Members can take advantage of what other net-branch LO's and branch managers are saying about the "players" out there. There's over 400 net-branches and growing! Don't forget to do a GOOGLE SEARCH on the particular Net-Branch your considering. It may provide you with any recent complaints or problems concerning the company as well. And most importantly don't forget to come back here and POST your findings or questions. Your posts and contributions are essential to helping other forum members navigate through the net-branch maze.
To maintain the integrity of this discussion thread and for the sake of accuracy and cohesiveness please send an email to globalwhine@yahoo com if you'd like to post your net-branch opportunity here. Obviously you can also post your net-branch opportunity in the Announcement Forum and if so. I will be happy to list your link here as well. ------------------------------------Original post on 03/05/06: Net branches.......
levels of experience in this business. Let me clarify something first. This is NOT a net branch promotion of anyone specifically (I don't even work for a net branch) Moreover it's intended to educational and will hopefully hellp you in your research and garner good feedback for all. Is the net branch opportunity all it's cracked up to be? Is it too good to be true? Is it the future a fad or the demise of brokering? So consider the following questions when starting your net-branch search: 1. TWO WAYS TO START YOUR OWN MORTGAGE COMPANY"To Net-branch or not to Net-branch that is the question!"2. CHOOSING A NET BRANCH. Advantages & Disadvantages "If you wanna play then do your homework first!"3.
I've posted this article in it's entirety near the bottom of page 12 Check it out! 4. HOW THE NET BRANCH REALLY MAKES ITS MONEY."If they're giving away "the farm" it's best to check on the livestock in the barn!" 5. THE BEST NAMES IN MORTGAGE NET BRANCHING See Index below and determine for yourself. Chezwick
can we offer our own opinions?im with aapex and i have to say so far so good set up was fast and pretty easy the app and stuff was actually one of the shortest i saw of the net branches i had to do a little calling and emailing at first but nothing big the people at corporate are nice and get you what you want there are a ton of states and a ton of lenders im happy its definately a step up from what my old boss offered i am the only person that can sign 1003s with appex i still havent figured out how that works hiring LOs that cant sign 1003s i feel like respa needs to have their names on it not just mine and i know a real geek more by the book then secrets and he's with quotemearate com and he really likes them too a recomendation from him to me means their system is really top notch they have a good payroll system too and LOs can sign 1003s.
McDuck:Thanks for asking and please do. Any experience or knowledge you have would definately add to the discussion. I just ask one thing (not directed towards any one individual or net branch broker/LO).. please don't just pitch your opportunity but tells us your likes/dislikes or good things to know when checking out this opportunity. In other words no net branch wars! Constructive feedback (if any) on the articles is good also. Chezwick
as i stated in the LO training section.. i think the biggest misconception about net branching is the fact that you WILL still need to get lic'd in the states you want to do business it's illegal to 'piggy back' lic you still have to get necessary bonds to operate and the list goes on the real question you need to ask yourself before even considering net branching is 'do you need to pay them for what they can provide to you?'you will pay - either monthly per file fees padded correspondant rate sheets payroll fees nickel and dime stuff here and there typically too so.. do you get REAL value for what you are paying them? because the honest truth it that if you are financially solvent there is truly very little difference in set up costs i am speaking from experience i have done it both ways there are advantages to branching and you need to consider them alsofha - audits can be done on your own but if fha is something you don't do all the time but still want to offer this would be an easy route to go getting into states that are brick and mortar - a NB will help also getting into states that have LARGE net worth requirementsgetting into the flow of ownning a mortgage shop however most are just delaying the inevitable there are some others i am sure and there are other 'tough business practices that NB make 'easier most are overstated and are not the hassles i believed them to be broker packages - 15 minutes topspayroll - used adp or paychex takes the same amount of time as sending payroll to the corporate office and is cheaper than most branch payroll costsadding states most are rubber stamps after they get the cash which is going to be consistant if you are a branch or on your own building your name recognition - unlesss you are a branch of B of A or wachovia nobody will know who the hell you are anyway.
