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Everybody complains about REO's condition but....

I sell REO properties in Phoenix Arizona and am somewhat frustrated with the bureaucracy that we have to jump through

Cities make it dificult to turn on utilities and if you can they charge us obscene deposits.

They change the rules on the fly, see my last post http://activerain.com/blogsview/551834/New-Scam-by-the no warning and no recourse

Cities strongarm agents that try to do right and let those that dont slip by,

There is no mechanism to turn on bulk utilities in a agents/banks name you have to call in one at a time and you are treated to eternal hold.

The banks want you to jump through hoops do everything they ask and make it all but impossible to get reimbursed for anything, i did not understand how bad until my bookkeeper said that im owed $35,000 from one bank and no knowledge in when i will get reimbursed.

I have to hire a person just to turn on and off utilities and organize the bills and a bookkeeper to track and try to get my own money back.

I know this sounds bad, i love what i do and enjoy the buisness but a lot of different people focus on how bad the reo's look but if you work hard on it all you do is fight the system that is not set up to help

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Posted by Andrew Monaghan CRS, GRI, EPro Associate Broker on 06/16/2008 12:48 AM

Comments (13)

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13 Comments on Everybody complains about REO's condition but....

JUN

2008

REO's are definitely a challenge and I really respect the agents that specialize in them. For now Im still learning about the REO part of the business and will hopefully start getting my feet wet with BPOs soon. REOs are still a long way off for me, until I pay my dues and build up capital to handle them.

A good insight into the real world of listing and selling REO's.

What a bummer! Everything will work out. I have my fingers crossed and that always works!!~Stac

Keeping track of the financials is the #1 issue for us. I look at the bookkeeper expense as a cost that keeps me from loosing 4 times what I pay them.

Rich,

You are SO right! I am actually hiring my accountant's firm to handle all my reimbursements from now on!!

For the low fee of $25/hr -- I can have all my books straight-- and I don't need to worry about missing another reimbursement request!!

-Jason

JUN

2008

That is unfortunate.

Amen.

I have a full time listing and transaction coordinator who solely turns on and off the utilities and orders HOA resale packages. Nobody covers this additional cost.

Andrew

Just keep pluggin on, hire the personel you need its better than giving yourself a heart attack.

JUN

2008

Thanks for sharing. I guess its the same all over. That's why I do not believe this REOs business is going to be the leader forever.

Andrew,

We are having a terrible time with turning on water in the city of Surprise right now. I also think we will limit the number of listings we take, too many just seems like one ends up with way too many problems and headaches and too much money out.

Shayne

JUN

2008

I don't know how a company can handle many foreclosures. I have several and they are a lot of trouble to do bookkeeping on.

JUN

2008

Andrew, Another interesting point you are making, wondering how often do you think you loose out on the expenses and never get reimbused for them? It is a lot of work and takes good systems to keep it all accounted for!

JUN

2008

I can sympathize. I too list and sell REO's in Ventura County California. I just closed escrow on a home where I initially had the utility bills being sent to my office. I then moved offices as the market is so bad my broker closed a couple branches trying to consolodate. When you have many REO's you don't really think about"did I get the water bill on the house on Main St". Instead you pay them as you get them and submit for reimbursement. Anyway I come to find out that the utility company was not sending the bills to my office at all. Instead they were sending them to the property! I was thinking maybe I just wasn't getting the bills because I moved offices. To make this long story short; the bills were not paid through the entire listing period which was about three months. During this time I had the pool drained and filled as well as having to pay for refuse pick-up and sewer fees, which didn't cost the city anything as the trash wasn't taken out once and with nobody living in the property there was no sewer use. I just received and paid the final water bill which was $717.00. Now I wait to get my money back. My other complaint is the SOC commission percentage is always higher than the listing side. What's up with that. Do we as listing agents work any less? I THINK NOT!

Rudy

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