172: From Battleships to Check Fraud Prevention ... How Richard Reass started RynohLive at 62 Years Young...


If you need some help with your business during his quarantine lifestyle check out our facebook group you can check the link in your episode description below. Its newly reinvigorated on posted in daily and try to answer anyone's questions and having other people answer other questions if you again if you. WanNa connect with other listeners of the podcast and hopefully we can help you and your business. Then check out the link in your episode description below or search for millionaire interviews podcasts and facebook annual see our facebook group. They were people who told me you're crazy dick and I said the thing is believe in yourself. Failure is not an option. Look within yourself strength. Get back up after you get knocked down. If it was easy everybody was going to do it. But at the end it was hard working really. Didn't know what I didn't know. It quickly realized there were no policies processes no procedures color cellphone. She didn't answer. That went by our apartment. It was empty. They plugged Rhino live in immediately. They realized that you only touched on it. Briefly said in the beginning. He had cancer three times. And you said you had a daughter with down syndrome as well. I lost her in two thousand and five in the past in two thousand nine and it's been a challenge. It hasn't been easy you just persevere and push through Good Morning. I'm Dick Reese and I am the CEO and founder of Rhino. Live say upward system that has revolutionized the real estate settlement industry. I've founded Rhino when I was young age of sixty two. I'm currently seventy six years young. Enjoy getting out and being active like all should exercise regularly. Try and keep this thing going as long as possible. The company has done extraordinarily well. It's been an interesting journey when I started. The company is a result of my being in the title industry which I joined after a long very successful naval career. Rhino live is name of your companies are Y and H Live Owen. Word. That's the product name and that's our D. B. A. Doing Business the company is actually Sagan software. What I did is I found a company called Sagan Systems which is the holding company and then I established. Llc's for each of the products that I had developed so all of my staff works with a big company and right now taken software. Rhino live is the dominant product in the biggest revenue generator for the company. So what percentage of revenue does that make up for? You like ninety nine percent of our right now some surviving big portion so it is basically is the company. So how much did your company do in revenue last year? What's The employee count? We did seven point. Four million dollars in business and we have twenty four employees most of them located in Virginia Beach which is our corporate headquarters but I have sales staffs in different locations across the country but long-term developers who worked with me in Virginia beach or years this up in Pennsylvania for ten years as white took a job as a professor in the University of Pennsylvania System. Making simple as possible. What is Rhino live to? The software is a financial management tool. We oversee the money. That's assistant exchanges hands illustrate settlement industry. As you know there are a large dollar changing hands and we make sure that when he gets put into the right account dispersed to the right individuals at the right time and nobody puts their hands in the future so to say it was an industry when I got into it. That really didn't understand how to monitor oversee and protect the money that has been entrusted to them a built it. This result of experiences title agent and simply gotten tired of losing money in other words. You had lots of money that comes in and out of your account for example when we were doing to three hundred real estate transactions month in each real estate transaction has fifteen twenty sometimes dispersants in other words checks Disperse wars attempt to send out as part of the closing process when somebody buys a house or does the refinance. You have as much as twenty million dollars in my case. Hey twenty million dollars in my account at any given time and to make sure that money was moving in the right places and getting the right time is awfully hard to do and I saw the need and built thing that I called Rhino life to track the phones. Men's clothes on real estate or even commercial real estate was what I didn't even more complex all the different people you have to pay but even if you're buying a house if anyone's been through it when you're looking at the appraiser if there's an environmental issue or a building inspector or you have all these things like you're saying that closing some of only get paid at closing and distribution of all this just from one real estate transaction you're saying could maybe good twenty different people so basically you're software. Help simplify that because if you did. This sounds like about fifteen sixteen years ago when you made this software. I can only imagine that it's hard enough like you said you have an account with all this money but it's hard for you to figure out if you're having multiple closings in one day and multiple transactions maybe twenty people per transaction. Getting this. I can see how getting very confusing why you would need software to help you. Actually disperse that money. There are counting systems where you can cut the check and what I rapidly discovered was. Sometimes the money doesn't get where it's supposed to go and was everything from putting a check in the mail and either somewhere along the line. The recipient didn't cash it or it got put in the wrong inbox. I could sit here nor galley with all kinds of stories like the time we were doing. Final title policies. After it completes the transaction you sent the deed to the courthouse. And of course you have to send a check with that record the deed and then when the deed comes back from the courthouse you send out the final title policies to the lender into the bar and you close out the file in. We use what we call one. Check one