How many of you are currently engaged in representing asset managers/sellers of REO properties? Typically, the demands on one's capital limits how many agents may actually be able to afford the upfront investments involved in listing foreclosed homes. Paying out of pocket for power and water service, re-keying doors, trash-outs and sales cleans, pool and lawn services, painting and a whole host of other possible repairs can deplete the cash supplies quickly.
For agents who have taken the plunge in to the REO niche, hiring local start-up companies may be your best option. Typically, the "new guy" is just starting up and is eager to establish his client base. He is more likely to work with you on the 30-60 day pay-out arrangement.
When my appraisal practice slowed to a crawl (in no small part due to lenders' anticipation of the looming HVCC), I grabbed a few suffering fellow real estate professionals and began a property preservation company. We started with a few sales cleans and trash-outs here and there. Soon, we added pool services and lawn maintenance. Today, as Curb Appeal REO Fixers, Inc., we're able to provide just about every service for foreclosed homes from re-keying to interior and exterior painting to last-minute removal of the lockbox at time of closing. We understand trying to build a business on a shoestring budget and we allow those agents new to this niche a little room to breathe.
You know this economy and how tough it is to make a living these days. Give the small, independent businessman a chance --- he just may be willing to return the favor.
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