“Flavor of the Month” Training Certifications

Another blog planted this in my mind and I thought it would be better for it to stand alone then spoil someone else’s thread.

I have got to ask this question: What makes the Five Star Cert or any other training company different from the 20 or 30 other REO or Short Sale cert's out there? Why should I suddenly rush out and get ANOTHER cert when I have already been certified for years? How many cert’s do I need to do the same thing I’ve been doing all along?

I ask this because the same thing that has been happening to the REO market for the last 2 years is now starting to happen with Short Sales now that HAFA is about to kick in. Every other month another company releases a "New" cert of some type with all the hype of that you will be left behind if you do not get it. Well I'm here to say I had MORE business before getting all of these cert's. Over the last 2 years I have spent $$THOUSANDS$$ in the latest “Flavor of the Month” REO training because someone recommended it or it sounded good. Well, after 2 years of trying, marketing and more training, not ONE piece of business can be directly related to any of the training! NOT ONE!

Should I have spent all of this money in other methods of marketing? I don’t know. After all these expensive classes for the “Flavor of the Month” cert’s, I still get almost all of my business in networking with other agents, lenders and people in the industry. My biggest client, Bank of America, came to me because I answered my phone! I was referred to them by a property manager that I knew and without warning one day a Senior V.P. out of their Baltimore office calls to ask me if I would like to do a couple of BPO’s for them. What a silly question! This was BEFORE I even considered spending one dime on the “Flavor of the Month” cert. None of the banks I was already working with require any type of certification. I took the classes because I thought they would teach me something new, most of them failed at that.

Please, do not get me wrong, Five Star is probably at the top of their field. Maybe for agents who work in brokerages that do not provide top notch training, these cert's are a must have. But what do they provide that is different from what anybody else teaches?

I guess I’m lucky with the decision I made when I first got my real estate license and was looking for a broker. Years later I’m now certain that decision was the best I have ever made! Yes, I went with the largest brokerage in the Atlanta area. Who already had their own training academy, provides hours and hours of training for free to our agents. Where training is highly encourage and promoted! In fact, within my first 4 year license period I had over 200 CE credits and additional 100+ hours of non-CE training…..all at no cost to me! Now I’m getting into company promotion and it’s not the direction I wanted to go with this.

So, my question still stands: What does the “Flavor of the Month” certification course offer that others have not been teaching for many years (some for free)? A few extra alphabets behind my name that no one outside this industry understands or cares about? I made myself a promise this year, one I plan to keep! I’m saving my hard earned money I would have spent on all these new “Flavor of the Month” certifications and put it into networking events. I can only hope to recover the money I have lost over the last two years!

I would like to hear your thoughts on this.

Steve Adkins

Better Homes and Gardens Real Estate Metro Brokers

www.The-Adkins-Group

Hi Steve, I know you’re not trying to pick a fight and neither am I, I think this blog might actually help someone who is trying to understand the certification issue and how it will benefit their REO career. I have written in many blogs and forums my thoughts on this and always ask if anyone knows of a better or the “best” cert out there for an REO agent and have never had any response to a better training program….for that fact I am still waiting and open to hear input on this. I will say this; I don’t think the Default school training is too much different than most of the other training out there as many were modeled in some way after Default School. I am simply looking at what cert is most widely accepted by lenders (or required).

I will try to answer this a different way, leave the actual training out and concentrate on the master data base that default school provides. Many lenders use this data base to select agents and many require RDCP cert. My reference to Wells Fargo was simply to let it be known that it is required by them and if an agent ever has an opportunity to have some of their properties an agent will have to have the cert, no other certs will do. So if an agent is to only pay for one course and cert they should get on board with the most well known and the one with the best master list. IndyMac also jumped on board with this and whether it is still required by One West now that they ate up Indy is a mystery to me. Citibank has requirements through DS as well above the normal training. So my point is, if some of the largest lenders out there only accept RDCP….why not start with RDCP.

My brokerage situation is different from yours because I own the company and I call policy. I did indeed have to get the required E&O and liability insurance to meet the requirements of the lenders to list and sell their properties. In most cases a minimum of $1,000,000 E&O coverage is required and some even require more…I do have the minimum. My history is slightly different in the fact that I spent little time in general real estate and most of my time as a sales manager for one of the largest local builder in my area, when the building went south I had to either work the real estate business for what is was…. or get out. In my initial research to join a large firm or start my own I found that few brokers would back or support an REO division with financing to maintain properties but would certainly take a LARGE cut of my commission if I chose to do so…..it just did not make sense to me. I guess I was not willing to watch someone thrive and grow a business using the money I earned. I do know that without the proper insurance and some money set aside for preservation that I would not be considered with most asset companies so I built my brokerage around REO and two other targeted areas including commercial and add campaigns, each area is thriving.

I will stop here because this can easily get off course from the original topic, I do understand where your at with your brokerage, I started with Prudential in 2001 when I was newly licensed because they were the largest in the area next to ReMax, it was very short lived.

