This week I began my intrepid adventure into REO sales by purchasing the contact information for over 130 financial institutions. I paid about $200 dollars and after receiving the material began the process of filling out vendor registration forms 132 times. (about 5-10 a day). Although I am still pretty new at this, I was excited when I got a BPO order from a brand new client on the very first day. So after one day I've already got a 25% of my money back. I don't know about you, but I like to invest in things that pay off :-)
If your interested in this type of work, here are some ideas for you to follow.
1) Buy the information - I spent two days putting every search term in that I could think of to come up with contact info. for companies that do BPO's and REO sales. My grand total results - 5 companies.
When I bought the information i had instant access to all the companies. Now granted some won't apply, (ie. There's one company that only services New York.), but the more you get your application out there, the more opportunity there is for side business. Make sure your info has links to the exact web page where the application form is located. I got my information at REO Renegades. I made back the money I spent for the information in just 3 weeks and also get REO coaching to boot.
2) Fill in the Forms. Not all in one day, but 5 a day will get the job done. For the forms you'll need a copy of your 1099 (to get paid), a copy of your real estate license, a copy of your E & O insurance (for REO companies), and for one I needed a signed authorization from my broker to receive payment direct from the company. In addition, you will need all of your contact information and a defined area of service.
When determining an area of service, include an area from your office that you can get to within 30 minutes. If you in the country this could be 30 miles, in the city 10 miles. In that circle some companies will want to know the zip codes, some the names of cities, and some just the counties. Have all this ready.
3) Do BPO's quickly and well. Let's face it. You can't live off BPO money, but BPOs are the way to REO listings. An asset manager will actually test an agent he/she wants to give an REO to by giving them a BPO assignment to complete. Think about, a $50 investment to see if an agent a) knows his/her stuff and b) is reliable.
As you do BPO's provide a quality opinion and put lots of info. in the comments. Follow up with the company to see if youcan be of additional help. Such contact (by email or phone) can break the walls down for listings.
4) Keep a record. BPO companies can pay out in a few as 14 days and as much as 2 months. Put together a spread sheet that includes the date of the order, the completion date, the subject address, the company who ordered, and whether or not it's paid. My minds not good enough to remember the details, but $50 to $125 is worth keeping a little track of.
5) Do it NOW! REO sales are on the rise and will reamin steady for at least two years. Don't let this niche market pass you by. Besides, with few Realtors doing it, there is money to b e made if you can break in.
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