Private Seller Equipment Financing: Pros, Cons and How-To

Buying equipment from a private seller can save you *big* when compared to buying from a dealer... but there are some things to watch out for - especially if you're financing the deal.

Jenn and Anthony cover the pitfalls, the gotchas, and how to succeed in working with a private seller.

As mentioned in the episode, here is a link to Lemon Squad:

https://lemonsquad.com/

CLICK HERE TO GET A QUOTE FOR PRIVATE SELLER FINANCING

Transcript

Jenn 00;00;20;01 - 00;00;35;03

Hey, guys, and welcome to the Smarter Business Finance Podcast. Today is episode seven of Season two. My name is Jennifer Casey and Anthony Alvarez. And we will be your hosts with the most today.

Anthony 00;00;36;03 - 00;00;46;16

On today's podcast. What we're going to discuss are private party transactions. And before we get into that, Jen is going to go ahead and highlight some of the wildest things that you would see on Craigslist.

Jenn 00;00;47;00 - 00;00;51;08

Number one, a lifetime supply of hot sauce.

Anthony 00;00;51;15 - 00;00;53;25

Ah, yes. I'd be in for that.

Jenn 00;00;53;28 - 00;00;59;02

Yes, we can always use some hot sauce. How about a mini donkey?

Anthony 00;00;59;14 - 00;01;01;24

You know, I've always needed a donkey.

Jenn 00;01;02;06 - 00;01;04;01

How about a pain in the ass mini donkey?

Anthony 00;01;04;02 - 00;01;05;19

That's even better. Is it on sale?

Jenn 00;01;06;08 - 00;01;06;21

Oh.

Anthony 00;01;07;18 - 00;01;26;27

I would think one of the best items that we found on Craigslist was the haunted coffee grinder. Some of the things that you would normally look for along with that, an ugly cat or belly button lint. Well, I don't really think any of us are in the mood for that. Right. We don't need that. Right.

Jenn 00;01;27;03 - 00;01;42;02

Brought out by now. We are going to get into the real nitty gritty about private party transactions. Now, this is definitely something that can take you down a lot of different paths and a lot of different roads, right?

Anthony 00;01;42;08 - 00;02;01;21

Absolutely. Absolutely. Unless you're working with a qualified lender who has the experience on how to handle a private party transaction. You could pretty much just put yourself in a plethora of problems, if you will. So it's important that you work with someone that has the experience and handling one of those types of transactions.

Jenn 00;02;01;22 - 00;02;19;10

Right. And you make a good point. You also want to make sure that you're setting the right expectations. If you have a transaction that's involving a private party, you don't want to let the private party know that they're going to get paid within an hour or within maybe 24 hours. They might contact you and say, Hey, I'm wondering when I'm getting paid for this piece of equipment that I'm looking to sell.

Jenn 00;02;19;23 - 00;02;30;10

The best type of answer to say is, well, it depends how quickly we can get this transaction done. But it really depends upon how motivated everyone is in the transaction in order to complete each step of the process. Right?

Anthony 00;02;30;19 - 00;02;53;11

Absolutely. You bring up a really good point. I would say that the biggest thing, the very first thing that you want to establish is the lender. Number two, you want to start to go ahead and develop a rapport with that private party. It's important that if you're going to make this purchase happen with a private party, that they understand the importance of this equipment to your business as well as how bought in you are into it.

Anthony 00;02;54;00 - 00;03;05;17

Here's what you want to do. You want to keep off and push away all the other cash buyers that are coming to go ahead and purchase that equipment, which is why it's so important to have the right rapport with your private party seller.

Jenn 00;03;06;01 - 00;03;06;28

How do you do that?

Anthony 00;03;07;11 - 00;03;28;01

You know, that's a really good question, Jen. I would think that's by communicating with the individual, making sure that you are exchanging emails with them, scheduling some form of an inspection to make sure that the equipment is going to work for you. So many times when clients are trying to purchase equipment. You have a couple of techs take place between those texts.

