Working in this specialized niche has brought me to the conclusion that there are many Buyer Agents out there who are either not knowledgeable about the REO process or fail to inform their buyers of the process. I think this is a key aspect to a good relationship with your buyers and that as an Agent, you owe them the full picture of what they are embarking on when buying an REO property. Some key areas that really are necessary to convey are:

READ THE BANK ADDENDUM - The bank addendum is always a part of an REO transaction. Advise your buyer to read through the whole thing (no matter how many pages it may be).  There are fees, disclosures, what the seller will and will not do, not to mention a very strict timeline.

AS-IS, Where-Is - IT IS WHAT IT IS FOLKS!! In the Bank Addendum there are many items that refer to this part of an REO. Very rarely will a bank do any sort of repairs unless they are specifically noted in addendum. Some of the items mentioned in the bank addendum are termite treatment, HVAC or a specific dollar amount that will be allotted to buyers for repairs. Also note that if the buyer does go out on a limb and request repairs the process to get an answer is not speedy at all. The LA must get at least 3 bids for each item (or group of items) and then submit to seller for approval. That alone takes time and to expect an overnight answer is unrealistic. Your buyer needs to know this and when it states "AS-IS" that is exactly what it means

Closing Date - This one is an issue because many Agents do not inform their buyers or the lender of what exactly the closing date means. When a bank addendum states that a property must close on or before "XX-XX-XXXX" it means that the transaction must be completely closed. NOT just buyer signed but buyer signed, seller signed, funded and recorded. This is what the closing date means. Once a buyer signs, it takes a MINIMUM of 48 hours to receive the seller signed docs back and for the loan to fund. Understand that when your buyer goes in to sign their loan package for a purchase of an REO property, they DO NOT get their keys that day! Please make sure that your buyers understand that because it can be awfully disappointing and the buyer will blame their agent if they are not informed of this in the beginning.

Per Diems and Extensions - Refer to paragraph one J Read the addendum. There is always a paragraph in an REO Bank addendum that refers to "Time is of the Essence" and breaks down the per diem your buyer will be charged for every day they exceed the agreed upon closing date. Extensions can eliminate this but the seller must agree to it and they usually will not extend more than 10 day increments and forget about extending from one month into another without the per diem.

The bottom line is this: It is not fair to your buyer if you do not inform them of the REO process ahead of time and give them a heads up of what to expect and what NOT to expect. If you inform your buyers and yourself, there are many great REO properties out there and your buyer can indeed have their dream home. REO is a great way to go when looking to get the best bang for your buck, just know the road to a successful REO closing and how to navigate it before you make the trip.

Hello Rainers!

I am here requesting some feedback on what your process is for EMD's for REO's. If your office holds their own EMD's, at what point do you recieve them and what is your process?

I ask this because I have seen a situation where the Listing Agent office holds their own EMD's in their own trust account and that amount is deducted from their commissions at closing. While this can be a great process if handled correctly, it also leaves open doors for mistakes and EMD's never recieved. My questions are these:

When do you require EMD to be in your possession?

What is your intake process for EMD's when your office holds them?

Is there a way for Title to have to verify reciept of EMD before closing in this type of scenario?

I am more curoius than anything on these processes and how offices handle it when they hold their own trust account.

Gosh, it feels so good be back with my fellow RAINERS!  Things have been crazy busy (which is a real good thing J )

The REO market is a specialized niche and not for Brokers who hate to be too busy (is there such an animal?) In working with many REO Brokers, I am constantly amazed at the amount of work involved and the need for them to have working systems in place in order to make sure nothing (and I mean nothing) falls through the cracks.

The most constant thing I hear from REO Brokers when they contact us is that they have systems in place for the working of assignments, BPO's and the listing activities but seem to have neglected to have a working system for the closings. For the really successful Brokers in this niche area, they can have anywhere from 20-60 properties in the closing pipeline at any given time and with that volume, things do get neglected in simple hopes that they work themselves out. Some of the items that get overlooked without a working system are:

•·         Financing Contingency

•·         Inspection Contingency

•·         Loan Status

•·         Title Completion

•·         Company paperwork submission

•·         Repair Requests

•·         Addendums Sent for Sellers Signature

•·         Consistent Communication with all parties

•·         Platform Tasks

•·         Funding/Recording Status

•·         Thanks to Parties who made it happen

Asset Managers and Banks have one goal: CLOSE THE TRANSACTION! Of all the tasks that an REO agent has to complete through the course of an assignment, getting it closed has to be one of the most important things to monitor.

