Are you “REO Institutionalized”?

Every single day, I am asked, “How do I become a REO Agent?” What do I mean by “REO Institutionalized?” Do you know how many default properties sold in your home zip code last month? No…..why not? Do you know your home zip codes total number of Single Family Homes that sold and what percentage were distressed properties, from foreclosures to short sales? Of the distressed properties, do you know what bank sold the most assets and how much of a potential loss they took, if any? My point is, even if you aren’t closing 500 REOs a year, it’s still important for you to know these statistics, it’s what a REOPro does. For example, I know that in my home zip code, last month we had 35 properties closed, 10 or almost a third were distressed. I know that my home zip code as a 98% list to sale ratio and the neighborhoods with the most activity were Hermitage Hill and Hermitage Meadows with three closings each. Now, I am not closing hundreds of REOs a year, I can always grow my business but, I am ready to provide an AM with quality information for my area when and if I bring on a new client. I am REO Institutionalized. It always has surprised me that as active as our REOPro Blogs are, we can still have days go by with no new blogs. Why is this so shocking you ask? Oh….let me explain once again. So, you as a mildly successful REO Agent who wants to grow your office but, you can’t seem to get your foot in the door and no one seems to take you seriously. In my last interview on BlogTalkRadio, I had Frank Marshall President of Default Resources on and he said it was all a matter of credibility. He was dead on! No one is going to pick up the phone and call you, no one is going to keep your resume, no one is going to assign you an asset if they don’t know you! It takes more than a voice mail, email, bag of cookies and a smile to break into or even stay in this business. You have got to make a name for yourself and if your idea of “branding” is putting you picture on your business card…..get out now! Blogging no an active network like REOPro for Default Professionals, is a huge way to get some serious credibility. Yeah, you can blog over on Active Rain, Yahoo, Trulia, Linkedin and whoever else is out there but, these sites are dedicated strictly to default, where as REOPro is….why, because REOPro is REO Institutionalized! To have a REO Blog on REOPro where it can be read, criticized and possibly accepted by your peers gives you an incredible amount of credibility, above and beyond what you can get at other sites. Simply stated, REOPro is made up of an array of Default Professionals so, if you post something there, we will all know quickly if it’s full of B.S.! Lastly, it takes time….time is crucial because it also substantiates your credibility. Time coupled with activity creates credibility. You may write a successful blog every day but, if you only have been doing it for a week……no one is going to take you as seriously as someone who has been doing it for a year. It all gets back to being “REO Institutionalized”. Other REO Professionals want to work with REO Professionals…not some snotty nosed, “entitled” upstart………yuk! Now, that doesn’t mean that if you’re new, you don’t have a future in this business, it just means you are going to have to work harder…..without complaining! Ultimately, think of your competition…..think of the people in your market who are closing hundreds of deals a year, are you more knowledgeable than them? No excuses folks……are you more knowledgeable than the top producing REO Agent in your market? If not…..then don’t ever expect to obtain their level of business because, you will be in direct competition with them every step of the way. By the way, you don’t have to have hundreds of closing to work smarter, more efficient and overall better than anyone else, you can prove that by blogging about your experience and knowledge over time.

Recently I've been amazed at the amount of agents who complain about not having any business. I've had agents in my area tell me how bad the retail market is and they want to make a "change" to REO. The dynamics of REO (traditional methods, 'shadow' agents [great post Jesse!], etc) and short sales is so spread out now in many forms that it now IS the market. I certainly believe in passing on to other agents what I know about the business, but to have "lunch" to pick my brains and be mildly interested in what I'm saying before popping the big question about who my clients are is not going to work.

I had a BPO client recently who was actually having some trouble placing BPO's with agents in a certain area far outside of my zip codes. I was shocked and amazed at the fact that there was a lack of agents working those zip codes. These areas were not neccessarily REO driven but rather they are areas with several luxury home communities. It appears that there was some speculating of these areas, possibly for non performing note purchases. Are those agents in that market not aware of the business potential there?

The typical, arms-length retail transaction is over-at least for now. Like Jesse says, we need to "work smarter, more efficient and overall better than anyone esle

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Comments

Trevor Nightengale January 22, 2010 at 8:22am

Recently I've been amazed at the amount of agents who complain about not having any business. I've had agents in my area tell me how bad the retail market is and they want to make a "change" to REO. The dynamics of REO (traditional methods, 'shadow' agents [great post Jesse!], etc) and short sales is so spread out now in many forms that it now IS the market. I certainly believe in passing on to other agents what I know about the business, but to have "lunch" to pick my brains and be mildly interested in what I'm saying before popping the big question about who my clients are is not going to work.

