Desperate Agents Raise Funds for Asset Management Start Ups.

Ok, this blog is going to cause a lot of friction however, please understand that is my goal. I really want to hear your thoughts, both the pro’s and con’s. Our industry has a lot of REO / BPO Firms popping up out of no where making huge promises if only you pay 199.99 for their training / certification / designation. The problem is, most of these companies aren’t what they are cracked up to be. In fact, it has come to my attention through an anonymous source that many (how much exactly I don’t know and neither did my source) of these REO / BPO companies using their “designations, certifications and training” as their start up capital vs. going out and getting real funding from a bank or private capitalist. Well, you maybe thinking, “what is so wrong with that?”…….let me explain! These companies don’t intend to ever produce a REO / BPO for their agents…..that’s right, you read correctly. What these companies are doing is putting together a list of Realtors who are “certified” then they shop that list out to a Asset Manager list they bought from a data source like, Datasource.us. In other words, they aren’t doing anything more for you than you can do for yourself! Read their agreements very carefully. They say things like, “Participate in our Advertising Program or We Assist our Clients in Finding the Right REO Agent to Sell Their Listings or Lenders Choose from our Experience List of Agents….blah….blah….blah. You never hear them say, “Mrs. Jane Doe Realtor Extrodinare, our client…ABC Bank has three REO’s we need to assign in zip code XXXXX so, can you work that for us?” In other words, they never quantify, qualify or guarantee and, that is because they can’t…..your just another name on a list of hundreds, if not thousands of other agents that are mailed out to these AM’s and after reading over the latest edition of “Ask the AM” we know how far that will get ya. So, what about that 199.99 you paid, what is that getting you…..NOTHING! In fact, rather than going out and raising start up capital like any other legitimate business, these people are pocketing your training fee and using those funds to keep their illegitimate business cycle a float. These people can’t get start up capital from a bank or private investor because they can’t prove they will ever produce a single REO / BPO. So, if that is the case, why in all of creation do you think you are ever going to get a REO / BPO from them. Now, let me make one disclaimer. I work for a company who charged me a 100.00 training fee and yes, I have their “certification / title” but, I researched the hell out of that company before I paid them and now I can tell you, it was one of the best decisions I ever made. I won’t name the company in this particular blog but, if you know me well enough, you know what company I rave and support vigorously. If you dn’t know me that well…..read my blog archive, I have blogged about them several time and love them. Now back on topic….so, as I was saying, many Realtors are paying these fees to never see a single REO or BPO only because, the company they signed up for never intended to produce a REO / BPO in the first place. Even if they did go into the AM business with true intentions but, after 3 months, you haven’t gotten a single assignment, ask yourself…what is going on. Truth is, with the high number of REO’s and BPO’s going on right now, to wait more than a couple of weeks for an assignment that cost you 199.99……..something is terribly wrong.

You are so right! It is nothing more then a scam in my book. I've never paid for leads of any type, and don't plan to...ever! I have used them in the past only because a friend had to take some medical leave and had already pre-paid for the service. Out of 200 leads, we converted only one buyer.

I work for a large brokerage and we have agents that make more the 6-figures every year, for many years running. I have had a chance to talk to many of them over the years. And every one of them told the same thing, these leads generation companies are a waste of money. They have never used them and never would. They got to be where they are by hard work and doing their best for every client.

Take that money spent on these "leads" companies and put it into nationally recognized certifications! Or, just send it to me and I'll put it to good use! :)

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Comments

Susan Paige April 27, 2009 at 6:30am

Scam artists. Whenever there is an opportunity for certain people/entities, they will be there.The problem is there are those who will get caught up with their hype and thus they make money.
Regina P. Brown April 27, 2009 at 4:54am

Jesse, that's why I love this REO Pro site so much, we can get personal recommendations from other members, find out what's working and what's not. I agree that we need to do our research and find out what REO listings they REALLY have in our area before paying to join any company.
Rebecca Austin April 27, 2009 at 4:24am

Perhaps its where all the loan mod companies are going!
Craig Alexander April 27, 2009 at 4:14am

You hit this one head on! My spam box is full of those companies! It is simply amazing how many of these fly-by-night companies have been popping up. I fell for one of those lead generating companies years ago--it was expensive and only led to 3 true leads in over 12 months. I could have generated so much more for so much less! This just reminds me of the old saying --- If It Sounds Too Good To Be True - IT IS!
Vanessa Odom Machen April 27, 2009 at 3:51am

You are so right! I'm getting tons of these emails, daily. It's easy to recognize these type of companies from their "advertising." Best recommendation is to ask other REALTORS if they've ever heard of these guys or received any BPO's/listings from them. If not, then it's just a scam. The "lead" companies are also a scam. If you answer your phone from sign calls and qualify the caller, you'll have more leads than you can work.
George Kenner April 26, 2009 at 8:03am

I am really suprised that HUD has not stepped into this very issue. There are many agruments that can be made here. Pay for Play, Third Party Brokerage and Privacy of Client information is just one of them. Collecting from both ends of the deal is great business but is a point of possible abuse. I would not mind seeing a BROKERS Lic. be required to train and or advertise other agents. This would take about 80 percent of the trainers for REO out of the Business. If we are to be trained should the things that we are taught not be in agreement with an established ethical guideline?
Steve Adkins April 25, 2009 at 3:31pm

You are so right! It is nothing more then a scam in my book. I've never paid for leads of any type, and don't plan to...ever! I have used them in the past only because a friend had to take some medical leave and had already pre-paid for the service. Out of 200 leads, we converted only one buyer.

I work for a large brokerage and we have agents that make more the 6-figures every year, for many years running. I have had a chance to talk to many of them over the years. And every one of them told the same thing, these leads generation companies are a waste of money. They have never used them and never would. They got to be where they are by hard work and doing their best for every client.

Take that money spent on these "leads" companies and put it into nationally recognized certifications! Or, just send it to me and I'll put it to good use! :)

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