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Special Reports
Appraisals/AVMS
ACE Brings Speed, Uniformity to Appraisal Process
By Brad Finkelstein
HAUPPAUGE, NY-The objective of a franchised operation such as a McDonald's is
simple: every location has a similar look and feel, with employees dressed similarly and a product that is the
same no matter where you go in the country.
America's Cutting Edge (ACE) is looking to take that same concept and apply it
to the appraisal industry.
Dan DeMonte, vice president of executive sales and managing partner, said the
founders of the company, including its president and chairman Maria Sonner and Mike Reilly, vice president of franchise
sales and managing partner, started the company about five years ago.
Ms. Sonner and Mr. Reilly had the concept of a mobile appraisal office, which
would link to a national operations center.
Mr. DeMonte joined the firm about one year later. He had a mortgage banking background
and had been a user of ACE's services. In February 2001, Tom Sullivan came on full time as chief operating officer
after serving as a member of the advisory board. He too had a mortgage banking background.
None of those four people had a background in the appraisal business. Godwin Tsui,
who joined the company in 2002 as director of National Appraisal Operations, is the only person with a background
in appraisals.
Franchising, Mr. DeMonte said, is a vehicle for expanding ACE. It currently has
five units operating, two of which are franchises. Over all, it plans to have a mix of company-owned and franchised
units.
ACE is a staff appraisal company. Those who work for the company are required
to utilize the company's methods and technology and wear its uniforms. ACE appraisers only work for ACE.
The key to the company's operations is its mobile mini-offices. The company has
retrofitted Dodge Minivans with a 1000-watt power source, dual battery system, digital camera, global positioning
system, cell phone and two-way radio, a printer/scanner and a wireless Internet connection.
The vans are clearly branded with the company's name.
Each van has two persons, a licensed trainee and a fully certified appraiser.
The work is done.
While the trainee drives the van to the next location, the appraiser is filing
out the report on the laptop and transmitting back to the National Operations Center. Typically, Mr. DeMonte noted,
the appraiser does the appraisal and comps one day and writes the report some time later, usually the next day.
The communications technology allows the van to pick up assignments on the road.
Turnaround time for ACE appraisal is typically 24 hours. Each one of these specially
outfitted vehicles could do between 70 and 100 appraisals per month. The company said the average independent appraiser
does between 40 and 60.
Mr. Sullivan said the goal is to build a nationwide appraisal brand. The company
is looking to have either company-owned or franchised operations in the top-25 metropolitan areas. He added the
company would also do joint ventures with lenders.
No matter what the ownership structure of the unit is, all will have that same
look and feel, Mr. Sullivan continued.
ACE will take locally trained appraisers and bring them to its academy to train
them in the ACE processes.
The focus of the company, Mr. Sullivan said, is representing its client's (lenders)
in a profession manner. Brand, process and consistency are how ACE shows value to its lenders.
Furthermore, the system does not designate a particular appraiser to work with
a particular originator. Therefore, integrity issues, such as lender pressure are avoided, he said.
All the mobile units do is appraisals. The other functions needed to run a typical
appraisal office are done at the company's National Operations Center. This includes handling the customer service
functions.
The ACE individual franchisee program is geared to fully licensed appraisers who
work out of their homes. Franchisees have to purchase one vehicle and hire one apprentice. They can still work
from their home.
The franchise fee is $10,000, plus an operations center fee and a 6% royalty.
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