Enter the "Closing Team"...... whether you have an onsite team or you sub-contract it out, this is an absolute necessity to not only creating a successful closing department but to also show your Asset Managers that you CAN handle what they assign to you all the way to the end. There is nothing more frustrating for an AM than to not be able to get an update on any given closing at any given time. I cannot stress enough the amount of times I have heard from AM's that it is very comforting to know that their REO Broker has invested the time to put a system in place that makes their job easier and gives them the confidence to issue more assignments because they know they will all be handled all the way to the finish line. And after all.....................isn't that always the goal?

Building a Real Estate business takes a real commitment, mentally and physically. There are always some tough decisions to be made when deciding the right vehicle to use to send your business to the next level of success. Hiring an assistant, either remote or on-site, is one of the toughest. On one hand, you know that you need one. On the other hand, is it the right move or are you just better off doing it all yourself?

Hiring an on-site assistant has simply become the least desirable way to go from many different standpoints:

• Many hours of training - with no guarantee that the knowledge will stick

• Providing equipment/software/office space

• Employment taxes/benefits/vacation & sick pay

Enter the Real Estate Virtual Assistant. The REVA is an experienced assistant with an entrepreneurial mindset. An established REVA will be able to provide multiple references and knowledge portfolio. Choosing this route gives the agent the benefit of an assistant and the peace of mind to know that their business is being held in capable hands. So, why haven't you done it??

• Fear of not being in control - with any business owner, handing  over major responsibilities is a very tough thing to do

• Lack of time - hiring any assistant is a time consuming activity

• Money

• Lack knowledge of the hiring process of a REVA -  just seems like too much work

Ok, now that we know why you haven't, let's take a look at these points and show you why you should.

Control Issues - Any REVA will be able to relate to this. One of the many benefits of an experienced REVA is their exceptional communication skills. In today's technologically advanced business world, there is never a reason to miss a communication. A REVA not only has access to all of these avenues but is knowledgeable and can help the agent decide the best way to always stay in touch. With the right REVA, there will never be a time when you won't be fully aware of every action being taken, the difference is that you won't be doing this yourself; you will be out listing and selling while your business grows.

Time Issues - The bad thing about the mindset of "I can do it in less time than it will take me to teach someone else" is that if you change nothing; nothing changes. The right REVA comes equipped with all the knowledge needed and as more knowledge is available, your REVA will find it and learn it, it is what we do. The only type of training you will be responsible for is any agent-specific plans. Once you overcome this issue, you have gained time, not lost it.

Money - This is a big deal! The main question that only you can answer is what dollar value have you put on your time? Have you even really given this much thought? If you haven't then this is an absolute must whether you hire an assistant or not. Knowing what your time is worth will put the money issue in perspective. Once you have a dollar value on your time, grab a pen and paper. Figure out every hour you spend on (or really should spend if you had the time) a closing, sufficient marketing, lead management, listing presentations, BPO's, FSBO marketing, client communications, website development, agent blogs, the list goes on. Now take the items that you currently do and put a price on it, next look at all the things you can only wish to do because you don't have time, what is that worth? Could you get more listings if you had all these systems in place running without you? Could you get more ratified contracts? Think about the results! As said before.............only you can put a value on your time.

How? - This is not nearly as difficult as it sounds. Make a list of the "must have " services, then add a "wish list" of services. Next, find a reputable REVA Directory (not just a VA directory) such as http://www.virtualcas.com/ or http://www.revaprofessionals.com/. You will then submit an RFP (Request for Proposal) for your "must have" list. You will then be contacted by those REVA's who are qualified to meet your needs. Interview, Interview, Interview! You will find one that meets all of your needs and will most likely be able to help you develop a plan to get your "wish list" as an added bonus!

I will promise you one thing....once you have overcome the obstacles that have held you back from hiring a Real Estate Virtual Assistant, the only question that will always remain is "Why didn't I do this sooner??"

Sandi Logan is the owner of Logan Real Estate Support. Sandi's Real Estate Virtual Assistant Team provides Transaction, Listing and Marketing Coordination services to Agents & Brokers around the country.

            In today's society there are so many of us becoming aware of what we are doing to our environment with everyday activities.  And among those are more and more real estate developers.  Two of the most important issues are water and transportation.  Going green definitely requires more site evaluation, planning and design but nowadays it's a great way for developers to get noticed.  A lot of home buyers are more environmentally aware and they are looking for communities that are just as aware as they are.

            Water recycling systems are becoming ever so popular.  Stormwater from properties will be used for irrigation throughout the development and the use of lakes that have been built into the communities will also be a big contributing factor.  Preserving wetlands gets a big thumbs up for many of us also.  Reusing gray water for irrigation is also a big plus.  The gray water can come from bath tubs, clothes washing machines or dishwashers.  Some developers have an on site waste water treatment system that will filter out and disinfect the water that is going to be reused.  How nifty is that????

