What is wrong with the REO Industry?

By
Real Estate Broker/Owner with Liberty House Realty LLC

Quote,

 "...if all of these REO companies are scaling back, why bother purchase AMP under res.net or get certified with REOtrans if we don't know if there is going to be enough work for those of us who can't get into any other company or the other companies are telling us that they are going to give their work to the preferred brokers ?" Anonymous

As I have always said and will always tell you, it's not the "company" you're with or the subscription level you paid for that is going to give you any chance at getting a REO.

The REO industry is the preverbal "boys club" and for those agents who don't understand this concept, you will fall victim to false promises made by Asset Management Companies and Technology Platforms alike.

I have preached, revealed, screamed, wrote, published and explained to all of you through my blogs that unless you are actively contributing to this industry.....your success in breaking in is going to be less than stellar, if at all.

"Ned" our resident Asset Manager has revealed to many of his weekly column readers how to either break in or get more business. In fact, his most recent column is about this very topic yet, I didn't but, 3 orders come in today for a FREE Agent Site, through the REOPro store, I only approved 2 blogs today and the forums seem dead today. Not to mention, I counted at least 4 articles in the Ask the AM archive on this particular topic or at the very least topics very similar and I have about 3 blogs myself I have written along with 1 blog that is nothing more than my top 8 blogs that any REO agent should read. So, with all that being said, why do we still get members who fall prey to the false and blatant lies running rampant through our industry like hungry lions on the plains of the Serengeti?

Granted, even industry juggernauts like REOTrans or RESNET seem to be participating in the "Realtor mop up" but, their lofty place as industry captains makes people like myself see these actions by them as shameless and disgusting yet, we still get agents who are clamoring, saving up thousands of dollars and purchasing higher and higher levels of "preferred status" for nothing more than the promise of a chance.

I read a recent forum thread titled "Valigent" posted by Janet Frederick on REOPro where one of our members Byron Guillermo copied and pasted a reply from an Executive with Valligent named Jeremy that said, Quote...

"Lenders take advantage of the fact that many real estate agents in this economy are desperate for listings,"

HELLO! CLUE PHONE IS RINGING! It's not just the lenders....it's everyone in the industry. My point is, they can make the promise of a chance, with no guarantee and they will still make money hand over fist from the contract they have with the bank, to the "technology fee" you kick back and then your monthly membership fee and annual "preferred broker" fee. It's a cash cow because of the very statement made by Jeremy with Valligent.

I am trying to explain to you, if you feel victimized, if you feel as if you have been taken to the cleaners, if you feel like no matter where you go, it's more and more money......well, yeah, you're right but, that's because people are paying for it. Caveat Emptor my friends, or in other words, Let the Buyer Beware.

So, how do you avoid these people and scams, how do you break in......well, it's as I have always said, it's about developing relationships, providing a useful service and becoming an expert in your field. If you want to know more about my opinions on these things, read over my blogs, read the AM column this week and search through the archives.

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Rainmaker
595,266
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Love this post! I've gotten "offers" to be THE preferred agent in my area for REO listings. I always shoot them down. 1. I'm not going to pay. Period! 2. I don't really want to specialize in that market!

Feb 11, 2010 08:10 AM #1
Rainmaker
107,623
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV

If legitimate companies charge money, how do we tell them apart from the others?

Feb 11, 2010 11:54 PM #2
Anonymous
Jesse Gonzalez

Hi Matt Kofsky,

REOPro has a BPO Company rating system where you can go online and see what our 4000 members have rated each company. My point is, if a company has 100 votes and never made it above a 2 star out of 5, 5 being the best, you may not want to work with that company.

We also have forums where you can keyword search and read what other members are saying or, if you can't find anything in the forums, create one and ask the members their thoughts on a particular company.

www.REOPro.ning.com is the site, check it out.

Feb 12, 2010 12:14 AM #3
Rainmaker
300,325
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

What irritates me. I have been on a wait list since oct 2008 with wells fargo sent resumes and emails to Wells Fargo local managers and there is an agent in the office that stole another agents numbers as her own has never once in their life listed and REO and received 18 of them all at once from Wells Fargo. How does that happen? What could I have done differently I have tons of experience and NRBO member and tons of listing/sales yet she gets not 1 or 2 as a trial but 18?

Feb 13, 2010 01:48 PM #4
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Rainer
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Liberty House Realty LLC

Turning the American Dream into Reality
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