Anthony 00;03;28;08 - 00;03;52;15

You have cash buyers that are calling this seller. So it's really important that you're going ahead and corresponding with them and getting them the materials that you need. So like when I work with a private party client, Jen, the first thing that I do is I set them up to succeed with all the proper documentation. And I also gather the information for that private party seller so that I can get my information into their hands.

Jenn 00;03;52;16 - 00;03;56;01

Right. Can we talk about what documentation you need in order to work with a private party?

Anthony 00;03;56;02 - 00;03;58;26

That's a really good point, because it's a lot different from an actual dealer.

Jenn 00;03;58;26 - 00;04;15;25

Right. So the first thing that we would need would be a bill of sale. Instead of getting a sales order or an invoice, which is something that you'd typically get at a dealership or a place where they'd sell equipment, you need a bill, a sale. What's on a bill of sale? The buyer's information, the seller's information and the breakdown of what the equipment is.

Jenn 00;04;16;03 - 00;04;30;14

Year make model, possibly hours or mileage. And then also any type of VIN number or a serial number and then also a date, a price that they actually product is going for and usually a signature and a signed name by the buyer and the seller.

Anthony 00;04;31;01 - 00;04;51;13

Really good points. Many times that I've actually helped a private party buyer, that is, they've received documentation from a private party seller that it doesn't match the actual title. It could pose problems down the line when you're trying to title. It can actually lead to problems with the underwriter because then they don't have confidence that that equipment is what they claim it is.

Anthony 00;04;51;26 - 00;04;57;21

So that's a very good point that you bring up, because that bill of sale will tell the lender exactly what you're interested in.

Jenn 00;04;57;21 - 00;05;18;04

Right. Number two, the next item that you want is of these six standard photos of that piece of equipment front, back, left, right. And the two last items are either the VIN or serial number, depending upon if it's titled or not untitled. And the last would be either the hours or the mileage on a vehicle. So that's what we call in our industry the standard six.

Anthony 00;05;18;16 - 00;05;33;00

Then the next item that I think would be really important would come down to the condition report often referred to as the spec sheet. A spec sheet is something that's going to give us all the good specifications off of that equipment, whether it's the tires, the mileage, the VIN.

Jenn 00;05;33;07 - 00;05;35;06

If it's a day cab, if it's a sleeper.

Anthony 00;05;35;14 - 00;05;48;24

Very good. There you go. It's going to be case specific. Mm hmm. The other part, if it's titled Equipment, we will need the front and back of that title. Here's why That's really important. Number one, you want to make sure that the person owns it. Correct?

Jenn 00;05;49;14 - 00;05;50;14

If there's a lean older.

Anthony 00;05;50;14 - 00;05;54;18

There you go. Why don't you talk about that? So what does a lean holder mean? What is that?

Jenn 00;05;54;22 - 00;06;13;09

Sure. So a lean holder on a title means that at some point or currently, then there's a bank that's holding title to that specific title itself. Also, there are times where there will be a lean holder on there and the client or the seller will have a copy of the title or even the title itself, but they'll still be a lean holder.

Jenn 00;06;13;10 - 00;06;35;14

So a lot of sticky situations, we can still work with them. But the biggest thing is who is getting money, right? The bank wants their money as well as the seller wants their money. So at that point, it's called a split payment. The split payment now refers to as the payoff to the bank. And then the difference of the payoff to what the client or the seller is actually looking to sell the equipment for.

Jenn 00;06;35;15 - 00;06;51;19

So let's say that the truck is $100,000 and the payoff to the bank is $30,000. Then obviously that seller is looking to get $70,000. It's a split payment. 30,000, 70,000 equals that total amount of 100,000 to the seller.

