Edge Title Agency, LLC  |  Monarch Title

CASE STUDY: EDGE TITLE AGENCY, LLC

SITUATION
An established group of real estate attorneys in New York City decided they wanted to create a new venture—a title company. This title company would be a natural extension of their business and client base, however, they did not know anything about how to establish the new company. How would the partnership group execute their vision to form the title entity?

CHALLENGES
To manage all the operational aspects and requirements of starting up a new business.

To establish the title company in a competitive geography during a softer real estate market.

SOLUTION
Elm Street Management performed thorough research and analyzed pertinent statistics about the market opportunity for Edge Title Agency, as well as relevant New York title practices and guidelines. With that, Elm Street Management developed a comprehensive business plan for the company, to include competitor analysis, marketing strategy, financial projections, corporate structure, and staffing requirements.

Elm Street Management then took a hands-on approach to process all necessary corporate paperwork, including federal, state, and local licensing, as well as internal operating and partnership agreements. Elm Street Management was also responsible for securing and managing all banking and professional services relationships, such as with the underwriter, insurance agencies, and affiliated businesses.

Elm Street Management partnered with the ownership team to develop marketing collateral and a website, and also worked closely with them to identify office space and negotiate lease terms and tenant improvement and construction budgets.

From a Human Resources perspective, Elm Street Management not only identified compliance requirements, but also implemented all statutory and fringe benefits plans, payroll services, and employee policies, and executed full-cycle recruitment to identify and on-board new employees.

Elm Street Management’s IT team was responsible for researching and identifying Edge’s technological needs, including engaging the Hosted Application Provider and submitting requirements and completing the package procurement. They also coordinated on-site installation, configuration and testing of hardware, software, a wireless network, and a phone system. On an on-going basis, Elm Street Management will support the client in system backups, technical support and training, and overall troubleshooting, and all remote connectivity measures were instituted for this purpose.

Elm Street Management also set up all finance and accounting systems to manage operating and escrow account reconciliations and reporting functions with regular frequency.

RESULTS
Execution of specific action plans for each functional area resulted in the new title business being fully operational within 8-12 weeks. Elm Street Management’s remarkable turnaround time was praised by the ownership group, especially given their attention to specific New York nuances. The ownership team is looking forward to working with Elm Street Management for monthly management services since all start-up operations were completed so successfully.

CASE STUDY: MONARCH TITLE

SITUATION
Like many of its competitors in the metropolitan Washington, D.C. area, Monarch Title thrived during the recent real estate boom. However, the cyclical nature of the real estate market is expected, and the title business is competitive and dependent on external factors outside of its control. How would Monarch remain profitable during a downturn?

CHALLENGES
To remain a successful and growing corporation through the inevitable decline in the real estate market and be positioned to take the greatest advantage of a business upswing when it occurs.

A corporate infrastructure that would strengthen core business operations while allowing for new revenue streams from expanded complementary services was needed. This meant acquiring a greater share of a shrinking market, increasing the rate of return business, maximizing ancillary lines of business, and implementing operational efficiencies to cut costs.

SOLUTION
The integrated Elm Street Management team performed a comprehensive analysis of Monarch’s operations, including Human Resources, Finance, IT, and Marketing.

Elm Street Management helped solidify key business relationships with Monarch’s joint venture lender partner, underwriter, banking institutions, clients, and ancillary service lines such as a 1031 Exchange partner and affiliated insurance agents. At the same time, careful and strategic geographic expansion and targeted acquisitions took place to increase market share.

The Finance team maximized vendor contracts, streamlined work flow procedures for efficiency, carefully tracked headcount even down to the labor expense per case, and diligently managed cash flow to help reduce debt. IT costs were cut by centralizing resources that were duplicative in function while making Monarch’s network servers more robust and secure.

Corporate marketing initiatives emphasized Monarch’s independence from realtor-based joint ventures and its consumer-friendly program. Grass-roots efforts were undertaken to build and manage connections with various real estate professionals.

As cyclical businesses are particularly vulnerable to HR obstacles—losing employees (and the investments that were made in them) during downturns and bearing the cost to re-staff in upturns—we introduced new benefit plans and perks for employees, and continued to reward employees for outstanding performance. Regardless of economic challenges, Monarch reinforced that employees were critical to the long-term success of the company.

RESULTS
Execution of specific action plans for each functional area resulted in cost savings of nearly one million dollars, superior RESPA compliance, and a broader regional footprint.

Expert financial reporting, metrics, and analysis contributed to Monarch’s continued existence through drastic market flux.

Although Monarch’s core business initially dropped almost 50% in the downturn, they reaped the benefits of diversifying both its services and client base.

Employees remained loyal, and Monarch was named the #1 mid-sized “Best Place to Work” by The Washington Business Journal.

Overall, the strategic initiatives developed and executed during a period of uncertainty in the market
prepared Monarch for future stability, survivability and profit through sustained growth and market share
as business rebounded.

"With their ability to identify problems and take decisive, strategic measures in a prompt and professional manner, Elm Street helped our agent, Monarch Title, reach the next level. A soft real estate market can be the best time to help assure your company’s survival by engaging these business-savvy professionals who understand our industry."