policy so we cut a check for every title policy that we shoot in all those outstanding checks in represented policies that I had to do one day. We opened the file. There was a second check that dropped on the floor and it was a check for homebuyers already and I can remember very vividly closer. Who was working for me at the time when I was running title company came out and said mysteries. I've got this check for homebuyers already. It was in the file in. It didn't go out. This was almost two months after the closing because it sometimes takes that long for the deed to get back and she says what am I supposed to do with this? Because we're supposed to get the check to the homebuyers Orna Company within thirty days. I said well you can call and see if they'll take the check and they wouldn't and so I said well it's not our money we have to return to buyer and we're probably going to have to be the home buyers warranty company because we didn't get the check to where eight at the B at the right time and it's exactly what happens. She calls the clients is returning or three hundred and fifty dollar check unconscious. What about my homebuyers orange? And she says well now. We'LL STAND BEHIND THAT WALKIE. Just if word the homebuyers company and three months later their dishwasher goes out and I had the privilege satellite buying a dishwasher but it kitchen floor for the two meadow about twenty eight hundred dollars simply because the check didn't get work supposed to go and that was one of those. Gee whiz moments wouldn't it be nice? If I knew that that check had cleared my niece has gotten into al. The whole product really has changed the real estate settlement industry because when I first entered the industry there was a requirement that you only had the balance your books. Reconcile your accounts once a month which meant that. The end of the month he would take out your bank statement and you sit with a long ruler and you go down check by check and somebody sit on the computer and it's usually my son and myself were in the beginning. It was my wife and May as she'd come in and help me because she was a banker and we go item by item. Check by check. It spent hours trying to pouncing and it never came out right manual processes make mistakes. And you go. Oh my gosh. This one didn't clear that wanted to declare. Where does it go? The thing to kind of hit me right between the eyes was a couple years. After that event where we're doing a real estate closing and was particularly difficult closing in the sense that the seller had a bunch of Liens against the property for unpaid taxes. Unpaid child support. Irs Leans front-page federal taxes as well as the state Texas in the city. And so we sent out. I guess it was about nine or ten overnights to pay off all the liens judgments and this was a closing in November of the second November and we had a payoff that was due to the IRS. On the fifth of November will our overnight carrier. Guaranteed JIM THANKS TO DELIVER. So we check an envelope and dropped off the dropbox. That was right around the corner from our officers and all of them made it to where they were supposed to go. Except the one that went to the IRS and we didn't know about it until the middle of December when the bank state in came and we were doing. A reconciliation escrow manager came up to me and said mysteries. Remember the closing. And she mentioned the client's name said yeah she's civil. The overnight carrier didn't get the check. Were supposed to be on time and the fact that they lost it. There's no record of it ever being delivered and it was the perfect storm. Cellar had moved to Alaska and we're in Virginia and we had no forwarding address that way of getting a hold of them and we call the IRS. And all they would tell us was tennyson. Check explained to us what happened and give a solid documentation from the first submission and we did that clash the check and everything. I thought was well and good six months go by and one day my receptionist calls me and says. Mr. I've got a very upset attorney on the phone. And he wants to talk to the owner or put him through and I answered the phone and and the attorney. He didn't even bother to identify himself and was stuttering and basically said to me. You fifty thousand dollars you on my client fifty thousand dollars you didn't pay off the mortgage the IRS that leading to the IRS. You took all my money I said who are you? Could you explain to me which closing this is all about and the minute? He mentioned her name. I said I will like the wall about that. And we took care of that and he says no you have it and I said well all left to do stuck to the. Irs resolved very quickly. We'll I'm not GonNa let you resolve it if you don't pay me fifty thousand dollars by Friday. I'm GONNA sue you. And the payoff was only five or six thousand dollars so it was anywhere near fifty right so I said well I'll send you all everything documentation. Let's take this a reasonable man. Approach is if you harmed by client says how I heard your client. She had multiple judgments. We've paid all of those off. It was one of many and you know I had a guarantee that would be there and unfortunately sometimes things happen that way and he said I don't care. You had a responsibility to do that and so I didn't pay him. I said I'm not going to pay the exorbitant. Amounts you give me the amount of its allegedly owed. He said well. If you don't do that I'm GONNA sue YA. Which he did and we went to court and case was dismissed except that I had to pay the penalty and paid off the irs and because there was penalties and interest because the check had gotten up there after the fifth to November and the Attorney said that I had a fiduciary responsibility make sure that check got there and I should be calling and checking every single day. At that time I was going to have to check. Be Checking on hundreds of transactions every single day. And I'm going. How do I do that and I knew I could never afford to have this happen again? Because in how they look at court rulings as precedent for law. I had also created the software system. And I've kind of probably gotten ahead in this discussion. Because the whole