As a broker who sells almost 500 REO properties every year, I never cease to be amazed at how "just plain lazy" the average real estate agent can be, about REALLY developing their business. For almost 18 years, I dedicated my entire career to "crushing" my competitors in the traditional real estate market, ultimately rising to the rank of #1 Team Agent in N. Atlanta, GA for RE/MAX and #36 Internationally, before leaving to start my own firm. I can remember the fears and doubts that ran through my head, when I first started out as an agent at the age of 22. I thought to myself; "who in their RIGHT mind is going to list their home with a young punk rookie? These older guys and girls, who personified the "typical" Realtor, cruising the town like sharks in their Mercedes and BMWs, seeking out their prey, will surely just laugh me right out of the business." Boy was I dead WRONG!
I had grown up selling newspapers door to door as a kid. I had done tele-marketing and held numerous other sales jobs, and I learned at a pretty young age, that "selling" isn't just about a one-time, "wham bam thank you Ma'am" approach (well, sometimes my charm and slick talk did make that happen). Instead, it was ALWAYS about continuing the sales efforts beyond the first rejection or "maybe". So, as I got into traditional real estate sales, I kept my strategy of being persistent in mind and I started with the old FSBO approach. I called every number in the paper and collected numbers from signs and called them all every day, religiously. Yep, I got TONS of hangups and angry phone slams. But I also got a lot of "call me later" answers, which I ruthlessly did. Pretty soon, my follow-ups started paying off. Within 3 or 4 months, my name started to appear at the top of the office listing board. Here I was, having no clue what I was doing, a wet behind the ears newbie, and I was out-listing the top pros in the office. How could that be? Well, I'm sure that you've surmised by now that it was my daily and CONTINUOUS efforts. I was truly blown away at how easy it was to eventually become a massive top producer, beating out people with 10 and 20 times more experience than me. Reminds me of a quote I hear Donald Trump repeat now and then. I can't remember the original author for certain, however I believe it may be the famous golfer, Gary Player. It goes like this; "The harder I work, the luckier I get". Makes total sense right? Of COURSE it does!
So what does this have to do with REO sales? Well, just like most other agents, my traditional business was all but CRUSHED when this tidal wave of REO properties came crashing down on this market. My sales dropped by over 70% almost overnight and I was bleeding money. For the first time in almost 18 years, I was scared. But even worse-I was LOST. I knew NOTHING about REO at all excep that I knew that I had to get "in" as quickly as possible. I had a family to feed and that was that. So, I set out to learn what to do. The short version of the story is that I spent a lot of time and money learning and then I started putting things into ACTION, much like my good old days as a rookie traditional broker. Here I was at square one again and I knew if I would just "DO", and keep "DOING", that I would easily surpass others who were competing against me for the bank business. And I was RIGHT. In less than 2 years of being full time in REO, I built a massive REO machine that quite literally renders most of my competition completely irrelevant-many of whom have been in the business for more than 15 or 20 years.
Yes, it is very hard to imagine that there would be just as much laziness from agents working for banks as there was for traditional real estate agents, but there surely is. I see it first hand every day. As an example, as part of my business growth, I spent (and do spend) a lot of time traveling to meet clients to establish new relationships and to further strengthen existing ones. And one thing that I hear ALL to frequently from the mouths of Asset Mangers, is their surprise that NO ONE else ever visits. What?! NO ONE? Yep. I hear it all the time. And I think to myself "who says there's no such thing as a free lunch"? I mean, I spend $25 bucks on a lunch date with a client and he send me tons of properties because I am willing ot go the extra mile to spend that short time showing him that I am a good agent who will always be honorable, above-board, ethical and conscientious. So do the math: A few bucks and an hour of my time to show an Asset Manager that I am a good agent. Heck, it's not a free lunch for me. It's a lunch that keeps paying ME!
So does that mean you HAVE to travel to get REO listings or to get an REO business off the ground? No. But it should demonstrate that you need to put in a little effort every day to make your business grow. Whether you are a new REO agent who has never sold a bank owned home. Or if you are a big REO broker already. You NEED to stay in action. REO is very much about "what have you done for me today". Time is the great eraser. Stay in front of your clients and keep seeking out others and you will win. I am telling you with 1000% certainty, that you can COUNT on the laziness of others. Once you start seeing success, you will completely understand.
To avid going into a complete dissection of my business and to just give you a couple of things to work on, if you truly want to be a success in REO, here are just a few "DOs and DON'Ts" to keep you on track. Master these simple things and you'll ALREADY be on the way to beating 99% of your peers:
DON'T:
1. Hide behind email.
2. Try to get into EVERY client at first.
3. Spend your whole life doing BPOs and hoping to get listings.
DO:
1. CALL and WRITE and VISIT (optional) clients in ADDITION to emails.
2. Get a good list of REO clients with their agent registration information.
3. Identify the clients who have the MOST inventory in your market and go ONLY after them at first.
4. SHARE client contacts and referrals with other agents (even competing ones)...Yes, you CAN do this even on day 1 of your REO career.
5. Ask your best loan officers for introductions to their REO departments.
6. Send marketing pieces to clients every month and during "Special Events" (ie: Super Bowl, Valentines Day,etc.)
7. Ask new clients to refer you to other clients RIGHT AWAY. (Remember, clients always love you the most during the "Honeymoon" period").
8. Look up a few conventions an GO. Don't go there acting like a beggar for business. Go there to shake some hands and then FOLLOW UP later.
Look, there are so many things that you can do. The point is to not spend all of your time "learning". Spend it "DOING". Then DO, DO, DO all the time. It is so simple. Knowledge is NOT power until you put it in motion. So if you are serious about making a real career out of REO or simply using it as a safety net until the market rebounds then get off your duff and "DO"!
To YOUR success!
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