Does anyone have experience in signing up with ABF and receiving REO and Short Sale listings? Any information would be greatly appreciated regarding if this is a good investment. Thank you.
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ABF have contacted me via email and when I attempted to ask questions as to why should an experienced REO agent pay for their training I did not get a response.
I was selling REOs for all long as I can remember. I was selling REOs when VA, FHA, & FNMA were the only ones with REOs. In the last few years and/or just after the sub-prime lending practices ripped the bottom out of the real estate market, asset management companies are popping up everywhere wanting to charge those of us who have of us who have being doing this since the beginning of time fees to be trained to become REO certificated, an REO expert, it's madding....I currently deal a couple of bank directly, it did not cost anything to sign up with them, nor does it cost me a monthly fee...I simply must perform my contractual agreement, such as be a member of local MLS so that I can place my listing in our local MLS, completely monthly reports, make sure my clients properties are properly maintained, lawn, etc.. report any changes to the property, etc.
Frankly all of these pop up asset companies scare me. I recently signed up for one that charged a referral fee of 30% I received three properties and was instructed to have the property interior & exterior trashed out, I was provided instructions on how to get reimbursed, the entire nine yards, the cost was well over $2,500.00 for the preservation of the three properties. After I paid to have those properties clean up and the lawn maintained the properties was taken from me....I was told that the properties was sold.....By who? I don't know, I never received cent of commission and I am still out the well over $2,500,which I have never been reimbursed for.
As a Realtor I already pay a lot of money for advertising, MLS due, ibox fees, GE fees for lock boxes, signage, E & O insurance, Realtors dues, just to name a few and with the economy in the mess it's in...I am not a little weary of paying for a maybe. If you read ABF terms nothing is guaranteed. But you must pay all fees upfront.
After reading all your comments, I just wanted to share some information I have received from a representative at ABF. She did share with me the number of agents currently signed up for my preferred zip codes. (which sounds like they haven't done for some of you) Only a couple of the zips had 1 or 2 agents enrolled out of about 20 I gave her to check. It seems they do not have very much coverage in Illinois yet. This is exciting to me as it gives me an opportunity to get in from the beginning...or, on the other hand, that could be a major drawback ,as it sounds like if they don't have good coverage, they will not start to assign listings. They have some contracts with banks, but are in the growning phase of trying to sign up new banks, so it could be months and months before they have any listings for a given area...if ever.
Here are answers to some of my questions:
Do you have exclusive contracts with specific banks/Asset management companies?
Yes, we do. These banking contracts are confidential, however. ABf also has a team of 6 representatives who will call on more banks to secure more contracts over the next year or two. There are 600 banks in our target group. We intend to cover the market!
Is each listing only assigned to one agent?
Each listing goes to one individual listing agent. You are not competing for the listing, like some companies do business, enticing several agents to do BPO's. The listings range in duration from 6 months to one year. Commissions range from 6 to 8% on REO's and 4.5 to 5% on approved short sales. You split the total commission as is customary in your market, typically 50% to listing side and 50% to selling side, for example. There will be typically 2 to 3 agents per zip code, and the listings are referred on a "round robin" basis in rotation. I understand you only start paying the $99/mo/zip once you receive a listing, but what about the e-signing set-up and monthly service fee? It looks like you start that immediately when you sign up, however it may be months before you get your first listing.
The $150 fee up front is to ABF to get you registered into ABF' system and to cover your online training. The upfront fee of $119.98 goes to settleware.com and then a monthly fee to settleware of $29.98 for license/use of the software. You may use this esigning software for all your transactions, not just those through ABF. If you want to just join ABF now to conserve $$'s, start the training and wait a little while on settleware, that's your choice as well. We are anticipating the launch in April/May, but that is just a guess at this point. We need good enough coverage across with country with trained listing agents in the ABF system.
So, this truly is a start-up, no track record to base a decision on. Seems to me signing up with ABF would be pretty risky...but could payoff to get in from the beginning.
Keep passing on your individual comments, they will help me make my decision!!!
Settleware Secure Services, Inc. Digital Signatures
ABF sounds like a great concept. It is much-needed in this industry. However, I do have some concerns:
1. They charge the agents $99 per month PLUS they take a 20% referral fee from each transaction. They need to charge only 1 of those fees, not both. This business model reeks of greed -- they get us coming AND going!
2. The whole zip code idea is silly. I service some semi-rural and rural areas where ABF may get only 1 listing per year per zip code, for which the agent(s) will have paid $1,200 each. So ABF will lack coverage in many semi-rural zip codes. This business model needs to be re-thought and re-designed. The best solution would be to charge the agent ONLY if and when they actually get a listing OR close an escrow from ABF (not both; see #1).