Genesis Verano started when I went to Arizona that I think it started this conversation. A little bit backwards with you here. No that's fine. If you don't mind just let me cut in here from time to time because I don't want to cut off your story but you just jumped in of a couple of reasons why you need your software so I think we're still good. I think anyone listening now. Probably totally understand. So how much did you end up? Having to pay for this last story that you told us with a backer and having to deal with that the whole bill when you got through with it was about thirty five thousand dollars from the five thousand dollar. Irs payment. Yeah well I had to pay you like five or six thousand dollars to the irs restaurants attorney's fees. Okay this attorney's fees. That's why I was wondering I'm Mike. Penalties SHOULDN'T BE FIVE X. You know whatever you're doing unfortunately it was twenty years. I ran the title company. The only time I had any errors admissions climbed eight. The company was very fortunate that ran a burly tie chip and we made mistakes but usually they were small ones that I paid out of pocket. Even this sounds Kinda small as just seems like you've got one of those dreaded attorney calls that screwed it up I mean if you didn't have the attorney saying maybe it costs you an extra thousand and that was it but it doesn't sound like a very fun business. At least from the first stories of white you needed create the software. I mean having to deal with this. I guess you might have still been using a computer but even if you were just like if you're just doing it at the end of the month like you said we're just talking about multiple transactions happening in a day and how many parties it goes to just not even have to do it daily but if you're gonNA wait till the end of the month then times thirty how much harder it is versus daily logger transaction lists of course one of the things. I've seen navy. I spent thirty year Navy career. You want to jump back to how we got started. Because you're seventy six today and so it's kind of funny to GonNa Point this out but I literally just got done with the interview where a guy was in the Cayman Islands and beautiful place. Obviously and then you're in Hawaii right now just before we get started with your store. Do you good Hawaii often or why. Are You doing this interview from Hawaii? When you say your company's in Virginia Beach I am kind of in that transition point of wanting to retire to do something else. I'm a three time cancer survivor. Do you want to start a podcast? I can help you out with it. So if you're cool dude or non gender well listen up. I'm launching it done for you. Podcasting service I've been doing podcasting consulting for individuals over the past few years and just recently realized is one of the few things that are actually good at Melissa. Podcast two thousand five and I finally had the idea to launch my own in two thousand seventeen and through my experience as a listener and producer. Got a pretty good idea of what it takes to make a good ship so if you're a business owner real estate investor consultant entrepreneur speaker or simply coup. Guy Like me will. A podcast is an awesome way for you to gain more attention for you and Your Business. Just imagine being able to reach an education your ideal clients so you can build trust or being able to connect with more people in your industry to build that credibility or even being able to land more speaking engagements and book deals. Well having a high quality podcast in do that for you. So if you're interested in starting a show and don't have the time resources knowledge or desire to figure it out like all the tech stuff the hosting the platforms equipment. The software the production the writing. The repurposing marketing. Well you get the point. There's a lot to producing a quality. Podcast if you fit this description. Let's jump on a call and see if we can help you only working with people that like so if you're a likeable dude gal or non gender and you think you have the personality for an awesome podcast and shoot me an email and let's see if my team can help you. Hit Me up at Austin at millionaire DASH INTERVIEWS DOT com. I've already got one client. Who's taken me up on this offer and so I've only got two more spots available so if you're serious about launching a podcast to help you and your business then again. Shoot me an email at Austin at millionaire dash interviews dot com some time cancer survivor. And I'm still in my go years. I'm very active physically play off almost every day. Do pilates exercise. If stay. We took a three mile wife and I and so I enjoy in that. We jokingly say this is our Gogo years we can still do that. And then you have your slow go years and then you feel like your mom. My Mom's ninety five and she's at her no-go years gus when those are over. You're gone so I want to extend the Gogo as long as possible and I'm at that point in my life. I really would like to really retire. Finally and enjoy all the successes that I've finally been able to achieve. It's been a long struggle kissing. I developed this product and realized what the titled Industry Doing In regards to managing and overseeing their money it was wrong. Yeah it sounds like it because again we even talked about how about this. If you want to jump back we can jump back to you when you get your new Navy but it sounds like you've kind of retired there in Hawaii and that's why you moved out there you're in about to. I live in Virginia. We're out here at this time for three months. This is sort of a test case to see whether we're going to stay longer or just come once you're twice. We have been coming twice a year and they will only been doing that since two thousand seventeen because when I first started rhino in two thousand seven is what I call my soft opening. And we just had agents around Virginia Beach and Norfolk Virginia using the software and we had only at that point been able to do the integrations with one settlement software one accounting system. That's the dominant software settlement industry and so for two years we were local and we only had one software but right now we agreed