Breaking into the REO business now is tough, any listings you get, you may not want.
Go through your MLS looking for lender owned property`s. Generally in the remarks it will say "REO, Lender owned, NOT a Short Sale.
Check out the property first!!!!,
Make sure it is not a rat hole, only choose the good ones.
Call up the listing agent. Tell them you would like to hold their REO as an Open House, in fact you would like to take some pictures, maybe a movie and advertise the Open House on the Internet, Craigslist, backpage, anywhere you can.
I like to put flyer's in Starbucks, Shh, don`t tell Starbucks, In fact don't tell your broker either.
Your Broker doesn`t need to know.
Start a Blog about the REO property`s you are holding open, include pictures. Future opens, etc...
Then go have some signs made
555 cell phone
www, your website
Hold them open on afternoon drive times, and weekends. 4 or 5 a week, keep advertising each one, and holding opens. Don't forget the chair, snacks, and wireless laptop.
Make a list of all the REO`s, and Short Sales, ( 90% of short sales become REO`s ) WaLa you are now an Virtual REO Listing agent.
No doubt about it, you are starting your real estate career at a "challenging" time.
It`s like you bought the last ticket on the Titanic.
Learn social media, web2.0, and blogging.
Finally the sooner you learn to get your clients to see a lender, the longer you will stay in business.
Prudential California Realty
Rancho Cucamonga, CA 91701
What do you all think of that?
Don't pay for a list, you're only wasting money.
Unfortunately, Jeremy is completely wrong in me trying to sell anything or having a network to join. Sorry, Jeremy. If you actually did reseach you would know that. Are you somehow mistaking a website name for some kind of organization? There isn't one. And nothing to sell. Just an information site for consumers and lenders.
As a point of clarification, I personally marketed and sold over 35 REO listings last year. No assistants or claiming other agent's work. Just me. I have some 10 active asset management accounts. All earned over time and with hard work. Right now all my listings are under contract. So nothing to post here.
But working on that :>)
Sadly, there is no easy or fast fix for getting into this business. Patience, hard work and sometimes a little good luck.
A lot of good answers and contributions here, though. Even without trying to sell things to fellow real estate professionals.
There, my rant is over. :>)
This process better suits an investor, or for a a buyer who wants a rental property.
Dealing with Bank of America is THE MOST DIFFICULT, and aggrivating out of all of them.
Your a young realtor, ....run .... save yourself...LOL
Century 21 Beachside
the reason why it is so time consuming is that there are very few REO's that are 1. Saleable AND 2. Not on the MLS.
If it is lender owned and not on the MLS here are the primary reasons.
1. Lender is still conducting post acquisition inspections, securing the property against squatters and vandals, and obtaining valuations. - They plan to assign the listing to Realtor when the asset manager determines the listing price. When you identify the property you will just be referred to the intended listing Realtor.
2. Lender is between Realtors. Listing expired with Realtor #1, Lender is in process of transferring listing to Realtor #2. - We can find these very easily because they were on the MLS and will be agian shortly.
3. Property has haz mat, structural red tag, or clouded title issues. - thus it is not saleable.
4. Ownership of REO is being transferred in bulk between lenders. They won't pull a single property out of a bulk transfer.
Your advice is still valid though, because a knowledgeable agent will understand the bureaucratic ways of the banks, and be able to guide you towards the best purchase of a bank owned or a normal seller owned home (in better condition at a price as low as the bank fixer. )
Here is my story. I bought two tickets to a Steelers game in Pittsburgh for my wife and I. On the flight to Pittsburgh, I sat next to a nice gentleman who turned out to be an avid football fan from Ohio. After talking throughout the 4+ hour flight about a number of topics, mainly football he inquired what I did for a living. I told him of course we were Real Estate Agents in Orange County. As it turned out, he asked me for my card and then proceeded to tell me he was a V.P. for a major U.S. Bank who was setting up shop in CA. So I asked him if he needed a Solid Husband and Wife team to assist with their Bank Owned properties. He said, heres my card, when you get back to CA, give me a call for an interview. Needless to say, that is how we got in. The moral of the story is...Its all about timing,relationships, and many times who you know. Good Luck!