This is the e-mail dated Feb 6 2006 from Ron in payroll:That is correct. I paid your bills. I will let you know when your personal check is ready. You can’t just drop in without an appointment to pick up a check - you stated to Lan that you were coming in tomorrow to pick up a check – as it will be a wasted trip. I will let you know when your check is ready. Thanks for your patience. Ron Palmer Ph: 727-797-5300 x 1005Fax: 202-318-7648rgpalmer@mallbanc com
From: aishakscott@aim com [mailto:aishakscott@aim com] Sent: Monday. February 20. 2006 8:12 PMTo: Jeff RobinsonCc: lmaker@dlpcorp comSubject: Re: FilesAt this point I think that is it clear that you have no intentions of paying me so you have left me no choice but to seek a legal remedy. I am really sorry that it has to come to this. They responded the same day:Aisha. Where is this coming from? Of course you will receive your money. No one has ever not been paid. Ron has been out with the flu. Let me check on it today and I will let you know. JeffLater Ron came back with this:I previously told you that you will get paid ASAP a check is scheduled to be sent within a week. Thanks. Ron Palmer Ph: 727-797-5300 x 1005Fax: 202-318-7648rgpalmer@mallbanc com --------------------------------------------------------------------------------From: Jeff Robinson Sent: Tuesday. February 21. 2006 8:13 AMTo: Alisa Golonka; Ron Palmer; Les MerkerSubject: FW: FilesWhat is going on with Aisha?
AT this point it has been well over a month since the loan has closed since I am a 1099 employee there are no taxes to take out they just need to cut me my check. But they don't a week later I sent them this e-mail on March 6th:[/
You told me my check would be mailed with in a week your week ended yesterday and I still have no check. You guys are leaving me with no choice... On Friday I will be paying the retainer fee to start legal action. I am very sorry that it has come to this but it seem you have just decided that you are not going to pay me. The biggest shame is at one point I would have even considered coming back after you got paying issue taken care of. But I think it clear now that you only have an issue paying me. Again I am really sorry it has come to this but you all have backed me into a corner. Aisha K Scott
<![endif]> [Unable to display image] Aisha. FYI – I do not dislike you and I have not deliberately avoided paying you. I apologize if I have given you the wrong impression. Mallbanc is actively undergoing restructuring to speed payment of commissions to associates. We believe this is essential for our continued growth and success. It is our goal to pay within a week of clearing compliance. This cannot be accomplished overnight but I believe it will be accomplished in the near future. You probably have such a bad feeling for us that our association is permanently damaged – however we will get you paid and hope that you understand that sometimes people have no choice but to do what they have to do. There is currently aprox. $1
Aisha,I don't think there's a member LO on the forum who can't empathize with your situation. Ufortunately it does seem that your employer is feeding you "a line" as I sure he does to other "bills" he delays or avoids paying. If they stated they are going to pay you it makes no sense to not have paid you by now. It seems that a letter from an attorney is the only thing they will(hopefully) take seriously. Don't hesitate any further. It only makes you look bad if you delay. Having said that. I would like to make a request. I found it very painful to read your comments and only due to the fact of the FONT SIZE being too BIG (Size 6 - which sounds like screaming in a text enviroment). Because I was the first to place a reference to your Mallbanc problem. I would like to ask you to continue the rest of YOUR discussion on Mallbanc back to your post in the Lender Review forum so we can continue on the topic discussion here. I hope everything works out for you. Sounds to me like you've got a good chance of recovering what's due you. Let us know the outcome. Chezwick
From what I am told is that in some states you HAVE to be an employee ie W-2 so if you are on 1099 and doing deals in that state it violates the law directly. I am not confirming this this is just what I have been told. I am doing a bunch of net branch research right in order to capitalize on an opportunity I have in the financial planning industry but I may slowly be comming to the realization that for the about 30-35 "easy" states I may just go directly to the licensing and leave at that. After things start rolling I guess I can always add the others. It also seems for about 25,000-35,000 in legal fees you can get a 50 state package. On top of that is each states "out of pocket" registration. Anybody have any experience with these "nationwide registration" law firms?Thanks. Mike
Originally posted by mkjhartmannFrom what I am told is that in some states you HAVE to be an employee ie W-2 so if you are on 1099 and doing deals in that state it violates the law directly. I am not confirming this this is just what I have been told. I am doing a bunch of net branch research right in order to capitalize on an opportunity I have in the financial planning industry but I may slowly be comming to the realization that for the about 30-35 "easy" states I may just go directly to the licensing and leave at that. After things start rolling I guess I can always add the others. It also seems for about 25,000-35,000 in legal fees you can get a 50 state package. On top of that is each states "out of pocket" registration. Anybody have any experience with these "nationwide registration" law firms?Thanks. Mike
(This directed towards all you lurking Net branch owners managers brokers loan officers or just plain looky-lu's who have yet to share your.02 cents worth about what you know on this topic or may be too afraid to say)
Follow the song along and join in where indicated:(sung to the tune of Munchkin Land from the Wizard of OZ) Munchkin Chez: Come out come out wherever you are and read this new topic that fell from a star. It fell from the sky. It fell very far and
MIDAS: It really was no miracle. What happened was just this. The wind began to switch - my nose to twitchand suddenly the business started to unhitch. Just then a glitch - the rates began to pitch,so I called on Aapex Mortgage thumbing for a hitch. Munchkin Mayor Darin: And oh what happened then was rich.
