David Kalik has always been good at math. Fortunately, those math skills lead him to amass a fortune of $2.5 billion. But David Kalik has never been too good at school. In fact, he didn’t even graduate high school. His story is remarkable.
David leveraged his Atlanta real estate to put himself $10 million in debt to start a company called GreenSky Credit. He fended off investors for years choosing to run the company on his own merit. And investors were chomping at the bit to throw money at his idea. Finally, he relinquished part of his budding company for more than $500 million.
He still owns more than 50% of GreenSky Credit. Revenues for 2017 topped $250 million while projections put the company at $500 million in 2018. It’s a good time to be David Kalik.
The revolutionary idea that launched his massive company is quite simple. Essentially, he developed an app for contractors. He rightly saw contractors as the conduit to homeowners. And homeowners are a lucrative demographic. They are all searching to upgrade their homes in order to create their dream houses.
Contractors took GreenSky Credit’s app to the homeowners themselves. The app provides all sorts of financial products that allow the homeowner to secure a home improvement loan. This allows the homeowner to hold onto some of their cash. That cash could then be used to perform more upgrades.
This flow of credit means that contractors are getting more work. The contractors are so happy that they share 6% of the loan amount with GreenSky Credit. Then the brilliance of GreenSky Credit’s business model really kicks in.
The financial services tech company then takes the loan to a bank. The bank funds the home improvement project while sharing 1% of their balance sheets with GreenSky Credit at the end of the year.
David Kalik figured out a way to own nothing but the transaction without assuming any risk. The bank assumes all the risk of default while the contractors own the equipment and perform the work. David and his company simply profit off of both sides of the equation.
Having been born in Florida at Fort Lauderdale, Robert Deignan went for his studies at Purdue University. It was through a football scholarship that made him attend the university. He pursued Organizational Leadership degree from the University. He started venturing into the entrepreneurial business where he co-founded Fanklin, Inc. He is the leading of ATS Digital services company where he is the CEO and co-founder.
It was in an interview when Robert Diegnan talked about how he came up with ATS Digital Service Company. He talked of how the idea came from another company that he was working for. Before they started the company, together with his partners used to work with Anti-Malware Software Company. They used to have many problems before their software could be installed on the user’s machines. The used to have software strategics where they allowed the user to use their software freely and if they became happy about it, then they could thereafter purchase it when the 15 days free trial was over.
It was in 2009 when there was a problem to get Anti-malware to become installed in user’s machine, they had to put their phone number at the end of download page and they could communicate with the users so that they can figure out in case there was a problem. It was through the conversations with the users who were trying to download the software, and they came to realize that the Malware products who were the bad guys were the ones blocking the software installations of their Anti-malware products. They had to look for a solution where they approached one of their in-house technical agents to remotely connect with the user’s machine and aim at removing the blocking Malware of their program installations.
It is by the strategy they used that brought success and the customers became happy where they gained consumer trust. It is where they came up with an idea of charging a fee for remote service efficacy. When it came a time to move out of the company, together with their partners utilized the opportunity in remote connection technologies and could be helpful to consumers and also a better opportunity in business perspective.