Posted by ACE IT TAX SERVICES, LLC - notary on 4/14/09 11:39pm
Msg #285065

Starting a Signing Company

Does anyone know the procedures you should take in order to move from being a notary signing agent into being an actual signing company? I have been trying to research this for quite some time and still haven't broken the code. thanks.

Reply by davidK/CA on 4/14/09 11:50pm
Msg #285066

IMPORTANT - Do not start a signing service business unless you have enough invested capital to pay your NSAs their fees without waiting for the collection of your receivables from the TC. If you are going to have to rely on the TC paying you before you can pay the NSA do everyone a favor and do not start a signing service.

No NSA needs another deadbeat SS who can't/won't pay the NSA as agreed and in full.

Otherwise, Good Luck to you.

Reply by Ernest__CT on 4/15/09 12:04am
Msg #285069

Ha, ha ,ha, hee, hee, hee, haw, haw, haw! n/m

Reply by Mamie on 4/17/09 7:11pm
Msg #285539

Re: Ha, ha ,ha, hee, hee, hee, haw, haw, haw!

You're too cool Ernest!

Reply by Glenn Strickler on 4/15/09 12:33am
Msg #285073

Don't want to throw cold water on your idea, but

if you have to ask here, you are not ready .......

Reply by Ernest__CT on 4/15/09 12:36am
Msg #285075

Well said, Glenn! Hear! Hear! n/m

Reply by GA/Atty on 4/15/09 2:07am
Msg #285077

Not much to it - you just are a middleman between TC and SA n/m

Reply by Sylvia_FL on 4/15/09 8:33am
Msg #285092

Have capital to pay signing agents immediately after the signing, whether you get paid or not. Have contacts with TC's who will be willing to work with a new signing company. Have signing agents whose work you can positively guarantee to the TC (and just because a signing agent is a member of a message board or notary organization doesn't always mean their work is perfect). Be able to supply a signing agents on very short notice for a last minute signing.
Did I mention have capital! have capital! Have capital!

Reply by Carole Breckbill on 4/15/09 1:02pm
Msg #285138

Thanks, Sylvia, for such a cogent answer. If people can't come here with legitimate questions and expect legitimate answers, where can they go?! I would add one more thing: consult an attorney about how to limit your personal liability, and the kind of insurance required for this kind of business.

Reply by Todd/OH on 4/15/09 6:33pm
Msg #285213

Not every question can be answered on this board. Four major elements are needed - a good set of contacts in lending or title; a good set of notaries under every tree; working capital (by working capital, I mean $10K or more liquid cash); and - the hardest - a good business plan.

Without a good business plan, none of it works.

Reply by Les_CO on 4/16/09 11:07am
Msg #285287

$10,000.00? Hardly! That covers maybe two signings a day not counting any overhead, or expenses. And you can’t make it on two signings a day.
To be a SS you must be able to “extend credit” to the Title Companies you will work for. Most Title Companies want to pay the SS they contract to on a MONTHLY basis. Title calls you with an order, you (your scheduler) call the Notary, and the signing/closing happens. The Notary wants to be paid, and you owe the Notary. Contrary to popular belief the SS usually does NOT get paid three days after the closing or even when the loan funds. Usually the SS invoices the title company on a monthly, or bi-monthly, or if they are VERY lucky a weekly basis. Title gets the invoice (in a couple of days) and pays it (in a couple of days) the SS gets the check (in a couple of days). So if you invoice once a week, you still don’t get your money for another week. If you do say 10 signings a day, and you as a SS charge $150 per, and pay $125…that’s $8750 that you owe that week, and need to mail out to your notaries. ( Most SS cut checks weekly not daily.) That’s 35 grand a month! That does not count your overhead! That’s just payments to Notaries. As I said most Title Companies are not going to cut you as a SS a check out of the closing funds (on the HUD) They don’t want to write the SS 300 checks a month, and for many other reasons (like FHA streamline, close during the month but fund at the EOM) mostly they like to use OPM (other people’s money) interest free, if they can. Now this is just to Notaries…the SS hasn’t bought a stamp yet, or paid any overhead! And there is considerable overhead…including no-shows…print fees…cancellations…employees phones… insurance…taxes… I could go on…I would say unless you have YEARS of experience…Many contacts…substantial business knowledge…and are WELL capitalized…this is not the business for you.