Just put it this way.

Rekey $125, Clean $125, Trash Out $500, Yard $100, HOA up to $$$ whatever, Repairs up to $$$ whatever.
Elec, Water Deposit ($250), Gas. Monthly clean and yard service.

Estimate around $1500 per listing that you will front and not get back for up to 160 days.

And you havent even got to your overhead yet. It is a volume game.

With 20 new listings a month, your already in the hole about $20K not counting ongoing yard, elec, gas, water, pool, cleaning, etc. that is just the new ones.


KP

"What do u mean by pay all the bills on the REOs until they sell?"

Simply means the listing agent handles all the management, maintenance, and bills for the property until they sell it. The REO realtor works for the bank or mortgage company; many of the REO listing realtors have their own small property preservation companies. They have the property maintenance duties performed (yard maintenance, broken windows, roof repairs, gutter cleaning, trashouts, general foreclosure cleanup, etc.), AT THEIR OWN EXPENSE and they wait to get reimbursed by the banks for these expenditures. They often hire or sub out the jobs to smaller foreclosure cleanup companies or individuals, pay them from their own pockets, and wait 60-90-120 days to get their monies back from the bank that owns the property.

If you are a small foreclosure cleanup company and you have set your company up so you can wait to get paid when the listing agent gets paid from the bank, you'll likely get more work from that REO realtor because you are freeing up their cash flow (tying up yours, but freeing up theirs). In many scenarios, this is a good idea so you can get more work, depending on your relationship with that realtor. It's nice when the checks start rolling in, but that waiting period is a bummer! Consider factoring your invoices so you get your money right away.

Good luck!

Cassandra, CEO, Foreclosure Cleanup, LLC, Atlanta

Hi Maha!

I have spoke with several of the large REO listing agents in our area and they all say they have to have pretty big pockets since they are having to cover all the expenses related to the property. Some have actually never been paid back from the bank so be aware!

Good luck!

Hi Maha,
In our area the REO listing agent may be responsible for paying for all types of bills related to the property, such as trash out, pool cleaning, utilties and then getting re-imbursed by lender/owner. Each lender has their own system and expectations which is part of their contract agreement with the listing agent.

If you are going to list REOs you will need back up funds to front these items, check with REO listing agents in your area.

Hi Maha,

Not sure where you are taking this phrase from but I'm sure they are talking about gas, electric, water, HOA dues, yard maintenance, etc.

Hope this helps,

DeeDee Riley