is great for them. Why? Why does he scream? People are too narrow-minded in these interactions. >> Some people, you know, >> because it's a whole etiquette. The trade show unspoken. There's a great book and if anybody's a salesperson out there, you should read this book. It's called Never Split the Difference. Have you ever heard of it? >> No. >> I heard heard of it. I don't know what it's about. >> Um, it is about So, the person who wrote it, I'm trying to remember his name, uh, Phil Voss or something like that. >> He wrote the book and he was an FBI negotiator for hostage situations and terrorist. >> Yeah, I've seen his clips. He's a master. >> So, he he's great. >> Never split the difference. Never split the difference. The idea is, you know, someone says, "Uh, I want $100,000 for this product." And you say, "I want $50,000. I want to pay $50,000 for it." So, you say, "We'll meet in the middle." Right? >> I do that all day long in my personal life. All day long. I do. >> According to him, you shouldn't. >> I do. >> You shouldn't. Doesn't mean you're right. >> I start off I start off higher knowing that it's going to happen. >> Okay. So, he's So, his his thing is if you start off higher and you believe that's the price, don't negotiate. I'm sorry, negotiate, but figure out how to negotiate without lowering your price. So, one of the things he says, which is important to what you mentioned before about your story, is you want to have the client who you're trying to sell to say no. Everybody likes to say no. That's their first reaction, right? I don't know how old your children are. Can I can I take the car? No, I don't want to. Can I buy this? No. They So, how do you how do you phrase the question that the no is a good thing for you? The no is a yes. >> So for example, when somebody when I have to call somebody back or I want to chase somebody and I call them, what do you normally say? >> Not interested. >> No. What is the person at the other line say? What do you say? I'm sorry. You tell them, uh, can I speak to you now? You have a few minutes? Right. Is now a good time? I do the opposite. I say, is now a bad time? Is there a first? No. Yeah. No, it's not a bad time. >> Oh, perfect. It's a good time. >> Go ahead. So, you have to figure out how to phrase your product or your sales pitch to that person where the no is positive because then they feel powered. >> I want to go I want to go back. A guy spent $8,000 to be at the booth >> 100 grand. >> Whatever it is, whatever. And now the guy's approaching him. Now the guy's approaching him and he's like, I just paid all this money. He's doing it for free. But I want to go back. >> Yesterday I'm driving down Kingston Avenue and there's a guy has set up a half a block on Kingston Avenue. shirts, pajama pants, deodorant, undershirts, under shampoo, toothbrush, whatever. And you see like these postcards, the prices probably looked good. >> And I'm thinking to myself like, okay, so this guy has a store that he's paying five grand rent, paying workers minimum wage is still like 20 bucks an hour, a 401, I don't know, million, electric, gas, and internet, whatever. And this guy has zero expenses. So of course, he could sell it at half the price or a much lower price. And how many people are being hurt by OR IT'S LIKE AH GET OUT A GUY LET THE GUY MAKE A FEW BUCKS. So in life we're all making these decisions. Are we going to let the little guy who has no expenses make the buck and then not give it to the big guy? Like what are what are the I mean >> so I think that's a personal thing right? If uh for me personally I don't have a problem with competition. As I said before I don't have a problem at all. >> But it's not equal. >> It's what do you mean equal? >> That guy's paying five grand rent and he has free. He's on a table on Kingston Avenue. >> So let him open up another table on Kingston Avenue as well. Actually have two location. Now the store should have a K. >> The store Now the store is going into competition with this guy. Should this guy be upset cuz his idea first, right? >> Yes. So you could decide what works for you, what doesn't work for you, right? Also, I'm sure that the products that the person is on the street is selling is not up to par, not of the same. >> So Head and Shoulders Head and Shoulders don't make two different types of heads and shoulders. It's the same. >> So there's a guy I'll even tell you, you know, the website. So years ago, we were in camp together and we're saying a story and he told me that uh he was in a hotel and he opens up the refrigerator. You know, obviously you touch that, you touch that drink, it's $18. There we go. >> And he looked and he saw the expiration date is expired. I had no