I've never understood the way real estate agents think. If we spent time building a team and helping eachother rather than try to keep secrets all to ourself, I think the industry would be so much better off and the public's perception of us would improve too! That being said, I'd be glad to offer you some advice...
I started by registering with the National Foreclosure Sales Training Institute (NFSTI). I completed their training and passed the exam to obtain my Certified Foreclosure Specialist certificate. As a member they provide you with a huge list of companies to contact. It is pricey (to join and get the training), but worth it if you don't have experience with this type of valuation- you are graded on how you perform and how fast you turn in the work, so it is a good idea to understand what they're looking for before you start.
You will need to set aside a lot of time to fill out all of the applications. I created a Word document and saved my answers so I could just cut and paste into the different forms to save time. You will also want to have a copy of your license and your E&O declaration page handy.
Another thing that is crucial is an internet ready phone. Most companies send out blast orders and whoever accepts the assignment first gets it. If you wait to have the email come to your computer (even if you think you're in front of one all day) you will miss a lot of orders... trust me. The difference will more than pay for the phone and the service.
There are tons of companies out there to sign up with. I find more everyday, but here are some of the ones I do the most work for:
I wouldn't spend money for the lists- a lot of websites out there will sell you the lists. I've never paid for one and I do just fine. A little time spent on google and surfing different online forums will get you just as far, and you won't be out $$$$. I'd be glad to exchange contacts with you. If you find some that aren't on the list I sent you, send them to me, and as I come across new ones I'll send them your way. If you know anyone else who would like to share info, let them know too. I don't know why agents are so unwilling to help eachother when it comes to this stuff. There's plenty of work to go around and it's nice to have a group of people to turn to with questions.
I'd be glad to help you in any way I can. If you have any questions about signing up, the companies, what kind of info to put in the forms, etc, don't hesitate to email me with your questions. Also, once you start on the BPO's if you have any questions about the process, what kinds of information they're looking for, etc, I'd be happy to help with that too.
My advice to you? Find out about your real estate laws concerning BPO's.....some states prohibit you from doing BPO's because they consider it an appraisal and this is beyond the scope of the real estate license. If your state or local MLS allows it, then I highly recommend doing BPO's. You can make as little as you want or as much as you want depending on how many orders you can handle. I know one person who does over 100 orders per month and makes over $5000 per month and this is all he does. This is all I did after I became a new mom and I brought home an extra $2500 per month - I brought my baby with me to go take exterior photos and worked from my laptop in my pajamas most of the time. I would recommend going online to NABPOP, which is the National Association of Broker Price Opinion Professionals, and get certified in doing BPO's.
Another suggestion.....ask an REO agent in your office if you could be a Buyer's agent for them. Alot of times the REO agents don't have the time to do sign call showings, maybe you can work out a deal with them that you'll give them a referral fee or commission split of some sort for them sending the sign calls to you? These are potential buyers looking for a deal and you could be the one that finds it for them. In this current market, some part of a commission is better than no commission, right?
What about teaming up with a couple of other agents and doing a foreclosure tour caravan of the REO's that are a great deal or in a certain area, etc? These are just some ideas for you to be a part of the REO business without actually getting into the business, you know what I mean? Hope this helps! Good luck with what ever you decide to do!
I have posted the following advice in other threads on this site with a positive response and I hope you find it helpful too.
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 of the 92) that have closed registration. The rest are still accepting new agents. So make sure you register with these companies 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.
(In my opinion) DO NOT...
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!
Here are a couple of sites that I think have good information:
http://www.reointelligence.com These guys have a list of asset manager comanies for $50 and other products at higher prices.
http://www.reoprofessor Offers a coaching product for $100 and a subcription service.
http://www.LearnToListREO.com has a $25 Stategy Guide that has a list of Asset Managers to register with and advice on converting BPOs in to REO listings.
I think all three have good things to offer.
Scott is right thier is not magic to getting into the REO listing biz. The banks are always evaluating thier lists of agents and those that don't perform will be replaced. Just in the last month i picked up a new client IAS, who i never heard of, I got thier web address off a $25 list of websites from http://www.sellmorereo.com. IAS has given me 7 BPO's and 1 listing. It takes being at the right place at the right time. To me the right place is make sure every Asset Management, Valuation Company and Bank I can find has my "business card"
Best of Luck!
The foreclosure business is tough to enter.
There are established players that banks have been working with for the last 5-10 years
Even before the foreclosure crisis.
Be very careful about trying to break even while chasing this business.
A couple of pointers. Get yourself a TWO MONITOR computer system. Its cheap and easy. I use FOUR. Its amazing how much faster you can do it with multi monitors. Im about 90% paperless. Used to print out all my comps and then read them or have my daughters read them while I inputted to the BPO companies website. Now I keep all my comps on different screens and cut and paste a LOT of info. Im using my mouse on the right and keying with only the left and I sail through these things.
