Can everyone stop with the 36% # or similar? It's simply ridiculous. The reason these guys are swiping is so they get a 50-60 day loan, which is 22% max, and that's assuming 3% which from having some experience in the industry is probably on the higher end of what the fees would be. A more accurate # would be 15-18%.
+1
I was recently approached by someone who wanted to start such a scheme
1)according to him most suppliers charge a about 3% surcharge for paying by credit card.
2) his plan was to do a 57 day cycle reducing the number to about 18%
3) he wanted to split the points (not in half), lowering it to about 12%, thus making it cheaper than hard money. (I told him there's no one that would agree to such terms, to which he claimed he already has such a group)
4) he also wanted to take advantage of some sort of statement credit for buying Apple.
5) he completely agreed that if the numbers were 36%, that clearly means that that person can't even get a hard money loan, and in no way shape or form should you be giving this person money.
6) his pitch was very clearly supposed to sound like an investment. Giving people the "opportunity" to invest money even if they don't have any. As if he was doing some sort of favor for everyone.
I pretty much told him to go jump in a lake and there have been ppl screwed already.. he's like what do you mean "I'm a frum guy, I live in the community, this is where I daven..."