clue that there's expiration dates on soda. If I bought a soda and it tasted a little bit funny, I just thought it it's me or it tastes a little funny. So I don't know. Do you know if there's an expiration date on Head and Shoulders? >> I'm sure there is. I don't know. So, how did you check his expiration dates? >> Is it close to it? >> Is it close to it? Um, I once ordered a case of soda going back to soda and it comes to the house and literally the expiration date is it was a sale. The expiration date is 3 days away. You order this on Tuesday shop. You can't even serve it. >> My parents used to shop in Bar Park at a grocery store that's all of a sham called Freriedman's. It was down the block from the Kville store. big grocery store like ones down there and then the block this way. >> The Walmart situation, right? The the Walmart paradox. Yeah. >> Yeah. >> What's that? What's Walmart paradox? >> There's a Walmart that you if you walk to a town, right? Walmarts are are typically not in big cities, but if you walk to uh uh you come to upstate, right? Walmart has everything you want from produce to clothing to electronics to >> a bank inside usually a hair salon, nail polish, >> anything you want. Yeah. So you're gonna the guy down the street, right, the store who's selling t-shirts, is he able to compete with Walmart? He can't compete with with Walmart. I'm saying this person probably had a store, a grocery store before before the kill store came in and the Kster could have shut him down. Freriedman's Freriedman's about a block away and you got crazy crazy crazy deals there because they always had a million products that were already expired or about to expire and you knew it that when you're getting something instead of like So the funniest story was is that my mother saw string cheese for 99 cents a bag and we bring home the string cheese and it doesn't it doesn't peel. So my father my father said, "Listen, Freriedman, I understand close to expiration date to they used to have kosher pesak products might say pesak like 50 cents instead of $9 because nobody's going to buy kosha pesak foods." He says, "BUT THE STRING DOESN'T EVEN PEEL." HE'S LIKE, "CLAM IT AT 99 CENTS. YOU KNOW THERE'S AN ISSUE." That's funny. >> 99 cents you don't get sus. Yeah. One of our past sponsor Pes one of our Passover sponsors said you understand I feel I feel the worst when I have all this inventory not sold you know like I have this nund come can I come and buy any stuff now for five cents I want to smash the guy into >> Freriedman's used to sell the chocolate covered matzas after pes for 50 cents a box >> but you go back to your guy on the street You have competition. Figure out how to beat that competition. Right? It goes back to what we said before. As a business owner, study your competition. How do you undermine them? How do you beat them? Like I said, open up a put up a stand in front of your store. >> Talking about if you enjoy and you love what you do, you never worked a day in your life because you're doing something that you're passionate about. >> I want to touch on the um family history. Your ZA that owned Rasin Fruits. I always felt like it was like a situation going on. He was always always he was so kind, so welcoming. Tons of >> his handshake, >> his handshake, his asking about the family house was always open to all the homeless people and the schnurs and the people that had dirty clothing and it was just a tribute of >> anybody and your I spoke to somebody yesterday I never met before in my life and he said your name is Marquit. So your mother is Rascin said, "Yeah, cuz you knew who my father was." So yeah, wow. I used to eat by your grandparents house after Fabbran, you know, on short shabas. There's the only place to eat. The only place to eat. He was there for a few years. Sometimes you run in before Fabbran and he would grab a bite and come back afterwards. Never met him before in my life. He wasn't a dirty shirt type of guy, by the way. Yeah. So every walk of life would come through there. My grandfather and my grandmother zoang gazunt, right? She should live and be well. He was a person who loved people. He loved family. His his parnasa was his family, right? He didn't care about money. He wanted to make a living, don't get me wrong, but he loved his family. That is his riches, his uh richness. That's what he loved. He loved people. So, he loved to see people being successful. So, people come into the store. He was always in a good mood. And if they weren't, it would bother him. >> But you should know as a visiting Flapro guy coming to Crown Heights where we ate by people's houses. We came every since the only reliable great amazing uh meal was the great was coming