Anthony 00;06;52;00 - 00;07;22;26

With that said, it's really important when you start to discuss the title with the actual private seller that there will be a title exchange after an inspection. So part of the private party process as we go through and we collect all your documentation, we will work with the actual seller to go ahead and schedule an inspection. This inspection is usually less than 10 minutes and can be conducted by the seller themselves, but it's important that you set the right parameters with that seller so that they understand why they're being asked to do this.

Anthony 00;07;23;01 - 00;07;46;18

Another part about the inspection process that's really important, Jen, is when a private seller works with the buyer to conduct an inspection themselves. So with that being said, there are services such as Lemons Squad available for our actual buyers. The reason that that's important is usually inspections are done by a dealer when they take in the equipment before they sell it.

Anthony 00;07;46;22 - 00;08;00;14

Right. In this case, nobody has inspected the equipment. So you as the buyer, the onus falls on your shoulders to find an independent company that can inspect the equipment and make sure that's exactly what you want.

Jenn 00;08;00;17 - 00;08;01;19

Now, is this required?

Anthony 00;08;01;28 - 00;08;22;23

It may not be required, but it is in your best interest. I always tell my clients that it is required for the simple sake that I want to protect them. The last thing I want them to do is to try to pick up the asset. Never seen it, never operating it, and then contacting me the day of pickup, asking for me to try to do something when in fact we can't.

Anthony 00;08;22;26 - 00;08;33;23

Right. That equipment now belongs to them. So it's important that the actual buyer takes some type of responsibility to get the equipment inspected themselves prior to moving to dogs.

Jenn 00;08;33;28 - 00;09;02;14

Now, let's talk about what Lemons Squad actually does. Right. So we won't get into in regards to how much it is, because I'm sure their prices will change from time to time, especially with inflation or highs and lows in our world. But the basic form or I should say the basic product of Lemons Squad is they send out a certified mechanic, a certified mechanic, and they will take high resolution photos.

Jenn 00;09;03;05 - 00;09;05;04

Is there a specific number? Do we know how many?

Anthony 00;09;05;21 - 00;09;20;24

You know, I don't have the exact photos of the number of photos that they take. But you did touch on a point with them. Being a certified mechanic, they know exactly what they are looking for to identify the photos that the underwriters are going to want to see right.

Jenn 00;09;20;25 - 00;09;44;10

So they're specifically looking at all the different specific points, the views that they want to see on the vehicle itself. They also submit that report with the high resolution photos and then anything anything that they're pointing out that might seem weird to them. So any dings or dents, anything that's been sprayed, that looks like it was possibly rust prior to that, and then it's been painted over.

Jenn 00;09;44;19 - 00;09;58;16

They also will give you access to that report to be downloaded and you can send it to the lender if you need to. You can keep that for yourself. And at that point, it's just a good reference to to say, hey, do I really want to purchase this piece of equipment.

Anthony 00;09;58;16 - 00;10;15;27

When you really put some focus on this? It's the investment of time that you put in now that's going to prevent any form of errors down the road for you later. And as a business owner, you know, if this equipment doesn't go to work for you right away, you're in the hole. So it's imperative that you do this inspection on your own.

Jenn 00;10;16;02 - 00;10;31;00

Yeah. So we'll go ahead and we'll put a link below to Lemon Squad. We don't have any affiliation to them. We don't get any kickbacks or anything or commission from them. So it's just a service that we like to refer to. And we really do love them. They've been a great company that we've teamed up with, so let us know.

Jenn 00;10;31;00 - 00;10;45;20

Have you worked with Lemons Squad? If so, go ahead and put a comment below. Let us know if you've had a good, good time with them or what your experience has been with them. We always like to hear we so far have had a great experience. But if there's another inspection company, a competitor of Lemons Squad. Feel free to comment below as well.

Jenn 00;10;45;21 - 00;10;46;12

Have you heard of them.

Anthony 00;10;47;17 - 00;11;10;18

As of recent? Not only did I utilize, say, Lemons Squad in one of these transactions to go ahead and help, you know, hold together the value of that equipment. But what I think you need to understand when you are when you're a business owner and you're buying from a private party, that you really you are really taking the ownership of somebody else's problem in a sense.

