Posted by Les_CO on 8/10/13 2:19pm
Msg #479984

Deadbeat 101

For those who keep asking why there are so many no-pay, slow-pay, deadbeat, undercapitalized, low-ballers out there.
Deadbeats… want to keep the ENTIRE signing fee for themselves…..and they can….because: This business is totally unregulated. It is not illegal not to pay bills (very difficult to prove fraud, or intent). It is virtually impossible to collect from them and usually costs far more that its worth to try. They are usually judgment proof (have no visible assets)
The Low-ballers…..Obviously want to keep most of the signing fee for themselves.
Slow pay…no money…….Example: 10 signings a day, 5 days a week pay $100.00 each collect $125.00 each. (In today’s market inexperienced, undercapitalized new companies are unlikely to command top fees, they will have to discount to get work, and pay more to get help)
1st week: Outlay 0, working capital advanced by notaries $5000.00, accounts receivable $6250.
2nd week: Outlay 0, working capital advanced by notaries $10,000.00, accounts receivable and cash received $12,500.00.
3rd week: Outlay 0, working capital advanced by notaries $15000.00, accounts receivable and cash received $18,750.00.
4th week, Outlay 0, working capital advanced by notaries $20,000.00, Accounts receivable and cash received $25,000.00.
If they pay every 90 days just triple the figures. If they pay every 30 days they now take part of their cash received and pay the first week’s notaries. It’s basically a Ponzi scheme. The undercapitalized but honest ones use the 3rd and 4th weeks notary’s money to pay the 1st weeks; and the 1st and 2nds to pay expenses. If they are very lucky and frugal they may someday catch up, but one bad week or a couple of fees eaten will sink them. The dishonest ones just keep it all.
The Good Honest companies……. take their capital, pay their expenses and their contracted notaries, the first week, and the second week, and then from then on, and then replenish their capital if and when they can from their gross profit.
PLEASE REMEMBER…You that work with these companies are their PARTNERS! They could NOT exist without YOU! Both good and bad. JMO

Reply by 101livescan on 8/10/13 2:30pm
Msg #479987

BRAVO!

You nailed it, Les!

Reply by John Tennant on 8/10/13 2:32pm
Msg #479988

Excellant analysis Len n/m

Reply by JanetK_CA on 8/10/13 2:35pm
Msg #479989

Been a while since I could say this: "GREAT POST, Les!" ;>)

Reply by anotaryinva on 8/10/13 2:44pm
Msg #479990

Frightening and

I think you were being conservative! I'm watching Breaking Bad, heck this is a better gig then cooking meth.

Reply by FGX/NJ on 8/10/13 4:26pm
Msg #479996

Les
Sounds like you took the NNA course on how to set up a signing service.
Great business, you don't need a Notary Comm.,you don't need a license,
you dont need experience, you don't need background check AND you don't have to use your own money.
Ponzi would be proud.

Reply by Les_CO on 8/10/13 5:24pm
Msg #480002

No NAA course…or NAA anything…I think they are and have been a major cause of our problems for years (Bad info, first notary mills, now SS mills), but I have been in the Signing Agent/Notary and associated businesses for a long time.
And you forgot to mention……….That you don’t have to be a citizen, it’s okay to be a convicted felon, no credit check, no license, no insurance, no bond, no physical address required (PO Box helpful). You don’t have to know how to read/write/speak English (although one of your partners should be able to speak/understand at least some English). You don’t even have to be in this country to do business. And any day you feel like it you can keep all the money, (it adds up after 3 months) close the business, use a new name, buy a new cell phone, get a new PO box, and start again! And then 300 notaries will post here about all the dammed SS’s that don’t pay…..Duh.

Reply by Notarysigner on 8/10/13 7:40pm
Msg #480010

Re: Deadbeat 101Great post, gonna keep this w/volume post n/m

Reply by jnew on 8/10/13 8:36pm
Msg #480018

Re: Deadbeat 101Great post, gonna keep this w/volume post

I still can not understand why so many title companies need to use signing services. It is not that hard to locate dedicated and competent notaries public in any region of the country. If I were the title agent, I would be able to develop a short list of those notaries and call them right down the list as signing services do. The notaries would be happy and so should the title companies, since they would not have to second-guess the quality of the notaries chosen by a signing service. You get what you pay for and if you don't offer much, you won't get much.

Reply by Les_CO on 8/11/13 10:16am
Msg #480065

Re: Deadbeat 101Great post, gonna keep this w/volume post

The reasons are many. Many of the larger title companies do arrange for their own out-of-office signings, some even have ‘in-house’ Signing Services (First American/FASS) but for smaller to mid-sized offices having the overhead cost of a couple of extra employees to do this is impractical. Also remember most title companies operate from 8 to 5, five days a week and signings occur at all hours, and on weekends and from the East Coast to Hawaii. Secondly contrary to popular belief a properly operated SS does more than “make a phone call”. They must contact Title for the order, call a notary (1 to 20 calls) and arrange the signing, confirm with the notary that the appointment is set, get the docs, get the docs to the notary, make sure the notary printed the docs and there are no problems, check with Title to see if docs have changed or are final and approved, check with notary to see if the signing was completed, and package dropped, track the package, notify title signing complete and package on the way. And then there are late docs, re-scheduling, incorrect docs, missing docs, notary emergencies, problems at the table, no-shows, not to mention the accounting, cutting checks, invoicing, and mailing, associated with paying several hundred notaries a month. Many smaller title companies/offices are cutting their escrow officer staff to a very minimum, and don’t even do their local closings, they use a SS. Why? Because it saves personnel, time, overhead and expense…..and it costs the Title Company exactly NOTHING! The borrower pays for it all! (some title companies charge the borrower more that their actual cost, and make a little extra, a HUD violation at least in spirit, in my opinion.) Someone else does the work, has the headaches, solves the problems, saves you time and money and it costs you nothing. What business would not do that?

Reply by sueharke on 8/10/13 9:58pm
Msg #480036

Are we talking about the notary business or entertainment business? Sounds like SS notary accounting is the same as the entertainment field where the big movies and TV shows keep showing losses every year (e.g. Happy Days for 23 years from merchandise marketing) and actors and participants do not get any money.