This is my third lap, if you will.  Having been in the business since 1978, I've seen three full market cycles. The slow cycle for most agents comes when homes stop selling overnight and inventories creep skyward.  This is when you need to ramp up for REO's.  (REO = Real Estate Owned) This is the shorthand used by the industry to discribe the inventory of property owned by the financial institutions. Most of which come through foreclosure.

Being an REO Broker can be very rewarding.  One such individual in Los Vegas claims to hold more than 400 properties that are listed or prelisted.  Another in California's central valley said that he has 105 active and 120 in the pipe.

If you want to jump in, there are places you can go start the process.  I recommend becoming a member of the National REO Brokers Association (NRBA) then look for The Insiders Guide to REO  it is a complete "How To" book for successfully listing and selling bank-owned properties. 

You will need to register with what seens like thousands of Asset Management companies .  Most start by doing BPO's or Broker Price Opinions. These pay $25 to $100 for a mini appraisal with photos.  Some people actually make a full time job out of just doing BPO's.  5 per day average $50 ea and boom $60k a year job with little overhead.

Some of those BPO's will get you in the door at the REO dept. Then when you get an "assignment", the fun begins.

You get to go to all kinds of neighborhoods to see if the property is still standing and determine if anyone is still living there.  If they are, you get to infom them that they no longer own the house and attempt to negotiate a prompt move. Most lenders prefer to grease the tracks by allowing you to offer Cash for Keys.  What they usually forget to tell you is that they expect you to write the check and submit your proper paperwork and copy of the check for reimbursement.  I have about $15,000 out waiting for reimbursment. I can't immagine what the guy in Vegas must be going through.

Then you get to make reports, find contractors, haulers and cleaning people, get bids, submit for approval, make sure the work is performed properly, pay them and then wait to be reimbursed.

Okay, the house is now ready for sale and you get the "Listing". It looks like no listing most agents have ever seen. Don't read the fine print, it will only scare you out of the businss.

Bing, bang, you get an offer. Well you upload it to their website, fill out forms and wait for a responce that usually resembles a short HUD-1 with the offer on the left and changes on the right. It's their way of making a counter offer. Be sure you also find their standard "Addendum". Take the addendum and email and create a counter that they will not sign until the buyer signs and gets it back to them. Then it goes up for Lender approval, Mortgage Insurance approval and 15 other people in the chain. Of course the Buyer has a Verbal acceptance and is expected to close in 30 days or pay a per day penalty.  In the mean time the Buyer's lender is twiddling his thumbs because he can't start the loan until he has a signed contract that he is expected to close about a week after the paperwork actually trickles back down to the Buyer.

Are we having fun yet?

 
Star Posted by Ronald Lee on 03/01/2007 04:58 AM   Comments (35)   reo, reo broker, real estate, foreclosed  
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35 Comments on So, You want to be an REO Broker...

20 Most Recent Comments Displayed Show All

FEB
05
2008
I am an experienced closing attorney...who would like to get into REO closings...any suggestions?
Joy Robnson
11:03pm • #16
FEB
10
2008

REO!  So Cal!

We have a few hundered in my office.  I know agents will four and five hundred! 

The question is If one is to sell REO who is the coach if you have never done it before.  With 95 percent of the State's Sales force have 5 years or less, who is qualified to sell REO?  cept the Ol' dudes and Dudetts.

This is were I would be differnet. 

Four years ago I became a mgr with one the biggest producing firms in So Cal. Of coarse the market was pretty good and agents were getting all kinds of sales for just hangging out.  Until 1996 came around.  Dark and gloomy for many newbie agents.  My office is only 5 years old of the 30 year old firm. So I got the new guys.

Being in the business since 1990, first as a Loss Mit then as an REO specialist, I learn't a lot on that side of the busness.  So I beleived that everyone had a clue on this stuff, since all the people I hung around with did the same.  But I was wrong!  Agents were coming to me and asking the definitions of REO and Short Sales were, and I could beleive my ears.  Ah come on, ....

Well, my mentors and my master mind groups all had the same opioion that the PFC and REO is coming.  So I started on teaching agents in 2006 on Pre F/c and  as time went on, REO.  Slowly at first, then business meeting at time, then to evening training sessions.  I only got a couple that saw and opportunity.  Agents from other company's came to work out of my office because there was a coach.  Someone that understood the techincal aspects of this market.  The in's and outs. They stared with a few listing and now runing 40-60 each in their inventory. 