Anthony 00;11;10;18 - 00;11;33;09

So you have to understand that once this goes to the underwriter, the underwriters going to go ahead and go through what is called, as you said, asset evaluation. This is where the is going to determine whether or not the equipment that you've chosen is worth what that seller would like to be paid for it. I had a transaction just recently on a semi truck, and guess what?

Anthony 00;11;33;10 - 00;12;01;00

The lender did not want to purchase the deal because they felt that it was double the value of a double of its current value. So again, if you're out there and you're searching for equipment, you want to make sure that you're cognizant of the other comparable comparable items that are on, say, the truck papers of the world or wherever, you could do your research to kind of get some more knowledge as to what things are selling for maybe even a couple of dealerships.

Anthony 00;12;01;11 - 00;12;20;01

Because when you think about it, just because it looks like a good deal, Jen, it doesn't always mean it's a good deal. You're basically bypassing any form of inspection, going straight to the person who owns the equipment, bypassing a dealership that would have brought it in to kind of tighten things up a bit, if you will.

Jenn 00;12;20;13 - 00;12;36;08

This is why that spec sheet is so important as well as those photos, because if there's information that's missing off of there and I get it, we're all in a hurry. We are all in a hurry. Everyone has so much going on, but take the time to fill out that spec sheet and make sure that we know everything that's on there.

Jenn 00;12;36;08 - 00;12;52;05

If there's been upgrades, if there's been attachments that have been put on there, we want to see what is on there. Because if we don't understand the bells and whistles and how amazing this a piece of equipment is and there's additional items on there, the lender's not going to see it either, and they're not going to value it for what it is.

Jenn 00;12;52;06 - 00;12;54;24

So keep that in mind when you're providing information.

Anthony 00;12;54;25 - 00;13;13;10

That's a great that's a great point, because, you know, we deal with trucking so much in our industry and we hear the term wet kit. Well, unless you understand the value of a wet kit and what it does for a truck and the cost of that equipment to add to a truck, you wouldn't understand how to go ahead and present that to a lender.

Anthony 00;13;13;11 - 00;13;29;03

So, again, in dealing with private party transactions, you want to get granular, you want to get granular with your inspection of the equipment. You want to get granular with the information regarding the actual asset that you're purchasing, because this is exactly how an underwriter is going to look at it as well.

Jenn 00;13;29;04 - 00;13;32;24

Right now, let's talk about who we can work with for private parties.

Anthony 00;13;32;25 - 00;13;33;13

That's another good.

Jenn 00;13;33;13 - 00;13;37;06

Point and who we can't work with. Can you buy a truck from your brother?

Anthony 00;13;37;13 - 00;13;39;06

No, As a matter of fact.

Jenn 00;13;39;17 - 00;13;42;19

What you can well, you can't finance it through a commercial lender.

Anthony 00;13;42;25 - 00;14;04;16

That's a really good point, because in our industry and this took me a while to kind of learn this, and after a while, you kind of understand exactly why lenders have this in place. And it's because we use the term arm's distance or arm's length distance. In other words, an underwriter wants to see that you're purchasing equipment from another legitimate business.

Anthony 00;14;04;16 - 00;14;27;29

But we're not cutting a deal with our brother, who's in a bad spot to go ahead and sell one of his rigs right now. In fact, that's just a no no. You want to make sure that you're actually doing these transactions with businesses that have the asset that you need, but you're doing it with someone that you clearly do not know so that it zeroes out any form or inkling or question of fraud.

Jenn 00;14;27;29 - 00;14;44;21

Right. And the biggest thing to a lot of times I have clients, I've worked a lot in the restaurant industry, and they'll say, but I know that my brothers take care taking care of this equipment or my sister's taking care of it, or it was my dad's. Unfortunately, there's there's just no way for us to tell if that money is actually being exchanged.

