Is This a Realistic Expectation?

[5starfinancialhealth]

Advanced or as earned, after the first year, works out about the same. As earned is better if you can do it, but you can take advances and just pay yourself as earned.

Problem is 2 things.....

That pesky 20%. Good luck with that. A couple of years ago, sure. A couple of years from now? I would plan on 10%, and hope you can keep that level.

15 cases a week through underwriting? Maybe for a while. Actually, I think you are planning on 22. You'll need a person to chase these for you and make sure they get done. Some won't make it. Good news is, under the current guidelines, underwriting will be less of an issue. Problem is back to the 20% not staying around.

Third problem you have is going from application to actual closed business to keeping it on the books. Writing an app is a small part of the big picture.

Its all possible, but you are painting a pretty rosy picture. If you take the glasses off, you'll find the scenery still nice, but, that rose color goes away a bit.

Dan

This was actually pretty insightful. It is very easy to focus on the positives and turn your head to the negatives. I will have to hire an assistant to help with things like making sure we can get people to stick etc. Its good to know its possible, because I will do whatever it takes to make it happen. I think after the first year im going to switch to as earned.

 

[Tearmann]

This was actually pretty insightful. It is very easy to focus on the positives and turn your head to the negatives. I will have to hire an assistant to help with things like making sure we can get people to stick etc. Its good to know its possible, because I will do whatever it takes to make it happen. I think after the first year im going to switch to as earned.

Making the switch from advance to as earned directly will be somewhat challenging to the pocket book. Your as earned income will to go first to pay your advance debit. Once thats paid off you'll start to get your as earned income. It may be better if you take a 50% advance in the second year and as earned in year three. That will help your cash flow.

 

[5starfinancialhealth]

Making the switch from advance to as earned directly will be somewhat challenging to the pocket book. Your as earned income will to go first to pay your advance debit. Once thats paid off you'll start to get your as earned income. It may be better if you take a 50% advance in the second year and as earned in year three. That will help your cash flow.

This does make alot of sense. I will look into this.