After completing a 2014 P&L this is what became apparent:
1,000 BPOs completed
$30,0000 expenses to complete BPOs including a part time assistant.
That means, just to be in business to complete BPOs we need to budget $30 per BPO.
Therefore at $50 per BPO, on average -
we net $20 per BPO before social security taxes and health insurance.
Anyone who completes BPOs for $35 or $40 cannot possibly be making a profit.
Comments
Lol! Well said, Marvin! I think it all boils down to what works well for your business.
MEANT DO NOT ALL MAKE 10 SALES PER MONTH
Been thinking more about this after reading the entire thread. I can see keeping someone on a main computer while you are taking pics or the other way around---though YOU are supposed to take them and evaluate the circumstances surrounding the subject. Ive probably lost more BPOs than I did simply by being in the field when mor orders came over the net. I could have done about 1500 in 2014. I couldnt possibly cost much to have a computer sitter. Some alert us by text or emails which we can get over smart phones but you cant really call the phone an expense because you need it anyway. Regarding needing the fastest internet connection to do these and load photos--I call bull. I have a great program called Fastone image resizer. It quickly reduces the info size on pics to a small format so they travel as fast as type. Many sites want that anyway. I was doing FIOS super speed and cut my upload/download by half to reduce cost and notice no difference unless everyone else around here uses the wifi. I do what Vanessa does---wait to the end of the day, map out all in mileage sequence, snap em all then do the homework that evening or the next morning. Ive completed over 5,000 BPOs.
And now back to being demeaned for working for low fees. Ya know---we aint all made of money. No matter what our ability, crud happens. We do all make 10 real estate sales a month. Times are hard. Cost of living is extreme. Obama needs to be impeached. Democrats need to be run out of the country (oh oh!!!). No Im kidding. They just need to be lobotomized but back to my point. Many of us needed that BPO income. There is no shame in taking a $30 order. We are not all millionaires. I have 34 years experience as a broker and have been an author and been quoted by Reuters news. I have great knowledge. However, I became handicapped due to extensive health problems. I cant walk far or climb stairs and its hard to go out door knowing or showing homes. BPOs helped pay my bills. Unless those of you who are millionaires want to put my daughters through college for me...knock off the crud 'working for pennies is beneath me' comments.
So not true. I did 635 BPOs in 2014 all by myself. Approx 40% were $30 quickies for a couple credit unions to establish quick value for new second mortgages. My costs were a camera (my old one broke) for $89 and two cases of copier paper. Of course I had gas costs but the 50 cents a mile IRS deduction covered that by a bunch. Id like to know what the assistant did. You are supposed to do a great deal of each piece yourself. Actual evaluation is not up to another person unless they are signed up with that BPO portal and have a license.
I know a broker who pulls in about $12000 a MONTH doing BPOs but he never even sees them. He pays flunkies to do it all, and still make 5000 to 7000 a month because he s a cheapskate to the help. If the BPO companies knew---they would fire him. I am amazed at some of the large checks he receives---the BPO portals have to know that he casnt do these all by himself. He works a three county area. Its not possible for him to cover it. In some cases the portals either dont care or are just flat stupid.
Im amazed at the comments from some of you, especially those who call anyone a bottom feeder if they dont make a million dollars a day doing whatever they do. Regarding using auto fill software. Its silly. I tried it once and had to always go in and correct this or that or add things not completed. Yes it got almost the bulk, but my particular way of completing these is so fast I dont really need or want to rely on something that I have to PROOF READ to be sure its accurate. But thats me. No matter how much real estate you sell, its easy money and can be incorporated into anything else you do. I do zipcodes between my home and the beach I like to go to the beach, and what better way to get a FREE GAS TRIP than take a few photos on the way there and back? Need to go shopping and only work a close distance from your home for BPOs? Do one while making a run to the supermarket. Its almost FREE money.
You left out one important detail. What is your Gross BPO income?
$30,000 divided by 1000 BPO's equals = $30 per BPO Gross? That's not a good business plan at all.
Expect that to be a stay busy activity. Someone pays your gas, E&O Insurance, and desk fee what is left is what other realtors are not getting.
Most young people are not cut out to do this tedious work. The tedious work including photographs are only supposed to be prepared by a realtor.
So Vanessa, tell me more about Realty Pilot. Do you use just the BPO auto fill or do you use their back office as well? I've tried auto fill programs before but found managing their system was just as time consuming as just entering the BPO information manually.
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