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What's has Become of the Real Estate Market, Predatory REO Companies on the RISE!

Posted by Don Alexander on March 8, 2011 at 11:08am in Sample Title

What has become of the Real Estate Market?

Companies are Cashing in on Real Estate Professionals, the same way Loan Mod. Companies prey upon distressed Home Owners.

HOOK, LINE, Sinker!

 

The Bait is: Get REO Listings in your Area, Sign up now for a low $295 get Listed with 100+Asset Managers Today.

 

Every Real Estate Agent could use more business, of course, and there is a Price to Pay for more Business. Its the scam artist that thinks of a Great Website to lure agents in.

In the End, its Time wasted, money lost, and skeptism gained.

Beware of these Companies.

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Replies

  • Sharon Tukay, New Harvest Realty March 17, 2011 at 6:23pm
    Hello Everyone. This is exactly why I joined REOPRO. I'm considering an REO Certification Program but I'm confused about what program is actually legit. Does anyone have any insight as to who offers the best education at a decent price? I am new to teh REO world so the support is extremely appreciated.  
  • Steve Adkins March 10, 2011 at 10:56am
    Something I have learned here and have repeated it several times: If they come looking for you and want to charge a fee, they are more then likely a scam. If they are a legit company with real business, someone here will be talking about them! And from what I have seen, 95% of companies with real business will not be out looking for new members and requesting a membership fee!
    • Don Alexander > Steve Adkins March 10, 2011 at 11:04am
      I Agree. What ever happened to Referral Fees! The close, a Referral fee is Paid.
      • Ira Joshua Parker, P.A. > Don Alexander March 10, 2011 at 11:12am
        Shoot, I pay membership fees at Equator & Res.Net and STILL get slammed for Referral Fees.  And some of these AM's are taking 35% referral fees, which makes it tough on the Agent end to make a living when we're the ones carrying the utility bills, cost of signs, flyers, MLS, memberships at REO portals, etc/etc.... I thought giving up 25% was fair enough; but what do I know?
        • Mike Linkenauger > Ira Joshua Parker, P.A. March 11, 2011 at 4:08pm

          Josh, up until a year ago, we didn't charge any membership fees and ONLY worked off of referral fees, period.  Unfortunately we found out the hard way a disturbing statistic - of the agents out there who say they do short sales and are experienced at them, 65%-75% perform EXTREMELY poor.  This is unfortunate and costs US time and money.  For example, there is one agent in Phoenix who is on the board of Realtors out there and has every designation, talks the talk about short sales ect... We sent him over 20 listing assignments in a 4-5 month period.  A good agent of ours would list 12-15 of those assignments, he listed TWO.

           

          We've found that when agents have something to loose ($295), they tend to be more committed to performing and being accountable for the assignments they receive.  In addition, those membership fees have made it possible to give our agents more and more resources, and even give them our training course at no cost.  It has also enabled us to build a portal that we are launching in a few weeks that was modeled after equator and will open the door to direct assignments from servicers and lenders.  And to members who perform, the $295 is almost always just a drop in the bucket compared to the commissions from closings.

           

          I used to be against charging, but it does some good for good companies.  Equator and Res.net both deliver as well and are good.  As an agent who has fallen for quiet a few things in years past, I agree with what Steve said the most.  If it is a company that contacts you or calls you and wants money, RUN.  Though we have done campaigns to attract agents to our site (which is free to use) because we need them there, we have never contacted a random agent with a "sales pitch".  That is definitely something to watch out for ALL the time!!

  • Ira Joshua Parker, P.A. March 10, 2011 at 10:48am
    What is NAR doing for us Agents to keep these businesses from taking hard working agents' money?  Why can't NAR require some sort of an affilliation with them for the sites/companies to be able to claim legitimacy?  Just a thought... If more of these 'great companies' were already run through the background tests & legitimacy claims by someone at NAR - we as Agents could safely spend our money at those companies and need not worry about the newest scam!
    • Don Alexander > Ira Joshua Parker, P.A. March 10, 2011 at 11:03am

      NAR can't Regulate everything. When things go wrong they will be the blame. Some companies are set as a Corporate entity, or an LLC etc. and they have a Great Sales pitch to Asset Managers, Lending Institution etc. Witin their System they create certain Designations, and other tools to create a Buzz, a Platform for Agents, and the Rest is History.

      Some are Bad,Good, and Great. I Hope if you join any of those groups, get testimonials, then decide.

      • Ira Joshua Parker, P.A. > Don Alexander March 10, 2011 at 11:10am

        I agree that they can't regulate everything, but shouldn't they have something in place to create some uniformity?  Would make it much easier for agents to see: "Oh, they're not in affiliation and/or compliance with NAR practices, so I'm not going to sign up here", or "Great, they're registered at NAR and are in compliance, so I am comfortable spending $1k to join.  Where do I pay?" 


        Just food for thought - not at all placing blame on anyone, by any means; hope it didn't seem that way! :-)

  • Mike Linkenauger March 8, 2011 at 3:57pm

    Ironically, we do charge $295 ourselves to get agents more business as well, the only difference is that we actually deliver, and back it with a guarantee.  I've seen so much, as I'm extremely active on the internet and get around. I agree with you, it disgusts me completely and makes it more difficult for us to do legitimate business.  Heck, they are duping agents left and right out of membership fees at every conference you go to now also!  I was just talking with Jesse the other day about the unbelievable overpriced "training" and "certifications" that companies are pushing now as well.  Another $cheme as far as I'm concerned. 

     

    Because of them, I have to go set up unparalleled testimonial pages just to show our legitimacy:  www.theshortsaleguide.com/group/preferredpartners/forum/topics/test...

    TESTIMONIALS - Share them here!
    WE NOW HAVE OVER 100 TESTIMONIALS ON THIS THREAD! Got a testimonial of your experiences with The Short Sale Specialist Network?? Share YOUR experienc…
    • Jose Rivas (DGRA) CDPE, SFR > Mike Linkenauger March 9, 2011 at 4:07am

      I can testify that your company is very legit and delivers. My team and I have receive good business from you. keep on the good work, Mike.

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