One very simple way I have used in the past has been to go to sites such as bargainhomesnetwork and see what homes they have available, in most cases they give you the listing brokers and like magic you have some of the top REO brokers in your area.
I have Lonnnng list of BPO+REO companies for you if you like. It's in PDF form though, so email me at firstname.lastname@example.org and I will send it to you. Out of the 100's of companines I signed up with and was accepted only like 9 of them are active and actually send me BPO orders.
Then add to that the fact that most of the properties are on the lower end of the price scale...
Not to discourage but know the facts before going into this field. It's what the gurus selling you courses don't tell you up front.
Register everywhere, this won't guarantee anything, however, it won't hurt. It does seem that the tried and true are going to continue to get the bulk of the REO listings. Keep in mind most REO agents inventory is significantly lower now than it was 18 months ago, so these agents are stepping up thier game to keep and get more accounts also.
Second - be sure you have the reserves and staff to handle and REO account. Most banks will want you to cover expenses, it can take up to 60 days to get reimbursed. I was out $8,000 on ONE property. This only happened once, however, you'll be expected to cover these costs.
It is a lot more work than most people imagine. Be ready for it.
Try it, sure, but be aware it is a long shot. Do BPOs for the sake of the work itself and the bit of money it makes. Also you will greatly increase your market knowledge.
Apply like crazy to the many lenders and asset management companies and you may also want to seriously consider going to one of the many regional and national distressed property conventions. Meeting people in person can really make a difference.
I would also second the thought of a previous writer. Think about short sales. That is wide open right now.
Even as a new agent, you can trade your work as an agent doing BPO's to get SOME REO listings. Don't expect to get a ton of them like the older agents who go play golf with the asset managers on the weekends. Expect to work hard, pay the rent, and have a low expense/low profit business if that is the approach you decide to take.
That being said, register for those companies who either trade free BPO's for REO listings http://(www.usres.com for example) or other companies that will pay you for BPO's but give you REO listings after a year or so http://(www.goodmandean.com for example).
Since you are a new agent in an area that seems to be flooded with REO's you may want to rethink your independent agent strategy. Consider approaching a busy REO agent and asking to join his or her team as a buyer's agent.
You can keep track of your buyer sales and build them into you own personal database over the next couple of years, and then consider entering the market as a single agent when the listings that are actually selling aren't dominated as much by a handful of top REO agents.
Keller Wiliams Realty Professionals
Fort Lauderdale, FL
Congrats on being a new agent in CA. There are so many opportunities knocking in this economy, if you just get out there and start plugging away and working at it; this is where fortunes are made.
As for the REO's, I have always been asked why I haven't gotten into them as much. There is quite a lot of work, money and resources that are typically required when working on REO's. The best start is to really ramp up your internet presence, marketing policies and strategies and then go over one or two banks only. I personally went on Chase's website and requested the REO application. They sent me the information and the names of where I needed to go and apply bc of course most banks won't even handle their own REO portfolios; they will contract them out to a 3rd party management co.
Anyway you do it, best of luck on your jouney.
I'm not an agent but I am an investor and when I started buying bank owned properties I had the fortune of consulting with a broker that was in the business. He told me about a great "getting started in reo" kit that was the best resource I've ever invested in. It has all the forms, bank info, and process on how to deal with the banks. It also has some extras about getting your name out there.
Wish you the best of luck, Joe
1. How big is your staff? 2. How many REO properties you have listed last few years? 3. What are your business plans the next five years? 4. How many years have you practiced as a broker....
It will probably take you 2-3 years to pay your due like every other agent and find out the window for opportunity is against you. According to one agent if you have not started years ago and you have no proven track record it will be tough to bring someone in. Suggest you work on the buyer side and get experienced first.
Am I just completely out of touch, or is the fact BOA only lists TWO real estate companies representing them in the entire State of Washington completely inadequate?