Jenn 00;14;44;21 - 00;15;01;27

So it's it's out of our hands at that point. There's no exception when it comes to that. We can't be financing stuff when it comes to family as well. So, yeah, I mean, it's that rule. Think of it as getting any type of power of attorney or a notary. A notary. You can have the same last name and you can't have someone that's related to you.

Anthony 00;15;01;28 - 00;15;02;24

So a good point.

Jenn 00;15;02;24 - 00;15;04;02

Yeah, same thing with that.

Anthony 00;15;04;07 - 00;15;04;20

Really good.

Jenn 00;15;04;20 - 00;15;14;27

Point. Have we had all the points? We have a bill of sale, we have a spec sheet, we have photos of the equipment we have and the additional inspection if someone would like to. Absolutely.

Anthony 00;15;15;00 - 00;15;36;08

Now, I think it's a really good time to kind of point out to people, Jenn, we have the answer. We actually have documentation for each and every one of these steps that we've discussed. We have fine tuned it in such a manner that our underwriters understand, based on the way that we work and the requirements that they have for a private party transaction.

Anthony 00;15;36;15 - 00;16;00;29

Every one of these steps, we have it covered. So that's why I said at the very beginning of this episode, it's extremely important no matter who you're going to work with on a private party transaction, it comes down to one thing Do they know what they're doing? Because in the end, if they don't, your time is lost, your money is lost, you've lost contact with the person selling the asset.

Anthony 00;16;01;07 - 00;16;10;01

When this can all be held together with the proper person who understands commercial financing and how to deal with a private seller.

Jenn 00;16;10;05 - 00;16;34;26

Right. Right. Well, let's talk about one point that sometimes come up. So when you have a seller who's getting money being dangled in front of them from people that are looking to purchase their piece of equipment, there is sometimes it's something that's called a good faith deposit or they're literally just it could be on a handshake. But what motivates that seller to not sell to someone else?

Jenn 00;16;35;16 - 00;17;00;29

Well, first of all, as a buyer, you want to be able to trust that person, because I know we've had stories where someone will go ahead and give 500 bucks or even a thousand bucks, and then the seller ends up just taking off. So that's a risk. That's a risk that you have to take as a buyer. But the other side of it, as a risk is that seller could go and sell it to someone else who maybe has money in the bank or cash in hand in order to to buy it.

Jenn 00;17;01;22 - 00;17;20;04

But a good thing to do is to possibly negotiate with that buyer as long as you feel comfortable with them to be able to give them something that they can hang onto. That way they're not going to go and sell it. And it ends up being more or less even with the dealerships, any type of equipment seller at this point, because equipment is getting scarce and we're getting less and less of it.

Jenn 00;17;20;11 - 00;17;32;05

We have buyers coming left and right in order to scoop up equipment. You want to make sure that is it a handshake? Is it on a word? How is that buyer going to know that the equipment secured in that transaction?

Anthony 00;17;32;07 - 00;18;04;04

No, I love that, because again, it comes down to the rapport. Look, you're a business owner, right? You conduct business. You need to step up and conduct business with this seller, meaning you don't want to leave anything for chance, Right? You want to make sure that you document the things that you'd like to know and via email, you communicate with them well, because in the end, if you don't secure this specific asset, if it if it really is what you need as an owner, it falls on your shoulders to make sure that you're doing your due diligence as well.

Anthony 00;18;04;05 - 00;18;31;10

So as a business owner rapport, whether it's with your lender, whether it's with the actual seller, you want to establish those points at the very beginning so that everybody is comfortable. Again, there's only one thing we cannot get back from all of these experiences we're talking about, Jim And that's time You can never get that back. So if you waste it on 50 of these attempts, you've got nowhere and you've lost a lot of money.

Anthony 00;18;31;10 - 00;18;36;01

And I think that's where it becomes very important for people to establish that rapport at the forefront.