with over twenty different real estate settlement softwares. We cover the entire country. We have clients in forty eight states the district of Columbia. Our clients are everything from the very very largest home services all the way down to the mom and pop shops in a little rural communities. And so we've got the mega clients. We have title insurance underwriters. We have over a hard number about thirty five forty percent of real estate transactions. Go through our systems relational Well it's a big number. Yeah so you've given us some numbers. Yeah we definitely understand your size. As far as if some twenty something. Plus employees over seven million in revenue. So you've given us a good view. I just checked to congratulate you your oldest guest on the podcast today so by three years. I like people that have some experience. Sounds like we have some so you started this in two thousand four two thousand five. We're talking maybe you're about sixty four years old or so during that point in time publicly just jumped back. Even I mean you come out of college and go in the navy. I know we can kind of quickly. Maybe go through it. But I'm just curious if any of that helped you with your business. I am definitely melted by what I learned experienced at a Navy I had a very unique extrordinary career. As many senses the word I graduated from the University of Texas I was on a Navy scholarship to attend the University of Texas on an ROTC fellowship. I was graduated commissioned in married on this same day June. Fourth Nineteen Sixty six. That was the height of the Vietnam War and so I went into the navy. Thought it was going to be a pilot but I didn't have the eyesight to be a successful pilot so I wound up on a ship out of Newport Rhode Island because of that experience in my first tour I was picked up for early commands so as at the age of twenty nine years old I was sent to command of mine. Sweeper and with that mean with minesweeper do it was you know wooden ships and iron men one of the ways that you can protect your harbors and your approaches is to what the calm lay mine sir explosive devices or placed in the water they can either sit on the floor of the ocean or be suspended and cables sort of if you've ever seen some of the Old World War Two submarine movies with the big ball with the little horns on it. That's a contact mine. And so to protect the ships you have these things called minesweepers who have volleys devices. They can drag behind them. Were they. Can cut the mooring cables on the minds. That was lieutenant commanders job. Which meant that you needed. Be IN THE NAVY. Ten fifteen years right. I'm Google right now. This is interesting. Yeah so if you minesweepers. One word is basically a small kind of tactical ship. Where you're going and making sure that the big ship doesn't get go and contact with any of the mindset. Maybe other people have laid great okay so this seems like a dangerous. You have like you. Probably don't WANNA LISTEN TO BE ON THE SHIP. That's going to look for mine's as to make sure that's right okay. And they're made out of wood. Okay well I was a lieutenant ahead. Six Years Service when I took come in is an officer and the Guy I replaced had sixteen years. Do you want to tell us how that was able to transition you coming out of the navy and then did that make you WanNa Start? Your own business right away. Or what was your plan as part of the navy and got into the business world because his ninety three it sounded like you said right when he retired during Desert Storm. Iran the embargo of Iraq. I was spanned with a multinational force and there was a book written by L. Santoli call leading the way which talked about the key leaders who have an impact on the outcome of the war. The first Gulf War. Who had been melded by their Vietnam experience? And I have a small chapter in that book after that I came back home but I thought the war with a very serious illness culp Russillo basis which had a profound impact on me in my career. In the Navy I went into a job. After the squadron job where the last three guys have made flag so I was on track except that I came home and wound up being hospitalized for this gopher disease and then lost my job at the Atlantic Command because I went on with call. Limited duty went up to Washington. And it's funny how Lemons Become Silliman eight at the time and when I'm good job who is Director Management Information Systems Bureau naval personnel. And we responsible for the conversion of the enlisted service records from paper to digital and I got a call one day and somebody said a perfect job for you here working for a defense contractor. I said well. When would I start? And he said when we win the contract and I said well if you win the contract I'll get out of the navy you can use. My resume just went back to doing my work and I called three months and said we won the contract. You still get out I said. Yeah that's how I got out because there was no one who floors on my elevator left and I went to work for this defense contractor developed a couple of programs and left that job but will you out of the Navia the point or you still in the navy. After I retired I went to work for a defense contractor which I really didn't like that. Okay so this is a transition. You're talking about when he came out of the navy. This is working for a defense contractor for a couple years. You were like fifty years old at this time just about it. Seems like what's up till this point been all navy stuff even now? Even the defense contract stuff is still sounds military related. Obviously so you're still in that field. You hadn't started growing Title Company. At this point. I wasn't happy and doing some of the stuff and so and I was kind of like restless and so my wife who was a banker approach me says well. Why don't you go started title company? Like what are you talking about? Oh my wife was a private banker which is now Bank of America and she used to go to the real estate closings for her clients and they had just passed along Virginia. That you didn't have to be an attorney to do real estate closings. She says you ought to start a title company because you know all about real