            Okay, now for the transportation aspect of it all.  Remember the City of Mayberry??  Well, it's about time that we get back to that idea of having self-contained communities.  When we put together retail, grocery, shopping and workplaces that are accessible by bike/hiking trails, it makes us all more likely to park our cars in our driveways and go out and get some exercise.  Not to mention what it does for our environment.  A lot of these communities are going as far as having a shuttle service provided.  And if the shuttle doesn't get ya interested, what about those neighborhood electric vehicles.  They're actually quite cute.  They look like golf carts.

            Keep up the good work guys!!  Get those communities out there and I guarantee that the real estate market as a whole will boom, boom, boom!  With all of the people with green in there eyes nowadays, it's another win win situation!

What was it, almost 30 years ago that California approved Proposition 13, one of the most dramatic property tax reductions in U.S.history??  Well, 2008 is going to be our year!  Floridians are going to get back on the road to the American dream and we are going to see property taxes go down and home sales sky rocket. Florida's problem right now is very similar to what California faced back in the 70's.  The amount of new residents and growth made real estate values go up and property taxes hit the roof.  And unfortunately, this problem is resulting in more and more people deciding to move out of Florida and set up camp elsewhere.  Some say that Floridians shouldn't be so grumpy about it because they don't have a state income tax.....well, you know what I say to that???  We may not have a that tax but look at those darn homeowners insurance premiums!!  There's a high price to pay when you live on these beautiful beaches.  Or so they say.

            Governor Charlie Crist has pledged to "make living in Florida more affordable".  He has called for a $34 billion reduction as well as dramatic increases in the $25,000 exemption from taxable home value that homeowners currently receive.  And at the same time, he is trying to put those money hungry insurance companies in their place and prevent them from robbing us blind.

            While Crist is trying to do his job, let's do ours.  Californians voted on Proposition 13 in 1978 and look where it got them?  Let Florida get there too.  It will probably have to be put to a constitutional referendum as a part of Florida's presidential primary.  If it is.....do you know what you would vote for?

First, I want to say Happy New Year to all Active Rainers!! This is going to be a great one!

I want to tell you the simple story of why I do what I do. I hailed from the Restaurant Industry, high level management. I loved it but after 20 years, the hours became too long and the thrill was losing its appeal. Along came Hurricane Ivan who ate my house and everything in it. You see, not only did Ivan eat my house, but he also ate my job location so now I had no job and no home. My fiancé and I moved into his home and had to do some serious soul searching. At this point, the way I saw it, I had 2 choices: I could focus on my loss or I could see it as an opportunity. We both had always wanted to work for ourselves but never really had a realistic opportunity to do so.....until now. Now here was my dilemma....where did my passion lie? There was only one area in life that I knew I was passionate about and that was helping other people. Herein lies my next dilemma, I needed something that paid actual money.

As I delved deeper into my own inner self, I started nurturing my interest in Real Estate. I first considered getting my license and going that route but I didn't get that ‘excited' feeling when I thought about it. It was more of just an option. I got online and just really surfed everything I could to find somewhere to fit in to this industry and fulfill my own passion at the same time. BAM! The Real Estate Virtual Assistant industry slapped me in the face.........hard! I researched and did more research, I couldn't get enough! I was excited and finally saw my answer to all my questions. Here was an industry that would meet my interest in Real Estate, allow me to help agents and brokers become even more successful and make money! What a win-win situation for me! I soaked up knowledge like a sponge, took classes, attended seminars, networked with others and was off and running!

To this day, I wake up in the morning excited to go to my office! I am still taking classes to learn even more, still researching, still lovin' it! The clients that I have are awesome, they teach me, I teach them, they become more productive and I get the satisfaction of helping and I make money too! That, my friends, is why I do what I do!

Wow, 2008 is literally just days away and it is always a time of year to reflect on what has transpired the previous year and to make promises to ourselves that the coming year will exceed our wildest dreams. The sad truth is that 90% of the time, we make these ridiculous promises and set unreachable goals and end up disappointed in life and in ourselves. I think I have the solution to this .............

When we reflect back, don't dwell on the negatives, simply learn from them and chalk it up to experience. When we set goals for the upcoming year, be realistic for goodness sake! Now, having said that, I don't mean to not reach for the stars, by all means, reach and reach far! Simply set some reachable goals, ones that you truly believe you can accomplish. If you believe you can accomplish doubling the previous year's income then by all means, SET IT! You just have to believe in your heart that you can do it! The worst thing you can do when setting goals is have in your mind "I will put this down as my goal for 2008, but I know there is no way I can do that but I gotta shoot for something!" You have to believe!