Needless to say I have 7 REO agents in the house with 250 pre list and listed homes. I have a Pre F/C department and many buyers agents that understand both.  I have promted on line training with verious training system to teach and get the new crop of interested agents certified before start coaching them on the details of the business (they need a little skin in the game). 12 more great agents coming to assist the REO inventory! 

Now corparate comission me to duplicate the program for any of their 32 offices.  Which will begain soon.

It's unusual for an REO agent to share the secrets, but lets face it, times have changed, just get on the internet and you will find anything you want.  So with that in mind, if there was a coach that can walk you through the maze when you have a question.  Boy what a deal huh?

My office has done well this last 6 months. over 10 mil. per month,   Not bad for a little ol guy from Kentucy.. 

 What are your thoughts on this subject matter? Should I continue coaching and showing agents the ropes?  Or should I keep it to my self! 

 

 

  

 

 

 

 
Ernie The D!
9:21pm • #17
FEB
11
2008

It seems as though you are extremely experienced and I have the ultimate question for you?

 IS THERE A SUCH THING AS BULK REO TAPE PURCHASES IN THE BILLIONS?

Thanks

It seems to me that you have been in the REO business long enough to have experienced all phases of this business.   I have one vital question and you will be hero of all time.

IS THERE SUCH A THING AS BULK REO TAPES?   BULK SALES OF REO'S IN THE BILLIONS?   thanks
Lezley Barr
9:35pm • #18
FEB
15
2008
 One thing that bites is registering with all those BPO companies and asset mgmt companies. Typing out the same information and sending the same documents over and over and over is such a chore...
9:53pm • #19
MAY
29
2008
2 Featured Posts

Very good post with lots of good responses.
6:25pm • #20
JUN
11
2008
136,301 Points 1 Featured Post Called Shot Master

Hi Ron--what happened--are you not blogging anymore--great post!
8:02pm • #21
JUN
30
2008

Hi my name is joshua, I work closly with a group that deals directly with a bank and is looking for qualified buyers who can prove they have money.  Their protocol is very simple NCND, MFA, and a bank statement with the account number missing or scratched out.  After this is done then homeland security makes sure your funds are legitimate, following this the bank does their internal vesting then your buyer will directly get a phone call from the bank.  If this sounds like something you are interested in please feel free to e-mail me and we can set up a time to talk.  My e-mail is josh@nwlsusa.com .

Min. order 50million-max order depending on what is currently avialible, will change depending on inventory

If this protocal does not meet your personal needs as a buyer or a buyers mandate, please let me know I also work with a gentleman who can pull product from a compiler.

Joshua Loeb

J. loeb inc.

josh@nwlsusa.com

818-428-1059
8:30pm • #22
JUL
22
2008

I found this information to be very helpful. I am just getting into the BPO part of the industry. I've registered with what seems like thousands of companies. Now it's just a matter of waiting for the assignments. A few of my colleagues have been doing it for several months now and they are beginning to see the 'fruits of their labor.' They are even turning down assignments because they are so busy. I'm hoping and praying that will be my problem, but I'm really looking forward to broadening my experience and expertise in the real estate industry.
8:02pm • #23
JUL
23
2008

Great POST!
Dwight
3:46pm • #24
AUG
04
2008

HI my name is Joshua and my partner and I have are the direct connection to two banks.  When you are dealing with banks and not pre-done tapes a direct connection takes the place of the seller's mandate.  If you are looking for a real connection direct to the institution please give me an e-mail.  Our protocol is as simple as it gets

1) sign NCND

2) LOI made directly to the bank , NOT ME! , proof of funds  ie. bank statement

3) phone call from the bank

Joshua Loeb

J Loeb Inc.

josh@nwlsusa.com
2:44pm • #25
AUG
12
2008
1 Featured Post Localism Sponsor

I have been on the buyer's end of several REO's, did not realize everything that is involved on the other side of the coin. Very insightful... Thanks!
10:32pm • #26
SEP
12
2008
176,349 Points Localism Sponsor

Thanks for the post Ronald.

You have a lot of great info here....thanks for sharing
9:02pm • #27
MAR
24
2009

Hey there,

Banks need Real Estate Agents to help list and sell $600 Billion worth of foreclosures.

Well I am getting my share of the pie! I just bought the REO Kit here:  http://tinyurl.com/d2tvnk

I thought you might want to give this a try too. Check It Out...

 

Best of luck ...
11:51am • #29
APR
21
2009

I wanted to share this free list of REO asset managers and there website information that I got.  I signed up with just about every one of them.  Now in less than three months I have plenty of BPO's and two REO listings, one of which is already in contract.  Just do what ever you can to get started and be patient.  Good luck.