estate. My mother was a very successful realtor in Houston Texas. And when we were stationed San Diego in the mid Seventies. She came to visit and said Dick. Once you get out of the Navy Moment helped me run my real estate company I say. I don't think I can do that right now. In one of the other problems handicapped daughter had down syndrome daughter. My wife was twenty two when my daughter was born and so I stayed initially in the navy because getting medical care because three existing conditions. I wouldn't be able to get medical insurance to cover the illicit my down's syndrome daughter. And then I discovered that if you stayed in the navy for retirement she would get a portion of my retirement income if I had died before her as one of the reasons I stayed in so when my mother said what should get out and come home. That was GONNA be a problem and almost got out oils first eligible to retire but didn't because that was right in the middle of the big savings and loan Brouhaha in the mid eighties and my wife was correct when she said you know while about real estate. Well I sort of but I didn't because I knew about the real decide I didn't know anything about title. And so she said I can hook you up with the paralegal. Does my closings and the two of you can see what you can work out. So I figured I could do anything I could figure it out. I did read the books. I was a quick study. I thought except there were no books and so we started the title company and pearly didn't know what I didn't know and quickly realized there were no policies no processes no procedures and so one of the things that really helped me more than anything else in the navy. But I was at the Atlantic Command as the j. One which is head of personnel for everybody in us. Atlantic Command doing this leadership training and one of the Nice things about the military was. I did get a lot of leadership training. And so they were going through this thing called. Total Quality Management Tq L. W. Edwards demming. And so being as the J. One they wanted to simplemente throughout the Atlantic Command and so I had the opportunity to tax ago to study under deming before he passed away so I learned total quality management physical process control. My degree is in statistics and operations research. And this kind of melded into who I am and what I am a so I actually taught tq. And when I started the title company and at Rhino or Sagan. I follow those fourteen points in. You know you asked me. What was my favorite book? The book by Jim. We're about out of the emperor's general thing that the book that probably helped me the most you'd like company was out of the crisis in those fourteen points about building in quality removing fear and has really been the heart and soul of what. I've done with running up title company and Rhino so the title company started in Nineteen Ninety eight right so again your mid fifties when you started that fifty five. Yeah yes I'm like you said there wasn't a lot of knowledge are for you to set this up. So how did you do in business like your first year and getting started? We did fairly well. We became very successful very quickly because I put processes and procedures in place. The only thing that I've had my wife Otilia the transition of leadership navy style. I can't tell you to do something I have to ask you something. Was that hard for you to do. Since you're in your mid fifties at that point yet it was I could imagine. It was extraordinarily different. When I walk into the room. Nobody would stand up and go attention. Ondeck alley anyone at the time. They wouldn't even acknowledge me. And in the Navy I had almost ten years in command I mean during Desert Storm. I had sixteen ships worked for me at one time. Definitely a different in your power and authority to I guess navy. They put this button on. Your right side commanded see started. A call at the is was but you is in you was so I definitely was and so that was hard. Did you get one of those stars to wait around the office to or no? No no no. You can't do that. Have the plaque with the little bells you know but I took that out of my office. Put up this little. I know WHO's in command? I'm not sure WHO's in control. But that was probably the hardest thing for me was adapting to the mindset in a change in culture but then again there were some things took me awhile quite frankly as I struggled with it in the beginning on the ship behind you to be successful and I really had a lot of problems in some ways and relating to people think operating particularly in the title company and particularly when I started building Rhino in Santa. Can't you explain it? Can you explain to me how this works? And what doesn't why this is important and I struggled with that and said did you get better at it. Over time is that what kind of made you successful over time here? I was when I started right now. Changing the industry's only had a balanced your books. Reconcile your bank accounts for a month and here comes. This guy decreases new to the game. He's coming out there and saying he shouldn't be doing it once. Money needed to be doing it every single day. You have to use these things called positive pay system that prevents the bank from cashing fraudulent checks. He needed to be using secure system. Listen will authorization for wires and separate computers because after that experience I had with the ups again the overnight being lost I started doing research of businesses and how they operate it and discovered that the big businesses and they were describing businesses as those dino Over five billion dollars a year in revenue. They use the sinkhole positive bay. They reconcile their accounts. Books on a daily basis. They had these checks and balances separation of authority. Well shoot in my little title company. Jahmai revenue was only a couple of three million dollars a year. But my Gosh I was putting seven or eight hundred million dollars a year through my escrow accounts and I was managing as much money as a big company but I was operating like a mom and pop shop. Anti title club did understand that there were a business. They thought they had until the end of the month fix their problems