I am here. I will go out on a limb here and join this post. I have nothing to hide. But let's get this straight:You have to be careful when looking into net branches. I'll admit it first. You can get more than burned! If the so-called "net branch company" thinks just because they have a few state licenses in place they are a net branch... NO.. they are wrong! There are only 6 or 7 that's right 6 or 7 at the most that seriously have their act together and they have issues too. Any broker on this board that says they can go get licensed in the 10. 15. 20. 30+ states on their own ~ go for it! That in itself is a full time job that doesn't pay. If you can handle the financial burden (which is VERY costly) the audited financials. (yes AUDITED cost anywhere from 5 to 20+ grand) the $1M+ in bonds that have to be renewed yearly in some cases the massive amounts of E/O & D&O insurance payroll expenses accounting expenses attorney fees (ouch!) 300 lenders to sign up with technology to track state reporting knowledge of all compliance on State & Federal levels. State auditors (from multiple states) showing up during the same week all looking to for a way to shut you down and give you massive fines monitoring of fraud on a daily basis etc etc... Congrats ~ BUT. You sir might not even get in the top 10 and doesn't mean you will be successful. Forget originating! No time to originate anymore. Your spending to much time monitoring your risk. You are a close to a million in to this and now you have to spend a ridiculous amount of money to maintain it and higher quality people to help you ~ CPA's attorney's compliance etc. Which again is big ~ BIG expense. Not cheap. On top of all that your up all night wondering when you will have a lawsuit when a loan officer you never met will commit some sort of major fraud that could destroy your company send a few people to jail and put 1000's of employees out of work. Ameritime allows intelligent loan officers a better life using MY RISK for a very small amount of money. When I promote my business on this site. I am passionate about it. When I say Ameritime has no pending lawsuits liens fraud cases. NO DEBT never had to buy back a loan never been cut-off from a lender AND NEVER HAS.. that says something. Ameritime will close over 2 billion this year. Then I hear all the time what states can I originate in? Well if its a state that you don't need a license you are good. The company is licensed. The company sent in the money the bonds the AUDITED financials etc. I see the people on hear that complain about having to go get a loan officers license to originate in a state that requires it even though they are with a net branch company... GIVE ME A BREAK. It costs what. 300 bucks at the most? I guarantee you it cost me more. On top of all this no start-up fee free software and access to everything. Name one franchise you buy and start generating money with no start up? NONE. I have been known to help people get their license in other states. But they have to show me a history of closing loans. My wife thinks I am crazy. No one ever gave me this opportunity. But again. I am tired of companies taking advantage of people. I was one of the ones who got taken advantage of. I just want to keep loan officers from getting burned. Just like the one above. Not getting paid. I just put it out there for you guys and I hope you can respect it. My name is Brandon and I do have blue eyes. Well they are sort of red right now. I was out too late at a bachelor party. But that's a whole other topic. maybe even forum.
