#2: Thank you for coming. Comments on accommodations, participants, NTLA.
Banker and the Frog joke as participants enter Lab 2.
VADAR background: 20 years, $2b A.U.M., Private AND Public solutions.
Agenda: (1) Servicing vs. Portfolio Mgmt (2) The Cost of Servicing (3) Servicing Choices (4) Servicing Solutions
#4: Misnomers and terms carried over from investment finance.
Alpha and Beta risk management focuses on research, selection, strategy.
Fewer statute variances, mature and standardized regulations, mature markets.
Online mechanisms of research, distribution, researching, communications, allocations, etc.
#5: Less mature marketplace with thousands of statutes varying county by county.
Exponentially greater friction, inefficiencies and cost of management, servicing a portfolio.
[Survey audience how many outside AZ/FL and appreciate these activities]
What is your bottom-line impact of servicing? Do you measure your OpEx and impact on revenue?
EBIDTA vs Operating Income (EBIT) drastic.
What is your risk of error? What is your audit cost and risk of fraud? How does turnover impact operations? What is your OpEx trend as investments grow?
#6: 30,000 foot view of Tax Lien Servicing process. Over simplified.
Inefficiencies, redundancies, retraining, legal compliance, paperwork.
Deming Plan/Check/Act. Feedback loop and improvements.
#7: Spreadsheets are Free up to a point
Good for up to 100 liens and subsequents, state depending
Human error, unreliable data back up and recovery
Non-compliant, non-collaborative, non-consolidated
#8: Encourage audience to see Oct15 Forbes Insights survey of hundreds of Wealth Managers
Review competitive market pressures: rush to Alternatives, more Bidders, giants with 0 cost of capital
Forces executives to look both outward (improved returns) and inward (productivity, profitability)
#9: Technology for Profit / Risk / Scale
Efficiency drives profits (2) Reduce risks of error, fraud (3) Facilitate growth at lower cost
#10: When Free isnt Free
1. Human Error 2. Non-Compliant 3. Non-Collaborative 4. No Data Recovery 5. Not Scalable 6. Cannot Test 7. Inflexible 8. Not Consolidated 9. Slow Decisions 10. Fraud
#11: Share in Real Time, Increase Security, Reduce Errors, Save Time and Money
#12: Does your back office look something like this?
Compartmentalized or matrixed? Series or parallel?
How often do you reconcile discrepancies?
How often do high-cost errors occur in records, notices, filings?
#13: What is your offices readiness? Time efficiency? Profitability?
#14: 29 States each with different calculations
Sampling 6 states to represent and encompass all variables and rules in the industry
CO Lost premiums need time for interest to accrue
FL 0.25% interest is very common
NJ Majority with 0% interest 1-time flat rate penalties change the game
#15: What are your annual Operating Expenses?
What are your business Liabilities beyond your financial Liabilities?
#16: [Ask Questions and Make it Personal]
How close are you to breach, fraud or loss?
How many errors could cost 5 or 6 figures?
#18: 3 Servicing Choices
Serviders beholden to their investment philosophy, with classic fee structure punitive to growth
Build - $250,000 and 3 years earlier
Buy Take advantage of 20 years experience in 5 years of development. Scalable from institutions to individuals
#19: Their fee structure, their investment philosophy, their servicing systems
#20: Dire decision to do it all.
Maybe lucky on scope and on budget.
But then: IT costs, obsolescence, lose compatibilty with other systems
#21: All in One SYstem
Let visuals speak for themselves represent wishes.
#23: Home screen with powerful dashboard
Instant overview of portfolio return, value, and status by fund
#25: Thank you for your time, and we look forward to answering any questions you may have.