LIVE COVERAGE AND INFORMATIVE INTERVIEWS FROM BROKERIPTV.COM

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BrokerIPTV: Today we are talking with Mark Eibner from Metro Brokers Realty Oasis and we are talking about affiliated business relationships and so forth. How are you?

Mark Eibner: Great Dan.

BrokerIPTV: Now, of course you are the owner of Meridian Escrow and Title and Escrow, LLC. talk a little bit about how that all came about.

Mark Eibner: Well, I am one of many owners over at Meridian Escrow and Title. I think this was probably seven years ago we first started Meridian Escrow and Title and initially the company was owned as the top fundamental partners only with no broker ownership.

BrokerIPTV: Right.

Mark Eibner: Just a couple of years ago, we opened it up to get more broker participation within our own organization and brokers participating from outside real estate companies as well as mortgage brokers too.

BrokerIPTV: And how has that gone? How has that developed? I mean initially were some other Realtors® kind of reticent to join?

Mark Eibner: Well, I think it is just depends on the mindset you come from. What I am seeing is the economy is really making things happen. The AfBAs are really growing because people are... they are analyzing everything. Commissions are down. Transactions are down, but what I have seen is most of the brokers are more concerned about their being pushed to this by their clients because clients are becoming more aware that there are big differences in title insurance costs.

BrokerIPTV: Well, you mentioned the economy. What we are starting to see is contraction obviously. There are not as many title companies in business that used to be, they have laid off staff, whatever it may be, is that a problem with Meridian Title and Escrow and how have you been able to kind of survive these times?

Mark Eibner: Well, I think that's the magic of an affiliated business arrangement is the fact that the overhead is so much lower. The bricks and mortar part just isn't there. There is no lower, middle, and upper layer management. You don't have sales reps. I mean it's just the personnel and human power alone, the difference between say an ABA and a traditional title company is huge in what it costs. We also do a lot of on-site closings, at office closings, at people's homes closings, so the ability to maintain 20, 30, 40 locations and pay leases, it's just not there. We can hire staff up and staff down in a day.

BrokerIPTV: Yeah. I did the at home closing by the way and I liked it a lot.

Mark Eibner: Yeah?

BrokerIPTV: Yeah, incredibly convenient. Came to my house, signed the papers, they left, it's done.

Mark Eibner: That's very nice.

BrokerIPTV: All over. Profit - so obviously, it's more profitable because obviously you have got people bringing clients and business and you don't have an outside sales rep. Talk a little bit about how the profits are going.

Mark Eibner: We have been profitable from day #1. In fact, it's one of the few ventures that has been in the black for seven years. So, the ability to remain profitable also has another little caveat in the fact that we broke down our rate structure and where we get our premium from, over 80% of our premium dollars is from re-issue rate. So, literally, we are profitable even though we are doing title insurance premiums at 50% rates over say the traditional companies. So, we are still profitable even doing half rates. That's what we find amazing.

BrokerIPTV: Finally, if a realtor wanted to become involved in Meridian Title and Escrow, how would they do that?

Mark Eibner: I think the easiest thing to do is just go to the website, meridiante.com, just like Meridian Title and Escrow, and there is a e-mail contact us form on there, just fill it out or there are some phone numbers. You can call myself or John Clikeman, who is our attorney partner and we would be glad to talk to you and see if you qualify and if you want to become part of our organization.

BrokerIPTV: Mark, thanks. Great information. Appreciate it.

Mark Eibner: You bet, thanks Dan.

Posted in Title Insurance, ABA - AfBA

BrokerIPTV Today we are talking with Kirby Smith, Metro Brokers Cherry Tree Properties. Welcome.

Kirby Smith: Thank you Dan.

BrokerIPTV Glad you are here and one of the topics we are going to cover today is affiliated business arrangements and you are with Meridian Escrow and Title, but you are also a realtor with Metro Brokers. Talk about how that all came about.

Kirby Smith: Well, I have been a Metro Brokers... I have in the real estate business for... since 1995. I have been a Metro Broker from that time forward. I have never really looked into affiliated business arrangements until I was confronted with the Meridian Title and Escrow company.

BrokerIPTV Opportunity. Also, a little back on your background we should tell people that you are the 2009 President for Metro Brokers. Congratulations.

Kirby Smith: Oh thank you.

BrokerIPTV What... what is involved there? Is it just a loft title or do they put you to hard work?

Kirby Smith: There is a lot of... there is a lot of time that goes into that and... but, you know Metro Brokers there is a lot of volunteers in the company, it is a volunteer run and we have an excellent staff as well. So, certainly, not alone.