3. The e-signing fee is unwarranted. Many agents already use DocuSign (our CA Assn of Realtor members get a great discounted price) or Adobe Acrobat or other software. And it's usually a flat monthly or one-time fee instead of a monthly recurring fee. This smells like ABF is simply trying to squeeze more dollars from the already-overspent agent.
4. Requiring every prospective buyer to get pre-qualified with any specific company is a bad business practice that may soon be halted. Put yourself in the buyer's shoes: You've made offers on 5 REO properties, but only went into escrow with 1. Now your credit has been run 6 times, your private info is disclosed to more people, and your FICO score drops. Not to mention the inconvenience and frustration and headache.
Like I said, it sounds like a good concept but needs some tweaking. My theory is that any company NEW in business should offer free-trial memberships until it gets going. This allows them to fix bugs and correct their business model in the begining, without members complaining too much (they know they getting free service because they're guinea pigs). This would also help them get their database of membership built up.
If ABF really DOES offer a great service, most members will renew their membership after the initial FREE trial membership expires. If a company has that much faith in their products or services, they won't be afraid to use this method that many successful companies follow! Just look to linkedin.com & many others as examples.
Regina P. Brown
Real Estate Broker, RealtorR, e-Pro
California Coast & Country
web: www.CaCoastCountry.com
Home Retention Consultant
Hi Megan~I have been seriously considering signing up for 2 zip codes to begin with. I asked the local rep a few questions and she was excellent about emailing me with the answers. One thing I was not aware of is the fact that when we are paying $99 per mon per zip code that we were not the exclusive agent for that zip code. Is that true??? If not, how many agents can be paying for the same zip code?
My Principle Broker also signed up with them and did pay their sign up fees and has not received any properties, listings, BPOs or anything from them yet.
Bill,
Thank you for your info regarding ABF. I’m thinking to sign with them, but first is make sense to me find out as much as possible about them. I have the same concerns about zip codes and agents competition in the area. I tried to find out how much business they have in my state (IL). I think, their contract says, that listing agent, when assigned to ABF listing, required to write in the listing remarks sections about buyers pre-approval: buyers have to be pre-approved through Lender Express located on ABF website.
So, I tried to search using remarks section any listings (closed, actives,) with the words- Lender Express, and it was NONE. Is this means, that no-one ever had or have any listings with them? Any thought on that? Thank you.
Lisa Crawford > Kestas VileikisMarch 17, 2009 at 7:03pm
Abf is brand new, so there have not been any listings yet. I was told that they are working twards mid-april for the release of listings.
Bill-
Thanks for the great info! You have some very valid concerns (most of which I also share). I will definately ask for further info on the number of agents per zip b/c the answer that I received from Marie was that there was a limit of 2-3 agents per zip code. If that is not correct, then I would also feel it isn't worth the risk.
As an agent trying to break into reo listings, I'm thinking that I'm willing to gamble just to get my foot in. A couple of things that I like are the no out of pocket for repairs and the possibility that new agents can get a shot. In my market, if you're not already an reo agent, you're not getting any new listings. I have lots of experience with buyers and investors picking up foreclosures (95% of my business) but that doesn't seem to help. I've joined some of the few companies that are taking apps, but get nothing - just one name in a million.
Oh, also - my understanding is that the referral fee to ABF is 20% of my commission (3%). This actually totals to be less than the usual 1% fee from most asset management companies.
Replies
I was selling REOs for all long as I can remember. I was selling REOs when VA, FHA, & FNMA were the only ones with REOs. In the last few years and/or just after the sub-prime lending practices ripped the bottom out of the real estate market, asset management companies are popping up everywhere wanting to charge those of us who have of us who have being doing this since the beginning of time fees to be trained to become REO certificated, an REO expert, it's madding....I currently deal a couple of bank directly, it did not cost anything to sign up with them, nor does it cost me a monthly fee...I simply must perform my contractual agreement, such as be a member of local MLS so that I can place my listing in our local MLS, completely monthly reports, make sure my clients properties are properly maintained, lawn, etc.. report any changes to the property, etc.
Frankly all of these pop up asset companies scare me. I recently signed up for one that charged a referral fee of 30% I received three properties and was instructed to have the property interior & exterior trashed out, I was provided instructions on how to get reimbursed, the entire nine yards, the cost was well over $2,500.00 for the preservation of the three properties. After I paid to have those properties clean up and the lawn maintained the properties was taken from me....I was told that the properties was sold.....By who? I don't know, I never received cent of commission and I am still out the well over $2,500,which I have never been reimbursed for.
As a Realtor I already pay a lot of money for advertising, MLS due, ibox fees, GE fees for lock boxes, signage, E & O insurance, Realtors dues, just to name a few and with the economy in the mess it's in...I am not a little weary of paying for a maybe. If you read ABF terms nothing is guaranteed. But you must pay all fees upfront.
Here are answers to some of my questions:
Do you have exclusive contracts with specific banks/Asset management companies?
