Special offer

The Potential of BPO's$$$$$$$

By
Real Estate Agent with Keller Williams Realty Las Vegas

Hello all.....Me and my friend and partner went an "Into to REO" class today. Now neither of us were brand new to this REO business, we went mainly because it was taught by the top REO agent in Las Vegas and we wanted to hear him speak. As a matter of fact, we were the only two agents in the room that had any kind of REO listing or BPO experience. The class was so good information that was more geared toward educating the agents that were putting in offers on his 500+ listing, about how the whole REO world worked from the buyer's agent's point of view, but it was good information non the less. During the class he spoke of some of the ways to break into the REO listing business, and the number one way on his list was doing tons of BPO's to get your name out there. He stated that now he does 1500 BPO's per month. Now I know that this is impossible for one person and that he has a team of people doing them for him, but we calculated that out and it came out to right at $100,000 per month!!! That's incredible!!!! An associate did 100 BPO last month (with the help of his wife/assistant) and made $7,000. So take that 7 grand for 100 and multiply that by 15 and you get..........................$105,000!!!!! Take a 5 person team, pay them all $5,000 per month (a good salary) and that's 25,000 out to the team...and 80,000 in your pocket!!!!!

 

How you like them apples!!!!!!

 

Bryan Knight in Las Vegas Nevada, Real Estate Consultant 702-845-8435

Check out Tales of a Las Vegas REO agent.

Comments (31)

Carolyn Nelson
Realty One Carolina, LLC - Burlington, NC
Your Triangle to Triad Real Estate Expert!

It is doable.

I work with several agents and brokers that complete BPOs, and the average daily intake is between 40-60. The key is the create a process that works and have a team that works toward the same goals. The team should work like an well oiled machine.

  • When the BPO alerts are received, there should be alerts appearing on all team member systems. Increases the chances of acceptance.
  • Order drive by photos immediately and schedule photo shots based on areas.
  • Do not sit on the BPOs for hours or a day or two before it is started and completed. Quicker submissions increases your value with the BPO company. Rating Rating Rating
  • Specific individuals should be pulling the comps. Those that are familiar with the area not someone across the country.
  • Have a group/team to handle the data entry and comments. Understand that incomplete MLS sheets often cause delays. So the property report is often required.
  • Have a licensed individual within your team handle the values and adjustments. The BPO company is expecting "Expert Opinions". Your relationship with the BPO company and Bankds depends on your expertise.
  • Aim for a 24 hour turnaround on all docs.

When completed using a process, the BPO output can reach 2000-1500 per month. But, there must be a team, a cohesive team.

Carolyn Nelson, bpo@onlinerepa.com | www.onlinerepa.com | Direct: 980.233.8938 | 877.717.4491 | Fax: 866.590.2269

Mar 09, 2008 03:27 AM
Bryan Knight
Keller Williams Realty Las Vegas - Las Vegas, NV

Matthew,

It was JI. 

 

Carolyn,

 Thanks so much for stepping up with that information. There are so many people that don't see the true possibilites of BPO's and it's good to hear from someone that does. I loved the way that you broke the whole team down. Great stuff!!!

Bryan Knight in Las Vegas, Nevada

Mar 09, 2008 05:21 AM
Carolyn Nelson
Realty One Carolina, LLC - Burlington, NC
Your Triangle to Triad Real Estate Expert!

There is a host of potential when it comes to BPOs. This also include the $50 BPOs. But the broker/agent has to be organized, have an establised method, and you have to love providing the services. The service must be stress free and you can't take on more than you can handle. If you have a habit of completing tasks at the last minute, providing BPOs service is not the right job.

The BPO company can make or break you in this line of work. I love completing BPOs.