BrokerIPTV Obviously a very strong company. So, great to be president of a company like that I bet.

Kirby Smith: Yes, it is.

BrokerIPTV All right. All the years that you have been in business, what were kind of the things that you heard about affiliated business relationships?

Kirby Smith: I hadn't... have really investigated affiliated business arrangements at all. I think there was a lot of misinformation out there that you know you had to be very careful and watch your step and I... so, I stayed away from them.

BrokerIPTV Yeah and so far the experience has been what? The exact opposite?

Kirby Smith: Oh, it has been absolutely the exact opposite, yeah.

BrokerIPTV And is it that much of a big deal with the consumer? I mean obviously you disclose to the consumer that you think they should have the title work done here and here is why and so forth, but I mean are they all caught up in the legality of it?

Kirby Smith: No. They are not. I mean we disclose that this is you know affiliated business arrangement, but the... it's a pretty easy thing to go... to talk about because they are saving a lot of money by using Meridian Title and Escrow.

BrokerIPTV And I imagine that's why you got into it because it was what? Rates and...?

Kirby Smith: Oh, absolutely.

BrokerIPTV And service?

Kirby Smith: Absolutely. Looking out for my clients to save them money and make sure that they are very well taken of.

BrokerIPTV Yeah. Talk a bit about some of the benefits like re-issue rates and things of that nature.

Kirby Smith: Well, you have a 10 year re-issue rate with Meridian Title and Escrow. That's big. Most people's mortgages never reach a 10 year mark and in some of the bigger companies, you will find that their re-issue rate might end at three years. So....

BrokerIPTV All right. So, your experience to say the least has been positive.

Kirby Smith: Absolutely.

BrokerIPTV Would you recommend other agents to get involved in you know an affiliated business arrangement?

Kirby Smith: Oh, absolutely. If you are looking out for your client, I think you really have to. I think you have to shop and find where they are going to get the best service and you know the best value for their dollar spent.

BrokerIPTV And why Meridian Title and Escrow?

Kirby Smith: I think it's all because of service.

BrokerIPTV All right. Kirby, thanks for being us. Great having you here.

Kirby Smith: Thank you Dan.

Posted in Title Insurance, ABA - AfBA

BrokerIPTV: Today, we are talking with Karra Eveleth, the Senior Escrow officer at Meridian Title and Escrow. Welcome.

Karra Eveleth: Welcome.

BrokerIPTV: Talking about affiliated business relationships for those people who don't know what that is, just refresh our memory.

Karra Eveleth: It is an affiliation between usually a real estate agent and a title company. The real estate agents generally have ownership in the title company. We work in correlation together to close transactions.

BrokerIPTV: One of the things we have talked about in the past is that when you do that, you can be incredibly efficient; it may not require as much staff. You can get things done quicker, at a more affordable price. Does that pretty much nail it down?

Karra Eveleth: That's correct. Generally with the normal standard traditional title company, you deal with maybe five different people in your transaction whereas with an affiliated business, you deal with one person, you have the processor, closer, post-closing, everything all in one person.

BrokerIPTV: So its you and like one or two other people that are closing the majority if not all of the deals, is that right?

Karra Eveleth: Correct.

BrokerIPTV: Okay and do you find that people like working with a smaller staff?

Karra Eveleth: They do because if they have got a question they know that they are only going to one person. They don't have to try and track down the five different people that may have handled that piece of it.

BrokerIPTV: Is that the only difference between a traditional closer and closing company and an escrow officer for an AfBA?

Karra Eveleth: For the most part that's the only difference is with an AfBA, the closer escrow officer can do all of the functions that all the different people at the big companies do.

BrokerIPTV: All right. Now tell me a little bit about your experience, monthly transactions, service, things of that nature?

Karra Eveleth: It has been a positive experience that agents seem to be very happy with the transactions, they seem to be happy with the service that they are getting with the one person, and it seems to flow well for the buyers and sellers.

BrokerIPTV: And I imagine you get to know the agents and the transactions and the way they do business pretty,

Karra Eveleth: Very well.

BrokerIPTV: Intimately so to speak?

Karra Eveleth: Very well.

BrokerIPTV: Yeah, but again you function just the same as a traditional closing company. You have title policies, you have you know examiners, all of the above?

Karra Eveleth: We do. We still have a traditional title plan that does all the searches on the properties, there is an attorney that oversees everything, and we still have a group that does all the recordings.

BrokerIPTV: Okay. How about underwriters? How many underwriters are you working with?