from with crazy insane spreads just it was just at the time I I >> your father your father got the attributes of and giving and feeding from your it got he got from the no I'm saying he it rubbed off from your from your zeta or he had that trait automatically >> so remember it's not your zeta it's grandparents right there's always there's two people >> I don't know I don't know the mark of which >> he started before he got married. No. >> So no. So what happened was my father was a bakar, right? He came from from Israel and he studied by the Reb and uh he was he was uh let's call him a nomad. He had no place to eat. He didn't have any family here. He doesn't have any family here really. Now he does, but he didn't have any family members. And comes Yam Kipper might see Yam Kipper. He has nowhere to break his fast. comes comes unless you're running away to some kiddish that's seven, eight blocks away, you have nowhere to eat. So he told himself that once he gets married, he's going to make sure this doesn't happen. >> So he told my my mother that he wants to do this him and I think Rab leader Shoso was involved and uh he raised money. Rabbi Leon was a very very big supporter of this uh project and I think still is and they he raised the money and he had a truck outside 770. He was a truck driver at the time and he would give out food. He brought cake, he bought orange juice, he bought chocolate milk and every year it got bigger and bigger. Then came and there's a lot of stories with the Reb how this happened. But I think maybe you should have him on this podcast and you could talk about the the stories and the history of uh what he went through and uh he went through the same thing. People come back from Tala as you said. >> First of all, he gives out water bottles on the way to Tala. >> Yes. On the way. >> Which are our life savior. I remember one year I went to the lower east side. It was like 100° and he gave out water bottles then as well. So sometimes he'll pitch in a project even out of season. >> Yeah. So the Reb said he should go bigger. >> I got a water bottle. You should go bigger and bigger. So every year he tries to add on something else and today it's already there's a truck with water >> orange juice yes there's quite a few trucks but I'm saying throughout the entire tish right people don't even realize this that they're feeding the bakim comes you might see him kipper and comea it's not just the guests there's people from crown heights people who are families and some of them uh need this extra meal as they say and it's a wonderful thing to see and I think not I think I know it instilled in me I know for a fact People go to Hakafas in 770 after they already did it in their show because they say they're going to 770. A hot dog with ketchup. >> I love that. >> And they're getting tuna salad and pickles. Israeli salad. Potato cookle. >> Sure. >> Even the fancy Yankee Marquets. >> Fancy. I'm not fancy. >> The fancy of Yankee Mark. >> I'm not fancy. He's still hot pickles. And I look forward to it every year. I look forward to it every year. Especially we go to look. I go to Williamsburg. I've gone to the to when my ZA was not well, he would he'd be on 34th Street, be in NYU. I would walk there, come back, what do you what am I going to do? It's a lifesaver. Jugg down three bottles of water. Then I go get myself a nice hot hot dog, a cup of soup, thing of salami, mix everything together, a little mustard. >> He does both nights and >> Sam also. No, >> sorry. >> Some also after >> he does. No, but he now he has food there. Again, like I said, the entire tish, right, there's a truck. Everybody could come and have cake uh after San Gadalia, but it's not an official >> as a kid from Flappers who only eat by specific meals. That that truck was literally a lifesaver. >> I heard that for many, many years. Where I go around the world, he says, "Oh, you're son. They know who you are. They know who I am." >> My parents claimed was my highlight of the whole there coming from Flappers was your truck. I'm just saying. I I don't blame it. And there's there's actually again this about some there's many if you could get him on this on this podcast you'll have a great time. >> He's always a lot of fun to speak to. >> Yeah, I agree. >> One more thing. So in the pie chart, if you have to say what is the most popular from businesses today that you're financing? Could you give a top three? Top five. >> Top three that I'm financing. Again, it's all over the board. I really can't give you top five. >> Recent recent stories. >> Recent stories. you see a trend >> the big so there's different trends right you have uh let's put this way you constantly every every type of business every