Another thing about setting goals is to make them personal. Goal setting does not have to be about numbers and money. They should be about personal growth. What I have found in life is that the more I make sure that my own personal house is in order, the more my career house falls in line. If I work on me first, the rest follows!

Here are my goals for 2008:

I will double my client base in 2008 even if that means I have to hire more assistants

I will increase my marketing budget by 25%

I will always, and I do mean always, do everything with honesty and integrity

I will look for and find positives in every negative situation that presents itself

I will smile when I don't feel like it, especially when I don't feel like it

I will make time to stop and smell the roses

What are you going to do?

This blog was born out of curiosity more than anything else. Yes, I love to rave about my career and industry but that is not the motivation behind this piece.

Knowing what I know and doing what I do, I have to ask all agents..........what has stopped you from hiring an assistant, remote or onsite?

In talking with my clients and other agents who have hired an assistant, the only regret I ever hear is "Why didn't I do this sooner?" Is money stopping you? Are you just the type that prefers to do all the work yourself? Do you have a problem delegating? I suppose the reasons behind not hiring an assistant could be any number of things yet it still doesn't make sense to me. 

One other thing I have found out is that many agents have trouble finding qualified assistants locally and they shy away from having to train and take on a physical employee and all that comes with it. Real Estate Virtual Assistants have really become the best choice for many offices and individual agents. No employee taxes, no training (other than agent specific tasks), they are self supporting and have their own equipment. No desk space needed! Here on Active Rain, REVA's even have their own group that every one of you should check out. The benefits of hiring a REVA are really endless. If you were to just simply use a REVA for Contract to Close transactions, their fee can be wrapped into escrow and paid at closing so guess how much time you just saved and didn't pay a dime!!

According to Clareity, the Transaction Coordinator is the MOST under-utilized asset in the Real Estate industry, so like I said in the beginning, out of curiosity, what is stopping you from hiring an assistant?

Let's face it, the media has been the Real Estate markets worst enemy of late. Agents/Brokers are tightening the expense belt and doing whatever is necessary to cut costs and still maintain a profitable business. The dilemma is, what costs to cut and what new expenses to incur. Let's take a look at this.....

Making money is the endgame in this industry (and all industries for that matter)! What areas of your business can you truly afford to cut costs in? Marketing? Administrative? Advertising is the key to getting your properties in front of potential buyers and administrative processes are necessary. You can always cut the advertising frequency and means down to a minimum and still get the exposure but that is a risk as well. Let's not even get on the subject of gas prices...that is a whole other blog!

I have found this whole market issue to be of interest so I asked some of my clients what their strategy is behind hiring a Real Estate Professional Assistant and the answer has ALWAYS been that it actually "saves them time and money" two things that they treasure! Here are the common points each agent/broker stated:

• Gives them more time in the field and not tied behind a desk
• They have less stress because they know that these tasks are being handled while they concentrate on other things
• They can tie a REPA's Contract to Close fees into closing escrow so they are actually saving money
• No employee/employer fees or taxes
• Remote/Online REPA's are self sufficient and require no training (except for agent specific tasks)
• REPA's are technologically savvy and help maintain web presence and are great communicators

Hiring an assistant is a personal choice and should not be taken lightly. Only the agent/broker can decide if they would benefit more from an onsite or remote assistant. There are pros and cons to both. The common problem with hiring an onsite assistant is that many areas do not have qualified applicants for that position and those that are semi-qualified require extensive training which is a time-eater. Qualified remote assistants are out there but you must do your due diligence in ensuring that they are qualified, experienced and have the ability to meet your needs. REPA's can specialize in many different areas:

•·        Transaction Coordination

•·        Marketing

•·        Lead Coordination

•·        Listing Management

•·        Web Presence Development

Many agents will hire for one area or find a REPA that can meet every need. In my experience, many agents will simply start off with a REPA that specializes in Transaction Coordination (Contract to Close) as this is an extreme time-eater for many agents and eats up many cell phone minutes J This also gives the agent the ability to "test the waters". Once a relationship is established, it becomes easy for the agent and REPA to discuss additional options that may help the agent free up even more time by extending the REPA's service to additional areas.

My advice before hiring an assistant, remote or on-site, is to define your needs. Know what is eating your time and what you want to take off your "To-Do" list and put on someone else's. Start small, take baby steps with the services so you can grow and define what is best for you. Interview, interview, interview~listen, listen, listen ~ know that you can communicate with your chosen REPA. This is important, you will want to develop a working relationship with this person and knowing that you can relate to them is important.

In today's market, you must be smart with your expenses. Hiring a REPA is not for everyone, is it for you? Only you can answer that.