Browse Category: Fund

GreenSky Credit makes novel lending model work

When entrepreneur David Zalik went on a cross-country roadshow to pitch his latest business idea to bankers, he didn’t anticipate the levels of resistance that he would shortly encounter. Zalik, at that time 32, had been in business for his entire life. He knew how the financing game was played and fully expected that he could drum up enough support from traditional banks to fully finance the launching of his latest venture, GreenSky Credit.

But it turned out that even though the GreenSky business model was one that relied exclusively on making the safest kinds of prime loans, the revenue model of the company was so novel that many bankers thought it couldn’t work. And even the ones who did think it would work wanted to see a track record of success before putting up any loan money. Ironically, the company that sought to become one of the most important lenders in the country couldn’t get a single bank to extend it a loan of its own.

Zalik is proven right again

Zalik eventually ended up financing the entire company himself. Taking on a tremendous personal risk, he liquidated his entire fortune of around $12 million and bet it all on the future of GreenSky. But this would turn out to be one of the best bets that not only Zalik but anyone in the recent history of American business has made.

Just as Zalik had predicted to the dozens of bankers that he visited while pitching his idea, the revenue model worked. The secret to brining all of the parties together and attracting many of the top lenders in the country to sign up through the GreenSky platform was simple: GreenSky made sure that everyone involved with its deals walked away a big winner.

The customers, most of whom were doing high-end home remodeling projects, almost always added more to the value of their homes than the projects themselves cost. At the same time, the lenders were getting some of the top-end borrowers in the market, with the average GreenSky customer having a FICO score in the 800-plus range.

https://www.crunchbase.com/organization/greensky

Paul Mampilly on Cryptocurrency

Paul Mampilly is a Montclair State University graduate, where he was a finance and accounting student about 27 years ago. He later joined Fordham Gabelli School of Business where he attained a Master of Business Administration. Currently, He is a renowned investment and financial guru in America.

He perceives cryptocurrency and its gains in a unique way. According to him, the bubble of the cryptocurrency is on the verge of bursting. Despite his inability to predict exactly when it’s going to happen, he strongly believes that it will be sooner than later and many people will incur losses. Read this article at Seeking Alpha.

In 1999, a similar case happened where every investor was sure of making hefty gains from the stock market rally. Tess, Paul’s friend, had invested heavily in technology stock shares that were up to over 1000% but that same year, the great bubble exploded robbing many investors of their wealth.

The 1999 bubble burst was inclusive of big companies with a good reputation. Most of these companies in the technology industry had their stocks going up to 1000 percent at the very least. Paul Mampilly insists that the stocks did not represent mysterious companies but the very famous and respected ones that had even earned a place in Nasdaq Composite Index.

The inflated stocks in the money market in 1999 was a clear sign of the insanity in the market. Regardless, that enticed new investors into the business without knowing that they were falling into a wealth sinkhole. The Templeton Foundation Investment competition winner, Paul Mampilly, predicts that the same is about to happen in the cryptocurrency business from its current trends. Meet the experts on Sovereignsociety.com.

Paul Mampilly foresaw the 1999 explosion. As a result, he completely sold out his stock shares before the explosion. He then observed the market’s stock prices as they rose day by day. The rise at first was 20, 30 and 50% that prompted Paul to think selling his shares was a poor plan. Nevertheless, he appreciated his decision in 2000 and 2001 when the stock market hit extreme lows. He was happy as he had withdrawn all his money making zero losses. He had warned Tess, but his warnings fell on a deaf ear. She thus ended up making huge losses.

Cryptocurrency has amassed a lot of wealth for many investors in the recent past over a short period. According to Paul, wealth that easily comes easily goes. He points out that the same trends are in Bitcoin and Ethereum. He warns that they are headed for the same crash as the cryptocurrency.

Learn: http://www.bizjournals.com/triangle/potmsearch/detail/submission/6423751