Karra Eveleth: Currently we are working with three. We have got Southern Title Insurance, Dakota Homestead, and Alliant and we continuously try and look for new underwriters to underwrite our policies.

BrokerIPTV: And you are looking for a couple of things, you are looking for more affordability and more service I would imagine. Is that right?

Karra Eveleth: Yes.

BrokerIPTV: And so far these three seem to work the best for you?

Karra Eveleth: Yeah, the clients all seem to be happy, the agents are all happy with it, and we have been happy with the service that they have provided us.

BrokerIPTV: That's what I was going to ask you. How is their service?

Karra Eveleth: It has been great. They are local, which is really nice, so we can contact them directly. We usually have monthly meetings with them and coordinate any issues that we do think have risen in the last month.

BrokerIPTV: Karra, thanks so much. I appreciate you being here.

Karra Eveleth: Thank you.

Posted in Headlines, Title Insurance, ABA - AfBA

BrokerIPTV: Today, we are talking with Tim Gibbs, Owner and Broker of Star Brokers, a Metro Brokers affiliate, welcome. Thanks for being with us.

Tim Gibbs: Thanks for having me.

BrokerIPTV: Tell me a little bit about your business, your history, and so forth.

Tim Gibbs: Well, I have been in real estate for 15 years and I have been with Metro Brokers for 13 of those years as a Broker/Owner of Star Brokers.

BrokerIPTV: And how has it been going?

Tim Gibbs: Its been fantastic. Its been a great career for me having left the consumer products industry years ago.

BrokerIPTV: Yeah, well, you would be out in Vegas right now doing the consumer electronics products and so forth if you weren't in real estate, but I understand you are part of an ABA, an Affiliated Business Agreement, and how is that going?

Tim Gibbs: Its going fantastic. I worked with the bigger traditional companies for many years and was approached to join the ABA by Mark Eibner a while back and it has been great for me because #1, the company splits the profits. I am a shareholder in the company and so if the company makes a profit, then I get a share of that and I like that arrangement for one and #2, the service has been excellent. I wouldn't have done it if the service wasn't there for my customers because obviously they come first. The costs are less to them, which was the #1 reason and if the costs are less to my customer and the service is fantastic, there is no reason why I wouldn't do this.

BrokerIPTV: And the company we are referring to is Meridian Title and Escrow and they are in affiliated business arrangement with Star Brokers, but prior to joining and doing the ABA, what were your thoughts on ABAs?

Tim Gibbs: Well, I didn't have very high thoughts of it because the way I had learned about it years ago when I first started in the business was that the big real estate companies owned them, like RE/MAX and Coldwell Banker owned these companies and that the agents had no benefit to use them. It just helped the owners of those big companies, so I thought, well, why would I do that if its not going to help me and if its not really necessarily going to help my customer anymore; I might as well work with people who I really want to work with.

BrokerIPTV: Two things I have heard about Meridian Title and Escrow in reference to the consumers, price and service. Have you found that to be true?

Tim Gibbs: Excellent, yes. They are both excellent. I compared the prices. Like I said I wanted my customers to get a good... a better price because that's most important thing is what their bottom line is to me. So, the prices are better to them and the service is still good. The service has to be good. You cant run a title company if the service isn't good. It just, it leaves a lot of people unhappy with a pretty bad taste in their mouth if the transaction doesn't go as planned.

BrokerIPTV: One of the reasons why they are able to offer that is because they can do more work with less people; is that right?

Tim Gibbs: Thats right and especially lot less overhead, that's the nice thing as you know, we can charge less for title, for title work because there is a lot less overhead. There is not multiple offices and multiple people that that need to be paid in order to close a transaction for a seller.

BrokerIPTV: And there are some other benefits, I mean you have got choice of underwriter for instance right?

Tim Gibbs: Yes; we have a few different underwriters and I also like the opportunity that I have. If I have a question, I can call the plan directly and talk to people who actually do the underwriting and they can assist me with anything I need.

BrokerIPTV: You have got a 10 year reissue rate.

Tim Gibbs: That's a real biggie. That's one thing that I really sell people on because a 10 year reissue rate is so important because if someone wants to refinance down the road, they are only going to pay half, whereas with other companies it decreases yearly and typically after five years, there is no reissue rate at all, but if you have a 50% ten year reissue rate, that's amazing. Its a really amazing, its an amazing deal for people.

BrokerIPTV: Safe to say then your experience has been positive.

Tim Gibbs: Oh yes, very positive.

BrokerIPTV: Tim, thanks for being with us; I appreciate it.

Tim Gibbs: You are welcome. Thanks for having me.

Posted in Headlines, Title Insurance, ABA - AfBA