How do you get in the Reo Market?
This is most frequently asked question amongst new comers and even agents who have been in the industry for years. Although Bank owned properties are nothing new, what is different in today’s market is the sheer amount of REO properties on the market today. Banks are still adjusting, correcting, and even expiring by the way side today. In this rapidly changing scenario it is very tough to know “where to begin” and this is always the hardest step. You can take a deep breath because we have already taken a lot of the busy work out of the equation. We like to use a program called www.roboform.com and it’s very affordable at only $29. This is perfect for the tedious process of signing up for all the asset manager portals on the internet. I estimate that this tool will save you up to 20 -30 hours in your first month alone. How much is your time worth?
Now you will need to purchase a list of working Asset Managers. You will get BPO’s and REO listings from Asset Managers, not the Banks. The Asset Managers are the middle man between the Bank and actual real estate agent. This is not always the case but this is how you should see the process. Very few banks actually do their own property management during the entire REO process. First off, there are a lot of lists that claim to have done all the research and will sell you hundreds of companies from $29 -$150. A great list is www.ReoProfessor.com (it comes with the Asset Managers you will need already prebuilt in, but it is also a full blown REO organization tool that every money maker needs) and this is a steal for $97. You will use this deep list and have enough REO and BPO work for quite a long time. Now this may seem overwhelming but with RoboForm its really easy to get signed up on multiple sites within just a few hours. RoboForm remembers key details that enable you to save all your personal information and passwords in one well encrypted area. Next, sign up on a good amount of Asset Managers websites. You will need a pdf copy of your R.E License, a copy of your Brokers E & O insurance, and copy of signed by W-9 by yourself. You can sign up on each Asset Manager site from anywhere to 5- 15 min. There is some follow up needed for certain sites but their instruction are generally easy to follow. We will now proceed to call these Asset Managers as another step to ensure that you are on their radar where you want to be. The script could go something as follows.
“Hello, I am a REO agent specializing in all arena’s of foreclosure real estate and beyond. I have recently signed up on your portal on was wondering if you have any BPO orders you need completed in the (your city) area. I am eager to show you how quick my turnaround time is and my quality of work.”
If they don’t currently have an order for you then say….
"Ok that is fine. What I would love for you to do then is take down my personal cell phone and call me the next time you need to look for you manager. I PROMISE you that you won’t be disappointed"
If you don’t get an order by the 2nd or 3rd call…Send a short and breif email! This only takes a few moments and this is often the most useful way to get your foot in the door. Sometimes you will get orders on the first call and others will take more. Once you are in their system and doing orders, you don’t have much to worry about except completing every BPO valuation and REO listing as fast as possible. Some agents say they refuse to do BPO’s (valuations) because they don’t pay very much and they are time consuming. (usually only $40 -$100). This is a huge mistake because this is the exact way that you will start to get their REO listings. The Asset Manager usually wants to test an agent out before giving them the much more demanding task of taking on a Bank Owned listing. They are able to tell how you stand up against other agents with just a few orders. BPO’s can also be a very profitable business if you set it up correctly. Also, we won’t get into this until later lessons , but there is a huge advantage of having a BPO business running along side by side with your REO operation. Don’t worry about having to decide if you will continue to complete BPO’s once you’re up and fully running with enough REO listings to keep you busy. There will plenty of time in the near future to make your own decision to pull the cord or not on your BPO’s. The whole goal is to get to REO listings right? Completing BPO orders is the absolute best way to get this done.
Recap.
1. Purchase RoboForm (or even try their 30 day trial first if you don’t believe me)
2. Purchase A General List of Asset Managers. Or do your own research online but this could takes several days of deep searching and you still won’t uncover what a good list could do for you.
3. Sign Up for as many sites as possible (I recommend 30 -40 of all the top companies to begin)
4. Call all the Asset Managers you got with and let them you that you are signed up on their portal and ask them for an BPO order and even an REO Listing.
5. Get your first order and complete it as fast as possible
Please send me any questions that you may have. I will be posting some videos to simplify this even further
Good luck to All!!
Thomas Moore
REODB Inc.
Las Vegas , NV
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