I only have experience with two net-branch operations. 1 good and 1 not-so good. But honestly my choice of business partners was the biggest problems. It seems to me that most people looking at NB's are not really looking for more than 10 states if that many. It's always nice to have that phantom out of home state pop up but...? For the small operation (1-5 originators) with relatively limited ad budget local states should be fine. I definitely recommend a solid business plan focusing on efficiency and scale and then look at the NB's that will work for that scenario. Don't be flattered by the salespitches or hype. If you aren't originating 50 per month do you really need to be nationwide?
so what company is the best for net branches? I hope the answer is aapex because that is hte way I am leaning. Does Aapex have any fees I should know about: ie credit report,appraisals. Can you use your own title company? How did you guys set up your business? Corporation. LLC or something else. Who should I go to for phone lines? I am about to make a move this week to incorporate then I need to get hot on all this stuff. I have about 6 loans I am holding and I still have 2 more to close.
i have worked with several netbranch companies and researched a lot of them a true netbranch is in a brick and mortar commercial building and is licensed in each state that they want to do business in alot of companies run under a different format and just brand it as a netbranch for sales purposes for example the steltman group was promoting fnms branches here but were really only seting up nationwide lo's working for their branch most netbranch companies want way too much corporate control and require you to use their fluffed products or sign contracts where they own everything you do or build while under their umbrella aapex operates under a banking license out of florida and is also licensed in 31 other states and complies with all federal and state laws and is a good choice for the experienced broker or lo that wants to operate as independantly as possible i also really like comunity lendings format of a true netbranch setup midas is opting to get licensed in 48 states as a bank and operate company owned branches with contracted managers running them i have yet to find a better setup for 100% commission and 1099 pay then aapex mortgage and i have a huge network of branches that will all agree with me jerzeyjoe email me and i will get you setup with aapex right away.
How does Apex pay loan officers in W-2 only States? 100% commission - explain how 100% minus $600 a file = 100%..? It doesn't. Corporate control? Because we are here for our employees and don't just sit around waiting for them to pay us that's corporate control? Because we make any branch manager a signer on their own Bank of America checking account that they control.. that's corporate control? Having total control over their files and money from start to close that's corporate control?Midas just because you and I could not make a deal work the way you needed doesn't mean Ameritime is better than Apex or vice versa. I just want to know the answer's to the above questions.
people of brokeroutpost please dont read these posts wrong brandon armstrong and i are not enemies i think ameritime is an excellent netbranch setup and i was personnaly looking into using the company for my operation i am still working with brandon to try and make something work out but for now i will be using apex and i still believe apex is the best 1099 oportunity around in the states that require w2 apex pays your expenses 1099 and your payroll w2 just like ameritime! most people call fees cost of business and charge a $600 broker fee on the gfe commission is based on points and ysp which you would keep 100% of same as ameritime my opinion is if you want freedom and 1099 call me for an apex branch if you want a w2 setup with a solid corporate structure and minimal cost call me for an ameritime branch.
How people get paid (w-2 vs. 1099) is a matter of preference. There is a lot of competition out their in terms of net branches. So how do you find the perfect fit? Some net branches offer tools such as pre made marketing material (most likely because they don't want it made by individuals) but other don’t offer this but expect marketing material to be approved prior to distribution. Some net branches offer search engines in their website back offices to assist in placing loans with the many lenders they have while others offer you a list of lenders and access to lender sites. Some offer leads others don’t. You see it time and time again on the bored we all are looking for tools to assist us in our daily business. What good is having 150 lenders if you are only going to use the 6 you always use because of your comfort zone and who has time to research all the lenders for each customer? More and more LO's are looking to go on their own but they are also looking for the tools that they didn't get from the broker they just left. Does the net branch fit their needs? I think that the issue with net branches is that Brokers/LO’s envision them selves completely on their own (scary for some) and don't know who they would turn to should there be an issue. Will I have one contact at the company for all my needs or will I have to talk to many people/departments to accomplish something? What if I am not happy with the set up once I have been working with my new net branch company for a couple of months then what? Net branches are a great alternative for a start out business or a business that wants to expand. They all offer lengthy lender lists and will allow you to add any lenders of your choice. They all charge various fees some more some less but in a similar ballpark figure. The question is what does net branch “A” have that net branch “B” doesn’t (other then amount of states and form of payment). Why would I choose one over the other? Which one has got my back? What are their retention rates? Who gets the SRP? Do they pad the rates? How will I know for sure until I see them? How many people work in their accounting dept? Once my file is in their hands how long will it take for them to check for compliance and get my commission to me? What if I want to grow my net branch and hire/train people to work under me? What tools do they or don't they offer?These are the questions I have for the individuals that have experience working with these branches. I want to hear the good and bad. At the end of the day we all just want to feel warm fuzzy and confident that a good choice was made.