Yes, we do. These banking contracts are confidential, however. ABf also has a team of 6 representatives who will call on more banks to secure more contracts over the next year or two. There are 600 banks in our target group. We intend to cover the market!
Is each listing only assigned to one agent?
Each listing goes to one individual listing agent. You are not competing for the listing, like some companies do business, enticing several agents to do BPO's. The listings range in duration from 6 months to one year. Commissions range from 6 to 8% on REO's and 4.5 to 5% on approved short sales. You split the total commission as is customary in your market, typically 50% to listing side and 50% to selling side, for example. There will be typically 2 to 3 agents per zip code, and the listings are referred on a "round robin" basis in rotation.
I understand you only start paying the $99/mo/zip once you receive a listing, but what about the e-signing set-up and monthly service fee? It looks like you start that immediately when you sign up, however it may be months before you get your first listing.
The $150 fee up front is to ABF to get you registered into ABF' system and to cover your online training. The upfront fee of $119.98 goes to settleware.com and then a monthly fee to settleware of $29.98 for license/use of the software. You may use this esigning software for all your transactions, not just those through ABF. If you want to just join ABF now to conserve $$'s, start the training and wait a little while on settleware, that's your choice as well. We are anticipating the launch in April/May, but that is just a guess at this point. We need good enough coverage across with country with trained listing agents in the ABF system.
So, this truly is a start-up, no track record to base a decision on. Seems to me signing up with ABF would be pretty risky...but could payoff to get in from the beginning.
Keep passing on your individual comments, they will help me make my decision!!!
1. They charge the agents $99 per month PLUS they take a 20% referral fee from each transaction. They need to charge only 1 of those fees, not both. This business model reeks of greed -- they get us coming AND going!
2. The whole zip code idea is silly. I service some semi-rural and rural areas where ABF may get only 1 listing per year per zip code, for which the agent(s) will have paid $1,200 each. So ABF will lack coverage in many semi-rural zip codes. This business model needs to be re-thought and re-designed. The best solution would be to charge the agent ONLY if and when they actually get a listing OR close an escrow from ABF (not both; see #1).
3. The e-signing fee is unwarranted. Many agents already use DocuSign (our CA Assn of Realtor members get a great discounted price) or Adobe Acrobat or other software. And it's usually a flat monthly or one-time fee instead of a monthly recurring fee. This smells like ABF is simply trying to squeeze more dollars from the already-overspent agent.
4. Requiring every prospective buyer to get pre-qualified with any specific company is a bad business practice that may soon be halted. Put yourself in the buyer's shoes: You've made offers on 5 REO properties, but only went into escrow with 1. Now your credit has been run 6 times, your private info is disclosed to more people, and your FICO score drops. Not to mention the inconvenience and frustration and headache.
Like I said, it sounds like a good concept but needs some tweaking. My theory is that any company NEW in business should offer free-trial memberships until it gets going. This allows them to fix bugs and correct their business model in the begining, without members complaining too much (they know they getting free service because they're guinea pigs). This would also help them get their database of membership built up.
If ABF really DOES offer a great service, most members will renew their membership after the initial FREE trial membership expires. If a company has that much faith in their products or services, they won't be afraid to use this method that many successful companies follow! Just look to linkedin.com & many others as examples.
Regina P. Brown
Real Estate Broker, RealtorR, e-Pro
California Coast & Country
web: www.CaCoastCountry.com
Home Retention Consultant
Thank you for your info regarding ABF. I’m thinking to sign with them, but first is make sense to me find out as much as possible about them. I have the same concerns about zip codes and agents competition in the area. I tried to find out how much business they have in my state (IL). I think, their contract says, that listing agent, when assigned to ABF listing, required to write in the listing remarks sections about buyers pre-approval: buyers have to be pre-approved through Lender Express located on ABF website.
So, I tried to search using remarks section any listings (closed, actives,) with the words- Lender Express, and it was NONE. Is this means, that no-one ever had or have any listings with them? Any thought on that? Thank you.
Lisa Crawford
Thanks for the great info! You have some very valid concerns (most of which I also share). I will definately ask for further info on the number of agents per zip b/c the answer that I received from Marie was that there was a limit of 2-3 agents per zip code. If that is not correct, then I would also feel it isn't worth the risk.
As an agent trying to break into reo listings, I'm thinking that I'm willing to gamble just to get my foot in. A couple of things that I like are the no out of pocket for repairs and the possibility that new agents can get a shot. In my market, if you're not already an reo agent, you're not getting any new listings. I have lots of experience with buyers and investors picking up foreclosures (95% of my business) but that doesn't seem to help. I've joined some of the few companies that are taking apps, but get nothing - just one name in a million.
I'll definately keep you posted! Thanks-
Lisa Crawford
Lisa Crawford
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