Actually, no :-), it's not me that's out of touch, it is BOA who is completely out of touch! Check out their little slogan at the bottom of this website -- if I didn't see it for my own eyes, I'd think this was written as a skit for Saturday Night Live ... or maybe Jon Stewart. Read it and see if you agree ... :-)
"The Bank of America Preferred Real Estate Broker NetworkÂ® offers enlightenment
and a place of sanctuary for confused seekers of real estate."
Enlightenment and a place of sanctuary, huh ...
It was developed to meet the needs of serious real estate investors who would rather know more about a property's financial picture and less about the wallpaper in the family room. In other words, it was created to help investors find properties that feature the best financial profiles, not necessarily properties with the prettiest decorator touches.
There is something to be said for placing calls to lenders to introduce yourself. Yes...some of them don't have the time of day for you, but you never know...you could be calling at the very moment that they need an agent in your zip code (far fetched, yes). We are all in the sales business and it takes a bit of elbow grease. BUT once you have that relationship, you should be golden.
Many of my clients like to avoid doing BPO's...they just want the listing (who wouldn't). Just think of it as the dating period with that lender. Romance them and they will come back for more.
FAIR WARNING: Mess one up...and you are done like dinner.
Good Luck Folks!
P.S. Another Plug...don't forget, I can help you get registered initially. (I don't sell lists...you have to bring your own (I can recommend a few for you)...I just do the actual registrations for you so you can focus on your business instead of being stuck behind a computer for 20 hours typing in your service area :)
Breaking into the REO business is not as elusive as it seems...
1.) Utilize the relationships you have with loan officers in your area. They can be the fastlane to getting REO listings by putting you in contact with the right people. Our local Countrywide loan officer has helped us get over 80 listings from CW alone in the past 12 months.
2.) Sign up with as many REO and BPO companies as you can. There is a list of over 90 of these companies available at SellMoreREO.com. For $25 they give you the most comprehensive list that I have found on the web of company names, website links and directions on how to sign up with each. There are only a few companies on this list (I think 2 to 5 of the 92) that have closed registration. The rest are still accepting new agents. So make sure you register ASAP!!!
3.) Do BPOs and do them well. Be the first to reply to BPO assignments (often they are sent to a group of agents in the subject area and the BPO goes to the first agent who accepts). Do the BPO in a timely fashion. And be thorough and accurate. Use good comps, give a good estimate of value (inflating the price to try to get the listing will get you nowhere), and be detailed in your comments. Once you have submitted the BPO, follow up to get feedback. Once you do a BPO on a property, your name is linked to it. If you do a good job and the property goes to foreclosure, you have a good shot of picking up the listing.
4.) Once you get a listing, do an excellent job of managing it and marketing it. Follow the asset manager's instructions and meet the timeline they set forth. Communication is key. Once you've done a good job for them, they'll send more business your way.
1.) Spend thousands of dollars signing up with websites that promise business or sell you Asset Manager names and phone numbers. ASSET MANAGERS DON'T WANT TO BE COLD CALLED. If you get in touch with one, they will likely refer you to their website registration anyway, so invest $25 in SellMoreREO's list and register with everyone on it.
2.) Blow off BPOs because they don't pay well or not take a BPO assignment seriously. I don't know a single Asset Manager who will give out an REO listing without having you complete a BPO first.
3.) Overlook the contacts you already have. Network Network Network!!! I recently ran into one of my old friends who used to work with me in credit underwriting. Wouldn't you know he is now an Asset Manager at Green River Capital!
Good luck and I hope that helps!
All the requests for proposals that I see require REO property listing experience. - So typical... how are you going to get the experience until someone gives you your first one? I like Patrick's idea. It might be more rewarding personally and financially to work with buyers who think that they want REO's
Is there anyone in your company who specialize in REO's.? You might get with that person and ask if you can work in their team, if you really want to be on the REO listing side.
For nationwide listings go to http://www.repofinder.com/reofinder
Don't fall victim to pay sites. The information is all free if you know where to look ;)
here's a great article to get you started. http://bit.ly/LtVK41