re: If you had $60k cash to start a business

quote:

---

Roll tide roll smoothies will be a hit!

---

I can see a boycott of that name brand.

quote:

---

Running crawfish from the farms to the buyers.

---

you can make good money having a small boiling pot.

quote:

---

How exactly does that work? Someone needs $100 and comes in the door. You get them to agree to pay back $120 in 30 days and give them $100.
How do you know they will or collect if they don't? It's not a pawn broker deal, is it? Do you get some collateral?

---

They write you a check for $400, you give them $350 cash, and the $400 check will be cashed on their pay date. Ideally what you really want is for them to return the day before pay day, give you $50 not to cash it...that can continue in perpetuity. The lowest APR that you can earn, if they borrow for a full 2 weeks, is about 325%, using my example. I may have a few details wrong, and there is employment verification via pay stubs I would think, etc.
It's a cash cow, but you really are taking advantage of people, as many of them have outstanding loans at other operations (a single operations can only have one outstanding loan per person, I believe). But on the other hand, if you are about to have your water turned off, it does provide a short-term need, IF you pay it back in too weeks.
And then a company like Western Sky, offers a service to people who have amassed a ton of payday loans, to borrow 10K to get them paid back. Their interest is a paltry 180% or so. You've seen their commercials - the Indian lady saying "our money's not cheap, but better than a payday loan".

I've appraised a few mobile home parks. Cash cows as well

You said North Alabama... I have zero knowledge of the exact business and logistics, but when my grandfather got too old to tend to his cattle, he turned his 100 acre farm into an alfalfa hay farm. He didn't own any equipment or trucks/trailers and still made good money. He shipped most of it to Tennesee, Kentucky, and Georgia horse farms. Alfalfa, when done right and well cared for, brings premium $$$.

quote:

---

They write you a check for $400, you give them $350 cash, and the $400 check will be cashed on their pay date. Ideally what you really want is for them to return the day before pay day, give you $50 not to cash it...that can continue in perpetuity. The lowest APR that you can earn, if they borrow for a full 2 weeks, is about 325%, using my example. I may have a few details wrong, and there is employment verification via pay stubs I would think, etc.
It's a cash cow, but you really are taking advantage of people, as many of them have outstanding loans at other operations (a single operations can only have one outstanding loan per person, I believe). But on the other hand, if you are about to have your water turned off, it does provide a short-term need, IF you pay it back in too weeks.
And then a company like Western Sky, offers a service to people who have amassed a ton of payday loans, to borrow 10K to get them paid back. Their interest is a paltry 180% or so. You've seen their commercials - the Indian lady saying "our money's not cheap, but better than a payday loan".

---

You forgot the hedge for the downside risk.

The OP asked what do you do if they don't repay?

Well, you take the check the Sheriff's Office and they handle your collections for you under the threat of criminal prosecution.

If all it takes is $60k to get into this business, I may make a career change.

BigFella - don't forget to email me!

Got a question about salvage titles. Not trying to get into the car business, lol.

genejr at bayou d0t net

TIA!

Meauxjeaux I can't email you my email address is my real name haha just post your question here! fwiw be careful posting your email like that a quick google search can provide a ton of info man, I'd go back and delete where you posted it twice....

Considering name brand franchised businesses are worth anywhere from just under $1m and up if land is leased and start north of $1.5m usually if the land is owned id say $60k wouldn't get you too much of a stake....