I had a BPO client recently who was actually having some trouble placing BPO's with agents in a certain area far outside of my zip codes. I was shocked and amazed at the fact that there was a lack of agents working those zip codes. These areas were not neccessarily REO driven but rather they are areas with several luxury home communities. It appears that there was some speculating of these areas, possibly for non performing note purchases. Are those agents in that market not aware of the business potential there?

The typical, arms-length retail transaction is over-at least for now. Like Jesse says, we need to "work smarter, more efficient and overall better than anyone esle
Jim Godwin, NRBA, RDCPro January 14, 2010 at 6:38pm

06040 in the past 30 days:
31 total properties sold, 7 distress sales. Of the 7 there were 4 REO, 2 short sales and 1 probate case.
We have a 92% list to sale ratio which will most likely decrease in the next few months due to the increasing number of active listings(up almost 9% over the past 90 days). 31 of which are distressed. 20 REO, 11 Short sale.
This is information you can gather in 15 minutes every morning while you’re drinking coffee. There really is no excuse for not knowing your own market! I don’t get why you need to be closing 100 REO’s to have to know this stuff. Every agent should follow the market trends. That’s what we do! Predict what a piece of property is going to sell for based on historical data.

I agree with Denise and Billy, the blog talk radio thing is going very well! Very informative, good guests. Great job Jesse!
Glen Burrough January 14, 2010 at 8:59am

You got it! I don't want, better yet, can't service 100 REO assignments, I can and will pick up a few, doing HRC's, BPO's, and selling what I do get. Yes, the 25% or 33% I pay for refferals is substantial, however, it's better than 100% of nothing! My goal is to get more than the two (2) I got in 2009. Have a great 2010!
Denise Stovall January 13, 2010 at 5:54am

I agree great post....The radio show last Sunday did motivate me to take some direction as to becoming an Institution of information about Real Estate today. For me it is about steps.

Funny thing my business is all over the map but one thing that is true no matter whom or what information and time management is key right now. I am always trying a plan after a plan.

Jesse great advice from a REO Institution.
Billie Dalessio January 12, 2010 at 6:35am

great blog, and I enjoyed the blog radio presentation, If anyone missed it, looks like Jessie has a link to past radio broadcasts on main page.
John Accornero January 12, 2010 at 6:18am

I can't think of af time that I was actually asked for this information. I know quality service however because I have QSC and I don't see REO agents with that. I wonder how many asset mangers would actually like their properties marketed for THE BEST PRICE... to weed out lowball offers. I have enrolled in almost every platform available and await the ability to unleash my professionalism for the benefit of an asset manager. At least a potential buyer would get a live person to talk to with me.
Franklin E. Rodebaugh January 12, 2010 at 2:26am

Once again, Jesse, you hit it on the head. Perfect advice and just when it was needed.
Dr. Marqueze D. Williams, Sr, NRBA January 11, 2010 at 9:23pm

Whoops...meant realty pilot.
Dr. Marqueze D. Williams, Sr, NRBA January 11, 2010 at 9:22pm

OMG! This is a great post! Hey Jesse. I myself reside in Nashville as well. This is a great post because I always look at the competition. Nell, Emil, Cindy, Moreen, Nazarene, Carl, Jim,you, and the list goes on. As far experience man I have a lot but its seems to me, now this is to me; that relationships are key in this business. But we definitely need professionals in this business and we must know how to run our REO business. This is so important. Someone asked me how do you become a REO broker. I told her its like the military, we don't take everyone. I also told her that this business is HARD WORK and expensive and you must have tough skin. All agents don't understand how REOs function. But that's another story...Any way great blog. I plan on joining RealtyPro as well.
Jose Rivas (DGRA) CDPE, SFR January 11, 2010 at 9:08am

Great post Jesse, REOPRO is full of resources for our industry. Some of us are shy writing and we do better face to face, but using this tool, that you have developed, can help us get the opportunity to have that face to face.
I don't care how experienced or inexperienced one is, we all can share lessons from our own experiences that can help others. We all have the potential and the gift to GIVE.
We need to be experts and leaders in our industry, our clients deserve that, and this is a great forum to do that.
I honestly believe in being prepare and to plan for success. I have been in the middle of several natural disasters, and it is good to be prepare, how do we know when a Hurricane is coming? if you follow the storms and you have time to prepare, get the flashlights, the safest room in the house ready, shutters, can food, water, etc. then you will survive, but if you don't realize the storm is coming until it is above your head, and you didn't prepare all you have left to do is pray.
I am a believer, but I like to be prepare, that way I can have more control of my destiny. We need to be resources for our clients, our colleagues and our communities.

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