United First Financial Scam Review, Legit Or Scam?
I was first introduced to the United First Financial or U1st Financial business opportunity and software product at a chapter meeting of BNI South Florida. I was the chapter president at the time and when I arrived at this particular meeting there was a guest who was networking with the others in the room, extolling the virtues of the software program. Being a licensed mortgage broker, I was curious what he was talking about.
He said that the web-based software program, which was available for $3,500.00, would assist homeowners in paying down their mortgage in one third to one half the time without changing their lifestyle. I was amazed and astounded . I wanted to hear more, so we scheduled an appointment.
During the appointment he played a DVD which explained the program and how it worked and gave a dazzling display of how a homeowner could, just by using their “discretionary income” properly, actually pay off their 30 year mortgage in about thirteen years. It was certainly an interesting concept. Then the agent told me how, as a mortgage broker, I could make a lot of money marketing the product.
A few days later I received a call from another member of the BNI chapter for some advice. Should she and her husband take out a Home Equity Line of Credit (HELOC), pay off all of their credit cards, purchase the software, and potentially pay off the eleven years remaining on their 15 year mortgage in less that seven years? Well the obvious answer is yes.
However, here are some additional questions. How does the software foresee the future? What if there are changes in the economy, your job status and as a result your income? What if your lender, as so many lenders have, “locks down” your HELOC and you can’t take any money out? What if you have a medical emergency and all of your “extra” money is in equity in your home as a result of the rapid pay down advised by the software? What then? Refinance? At what cost?
These are some of my concerns. Also, as a licensed mortgage broker and someone who has been in financial services for over 25 years, I would question the credentials of those marketing this product. After all, isn’t your home your largest and most investment? Do you really want someone who just came over from another MLM opportunity and signed up with U1st Financial to give you advice on such an important topic?
As a business opportunity U1st is structured as an MLM. The company receives $1,000.00 for the software and the rest is divided into compensation to agents, bonus pools for “branch managers” and overrides. In the beginning you split your first “training sales” with your sponsor. YOU are scheduling appointments and recruiting your downline, only to see your sponsor benefit financially until you are “qualified” to earn full commissions and training bonuses. The lion’s share seems to go to those at the top. And your appointments are face to face, if that’s something you enjoy, this may be for you.
In conclusion, I believe if you want to pay your mortgage down early, and build equity more rapidly, it might be just as prudent to add a specific amount to your payment each month. For example, if you have a $200,000.00 mortgage at 6% fixed rate interest for 30 years, and you add just $89.50 to each monthly payment, you reduce the time by five years. In the same scenario, if you were to add $233.76 to each payment, you would reduce it to a 20 year mortgage.
