Paul is a debt collector, one of those annoying guys that call you during dinner when you owe money.  He worked under contract for a US firm down in Cheektowaga (Buffalo) for Creditors Interchange.  His company was called Northstar Location Services.  He was doing really well and earning an excellent income of $80,000 USD plus per year supported by his previous T1 generals, except the company he worked for one day closed up. It seemed the owner got into some gray area and had to close down leaving Paul without a job. At the same time Paul was making steps to open his own business. He secured space, 9 employees through government employee initiatives and had his office set up and running. Within 3 weeks of opening, municipal authorities stepped in and displaced his operation due to mold issues in the basement of the commercial property. The mold was due to an illegal operation in the basement conducted by Paul’s new landlord. The landlord has since been charged and Paul has a pending lawsuit to recover some of the expenses lost during the 3-month of displacement due to renovations. Paul recovered what equipment he could to try and continue a portion of his business. Paul’s employees found other employment during the 3 months without that office.

 

The 3 months with little to no income depleted his savings further. Including the purchase of a 2005 vehicle as it came off lease.

 

Paul was able to secure another office at a reduced rate while he rebuilds his business again. Paul is now back on the Canadian side and has started up his own debt Collection Company.  This sector of service is growing as more creditors are offloading to a third party service.  Being experienced in the US market gives him huge advantages over start-ups like what we see in the GTA.

 

Paul has one contract in place providing his business with over 1000 new accounts every month. He is looking to secure another client for more accounts next Friday June 8^th. His new business has yet to submit a stated income, Paul is now billing at a rate of $4,000 per month clear and his wife Emily earns a healthy $31,200 at a florist shop as designer for 2.5 years.  The total monthly gross income is $6,600 per month and the lease is for $1,672.  The gross debt ratio is a low 25%.  The existing debt Paul easily negotiated it down to .50 on the dollar and funds has been allocated to pay that out at close.  They have no debt and they just need to rebuild credit for the next 3 years.  That ratio will continually drop as his business grows with new accounts.

 

They have 4 young girls all under the age of 11.

All income, credit report, home inspection available. 

Sean Taylor
Marketing Director
Home Owner Soon
Sean@hosfinancial.com
1-800-670-2756 Ext. 109