in the bank would make them whole again if there was a problem in the account but the wrecks and all of a sudden rules. They've really only had twenty four hours to correct. The problems in the bank was under no obligation to make them all because they provided them that information on a daily basis online so when you started the title company did it to grow slowly over time until you develop your own software. That's obviously when there is a change in two thousand four but if we kind of fast forward in our limited time here left. I'm just trying to figure out what your growth path was. Was it all easy? Once he started getting the business world and after he learned how to talk to people instead of directing them no actually. The title company became very very successful in fact. Rhino live was not the first software that I built within two or three years. I lost total control of my operation. That was the big refi booze and all that and we were right on the cusp of and I had no idea who had what file but the status closing was and so I said I need a system to help me manage my day to day operation so I built this thing called Cap Transaction Insurance Program so I was the first guy in the industry that I'm aware of that had this online transaction portal. Where I was scanning all my documents you could. Click on a hyperlink. The client could see what was going on with their real estate closing in I- internally a new who had what file and what was being done on dated a real time Biz status so I built tap ahead this document scanning and imaging system and by two thousand three I was paperless. Were nearly paperless in my office because of tap and so I was working on that when the whole genesis for Rhino really started with the positive pay check and that was in two thousand and three was the first time I had fraudulent checks shit by escrow account and it was detected only because my wife was a banker and her sister who would end up working with her for twenty eight years called one day and said what are you doing with all these duplicate number checks clear in your escrow account. I said Jackie that can't be reprinted checks. We can't say number twice. She says well it's happening. I said well senator checks look at them. They were fraudulent. Jacks and somebody had gotten one of my checks and started printing duplicates ex-oil shortly after that I went into Arizona and for the American landside. Liz sociation I had just joined the American Land Title Association and Their Guest Speaker that year was frank acknowle. Who wrote who was movie. Catch me if you can with Leonardo di Caprio and he talked about positive plan. That needs positive. I know what he was talking about and he said you have to have positive pay to protect you against check. Fraud slowly went back to the time my wife. Left Bank of America. She was at a Community Bank where she started the private banking division. So that bank and I went to the CEO who was had been her boss. Bank of America's this thing all positive pay and he said we're not GonNa do it so I went to another bank to get it only to discover that it didn't work this software that I had. I built it so now I was doing positive pay and I was being approached by the bank. That said. 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Obviously now hindsight's twenty twenty good thing that did happen to you. 'cause you're able to incorporate as positive pay and then if that was working obviously the banks would want your competitors the other title companies to do it as well so. I guess that's how you're able to become more of a software company and I guess sell license your software to these people and you say today sounds like thirty to forty percent of real estate. Transactions are done using your software. So it's quite amazing how you've come from the Navy to getting into the title business and coming more of a software business. Let's say five or six years after that so just looking back on your story especially the business heart what he thinks the hardest part of. What are some things again talking to people who are listening to your entrepreneurs want to grow their businesses? What's been the hardest part about doing this business implementation in your life for me? It was changing. The Paradigm Change will only occur when it can no longer be avoided. I think that was a damning statement getting the industry to change the understand. For several years I was an army of one dunk. Who proselytizing but I was supposed to and the thing that really made it for me was the financial meltdown in two thousand eight. And that's when the industry tanked will also in the title industry. A lot of people were putting their hand cookie jar because there really was no oversight on the escrow accounting and there was a near simultaneous failure to title insurance underwriters. One was southern title at Richmond. Virginia my home state and the other one was New Jersey title about at a New Jersey. They both failed because their agents were embezzling money out of their escrow accounts some people had defined the industry as a playground for criminals. You also had attorneys titled Fund of Florida called The fund. They had about eighty six million dollars. Embezzled they would have failed. Had Not old republic stepped in and acquired them and cropped them back up and so the National Association of Insurance Commissioners which is Fairly Supportive Association of all Mistake Commissioner Insurance that needs to look at matters affecting the entire insurance industry. And of course there's subcommittee for title a small one and their charter was looking at escrow. Thatched regulatory compliance and business practices and they were putting together an escrow white paper trying to determine what the industry standards should be because clearly it was working while I got invited to testify in August. Two thousand twelve and I had already been doing this presentation. It was standards the imperative for change and I just laid it all out toward advice and I said here's what you're doing. Here's why it's wrong. This is what you need to be doing. And this is the system some policies and practices that need to be