Secret,You make a very valid point and something everyone should consider when thinking of going the way of a net branch. Soooooo. I'll use myself as a guinea pig because this very subject has been nagging me in the back of my mind for sometime. I live in California and I'm originally from Minnesota (yah sure don't ya know.) I still have very strong ties to Minnesota through family and friends and even associates and brokers in the Mortgage biz. I could probably move back and set up shop and do well in a second but,... for reasons I don't need to get into choose to stay in California. Wouldn't it make sense for me to tapp into that market? I also know Minnesota geographically from top to bottom (even better than California) and could target market areas like a bandit in the night before the competition knew I existed. (Anyone from Minnesota scared yet? ha,ha). So again. Secret you're point well taken that it HELPS to have a REASON and a BASE of business to work from when considering doing business in another state. Otherwise your no different from anybody else. I also have friends and family in Oregon. Colorado. Florida and New York. Sure it would be nice to be licensed in those states as well but realistically how much business can I expect? Not much (less than 1-2%) unless I wanted to get serious about marketing there. I get a chuckle when I hear about people shopping net branches and they use the "approved in 50 states" as a gauge or something like 30 states isn't good enough!! (ha,ha) I wouldn't care if it was 10 states as long as the net branch provided what "I" wanted. Chezwick
Originally posted by SecretMy view on net branch type operations is simply this they one significant value and that is they authorize their 'associates' to access potential customers in far-away States where the associate is not licensed. Otherwise. I have never seen any other real value to them. SO.. there's a trick.. the associate must have a clue about HOW to find potential applicants in Florida. Washington. New York. Illinois. Nevada etc for them to be worthwhile in my judgment. I speak to this issue for several hours in one of our live classes.
to say a netbranch has no worth unless you are reaching outside your geographic area is kind of odd to me i went with midas and aapex and was set up in 48 hours how long would it take for me to get a licence in MA? probably longer then 24 hours i already closed and have more closing soon while i still figure out whats best for my business works for me sometimes i forget that secrets is looking at this game from a much different seat then me and has been for many many years he has the view of the executive whats good for secrets may be entirely different then whats good for an LO just staring out on his own some of a netbranches downsides could still be better then what the LOs current situation offers.
Not that I don’t appreciate it Secret but my mention of tools was meant in terms of support and ease of daily business… Do I need to purchase my own separate search engines and marketing materials and leads?If branch “A” offers these tools and the split is still high maybe not 100% but I wouldn’t have to pay for a search engine that is very costly and make or purchase marketing material and leads. Then maybe it is worth it. If branch “B” gives me 100% minus per file fee and I have to pay for a search engine marketing material and find my own leads is there really a difference in my bottom line?With that said it all may come down to simply the company and it’s reputation and happiness of the people working with them right? No marriage is perfect no matter how good it is easy to envision the “happily ever after” scenario but then you realize between now and then is the daily grind that is not so perfect. Strengths and weakness right? So what are the strengths and weaknesses of these net branch companies. Secret- Since you have work with 3 different net branches how about offering your opinion on the companies you have worked with? What were the pro’s and con’s?
Originally posted by midaspeople of brokeroutpost please dont read these posts wrong brandon armstrong and i are not enemies i think ameritime is an excellent netbranch setup and i was personnaly looking into using the company for my operation i am still working with brandon to try and make something work out but for now i will be using apex and i still believe apex is the best 1099 oportunity around in the states that require w2 apex pays your expenses 1099 and your payroll w2 just like ameritime! most people call fees cost of business and charge a $600 broker fee on the gfe commission is based on points and ysp which you would keep 100% of same as ameritime my opinion is if you want freedom and 1099 call me for an apex branch if you want a w2 setup with a solid corporate structure and minimal cost call me for an ameritime branch.