Carolyn Nelson, bpo@onlinerepa.com | http://www.onlinerepa.com/ | Direct: 980.233.8938 | 877.717.4491 | Fax: 866.590.2269

Mar 09, 2008 06:03 AM
John and Lisa Marker
RE/MAX Dream Properties - Northville, MI
Very interesting commentary....one needs to have a good team in place for sure to do volume...
Mar 23, 2008 04:50 PM
Bryan Knight
Keller Williams Realty Las Vegas - Las Vegas, NV

Well just a quick update.  I saw the potential and I'm getting it. Am I working my butt off? HELL YEAH!!!!! Is it worth it......most would say no because they don't like the work. Of course I say yes. Doing BPO's is the "gutter" work of real estate. Remember, 95% of agents don't like to do them so there's not a huge amount of competiion. And very few are doing big volume. Most will do one or two here or there.

 

Bryan Knight in Las Vegas, Nevada 702-845-8435

Apr 27, 2008 07:37 AM
Janice Norvell
Long & Foster-south - Roanoke, VA
On every BPO, the agent whose name is on the report must agree that they personally have driven by the subject.  I would REALLY have a problem with putting my name on a report without actually having done all of the work.  Pulling comps is an art and not for an unlicensed person or someone who has not even seen the subject property .  There is so much to look for in terms of condition, damage, area characteristics.  I spend an average of 2.5 hours on a typical exterior BPO and cannot do more than 3 or 4 a day.  Some weeks I turn down as many as I accept. Don't let the BPO companies know about it if you are hiring "assistants". Interiors pay much better for time expended and fees are negotiable to an extent. $2K a month is huge if you do the work yourself.  Don't try it unless you do not have anything else to do.
Apr 27, 2008 09:33 AM
Billie Dalessio
Home Run Realty, LLC - North Haven, CT
Bryan, congrats on the nice extra income for April. i wish you continued success.
Apr 27, 2008 01:36 PM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

Sounds like a good plan, if it works -- let us know.  I would love to have 10+ BPOs to do right now and so on....!

May 11, 2008 11:40 AM
Bryan Knight
Keller Williams Realty Las Vegas - Las Vegas, NV

Just a quick update. Still making it happen everyday with the BPO's. I've already cleared over 100 BPO's for the month as of the 21st. Things have gotten a lot easier since I've started. You get in a good grove after a couple of months of doing big numbers. I've watched the wave of agents inquire about BPO's get signed up for a couple of companies, do a few here and there and decide that it's not worth their time. I love it.

Stay in the 5 percent.

 

Bryan Knight, REO specialist in Las Vegas, NV 702-845-8435

Jun 21, 2008 06:43 PM
Bryan Knight
Keller Williams Realty Las Vegas - Las Vegas, NV

I dropped my subscription to REOTRANS this week. I've been kicking out over 50 bucks a month for over 6 months and never got anything from it. That was a waste of 300 bucks. I've heard that some people get tons of stuff and some get none.

 

Bryan Knight, REO specialist in Las Vegas, NV 702-845-8435

Jun 24, 2008 06:51 PM
Melissa Sall
Sulek & Dutton Real Estate - Saint Clairsville, OH
Realtor ~ Belmont County ~ Ohio

Great and so true! I started my bpo/reo business backwards. I starting getting reo properties which put my name on BPO lists. Now I have a hard time keeping up. But I Love it! It's what I consider easy money and it fills in the gaps between closings. It seems that I get the most BPO's on Fridays which is great because I grab the camera and make a field trip out of a nice Saturday afternoon drive.

Jun 25, 2008 02:42 AM
David L. Montgomery
MULAMONT REALTY, LLC - Pontiac, MI
David L. Montgomery

It's my time now.  Pretty much all of my real estate experience has been in the REO segment.  I started doing a ton of BPOs (no one had time to do them back in the hey day).  What happen was my name began to get in front of REO mangers and then I started getting calls to list.  It worked out very well for me.

SInce that time many of the BPO companies have gone to a broadcast (some call it "opportunity") format.  What it is really is a first come first served format.  You have to make sure you keep your turn around time low (I usually do 24 hrs).  The fees range from $40-$50 for a drive by to $100+ for a rush interior.