Company



Link

Accredited

http://www.accredhome.com/

Assetlink

http://www.assetlinklp.com/

Atlas 

http://www.atlasreo.com/index.html

Aurora

www.res.net

AVM

http://www.assetval.com/

Badisso

http://badisso.com/

Bankers Assest Management

http://www.bankersassetmanagement.com/

Bank of America

http://reointelligence.com/uploads/bank_of_america.pdf

Bayview

http://www.bayviewfinancial.com/

Brighton Real Estate

www.brightonreo.com

CalReo

www.calreo.com

(CMS) Carrington

www.carringtonms.com

Chrisley

http://www.chrisleyam.com/

Citi Financial

https://oms.citiresidentiallend.com/oms/jsp/login.jsp

Countrywide

http://my.countrywide.com/BizPartners.aspx

Electronic Mortgage Corp. (EMC)

https://www.emcmortgagecorp.com/EMCMORTGAGE/

Equity Pointe

http://www.equitypointe.com/

ETC REO

http://www.etcreo.com/

Executive

http://www.executiveam.com/general/registration.cfm?ContentItemID=Registration

Fannie Mae

https://www.efanniemae.com/is/npdcvendors/index.jsp

Fidelity (LPS)

http://www.fidelityasap.com/registration.aspx

First American

http://www.firstamreo.com/application.asp

First Preston

http://www.firstpreston.com/re_broker_registration.asp

AHMSI (First Option)

https://ahmsi3.com/servicing/home.asp

406 Partners

www.406partners.com

GMAC

REOTRANS.COM

Green River Capital

http://www.riocentral.com/prospectivebroker.aspx

Group Financial

http://www.grpcapital.com/contact/index.html

Goodman Dean

http://www.goodmandean.com/

HSBC

http://www.reotrans.com

Home Eq

http://www.homeq.com/reo/reoProperties.do

Integrated Asset Services IAS

http://www.iasreo.com/workwithus.aspx

Indymac

http://reo.indymacbank.com/reo.ext/presentation/BrokerApplication.aspx

Land America

http://www.lendersreo.com/application.aspx

Lighthouse Real Estate Solutions

https://extranet.lrescorp.com/vreg/index.cfm

Litton Loan Servicing

https://www.littonreo.com/litton/DesktopDefault.aspx

Loan Servicing Solutions (LSS)

14

Keystone

https://www.keystonebest.com/agent_login/agent_login.asp

MDWEBB

http://www.mdwebbinc.com/contactUs.aspx

Nationstar Mortgage

https://www.nationstarmtg.com/Realtors/RealtorApplication_Step1.aspx

Metro Pacific REO

http://www.depotpoint.com/news/?p=126

National City

http://www.nationalcitymortgage.com/

Nations Reo

http://www.nationsreo.com/brokers.cfm

National Default NDS

http://www.defaultservicingllc.com/become_broker3.htm

New Vista

http://www.newvistareo.com/app.php

NPR Capital

http://www.nprcapital.com/

NREOB

http://www.nreob.com/Public/Registration/Broker/RegistrationAgreement.aspx

Ocwen

http://www.ocwenbusiness.com/bs_loanservicing_res_bi.cfm

Old Republic

http://www.oldrepublicdefault.com/Default.aspx

Olympus

http://www.olympusasset.com/agent/agentdata.php

Owen REO

http://owenreollc.com/index.asp

Phoenix

http://www.assetonemg.com/Website/coprofile.htm

Premiere Asset Services (PAS)

http://www.pasreo.com

PMH Financial

http://www.pmhfinancial.com/Registration.htm

PNC

http://www.realtyservices.pnc.com/

Premiere REO 

http://www.premierebpo.com/premweb/Home/ContactUs.aspx

Real Estate Disposition Corp. (REDC)

http://www.redcgroup.com/index.html

Reo Experts

http://www.reoexperts.net

REO World

http://www.reoworld.com/

REO Financial Asset Services

http://www.reofas.com/

Single Source Property Solutions 

https://www.reotrans.com/index.cfm?

SNSC

http://www.snsc.com/ReoPropertiesBroker.aspx

Sun Trust

http://suntrust.res.net/

Tactical REO

https://www.disposolutions.com/clientlogins/dst/default.aspx

US Bank

http://www.usbank.com/

USRES

http://www.usres.com/vendors/real-estate-brokers/

Wachovia

http://reo.wachovia.com/wbreosubscription.aspx

Washington Mutual

http://www.wamuproperties.com/

Wilshire

https://www.wcc.ml.com/Homes.aspx

 
2:20pm • #30
MAY
02
2009

John

 

 Thanks for the list above.
5:36pm • #32
JUL
15
2009

Ron,

You did a good job of briefly describing the life of an REO agent. I think that it is a good business model. I like the challenges. It is not your normal life as a real estate agent. Some great info in the comments.