Jenn 00;18;36;07 - 00;18;44;19

Yep, definitely. Absolutely. One last point I just want to hit on is timing. Let's talk about how long does this transaction actually take from start to finish.

Anthony 00;18;44;20 - 00;18;45;15

It's a really good point.

Jenn 00;18;45;18 - 00;18;49;26

I mean, I've had some of them last a few days and some of them several weeks.

Anthony 00;18;49;27 - 00;18;50;04

Yep.

Jenn 00;18;50;12 - 00;19;15;16

So let's talk about what happens first. Number one, you're getting information from the buyer and the seller, which we've spoken about the equipment condition report or a spec sheet, a bill of sale. The client itself is actually applying for financing. They'll need an application, possibly three months of bank statements. Now the transaction gets approved. Right. Just because a transaction gets approved doesn't mean that we're ready to move forward right away.

Anthony 00;19;15;17 - 00;19;17;19

No, that's right. That's where the fun comes in.

Jenn 00;19;17;20 - 00;19;39;06

Yeah. You still have to value the equipment and get the equipment approved with which which we already talked about the photos, the additional information, or even an inspection at that point. Now, the next step is getting paperwork out to the client. We get the paperwork out Sometimes it's electronic and sometimes it's still sent over. With what signatures?

Anthony 00;19;39;06 - 00;19;42;09

Yeah, believe it or not, some lenders are still using wet signatures. Yeah.

Jenn 00;19;42;18 - 00;19;48;03

That's true. Also, when it's titled We will need limited Power of Attorneys. What does that mean?

Anthony 00;19;48;09 - 00;20;09;09

So the limited power of attorney will give the lender the authorization to go ahead and do your title, work with your local DMV. I get this question all the time because people think power of attorney and are like, Wait, wait, I'm not sick. Yeah, it's not the case. In fact, the reason that the lender needs that power of attorney is to represent you just the same way as if you were at a dealership.

Anthony 00;20;09;18 - 00;20;33;25

So since you're not at a dealership, you're going to run into this on a private party transaction. Right. But no, this gem, this is happening on both sides of the fence. Meaning, again, remember what I said about fraud? We want to prevent fraud. So this is happening on both sides of the fence. So as I'm working with my client to collect those power of attorneys, my funding team is out there working with the private seller to collect theirs as well.

Anthony 00;20;33;26 - 00;20;49;09

Right. This is something that's very vital and it really kind of pushes the system forward, if you will, checks and balances, because we make sure that everybody is who they say they are and we keep everything streamlined for you throughout this process. So you as a business owner, you don't have to go and chase this info.

Jenn 00;20;49;10 - 00;21;15;05

Exactly right. So now we're either getting electronic documents or paper documents. If they're electronic documents, obviously they're just sent over. Doc, you signed some of it. Even the documents are sent over like a notary will be done virtually. If you do need paper documents. Those are emailed over. Printed what? Signature? Notary is signing off on them. Then once everything is perfect and beautiful, we have them overnighted back to the underwriter, the originals.

Jenn 00;21;15;21 - 00;21;17;12

And at that point, are we ready to fund?

Anthony 00;21;17;21 - 00;21;36;28

No, no, not always. No, We still have to. We still have to pass underwriting. And what that means is we procured all the paperwork from the seller, everything from you as the buyer. We've sent that up to the underwriter. There may be one or two little steps that we have to clear because it's something wasn't dotted correctly. You have to understand these are legal documents.

Anthony 00;21;37;08 - 00;21;48;03

So if we miss a period, we miss a decimal. That paperwork gets kicked back to us to correct it. Right. So that would be the only thing that I would ever foresee taking place once you're past that process.

Jenn 00;21;48;03 - 00;22;06;25

Right. And we're all human here. There are times, you know, we have people that work in our documentation department who have put the wrong VIN number. Maybe they put the letter eight instead of a or excuse me, the number eight instead of the letter A, or possibly the name of the business is on time instead of one time and they dropped the E out.