I don't do too many anymore, mostly because there are more and more agents entering this segement.  But I'm still listing and listing and selling.

Jun 25, 2008 05:32 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Im just getting started and signed up with about 45 companies over the past 2 months, still waiting for an assignment. Maybe its a regional thing and there are alot of agents already in my market area. However Im just waiting for an opportunity to get started in this.

This was a very helpful post and thread. Thanks!

Jun 27, 2008 07:16 PM
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Good for you---8K a month on bpo's that is a lot of work--but it beats doing them for free--for regular sellers  you know "free CMA's"

Jun 28, 2008 04:36 PM
Robert Slick
Beach and River Homes - Georgetown, SC
NRBA, RDCPro, Trident/CCAR MLS

Not bad apples but let's be sure the math is right...

1500 divided by 100 BPOs/person = 15 people x $5,000/month =$75,000 to cover the cost of 1,500 BPOs leaving only $30k for the fat cat. Still not too bad though, could pay the rent and employee taxes for the year.
A five person team would only cover 500 BPOs/month assuming they could handle the workload of your friend and his wife/assistant combined.

Jul 12, 2008 03:54 AM
Anonymous
Anonymous

BEWARE!!!! EVALUATION SOLUTIONS DON'T PAY FOR BPO's. IF THEY JUST GAVE YOU AN ORDER THEY TRY TO GIVE YOU ALMOST EVERYDAY IN YOUR DESIGNATED AREAS. ALWAYS RUSH AND ALWAYS THE CHEAPEST PRICE. AFTER YOU ACCUMULATED AT LEAST $500 IN RECEIVABLES, ORDER START TO DIMINISH. WHEN YOU FOLLOW UP FOR YOUR PAYMENT, ORDERS TOTALLY STOPPED. SCAM!! SCAM. IF THEY PAY YOU AT ALL ,THEY PAY YOU AT LEAST 60 -90 DAYS AFTER YOUR JOB IS DONE. WE NEED TO BOYCOTT THEM. IT'S NOT WORTH YOUR TIME.

Aug 09, 2008 10:09 PM
#27
Eric Egeland
RE/MAX SUBURBAN - Libertyville, IL
SFR, e-PRO, CDPE

Thanks for the post & thanks for sharing everyone. 

I'm starting to get more and more BPO's every month now averaging around $50 a pop

Aug 15, 2008 04:55 AM
Freddy A. Saavedra
Essential Properties - Goodyear, AZ

Awesome post! Great way to show how BPO's by themselves can provide such a great source of income!

Aug 31, 2008 12:51 PM
Johnny Walker Jr.
n/a - Saint Clair Shores, MI

All,

Great thread.  Just a few fyi's.  Universal REO is now www.NFSTI.com (the National Foreclosure Sales Training Institute.  This organization is absolutely the top organization for REO training that exists.  They only cost $57/year *(not a rip off like most certification sites) and they provide an actual product that you can literally use to help you build your business.  Email Dan Waterman, the CEO of www.nfsti.com and former manager of a SUCCESSFUL REO broker at dan@nfsti.com.  He is a great guy, and the organization is growing very quickly.  Soon, this will be the industry standard for training and all Asset Management companies will recognize that NFSTI certified brokers have practical training to help them sell thier houses.  They don't waste money holding big meetings They have a Vegas seminar coming up next weekend as coincedence may have it. They have an actual Asset Manager as thier Sr. Consulting Trainer who helps to teach the courses.  Who better to learn the industry from?

CHECK IT OUT:  www.nfsti.com

Aug 31, 2008 02:52 PM
Anonymous
Ronnie Rebis

BE CAREFUL OF EVALUATION SOLUTIONS - same thing happened to me, I prepared over 100 bpo's for them, had to follow up every month with payment, finally I received on large check, then two months go by no payment, had to follow up again, no response, send email to president - rec'd payment but now I do not get any bpos' BE CAREFUL they apparently do not want to pay you for your hard work.

 

Apr 10, 2009 08:07 AM
#32