Do you pay to get listings?

For many Agents, paying to get listings seems the only way to get their foot in the door. I understand why they do it and, admit…..I was one of those agents to. As you read this blog, understand that I am jaded, burned and completely angry about this business model, as described above and, for those of you doing this to agents…..well….just wait and see. (Insert evil, diabolical, angry, bone chilling laugh here) I really can’t remember who said this to me or where I read it but, it has completely stuck and I am more than happy to pass this wisdom on to my fellow REOPro members. “If the company charging you upfront fees for listings isn’t confident in their leads enough to take a payment out of closing, how can you as the agent ever be confident the leads will ever close?”……unknown. In that one statement, you can find a lot of wisdom. Well, I can tell you that many of these firms, “see a leaf fall and believe they now which way the wind blows but, I tell you that a hurricane is coming that will sweep away their pride.” Elizabeth, The Golden Age The death of these firms is that they are all doing the same thing. Everyone is charging Realtors, everyone believe us to be the cash cow, everyone wants an up front fee and the moment someone enters this industry with a new, innovative, completely crazy idea, many of these companies will wash away with the tide. The really sad part, a lot of Agents will be out hard earned cash and will bear direct witness to the folly of this business model. Sorry for all the cryptic writing and vivid imagery but, a Hurricane is coming, I can see it on the horizon, can you?
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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

  • Why are people being so "polite"? Aren't we here to share and help each other. NAME NAMES PLEASE! Who are the bad eggs? Who are the good ones.
    I'll start it off....LAMCO is bad...won't provide proof of their claims.
    BPO companies that DO NOT PAY their invoices: Coast to Coast, Blue View, US Portfolio, Lender Services Group, Main Street Valuations.

    Good Guys: Clear Capitol, Integrated (Secured Lending Svcs), to name a couple.

    Yeah, I believe you should avoid all the "pay for leads" companies. False promises abound.

    Is anyone willing to provide a "referral" to the NREOB? Feel free to check me out here and at LinkedIn.
  • I love poking the flames of passion, it's fun!
  • I am willing to pay on some sites, other's I've scoffed. I am pretty much following the same path as Johnny, at the end of the term, I will decide what came from it and go from there. I know of a few I won't be doing again and others I will make sure my membership does not lapse. Good thing these fees are tax deductible or it would be a lot more painful. I did a 6 month stint on REO Network too, got GRP out of that one. I've seen others do well on sites I didn't and vice versa. It's hard to know where to throw the money sometimes. It's a good thing this year is almost over. I've spent all my marketing dollars.
  • Is this a hotbed of controversy, or what!

    In case anyone is interested, here's what I've come to think:

    We are all going to be taken, and way more often than we would like.

    But we are actually in the same boat as our clients/potential clients. They review applications, resumes, representations, certifications, etc, to find dependable agents to understand, execute and perform on-time REO tasks. They use services, forums, bulletin boards, registries et al to cull through the masses. (I'm not excluding references) to find us (yup, that’s who they’re trying to find). They select an agent based on their representations and hope they are real. They always remain at risk until the selected agent has demonstrated some level of competence.

    When we pay fees to be listed on REO resource sites, we likewise have few methods of authenticating the site use by our potential clients. We assess what we can and hope they are truly what they represent themselves to be. More times than not they are scammers, (or inexperienced entrepreneurs) and most of the experienced REO agents can flesh that out - up front. . . But then - there are the silver-tongued devils" that sting us and our clients alike. Can you always spot them? . . . I don't believe so - at least I can't. (They’re very accomplished!)

    For the third-party registries, we all have to be careful how we use them and monitor them. But, I would not recommend a "blanket" ignore.. Even AMs and PMs, when running out of other options, check non-mainstream registries for candidates under certain circumstances.

    For the many key registries, such as REOTrans and RES.NET, there are features that can elevate your visibility to the level your potential corporate clients are searching. On REOTrans, you can Pay, Educate and Test through a higher level (up to platinum). View it as one will, this is yet another way to separate a dedicated agent from the cast of thousands. RES.NET recently introduced the AMP program (I signed up) that allows you to elevate agent marketing exposure, including on-line resume/biographies. Yup, it all costs more, but are you in this as a business, or a lottery player?