put in place and essentially. That's what HAPP- that was what was adopted. In fact the American Land Title Association Adopts What they called Best Practices and their standards. They don't call out Rhino live. But if you read what you required to be doing it can really only be met by the use of byproduct because it's electric verification. Its financial transparency. It's real time not daily real time reconciliation of your accounts and we've saved fifteen players that I know of. I don't have a single client. That's paying more money than I've saved. An estimated has been the most rewarding thing. That's what I really working for. What did he even WANNA start? Taito business you'd have to ask my wife. She wanted you out of the house. I just wanted to do something that was going to be mine. I mean even the defense contracting beside created this program in fact that went to the local companies. I said hire me. I have this vision for a product. Hire me. I'll get it funded running a did that but it wasn't my product and when I became so successful they let me go because they didn't want to have to pay me all the money right. So did that light a fire underneath you to start your own thing. Yes I wanted something for me. Did he have plenty of money? Saved up did you have to work like what was the risk. Because I think what I'm pulling from. Your story is anyone who's listening to be. I think you're never too old to start a company or start your own thing really. You started your first one really at fifty five. Yeah sounds like so if you have any input or any thought process. I'm like okay. Maybe I didn't know how much money you had. Or maybe someone's listening doesn't have much money. And maybe they think they're too old and they might be thirty or something like that. Could you help anyone relate or like what your process was and how you're able to do it it was self funded not much to my wife? I was very successful title company every Penny I Made. I used to fund rhino. And even talk about this but I also fought David and Goliath if you remember the movie about the windshield wiper the guy who invented the various speed windshield wiper fiscal touched genius or something. I can't remember the name of the movie where he went to believe. It was Ford and said I've got this variable speed windshield wiper that you ought to be able to put on your cars and so even the great big contract and started a factory and is it called flash of genius flash of genius. That's it yeah thank you go. It's not me but that's good. Don't ruin it at all because I want everyone to watch it now. Looks like you got some good actors. I had one of those. I was a very successful titles. I had the largest. I was an agent. What are the national underwriters? I was there exclusive agent I was in business partnerships and so when I had this product called Rhino I went to them with the idea. And we had not slow agreements and all that other stuff and it's always two thousand eight. They lost two hundred eighty million dollars in two thousand seven from embezzlement and other problems. And I've been talking since two thousand and four about Rhino and they weren't interested and so in two thousand eight the approaching. We're interested in this and so we started to do the dance. And that was the head prostate cancer. They gave me a binding. Mou said sign on the dotted line. Of course. When I read my board looked at it and I said this is not they declined to work with me and very shortly thereafter told me that they had a company that did exactly what I did. They found which they did. Is THEY PIRATED? So we had to file suit and batteries two million dollars by the time. We got through all of that in two thousand fifteen. I was in deep and seven figure but it wasn't an option and it was David and Goliath and I was the only excecutive from the company. I was army a one and really took it's toll and it was only after I came through that we prevailed but it's kind of like a pyrrhic victory because you dig two graves than it was able to truly be unsuccessful as able to hire other people and they were people told me you're crazy. Nick and I said the thing is believe in yourself. Failure is not an option. Look within yourself strength. Get back up after you get knocked down. If it was easy everybody was GONNA do it. But at the end it was hard work. They were nights. When I first got started where I didn't come home at night. I was working effect the janitor the building where we were at our offices on my wife would come in and said you got to do something about you gotta relax them as part of why. I am where I am right out. I finally got relaxed and finally be successful and the people of my product. I mean one of my favorite tagline has Craig Haskins Library title. We did a little testimonies three things. I look for in warning my First Cup of coffee. The Wall Street Journal and my Rhino morning report but the whole key is people. I haven't even talked about people to me. Like people are my passion. I have a core of very loyal people who been with me my two developers John and Jay Dee developers hop around they've been with me for twelve and fourteen years. Stephanie Davis Manager Product Manager. She knows the product better than me and Deborah. Who is my comptroller? They've got my back. We are a flat organization. Everybody has an we work profitsharing. Everybody in the company gets same bonus. I don't care if an entry level support person or your department had all get the same bonus and we pull all the departments together so you break down the barriers and so the bonuses are based on performance of all three departments together and so everybody is helping one another make the barriers and try and put people in golden handcuffs. We Love Dogs in the office. Have Pizza Bays all enemies and it's awesome lunar we started the company Gomez. She's a six Sigma Black Doll. She's not my son who Sarah and being the boss's son US early been hard for him but he's blessed he's taking over the sales and marketing company doing great things. I'm only as good as the people that are behind me and the fact that I can come to Hawaii for three months and not miss a beat with the company