Originally posted by SecretCHEZ: Before I stop originating and began teaching our Website & Internet Originations Live class full time. I personally originated more than 2,200 loans (over a 39 month period) utilizing a net branch I was a member of and the website & techniques I teach in that class. Most of them were from States - NOT California - and all of those customers were attracted to our website utilizing the 'secret system' - I had no base or area that I concentrated in it was random - just like real businesses do - I advertised nationally! THAT'S the value of the Internet and net branches as I see it. You can market in a wider area. Taken right from our website: ".. do you believe on rolling the dice with your career all based upon the rise and fall solely on hometown economics and events? (think New Orleans or US Steel or Motown) ..." and "did you know 85% of the loans done are NOT in your State? We'll show you how to do those loans with proper licensing authority and also how to find those customers!"
Secret,Breaker-breaker that's a big 10-4(message recieved) good buddy! I got your 10-20 (location) so no need to be blowing smoke (loud signal) this way. Just back off the hammer (slowdown) 'cause I've got your back door closed (I'm behind you) so no bears (cops) sneek up on ya. Still be wary of the Boy Scouts (The State police or in this forum - Darin the Moderator) who might want to shut you down. Also avoid all crack 'em ups (accidents)as you travel on the road to prosperity. Time to Bug out. (leave this post) I'm heading for Shakey city (Los Angeles) but gotta take a 10-100 (bathroom call) before I go!Chezwick
Chezwick-I read all the articles by Rob Lawrence. Thank you for posting them I found them very informative and useful. I am very interested to read the "hit lists" of net branches to avoid. Please forward a copy to me at your convenience. #1 pick: I haven’t heard anything about them. I have only heard of them. #2 pick: they have been advertising heavily for new net branches in my area with a 70% split w-2. Does anybody know what they offer with their package? #3 pick: Never even heard the name before. There is another big one out there: Benchmark has anyone heard anything about these guys?
Originally posted by MarlenaSChezwick-I read all the articles by Rob Lawrence. Thank you for posting them I found them very informative and useful. I am very interested to read the "hit lists" of net branches to avoid. Please forward a copy to me at your convenience. #1 pick: I haven’t heard anything about them. I have only heard of them. #2 pick: they have been advertising heavily for new net branches in my area with a 70% split w-2. Does anybody know what they offer with their package? #3 pick: Never even heard the name before. There is another big one out there: Benchmark has anyone heard anything about these guys?
Thanks for the post. I need to clarify and ask you and anyone else to send me a email for the HIT List. I can coordinate it better that way and so that no one falls through the cracksChez. I don't know about anyone else but when I tried to email you this dialoge box comes up that tells me I have to be logged in. We know I am logged in because I am sending this postMarlenas I was with #2 I don't recall what there package consisited of. However they assured me We could close a loan in Nevada and we did.. But then I couldn't get paid because I wasn't Licensed in that state. They sent the whole compensation check to the borrower. That was my first and last experience with them I had two more loans in the pipeline that I politely took to anopther company and closed
texland:No. I'm am not currently signed up with a net branch. That's one of the reasons I started this discussion thread. I've done quite a bit of research on my own and discovered through the process that getting to the "bottom line" with most of them is difficult. I wanted other LO's and Brokers to share that currently are (good or bad)with a net branch dolan2000: Thanks for sharing about Quotemearate com (Qmar) I've never heard of them but that means nothing. Some of the largest net branches out there still haven't been mentioned yet in this discussion. Hence the article "links" I provided will hopefully give you a more well-rounded look at what's available. Do you know WHO is behind Qmar? I couldn't tell from the website. To re-itterate a little what you said. I got this from the website:
All this for a per file transaction fee of only$295 (W-2 Only) or Use our QMAR Lending DivisionNo per file fee! (100% Commision) Note: Besides our low cost single fee solution Quotemearate com is unique in that there are no additional charges for accounting payroll. E&O administration. QC file storage and corporate licensing.
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