Pay attention to this-----they judge how much workload you can takeby howmany you complete in one day. If youreceive 7 in the morning but only finishe 5, you will loikely get only 5 the next time. After you reach a certrain number oftotal deals accepted, you will move upin rnak and get more. You will also be sent deals directly to youi only instead of having to play ebay bid sniper to get them before others do. At first I spent countless hours just refreshing my screens with EIGHT BPO COMPANIES MAIN SITES ON MY 4 MONITORS TO PICK THEM OFF BEFORE THE COMPETITION COULD. I capped that because its a main method to start building business.
My favorite company used to be Clear Cap. They have some great blogs. See how I use CAPS in general conversation? Always have. In one of their blogs I did it and one of ther employees called and tore me up so badly you would have thought I spit on his mother. I asked for an apology and they 'fired' me, LOL. Class outfit.
Some companies will set you up to receive texts and/or emails. You must have a net ready phone for those. If you are out taking pictures, you can lose new orders that only give you a short time to answer.
Ahhhh here I go writing a book. I have to go to bed. Good luck out there.
I'll nut shell it.
One used to get REOs from doing BPOs and contacting asset managers. Long story short---you dont now.
Lenders give Reos to big well financed brokers who can pay OUT OF POCKET for the electricity, re-keying, gardening, cah for keys etc until re imbursed.
There are dozens of BPO companies out there but only a FEW really have the business. Many are SCAMS, especially those requiring paid membership! They claim to put you in front of asset managers.Its a total load of crap, people.
I do BPOs all day long, every day. Have been for almost 3 years. I receive as many as 12 a day. Sometimes its easy and sometimes I have to go like a banshee mrom sunup to sundown without even eating. You are TIMED ON THESE THINGS.
There are many tricks and practices to do them within time frame and receive more. It took me two years to have Fannie Mae tell my main BPO company that they preferred my work, which insured me a larger number of BPOs and at a higher fee.
Some BPO companies are only good for orders from a limited area. You may waste time signing up with 50 and receive orders from three.
You must know how appraisers use ADJUSTMENTS. Go to http://www.nabpop.org for lessons. Most of the BPO companies also give training.
Dont get starry eyed over designations either. They are usually just fluff and not really recognized by the BPO companies.
Regarding what Wendy said below---she is correct. You NEVER EVER need to pay for BPO company lists. All of them are in the net. A few searches will do it. Keep in mind everyone and their brother and llama are after spare money and signing up with the portals. If you manage to get some orders, you have to SHINE to get more. Jeeze---the more I say here, the more I want to say and really could go on for many pages.
If you want to work REO---get in with a big brokerage that has a lot of them and rotates them mto its agents. Except for maybe shmoozing some little S&L or credit union, you wont get them on your own.
How much will you make doing BPOs? They average about $42 for a driveby and $60 for an interior. The interiors pay more but OMG are they a pain. Main pain is trying to get an appointment to get in. Remember again you are TIMED and even if the owner or real estate agent isnt around to let you in, you lose points.
How much can you make? Depending on how many homes are in your area, density, how good the comps are, etc. A reasonable amount is $1,700 a month. Starting out it will be a few hundred. If you learn quickly and do good work, About $2,200 to $3,000 is possible but with a LOT of driving. I know a guy making $10,000 a month but he cheats and uses a lot of help, clearing about 6,000 after paying out 4,000.
Sorry If Ive repeated myself or have typos, its late where I am and Im tired.
SHARON, I gave you a thumbs up, by the way. It would be fun to share BPO horror stories. Ive actually been shot at, and Im typing badly rightnow because a guy had his dog attack me and bit off my fingertip.
FINAL thoughts---dont p[ay for anything. You can gett all the info you want for free. This post started my juices floweing and Im goingto start a blog series on BPOs for all Trulia agents.
It is a well kept secret! It is almost impossible for a new agent to break into the REO business. Brokers who have those highly sought after relationships with the asset management companies make the CIA look like a woman running a gossip column. Truth is, there are a handfull of brokers/ agents getting 80% or more of the REO listings in certain areas.
Even CALHFA assigns there REO listingsto one of two firms in California.
Just go own Equator.com and search for REO homes, you will notice you will see the same agents over and over as the listing agent.
Do not waste your money joining directories. The best way to sale REO homes is to find buyers for them.
This business has changed, but it can still be rewarding. Start marekting to buyers looking to find deals in the REO market. One nice thing is that some REO listiungs actually still pay 3% to selling agent. I even had one where the listing agent paid 4% to selling agent.
Best of Luck to You,
Kawain Payne, Realtor
Also do not do BPO's for Evalonline~Evaluation Solutions On Line~~They also will not pay for 4 to 5 months, and may only respond if you threaten to put a lien on their assets, (The homes you do BPO's on).