Any agent who is trying to get REO's should start on that list of links that John put up. That is some good info there baby.

www.jamesegallagher.com
10:03pm • #34
FEB
10
2010

Hello Everyone,

It is excellent pleasure to meet everyone acquaintence and I look forward to working with a top decision maker in the near future.

I have a consortium of buyers that our looking for deals all across the US especially the diamond states.

There looking for distressed commercial assets, Bulk REO packages, NPN, and PN in real estate.

My buyers our extremely motivated to take down any deals that are offered at a deeply discounted price.

We have LOI, POF and all necessary financial documentation required. Our clients are looking for product Ranging from 5M - 1B at 60 cents on dollar or even less.

With that said, Please send contact info. so we can open up a dialogue.

Look forward to possibly working together.

Please note: we our looking for seller exclusives deals.

Can someone assist with this issue?

Kind regards,

Marlo Barge/CFO
619-785-5956
310-279-0276
bmiinvestmentcapital@gmail.com
2:21am • #36
MAR
11
2010

Hello my follow Colleagues,

Thank you for your interest and quick response.

If your tried of wasting your precious time on other illegitimated sources, we have tangible product right now. We are direct and we can provide NPN, REO in the diamond states and nationwide packages. We need legit buyers who are serious and want to build a relationship by closing good discounted product on an ongoing basis. We are real! Are You?

If your a serious direct buyer, please contact us asap.

Special Note: If you refer a serious direct buyer, we will pay you an one time $10,000 referral bonus fee at the closing of escrow!!!!!

Kind regards,
James D. Sanford III/Marlo Barge M.B.A
REALTOR/Mortgage Banker/Wholesaler
BMI Investment Capital
3110 Camino Del Rio Suite 115
San Diego, CA. 92108
Office: (619) 785-5956
Mobile: (619) 248-5742
Fax: (619) 923-7900
Email: bmiinvestmentcapital@gmail.com
Sellers Website: http://www.stopsandiegoforeclosurestoday.com
Buyers Website: http://www.freesandiegoforeclosuressite.com
Core Website: http://www.bmiinvestmentcapital.com
Blog website: http://www.bmirealestateblogsite.me
6:51am • #37
MAR
22
2010

Dear professional colleagues,

 CALLING ALL DIRECT SELLERS ONLY~URGENT MESSAGE FROM BMI INVESTMENT CAPITAL

 

 Currently, BMI Investment Capitals new bulk REO Division is looking to build more relationships with direct sellers of bulk REO, NPN, PN and bulk distressed commercial assets. Unfortunately, we our unable to supply are clients with consistent and viable product. Among our large consortium of buyers, we have three very exclusive clients that can takedown anything that's legitimate in any seller's asset portfolio. Right now, BMI Investment Capital has three distinguished private entrepreneur developers that can purchase any and all products. We are seeking a specific direct seller that can not only provide consistent and viable product, but also coupled with a LOA, or fulfillment letter stating the seller has direct control of the product. If this is not feasible, we would like to see if we could receive 10-15 addresses off a scrubbed tape so that current BPO can be verified. Lastly, our three clients would also like to be put on the phone directly with the seller who has the authority to sell the asset. Our clients will only proof up bank to bank or attorney to attorney.

 

Special Note: If you refer a serious direct seller, we will pay you an one time $10,000 referral bonus fee on minimum package of 5M at the closing of escrow with that specific seller!!!!!

 

Kind regards,

James D. Sanford III/Marlo Barge M.B.A

REALTOR/Mortgage Bankers/Wholesaler

BMI Investment Capital

3110 Camino Del Rio Suite 115

San Diego, CA. 92108

Office: (619) 785-5956

Mobile: (619) 248-5742

Fax: (619) 923-7900

Bulk REO Website:http://www.bminewbulkreoproperties.com

Email: bmiinvestmentcapital@gmail.com
10:26pm • #38
OCT
04
2010
103,021 Points 1 Featured Post Attended Rain Camp

Good informative overview. Free list always a good thing.
10:46pm • #39

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Ronald Lee

Vallejo, CA

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Ron Lee at Re/Max Gold

Address: 723 Amador St., Vallejo, CA, 94590

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