type of industry across the board but then there are certain trends like let's say go before covid during covid a little bit after covid very very strong trend of Amazon online host online sellers 3 pls those were and a lot of warehousing space so those were the highest but at the same time you're doing doctor's offices attorney attorneys, uh, accountants, um, uh, what's buying businesses in the past few years, I'd say a year and a half, actually, buying businesses is a big trend, very big trend. So, those businesses are all over the books. >> Any specific type? No, nothing. There's uh home health care, there's Amazon, there's wholesale, there's distribution, there's uh mechanic shops, body shops, there's tons of car washes, there's tons of restaurants, the the list could go on. But the the main thing, like we said before, is these businesses are making money. When you're buying this business, you're walking into you're you're stepping into shoes that are already making money. >> I was making a multigenerational connection. your grandparents major balad parents tremendous balass ongoing right now >> and I was going to say that what you're doing is similar to we had a life insurance guy on that he said when he goes to work in the morning he feels like he's doing all day because there's people that need to protect their families they need to be insured you know you don't want to leave and relying on campaigns and also >> I used to sell life insurance that's how I started way >> that's how I started my career >> you sold life insurance >> sold life insurance >> for how long and then for about two years maybe two and a half years >> well that's much longer than most people most people quit so that's interesting but I had two and a half years means you were signing policies >> signing policies >> so what made you >> so what made me leave is I thank God got large policies of people who are very wealthy and uh um have successful businesses and I had people who are not very wealthy and you know selling them uh small policies but they're they're entrepreneurs or they had a business that could use an injection and that's why I said I learned for myself to invest in different companies. So I said, "You know what? This guy has money. This guy needs money. Let me try to make a shak like a matchmaker." And I did. And then I did another one. And then I did another one. It's syndication. I started to make more money doing that. I got involved in real estate, right? I would buy and sell flip real estate. So I started to make those connections. I was making more money doing that. So I left. Then I got into real estate. I got into real estate. And what we were doing, uh, I was flipping properties. So, I would find a property that had X, let's say, R six zoning, and there was only a small house there. And I would maybe get the house next door, and I would take it and I flip it to developers, right? I wasn't doing the the cash on cash because I weren't doing wasn't doing the multif family. And I would flip it to developers. And again, I was making Barashem, thank God, good money. And then I said, you know what? I'm smart. If I'm buying it for X and I'm selling it for Y and the developer develops and sell it for Z, let me cut out the developer. >> Let me be the developer. >> I'll be the developer and I'll make uh more money. I'll make double money. >> And let me guess, jack of all trades, master of none. You have to stick to one particular thing. >> I was right. You're right. That's I stick an SBA lane and I don't go into other financing. But >> you tried doing >> I did a few development deals and I was very successful. very very very successful. So I started to go into bigger development deals something called 2007208 and everything that I was in the middle of building just whatever I was building that I went out of state to whatever I was building that was worth it was going to be sold for $600,000 could not move for less than $400,000 literally. I didn't finish the project. I had people who had deposits on the project so I lost the money. I took investors in and there's one big project forund 109und and 124 units 124 using it was Griswell Connecticut >> tens of millions of dollars ours >> thank god there was financing so and it was uh non-g guaranteed but they lost a few million dollars there's another one where the client uh also lost about a million dollars not the client the partner and I stuck with the project for over 15 years, almost 20 years, until they were able to get back the money. I didn't make a dollar off it. I just managed it until the property came up enough value where it could be sold. So, I failed at that. >> I tried to do the DME business. I failed at that. >> Which