says it all so in two thousand fifteen you talked about having file also The only guy left in the company. Because that's the only part. I was a little confused by. I was the only executive at that time. I think we're four or five of us. Gotcha you talking about the developers and you said a couple of been with you for about fifteen years or so and then tells what happened with that lawsuit. Were you able to actually make money from it? And I didn't make money. We were ready to go to court and fortunately because I had it will go to journeys. I think it'd been in Norfolk and the rocket docket and like two weeks before they were supreme court ruling about Bissett methods patents because I did rhinos patented they challenge the patent was and that was going to drag things out for another couple of years. I couldn't deal with it so we just settled out of court. It was going to be too difficult to be burned through all of the money. And it's an anyway and you'd probably burn through light. Just yeah I mean. I was working all day in the company visit. How much money did it cost you to do? All that to court over two and a half million dollars how much it cost. You will not raise the money but it's gotTa be repaid. So that's what you're talking about. You went in debt is because of this rate. So was it all worth it. Yeah Dat is yeah. It is the lawsuit. I wish there was some other way to have done it. Sounds like it obviously. I think that's everyone's business owners less worry like that's the last thing you want to deal with because it's already hard enough to manage people run a business much less at lawsuit onto it and then you only touch on briefly said in the beginning. He had cancer three times. You said you had a daughter with down syndrome as well. I lost her in two thousand and five. So right when you started basically in a dead fast in two thousand nine lifestyle. A couple of a challenge. It hasn't been easy you just persevere and push through I've been married for fifty four years chuckling says there's no logical reason we're still married. Yeah I've been looking back on your whole story. Sounds like it's one of obviously perseverance. A No we didn't dive into much of the details but I didn't think it was really necessary as much because you've got a broad spectrum of experience but looking back on it. Is there any words of wisdom again for any entrepreneur? Who's listening right now? I think it's important to believe in yourself. Make sure you've got a good. Cpi Good banker darn good lawyer so things set up properly and then I chose to self fun. I never had anybody looking over my shoulder. I liked that. There are those who want to go out and raise money and use other people's money and for those reasons but so that's pros and cons. Would we be probably but would be success? Oh the profit margin of our company is phenomenal so I can say and nicer last sorts always them. If you'RE GONNA have a real say closing make sure you use rhino software. Yeah whoever the title company is alive. We've saved clients. Millions of dollars in the interesting part was our very first client. That was a law firm at Virginia Beach. And when we did the training back then we used to go to the officers do train outsold Internet based but we went into training and the next day the Paralegal who managing the restaurant counts. Didn't come to work. And she was at fifteen year employees coming to work work. The longest hours didn't take vacation data and other was on a Friday. Come to work in the next weekend. The following Monday. She wasn't there either and they began worried. She's a woman in her early fifties caller foul call her cellphone. She didn't answer. That went by our apartment. It was empty. They plugged Rhino. Live in Bang immediately. They realized that she'd been embezzling at that point out of that account one hundred fifty three thousand dollars. I thought it was just going to be something in balance the books I had never looked at it as the way the catch rock. We prevented check fraud. We've prevented wire fraud. We prevented cyberfraud caught embezzling employees bank errors. It's in effect right now. We do. This program call ran alive because it's in sociology with L. Anti State. We solicit input from our clients and overwhelmingly. They love our product. In fact they will just say that was the only does what it says it's GonNa do. Thanks again for coming on and sharing your story and think it's been very interesting one if anyone. Richard wanted to say thank you for doing. The podcast is their best way for them to reach out. And say thank you either through. Text me or call me at seven. Five seven five three six nine thousand nine hundred fifty nine texting is probably the easiest best way or Dick Dot Are Assess at R Y H DOT COM. Thanks again for coming on and sharing your story and I guess if people work in Tex- you or call your whatever price like you said text first but be open to any entrepreneur. Who might want to talk to you about like growing their business or is it is specific. Like would you rather them email you? I could. I just WANNA make sure. If you're you're you're number that we make sure that people are asking random stuff that we make sure we get someone that you can actually help. They're probably a best. I will respond to everybody. Let's put it that way. Thank you for coming on and sharing your story and again being a appreciative of your time and having the opportunity to go ahead and help these other entrepreneurs learn from your story. So thanks again. Dick Austin thanks a lot. Thank you so much for allowing me the Opportunity Sheriff Right. Thank you have a good rest of your vacation now there. We'll do millionaire interviews even though you're probably one right now while listening to this podcast this very second. You're actually listening with thousands of other listeners. All around the globe and if you'd like to connect with those listeners all around the globe or maybe you want to ask one of our guests a question about their episode. Well then check out our facebook group to search for millionaire interviews. Podcasts ASTA the Wego Baby.

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