Bitter Experienced REO Agent, Party of 1

One of the biggest changes our industry has seen, is the level of competition for listings has exploded exponentially. This increased level of competition for listings has created a nightmare situation for tenured default agents. Many of these agents had a fairly high level of job security and took their 100 + listing inventory for granted. These tenured agents could set back and rest assured that they had locked down their area and never had to worry about some rookie agent coming in and stealing their listings however, the default industry is changing. The first problem, as I see for these tenured agents, is the recessed economy. Granted, many would see this time as a boom for a tenured REO agent because an increase in their inventory couldn’t be a bad thing. Many of these tenured agents had become so comfortable with their workload that they never saw an actual need to update or change their business procedures to handle any future change. In fact, it still isn’t uncommon to walk into a high producing REO agents office and see large dry erase boards with color coded charts, large stacks of files all overflowing with paper and an agent who can’t return a single call from prospective buyers or selling agents. These agents are becoming antiquated. They are being bogged down by their own procedures and becoming less and less effective. What many don’t understand is that with an increase in inventory comes an active almost aggressive demand for technological solutions that can streamline the process of REO. Either you get on board with these changes or you loose your inventory. Sadly enough, many of these agents are behind the eight ball when it comes to these technological advances our industry is making. They can’t or won’t integrate and become more a burden to their asset managers than a benefit. Many asset managers will simply start looking for more technologically savvy agents rather than wait on their tried and true agent to get up to par. The truth of the matter is, for many asset managers, their own income is largely derived from competing against their fellow asset manager or obtaining very aggressive goals in closing rates and ratios. Because of this aggressive environment, they do not have time to work with an agent who is ineffective so, to reduce their risk they begin spreading out their inventory to newer agents who are more aggressive, less complacent, more tenacious and hungry for the work. Before you know it, the asset manager is impressed with this “new” blood and decides to move inventory around. The default industry is changing. The second problem, as I see it for tenured agents is the rise of Default Servicing Networks. Now, these networks aren’t anything new, for example, NRBA (National REO Brokers Association) has been around for years and has really been a benchmark for our industry but now we see the rise of more and more of these networks that are heavily vested in technology with blogs, forums, chat rooms, RSS, real time news updates, automation, online offer submission, and much, much more. These older established networks are scrambling to stay relevant, let alone an industry leader. Some networks like NRBA have managed well and have maintained their status in our industry however, I speculate that for every one that is successful, three or four are not. These networks are establishing themselves as powerhouses in our industry by offering their clientele, the servicers and asset management companies a level of expertise and professionalism that is unmatched. Because of this, servicers and the such are taking notice and choosing to do business with only those agents who are affiliated with these networks. Many independent, un-affiliated REO agents who don’t belong to a network find themselves out in the cold when some other agent in their area joins a network and start “stealing” their listing inventory. Most of these networks offer and sometimes even require their agents to have a particular level of experience, education and commitment to reach different levels of responsibility. It is this hands on agent management style that creates a strongly developed agent committed to success and the industry that makes these networks so enticing to servicers. Ultimately these networks force servicers to decide, do they go out and find Joe Blog agent extraordinaire or do they choose from this network where the agents are already defined and they are assured of experience and education. The network, property managed, will almost win out every time. The third problem and final one I will discuss today, is the hybrid network like REOPro. Networks like REOPro that offer agents the chance to network both socially and professionally while adding value by researching technology and developing strategic partnerships to help their agents grow and become successful will ultimately be a mega player, if properly managed and structured. These networks will offer incredible networking opportunities, un-matched member driven education, technologically driven solutions to servicers and finally do all of this while increasing value by adding tools, modules and updates while keeping pricing highly competitive if not virtually free. These hybrid networks will corner this competitive market by giving servicers no other choice but to come on board, simply because cost savings back to the servicer can’t matched. These networks will in essence become Default Servicing Companies offering comprehensive robust value driven tools to all involved, from the Asset Manager to the agent. In return, they will be taking / stealing listings right out from under the nose of the unsuspecting agent who is still sitting in their office using a dry erase board.
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Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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Comments