business? >> DME. Remember, I tried to buy the the business with Yes. the medical supplies. >> Failed with that. >> Along the way, you had a little different investments that a guy said, "This is the next best I think that's why he said when you have a whole bunch of small guys that want to sell me the the next great uh Tesla project. No, I'm not into said I I can't I don't even know how to use chatbt. I really don't know. I have people call me all the time. You could do chatbt. Get your clients call system. I'm trying to explain them. I don't I rarely call people to get the CL. People are calling us. Thank God. You know what I mean? So, I'm not into chatbt. I am hoping that Tesla takes over the world and there's uh autonomous cars and that's it. Like this we don't have to drive. There'll be no accidents, God willing to go. >> There'll still be there'll still be e- scooters with these kids with scooters. >> I hate >> I hate the e scooters. I hate the bicycles. When I'm president, the first thing I'm going to do is make a law there's no escooters and no bicycles on the street. >> I'm signing it into law with you. >> I I can't stand that. I can't stand it. They think they own the road. >> They don't have any horns. I don't follow the rules, right? There's a red light. You're supposed to stop. No, they go. They're in they're in a a bicycle and I had to make a a right turn. The biker comes flying behind me. I saw him in the rear in the side, but he's far away. He decided to continue going. It's his It's his right. I was waiting for the the pedestrians to pass to finish crossing. He comes flying, knocks on my window like a hutbah. What are you doing here? Like, dude, you're like two minutes away from me. What do you want? Gives me a dirty look and drives away. These scooters fly. And you have all due respect in Crown Heights. Also, you have a very big problem. There's a few accidents with that. It's super super dangerous. I don't let my kids have it anymore. >> Thank God. >> I don't. Yeah. Thank God. And if I see somebody who has it, that's not true. Actually, sometimes let them borrow in the country in the upstate, but if they don't ride a helmet, they're not they're not driving it. And I see adults riding without a helmet. And I call them out. I call them out. It's not It's not fear. It's not fear for your family. It's super super dangerous. >> An owner of a massive toy chain and has six between New York and New Jersey has six stores. He sent me a video um last night. I saw the video already, but he sent it to me again saying that he's stopping to sell all e- scooters. They're too dangerous. And he has $45,000 inventory. He has no idea what he's going to do with >> Well, you should burn it. I wouldn't Don't sell it. >> There's a lot of lithium ion. If you light it on fire, it could be >> Yeah. Then forgive it. Sell the test. >> I'm saying no. He's saying he's not selling them anymore. He's I'm saying he's putting his money where his mouth is. He said, "I I'm on the trend. I'm getting rid of all the e- scooters." >> I hate it. >> It's horrible. >> You like them? >> You use it? >> I don't use it, but people need to get to work. I mean, >> and before the e- scooters, what did they do? >> I don't know. >> Something called the subway system. There's free buses now, right? >> There's going to be free buses, right? Going to be free. >> Got injured once or twice in East. He takes it to work and he still drives us. I don't know what. >> Yeah, I have a friend. At least he's wearing a helmet. I have a friend who who rides it every single day and they're fine with it. The bicycle if I was rid >> He's fine until he falls off. >> Yeah. God forbid. I once tried to take a bicycle. I Everybody, you know, you never It's like riding a bicycle, right? You could always pick it back up. I said, "I'm going to do exercise. I'm going around the park. >> I was scared out of my I was scared to death when I had to ride on the street. I don't know how these people do." >> My uncle rides a bicycle, not an electrical, a real bicycle, every single day. He taught in Mtok in Tarvadas, a public school in Tarvadas. After 50 years, now he's retired. He told me, "If you use a bicycle as a means of transportation," and he lived in New York City, Crown Heights his whole life. He said, "You're going to get into terrible accidents. Unavoidable." >> We went to bike lanes, >> everything. He said that he said that he said that the most popular way he used to get hurt every few years is you're riding down Ocean Avenue or Coney Island Avenue. I know a guy People swing open the door to their car and they're going to get and then boom, he knocks you 30 ft in the air. He's all black and blue. ft in the air. He's all bla