In this short, Catherine Bell and a speaker discuss how dishonesty on loan or deal applications is the root cause of massive financial losses, illustrated by a $7 million data‑center deal that fell apart because someone lied. They walk through a scenario where a borrower defaults and offers a reduced payment, explaining that accepting a settlement of $5,000 instead of the accelerated $6,000 amount would be legally improper and would weaken the business’s negotiating position. The conversation stresses that cutting corners on compliance or reporting is unacceptable. Bell then introduces the concept of an “SREO” – a comprehensive, conservative résumé of all deals and structures a business has completed – urging professionals to document truthfully and avoid embellishment, because any fraud will eventually surface and damage the business. The overall message is a cautionary call for strict honesty, rigorous compliance, and disciplined record‑keeping in dealmaking.
Chapters
when we do what's called a root cause analysis, RCA shows us that the root cause of our not closing the data center for $7 million, 100% revolves around somebody choosing to lie on an application.
So let's, I want to like pause and give that lesson. I want to make sure we come back to that, why this is a critical piece.
Never get through, don't want to get sabotaged by the right. So, and then right here, no cutting corners on compliance or reporting.
Yeah, let's talk about that for a minute.
Ready for this? We've got somebody that owes us money. They owe us $6,000— they owe us $5,000 a month. They defaulted. We told them then it's accelerated now to $6,000 a month. They decided 3 months later, well, we'll send you $5,000. If I accept the $5,000, do I get to make claim to the $6,000 they actually owe me? Yes or no? Do I? No, because I took the what? I took the $5,000 and I reset the term. Their convenience, not mine. Right? So I have to be willing to say, here's your $5,000 back. Give me 6 and then we're even.
So you're legally in compliance.
Legally, no, I can't take 5,000 because that's called a settlement. Right? So when we're taught as children to agree and don't argue and compromise, guess what happens? It makes you a weak business person. Oops. Mama's manners don't mean shit. I'm mad at my grandma.
So this is the end of this. So let me, I just want to share with everybody.
Show the last slide or no?
That was the last slide. So really quick, here's the thing, you guys, like as you're, you become more and more successful, you're going through, you're doing deals. One more and she showed up. There she is. Is that you're gonna fill out lots of applications, lots of documentation. Eventually you're gonna build out what's called an SREO, which is essentially your resume of all the deals you've done and structured and make sure that everything is linked so that it's all in one place. Never ever lie or even embellish because it'll always come back and bite you. It's better to like be really conservative and undervalue like what it is you've done and how you've done it, because at least the team that's working with you knows how to work with that. But if there's been straight up like lying and fraud, this is a piece of what we're dealing with.
Bad people trying to play dumb to get away with shit.