You are right some agents post infomation and they preach that they provide information when in reality they really do not give any information at all. This happenned to me I contacted weeks ago an agent that posted information and that she is willing to assist other agents. I guess what am still waiting for her to contact me but yet I still see her post stuff. Unfortunately, it is a cut throat industry when we should all be assisting each other earn a living.
I will give you what I think about your question.
1) google for companies that perform BPOs and register with as many as you can. Usually if they request one they end up giving you the listing.
2) go to your local banks and speak with the mortgage dept. and introduce yourself and let them know what you can do for them.
3) and if you have an effective website that is marketed excessively well that's a plus because they will find you through the web. I am proof of that.
4) and just to let you know you do not have to pay for the REO banks list . Just do the research yourself.
I am not telling you this will happen over night but if you work at it dilengently you will see you will start receiving them.
I hope this helps. best of luck.
When you sign up most companies want to talk to your asset manager first see how your last few REO listings went. In other words, they want skilled successful REO agents.... After all that work people realize they do better($) with conventional RE......
Qualified REO Realtors get these gigs because they have developed good relationships with asset managers of banks. Or their cousin is an asset manager. Try to partner with REO agents in your area and do the dirty work that they do not want and earn your way in. Or you can try short sales and cut in line in front of the REO realtor. Good luck!
These are some great responses to your question. REO is a tough market and many agents are doing this now. Be prepared for escrows from hell. If you are willing to stick it out, then REO's could be for you. You can also hop into http://www.RealTown.com and get help.
Online Marketing Strategies
I hear you loud and clear. I found a fantastic site that has helped me grow my REO business. This is was the quickest way to break into the REO business. I went to http:// http://www.REOSHORTCUTS.com and I started geting BPOs within the 3 days and now I'm growing my REO listings. Check it out and let me know what you think. I've two more REO listings closing this month so far.
Try to find other agent in the area that you are working in that are REO agent. Check MLS sheets for bank owned properties, contact the agent listing these properties and offer to take them out to lunch. While at lunch get the scoop on the REO business.
Many of us know how you feel. I certainly felt the same way when I first got started. Many new and experienced REO Agents and RE Invesetors have recently found a great method to work with REO's and Short sales. Take a look, I think you will be pleasently surprised what may be available for you.
Be sure to click on the video which goes into great detail on a new method of working with ROE's and Short sales. Note with this concept there is ZERO risk on your part...
To Your Success
The best of luck to you!
Get involved with a good coaching program like Harris Real Estate University (HREU). My wife & I have been coachng students of Tim & Julie Harris for some time now specializing in short sale and REO properties. Although I believe their coaching programs and online resources to be worth the investment, they also allow prospective new students to sit in on free conference calls each week that are loaded with relevent, real-time information pertinent to Realtors and agent's in today's market. For more info on HREU, see the link below.
Best wishes for success! - Ted
send me your contact info and I will work with you and provide some alternatives that may work. I believe in enpowering people with info.... and then its up to them to take the next step...
You should talk with your broker, net work with with other Realtors that ARE working with REOs, also talk with your network of lenders.
The key to staying afloat is to lead generate on a regular basis. Pick up the Millionaire Real Estate Investor. Work on Expireds and Unrepresented Sellers (FSBOs) - contact 5 a day, your goal is five listings appointments a week, take one listing a week.
Personally, I have found listing REOs to be grueling and costly. If you're a single parent, be mindful of the lenders you list property for as some will make you pay for the expense of maintaining the properties upfront, and sometimes reimbursement takes a while. Integrated Asset Services is quite the opposite and a good Asset Manager to work with, so give them a try, too.
1) It is common that you have to put your name on utilies while you are listing the houses and the bank may not be reimbursing in a timely fashion. Meaning, if you don't have a bit of wiggle room in your pocketbook..be aware of this issue. You need money.
2) It is less like Real Estate and more like property management, there is a great deal of work and time involved.
3) I am not sure about LA, but in San Diego over the past few months this is the trend; you have an REO property for 60 days..no offers, the bank takes it to the auction and if you want to financially survive you WILL HAVE TO sit the numerous 6 hour open houses weeks before the auction..if it does not sell, there are no gurantees that you will get the listing back.
If you are looking to stay afloat in the changed market, then my advice is not to try to get REO's. Make your niche as a buyer to the REO's with investors, etc. Learn about the bank process and build your niche as the expert in representing buyers.
In addition many go the route of doing numerous BPO's, with gas prices it may not be worth it and it will take forever to get in that way. If you are really wanting to do this still, I would hook up with an experienced REO agent, see if you can form a partnership as a secondary agent. WHY? Well when you try to get on lists liek REOTRANS and REOMAC a key question is what experience do you have? As well, it will be good to get your feet wet and decide whether it is really for you.