    Spend carefully, but remember, you are marketing your verifiable credentials to potential clients, and they are also desperately (and I mean desperately) trying to find you. I suppose it's allot like a dating service! . . . Trying to find the right match, on both ends.

    This forum, REOPREO.ning.com is an excellent resource for comparing knowledge and experience from the positive and negative experiences our forunners have had. (Speak up if you know something!)

    I would say the gist of this comment, is that: 1) I wouldn’t reject a registry only because they charge a fee (check them out); 2) I would not pay fees for promises from an unknown (do they have skill, connections & skin in the game?); 3) Be careful, cautious and thoughtful as you endeavor to make new corporate client connections. Remember, your corporate client prospects are dong the same to find you.; 4) No matter how careful we are . . . we will all get burned! (hiding in the basement is NOT a solution)

    Be vigilant, be committed, be certified . . . and always be gracious. Check out the questionable service offerings and alert your network(s) when you identify them.

    Be well, prosper, and the very best of good fortune to all,

    Clay

    P.S. – Hope to see all of you at REOMAC and the next REOMasters events.
  • There is one site, in particular, that charges a monthly fee per zip code. The fees can be astronomical if you live in an area that has a lot of small towns! I signed up for this site a few years ago because I was in the mindset that it was the way to get listings. Long story short, the only time I hear from them is if my payment doesn't go through. Yeah, I cancelled! Jesse, I'm with you. These companies that charge up front are not looking to better your business, they are looking to line their pockets! I'm sick of it! There has been such a decline in real estate market values nation wide. Guess what? When properties are selling at a rate of 10-50, 60% lower today than they were 18 months ago, our commissions are reduced as well. Simple math. Realtors get paid a percentage of the sales price. I, for one, am sick of people thinking that we are cash cows. Our incomes have declined right along with the local market values. Now we have to work more and make less. The idea that these companies take advantage of us is sickening. There are many agents that started doing BPO's as a matter of survival. You got fed a few through your office or whatever the case may be. Knowing that the market was changing, you decide that you have to make yourself more "marketable". These compaines claim to have their fingers on the pulse of the REO world. You figure it sounds good and you sign up. Already working with less cash flow, you now have more to pay out with nothing in return. That kind of business practice will lead to your family into wondering who the heck that stranger is using the phone.
  • They will keep doing it as long as agents keep paying. I'm not saying I would never pay for anything but so far all we have paid for was to be on Resnet and Reotrans but that was after we got the assignments. I don't have the patience to pay to be in somebodies directory and wait/hope for someone to find me. I'm not knocking anybody that paid but I just don't like the odds.
  • Ok I am intrigued, can't wait for the next chapter.
  • I've paid for sites that puts me in a directory, I've paid for sites that say they will give you listings, I've paid for sites that are platforms that AM work on. I end up sorting them out each year and re-evaluated the results. I relate it to advertising costs.
  • I have always refused to pay for "leads" as many are recycled over and over again, or sent out to many different agents at the same time. I get their promotions all the time and they ALL hit the "round filebox" under my desk. They are all a complete waste of time!

    I may be a little old-fashion, but nothing beats going out and getting your own leads!
  • Preach on brother, I had made the mistake of paying to two companies, one was a "University" and the other one is well known on this blog, but I was following the lead of other stablished realtors that I know in my area that had paid for their serivices and had received assigments from them.
    I am also glad that I paid for REO Network premiun, my best cliet found me there and teh $600 "add" was a good ROI.
    Now thanks to this blog and some of the people I met at Five Star, I have wised up and will try to maximize my networks, my contacts and the knowledge that we share.
    I don't know what you are cooking Jessie, but I hope it is spicy brother. However I believe that some people are confused, or maybe I am totally confused, with the idea of getting assignments from REO TRANS, that is just a portal like RESNET that some AM use to process the document and to communicate with the Realtors. I know I have to pay for those portals in order to service my clients, I see them as the multiple listing service, MLS is not giving me business but it is an important tool for my business.
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