  • My business partner & I use a dry erase board for quick reminders of price changes, status, etc. when in office answering calls. Are there any suggestions for REO management or REO office efficiency? We are looking to make changes for 2010. In the last 5 weeks we have gotten about 25 new listings w/17 others currently pending. It has gotten a little "hairy", lol not complaining. We are considering revamping the entire office w/updated printer/fax/scanner, etc. We consider ourselves pretty hi-tech but are willing to explore more efficient options. Any suggestions?
  • I love all this network sharing of experiences and advice. As a new comer to this group, I appreciate the diversity of information I find here and this helps me in my own growing business. Maybe one day soon in the near future, I too will be able to offer advice that will help another "newbe"
  • Excellent info
  • Great POST!!--- I would like to say that along with complacency of their "good ol' boy network" which in the past drove me nuts ! Their lack of communication and their desire to form their good ol' boy "clubs" caused much of of the asset managers demise.I feel that the amount of listings given to any one company should be capped. Mabe 60-100 per year and no more.... frankly, the service would be better, realtors would be forced to remain diversified and updated and it would spread the wealth around. I am expecting 70-100 listings in 2010... am not soliciting or trying for more..... Its what we can handle without 1) going broke 2) going insane 3) managing property maintenance,4) and still teaching my newbies how to sell real estate. I feel diversity is healthy.. meanwhile, asset managers deem someone that pays nrba ( or any similar group) $180 /mo. are automatically "experienced"--- Many are in so deep financially they're drowning..... thats experienced???? Far from it.......as well, I have to say, if I have to evict someone, they are lucky to have me . I take the time to speak to these families humanely and with care-- The stories I hear about the cash 4 keys scenarios w/ "good ol' boys" are nightmarish and border on abuse.
    I love my work and I love this forum, I can read and discuss trends, I stay updated and can discuss new software,etc.... and my bpo-payment ratio is way more even, lol....by the way--- I do pay thousands every year to join "networks-clubs".... I find there are no guarantees as to how much "experience" any of them offer... but, in here.....all questions are handled...... no one gets left behind and voiceless...... Thank YOU JESSE!!!!
  • The newest trend I'm seeing from the old boys around here is they are now putting signs up on REO's that say: beat the others to get a deal on this REO by calling xxx-xxxx. I've called, the property is not even listed in the MLS and they are willing to take inside offers so they can "double-end" their transactions. Its a bad deal and it makes every other Realtor look bad. I've even got a audio recording of the come-on. Along with unfair trade, it also is a terrible thing for the seller that needs to get the most out of his loss portfolio. This kills REO business.
  • Jesse, I share your views, especially about the "very" experienced agents that haven't needed to keep up over the past 5-10 years and now find themselves far down the learning curve. Ultimately, this is good for the industry and those agents that are willing to keep learning, but bad for the dinosaurs.
  • Jesse, good points, but actually I have to comment in the title, it is too negative, I think for every bitter agent there are 10 more happy agents because of the changes to the default industry and for the "hybrid" networks like REOPRO, where we come to create a large think tank that will materialize into more business for us.
  • This is in response to Jesse.
  • I almost got suckered in by Kondour.

    Tary
  • Jesse,

    A truly great testimate of todays' real estate environment relating to the default industry. The shared information from networking on REOPro.ning is coming from all of us and not just another seminar or outsider looking into how we agents create business and earn a living.

    I am looking forward to a future of a well managed Default/REO agent taking pride in presentation, negotatiation, and clear communication. Not just another bank owned smelly cold distressed property diving to the bottom looking for mulitple emailed offers @ "Best and Highest" with no seller response other than a verbal until close.

    Look out Old Dogs the New Dogs are coming in. Hats off to you Jesse!!!
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