From Spreadsheets to Systems

© 2017 NTLA and VADAR® Systems 1

From Spreadsheets to Systems – Lab 2

VADAR® SystemsJed Reitler, VP Business Development

10:30am Studio 1 Mar 2, 2017

ChallengesSpreadsheetsSystemsSolutions

Q & A

ntla.com | vadarsystems.com

From Spreadsheets to Systems

3

“He's a genius investor, but God help his staff and his management skills.”


4

Costly Office Practices

EmailExcel

Laptopsntla.com | vadarsystems.com

Challenges

theNTLA.com | vadarsystems.com 5

ChallengesHow efficient is your office?

6

Parcel Research

Field Inspection

Parcel Analysis

LoC Payment

Raise Capital

Auction Bid Court Filing Fees

Lender Reporting

Load Acquisition

Portfolio Organization

Flags and Holds

Owner Notices Court Notices

Hold Notices

Payment Plans

Collections

Cash Flow Analysis

Assess Subsequents

Load and Integrate

Subsequents

Integration and Valuation

Analysis

Audit Discrepancies

Report Transactions to

Auditor

Rectify Lender Reporting

Load Redemptions

Review and Post Payments

Report Cash Flow Analysis

Report Redemption

Curve

Bankruptcy

Foreclosure

Title Clearing Legal Notices

Court Filing

Borrowing Base Reports

Operational Review and Audit

Bottom-Line Profit Analysis

Adjust Investment Strategies


Challenges

7

Various Statute CompliancesTracking and ReconciliationParcel Data ManagementCollections and Notices

Foreclosure and REOLegal Filing and Fees

Custodial Servicesntla.com | vadarsystems.com

Challenges


Spreadsheets

Excel Security Vulnerabilities


10 Spreadsheet SinkholesCost VulnerabilityConstrictive Dependence on a few constricts your flexibility

Doesn’t Scale Disproportionate overhead increases with your growth

Slow Decisions Your financial decisions require instant information

Prone to Error Common and costly errors with entry and formulas

Prone to Fraud No controls of user roles and permissions

Not Compliant Dodd-Frank and SoX require more

Not Collaborative Budget, forecast, plan in silos

Not Recoverable Lost when devices and networks fail

Not Consolidated Different analyses, reports, versions, by many users

Hard to Test Tracing formula logic takes thousands of manhours

“Free” spreadsheets come at a cost

Spreadsheets → Systems


Systems


Systems• System: “formulated, regular plan of procedure”

• Repeatable processes in your organization?

• Do you have data in silos or a shared system?

• Minimize your overhead costs of…

ErrorLoss

TurnoverTraining

ReportingAnalysis

Analysis Rework Audit

13

Due Diligence

Acquisition

Subsequents

Legal and FeesNoticing

Disposition

Analytics

AnalyzeManageReport


Systems

Systems


Systems

Solutions

5 solutions to improve your system

1. Identify key stakeholders and unify their focus2. Record operational challenges to identify the easiest

and costliest to remedy3. Know your vital data elements, where they are

stored, and who controls them4. Reduce redundancy by improving communications

and interfaces between systems5. Identify resources to leverage to implement new

solutions (e.g. IT staff, software vendor, law firm)

Solutions• Enhanced cash flow

• Higher portfolio returns

• Increased revenue recovery

• Lower overhead costs of audits, information, and operations staff

Out-Compete with real-time analytics and decision making leadership

Question &AnswerSession

LienApp.com877.823.2300

VADARsystems.com


Thank You

3 Choices

Build BuyServicer

Their Strategy

Less Control

Basis Points

Cost Over-Runs

Never Finished

IT Experts

Your Strategy

Configurable

Scalable


Servicer

BuildBuild costs 180% more

for 1/3 of the planned design.

Acquisition Custodian Redemption Subsequents

Enforcement

Search Audit Instant Analysis Export Interface

DashboardBuy

Dashboard

1-Click Reports

vadarsystems.com 25

Continued from NTLA 2014

CO Investment Strategy

• Suggested “Slow Play”

• Accruing interest needs time to offset costs of lost premiums

NJ Investment Strategy

• Suggested “Quick Play”

• Longer redemption periods decrease the return offsets of the fixed penalties

Based on analysis of anonymous sales data from LienSource, SRI, and TSR

vadarsystems.com 26

IRR and xIRR in ExcelDate Cash Date Cash Date Cash Date Cash

1-Jan $ (100.00) 1-Jan $ (100.00) 1-Jan $ (100.00) 1-Jan $ (100.00)

2-Jan $ 101.00 31-Jan $ 101.00 31-Jan $ 101.00 1-Jun $ 105.14

IRR 1.00% IRR 1.00% IRR 1.00% IRR 5.14%

xIRR 3678.34% xIRR 12.87% xIRR 12.87% xIRR 12.88%

Date Cash Date Cash Date Cash Date Cash

01/01/13 $ (2,800.00) 01/01/13 $ (2,800.00) 01/01/13 $ (2,800.00) 01/01/13 $ (2,800.00)

02/01/13 $ 35.00 02/01/13 $ 35.00 02/01/13 $ (150.00) 02/01/13 $ (150.00)

06/30/13 $ 500.00 06/30/13 $ 500.00 06/30/13 $ 50.00 06/30/13 $ 50.00

01/31/14 $ 1,200.00 01/31/14 $ 1,200.00 01/31/14 $ 750.00 01/31/14 $ 750.00

12/01/14 $ 750.00 12/01/14 $ 750.00 12/01/14 $ 750.00 12/01/14 $ 750.00

01/31/15 $ 800.00 02/27/15 $ 800.00 01/31/15 $ 1,750.00 2/27/15 $ 1,750.00

IRR 4.65% IRR 4.65% IRR 2.70% IRR 2.70%

xIRR 12.13% xIRR 11.98% xIRR 6.49% xIRR 6.35%

vadarsystems.com 27

1-Year ReturnThe Same Lien Feb 27, 2014 and Today

6.72% Rate of Return

2.83% Rate of Return