Jenn 00;22;07;02 - 00;22;24;10

Whatever it is, we're human. Sometimes there's mistakes. So at that point it's a lot of gathering last minute information, making sure insurance in place. And then the last step of the process, depending upon who the lender is, is an exchange for money. And in exchange for title, I'm pretty much at that point. Money. Yeah.

Anthony 00;22;24;16 - 00;22;44;05

And pretty much some of those some of the lenders that we work with will either distribute it through a check, some will do it through a wire. But here's the great part we have all that forefront work to make sure that when that money goes out, it is 100% tight. Right. And that you as a buyer are 100% confident in this process.

Anthony 00;22;44;11 - 00;22;49;20

The seller knows he's going to get paid or she's going to get paid. And we're pretty much done at that point, Right?

Jenn 00;22;49;20 - 00;22;56;14

So from start to finish, it could take several business days, even up to two weeks, just depending upon how quickly everyone can get everything done.

Anthony 00;22;56;14 - 00;22;57;19

So that is correct.

Jenn 00;22;57;19 - 00;23;00;26

Hopefully we've covered all the bases of private party transactions.

Anthony 00;23;00;27 - 00;23;21;22

I'm very confident that we did. As a matter of fact, I think this is an excellent topic to talk about because of the different interacting components. Some people are so used to the dealership side of things, they have to understand, number one, this is the commercial world. And then number two, we're dealing with business to business transactions. So we'll take care of that paperwork.

Anthony 00;23;21;22 - 00;23;27;03

And that's exactly why we do things smarter, right, is because of who we are right now.

Jenn 00;23;27;03 - 00;23;32;16

I will say one last thing. Why would someone want to work with a private party instead of dealership?

Anthony 00;23;33;17 - 00;23;54;23

Okay, so that's usually because of cost. Really good point. When it comes to the cost on equipment, you're going to find that there's some crazy deals out there. Again, crazy. The reason that I say crazy, okay, you can end up falling into a situation where you're trying to save money, but you found a semi for $25,000.

Jenn 00;23;55;21 - 00;23;56;06

Mm.

Anthony 00;23;56;22 - 00;24;21;20

I said $25,000. That's exactly what I think, Jan sometimes when I hear some of these numbers. So again, it's really important when you're picking your asset, you have to think about what a lender is going to think about that equipment as well. Right. And it's important that you're selecting something that's going to be fully functional. Right. And is going to go to work immediately, leaving no questions to the lender.

Jenn 00;24;22;00 - 00;24;38;23

Right. And you also you also have to think when you're working with a dealership, they have a dealer's license, which means they have to be held to a higher standard. So not to say that there isn't dealerships out there that might not hold to a high standard. There might be, you know, ones that don't specifically. I won't get too much into that.

Jenn 00;24;38;23 - 00;24;43;24

But the majority of the time, a private party, you better know the equipment that you're purchasing.

Anthony 00;24;43;24 - 00;25;02;20

Absolutely. Because, again, you're buying someone else's. And as we say, you're buying someone else's problem. You might see it or the value in it, but the person who's selling it is willing to part with it. It's up. It's up to you to do your due diligence to make sure that that asset is going to go to work for you.

Jenn 00;25;02;21 - 00;25;19;21

Right. Love it. Well, hopefully we've covered all the topics. If you guys have any questions, please go ahead and comment below. Ask us anything in regards to private party transactions if we haven't covered something or if you feel like you want a little deep dive in there or let us know. Have you worked with us? Have you done a private party transaction?

Jenn 00;25;19;21 - 00;25;32;20

How long did it take or how quick were we to get it done? And hopefully we've given you some good information. If you're currently going through the process right now, you have us on your side to help you out and hopefully this will give you additional info. So thank you so much for joining us.

Anthony 00;25;33;02 - 00;25;36;00

Appreciate you guys. Thank you very much. Thank you to John for your time.

Jenn 00;25;36;00 - 00;25;38;22

Thank you, guys. Have a great day. Bye.