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BPO Learning Curve

By
Real Estate Broker/Owner

Now I've done a some BPO's (Averaging 2 per week) and here's what I've learned.

1. READ the email and get instructions on what the asset company wants. This is important because not all of them want the same thing.

2. Have your camera ready. I made the mistake for not checking the batteries on my camera. If you don't have your camera ready, the trip is fruitless.

3. Have your lockbox key ready. See above for that mistakes. Extra trips to the subject property is wasted gas money.

4. Do your tax record search and MLS Comps in advance. Looking these up should be at the snap of your fingers. I like to print them out to review them, instead of browsing on my screen. It makes comparing and jotting notes easier.

5. Have an idea of the price before you go. Sometimes you can "see and feel" the neighborhood with comps, so get a sense of the area before you head out.

6. Bring a flashlight, jacket full of pockets, and a notepad or folder to write notes. Keep a tab on your photos and note anything you see that will impact your values.

7. Call in to a collegue or friend letting them know you are at the property. For security reasons, of course. You never know what you can expect in a property that's vacant and trashed.

8. Plan out an exit strategy. If you don't feel good, possibly get out. Some homes can be scary because it's trashed, vandalized, even burned. If you don't feel safe, don't do it.

9. Compile all information before you start inputting in the company's website. This saves alot of time alt-tabbing screens or paper shuffling.

10. Be patient for your check. :-) nuff said...

This is my learning curve, hope you all enjoy. Please don't comment on how BPO's are a waste of time for the money you get. This is not part of the discussion. Thanks in advance.

Michelle Way
AVALAR Pro Realty - Jackson, MS
ABR, GRI, WCR
In the state of MS it is illegal to do BPO's and get paid for them.
Mar 08, 2008 09:44 AM
Johnny Huang
Pleasant Hill, CA
Insurance and Real Estate Broker
Michelle-Are you required to be a broker to conduct BPO's in that state. I know rules apply differently from state to state.
Mar 08, 2008 09:47 AM
Julia Huntsman
Huntsman Properties - Long Beach, CA
BPOR, CDPE, e-PRO, SFR, Broker
How many companies did you apply to before you found one that you worked for? I did some online applications earlier this week, I'm waiting to hear back from any of them. Thanks for your input.
Mar 08, 2008 10:00 AM
Johnny Huang
Pleasant Hill, CA
Insurance and Real Estate Broker
Julia-I've signed up to alot of companies. Some just take apps and say they will call if they need you, others are first come first served. For now, I've been snagging up the first come first served ones just to get my feet wet and do the work. I'm hoping to get responses from other companies that assign the BPO's.
Mar 08, 2008 10:07 AM
Megan McGonigal
Integrity Real Estate - Northeast, MD
CRP - Cecil County, MD & Harford County, MD Real Estate

How do you find the online applications to do this?

 

Mar 08, 2008 12:28 PM
Johnny Huang
Pleasant Hill, CA
Insurance and Real Estate Broker

Megan- www.bpo4agent.com is one site as well as www.garypedia.com . Check those out

Mar 08, 2008 12:42 PM
Megan McGonigal
Integrity Real Estate - Northeast, MD
CRP - Cecil County, MD & Harford County, MD Real Estate
Thanks a million. I'm gonna go check them out right now.
Mar 08, 2008 03:44 PM
Anonymous
mary

Megan i also found a great site with some companies http://www.bpoaccess.com .

good luck

Mar 08, 2008 04:38 PM
#8
Megan McGonigal
Integrity Real Estate - Northeast, MD
CRP - Cecil County, MD & Harford County, MD Real Estate

Hi Johnny,

    Thank you so much for the links. I have started feeling out my info on the first link and then will do the other two. I really appreciate the the advice:)

 

Mar 09, 2008 06:23 AM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
Hi Johnny, one of the little traps that lurks for people writing BPO's in Michigan is the licensing issue.  If the lender does not want the disclaimer on the the BPO saying "this is not an appraisal" you can be in real trouble.  Nice outline of the BPO strategy.
Mar 11, 2008 12:02 PM
Johnny Huang
Pleasant Hill, CA
Insurance and Real Estate Broker
Gary-Thanks for the comment. I'm a broker so I have no problems with doing BPO's in my state. I think there are some states that require either a broker's license or an appraisal's license.
Mar 11, 2008 12:08 PM
John Kim
Property Services & Short Sale TC - Irvine, CA

Hey Johnny,

     Nice blog... nice to see what goes on in your side of the fence.

Mar 13, 2008 04:57 AM
Pete Mitchell
Saddleback Valley Real Estate and Mortgage - Rancho Santa Margarita, CA

Hi Johnny,

I'm down in Orange County, CA (not really a competitor to you) and I have filled out close to 75 applications. I got one BPO order a few weeks ago which I completed and got a great reference from the company. I have gotten email request from a couple of the "first come first serve" but before I responded, the order was filled. With one company, I checked the acceptance time and it was before I got the email notification. Not sure how that happens.

However, that's it so far. I have also been sending postcards - 500 per month to asset managers and lenders. Any input on how you are getting two BPO's per month? You can send me a personal email to respond at Homes@PeteMitclell.com. I can give you the three Asset Manager companies that I received order request from.

Thanks Johnny,

Pete Mitchell  

Apr 03, 2008 04:54 AM
Johnny Huang
Pleasant Hill, CA
Insurance and Real Estate Broker

Thanks Gary, I've used your site and it's good. I'm sure others have used it as well.

May 20, 2008 06:31 AM
Freddie Gonzales
WEM PACIFIC Investments, Inc. - Daly City, CA
CRS, GRI, RDCPro

Hi Pete,

What's happening there is that those orders were sent first to their preferred agents. Usually they give them 12 hours to respond. They also have an automatic email blast to several agents that they have on their database. But before those orders are eblast most of them have already been accepted by their preferred agent.

Nov 20, 2008 01:33 PM
Megan McGonigal
Integrity Real Estate - Northeast, MD
CRP - Cecil County, MD & Harford County, MD Real Estate

Hi Johnny,

I just wanted to thank you. I have done a few BPO's now thanks to you and am in the process of doing one now. Thanks!!!!!

Nov 20, 2008 01:39 PM
Johnny Huang
Pleasant Hill, CA
Insurance and Real Estate Broker

Freddie-Thanks for your input. Yes, alot of BPO mills need fast response, but some do give assignments.

Megan-Congrats! Do great work and you will be rewarded!

Nov 20, 2008 01:59 PM
Sherry Chastain
Hendersonville, Nashville, Old Hickory, Lebanon Tennessee - Hendersonville, TN
Realtor, Selling Homes, Lake Properties,Luxury Homes,Short Sales

Yep, listen and heed the words. More than once I went to the property address without camera or unsure which house it was as none had read able house numbers.

Jan 31, 2010 02:32 PM
Anonymous
Alex

Hi Johnny,

Do these companies require you to have a E&o insurance ?

Feb 10, 2011 07:30 AM
#20
Anonymous
Johnny

Alex,

 

It depends on the Company you are applying to. Just read their sign up instructions.

Feb 10, 2011 08:07 AM
#21