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Comments

Steve Adkins April 11, 2010 at 1:35pm

Chris, I think you hit the nail on the head! If it directly produces you business, then great. To have more alphabets behind your name is just a waste of money.
CJ Oliver April 11, 2010 at 11:20am

You make some very good points here Steve & I agree w/you 110%. What bothers me now is seeing more AM companies come out with their own platform/training etc. & making it mandatory that you pay them to be considered for work. It's a little like the dreaded 'referral fees'. Part of the cost of doing business and keeping the pipeline full but with one thing after another being dinged from the commission pretty soon there won't be enough left & when you consider the amount of work that goes into an REO it really can get outrageous. So.... for me I'll stay away from the alphabet soup & have only been giving my money to the ones that actually produce listings like being on Resnet.
Carmen R Morell April 6, 2010 at 8:51am

I took the CDPE and Short Sale Specialist last week because 90% of properties available in the Orlando area are either SS or REO's. And I think the market is going to keep this way for at least two more years.Took advantage of the new designations to contact lawyers dealing with clients going to foreclosure, divorce. Also, to be able to serve my SS listings better.
Susan Cook, RDCPro, CDPE, SFR April 6, 2010 at 6:29am

I just obtained by SFR and CDPE as well as the RDCPro that I have had for a few years ago. Why? Because I believe that the choice for listing agent with whoever you are speaking/communicating with will be how trained you are in the current market. The best way to PROVE you are trained is by taking the designation course.
Marcelo Da Silva March 29, 2010 at 4:38pm

I do believe in education. Life is a constant change, especially in our industry. However, with that said, I do agree with you, there is no difference in any of these certifications other than build an agent database and create a streamline of income. The most important thing I learned in these past 2 years is what has been said in all seminars, this is a relationship business. It doesn't matter what letters you have after your name or if you have none, the business will only if you have a relationship stablished. For instance, on the radio blog talk, the owner of the default school mentioned that the parent company market to market does not allow auto-acceptance which is true. However he did encourage to email the vendor department to make them known that you are in their database (for those who have RDCPro). I emailed and guess, what? It is was deleted without being seen. I do have receipt confirmation on my email and I did keep that. Another proof as relationships are important is that a bank acquired by one of the Big 4 and became one of the Big 4 assigns listings to agents that does not have a designation supposely required to business with them. It happens that the asset manager is very good lifetime friends of these agents. Nothing wrong with that as these are indeed good agents. He just happened to leave real estate when it was declining. Their lucky? Yes. For this reason, I think one should get some tranining through any certification and invest the money in trying to build relationship. Forget about the "Flavor of the Month” as you well said. Focus on how you can spend the money to be in front of an asset manager to have a shot in building a relationship. With inventories staying below 20% or 25%, the REO business is going back to what it was but there always will be opportunity.
Steve Adkins March 28, 2010 at 6:18am

Thanks Tony, your response does shed a new light on the topic. And it's kinda like what I thought, it's preferred by more lenders and not that it's really better then others. Which is really what this game is all about. Wished I had read this 2 years ago.

I would like to hear other opinions also, any one care to share their experiences?
Tony Linton March 28, 2010 at 4:02am

Hi Steve, I know you’re not trying to pick a fight and neither am I, I think this blog might actually help someone who is trying to understand the certification issue and how it will benefit their REO career. I have written in many blogs and forums my thoughts on this and always ask if anyone knows of a better or the “best” cert out there for an REO agent and have never had any response to a better training program….for that fact I am still waiting and open to hear input on this. I will say this; I don’t think the Default school training is too much different than most of the other training out there as many were modeled in some way after Default School. I am simply looking at what cert is most widely accepted by lenders (or required).

I will try to answer this a different way, leave the actual training out and concentrate on the master data base that default school provides. Many lenders use this data base to select agents and many require RDCP cert. My reference to Wells Fargo was simply to let it be known that it is required by them and if an agent ever has an opportunity to have some of their properties an agent will have to have the cert, no other certs will do. So if an agent is to only pay for one course and cert they should get on board with the most well known and the one with the best master list. IndyMac also jumped on board with this and whether it is still required by One West now that they ate up Indy is a mystery to me. Citibank has requirements through DS as well above the normal training. So my point is, if some of the largest lenders out there only accept RDCP….why not start with RDCP.

My brokerage situation is different from yours because I own the company and I call policy. I did indeed have to get the required E&O and liability insurance to meet the requirements of the lenders to list and sell their properties. In most cases a minimum of $1,000,000 E&O coverage is required and some even require more…I do have the minimum. My history is slightly different in the fact that I spent little time in general real estate and most of my time as a sales manager for one of the largest local builder in my area, when the building went south I had to either work the real estate business for what is was…. or get out. In my initial research to join a large firm or start my own I found that few brokers would back or support an REO division with financing to maintain properties but would certainly take a LARGE cut of my commission if I chose to do so…..it just did not make sense to me. I guess I was not willing to watch someone thrive and grow a business using the money I earned. I do know that without the proper insurance and some money set aside for preservation that I would not be considered with most asset companies so I built my brokerage around REO and two other targeted areas including commercial and add campaigns, each area is thriving.

I will stop here because this can easily get off course from the original topic, I do understand where your at with your brokerage, I started with Prudential in 2001 when I was newly licensed because they were the largest in the area next to ReMax, it was very short lived.
Steve Adkins March 27, 2010 at 7:41am

What I'm trying to get across Tony is what make this RDCP better then the other courses? What's in the class that makes it better then the others? Aside from the point that Wells Fargo requires it (which they have little presents in my area). Not trying to pick a fight, I just want to know why they are better? They all say they are better then the others!

As for company policy and E&O insurance, I work for a very large brokerage. 28 offices and 2200+ agents under one broker. Our E&O insurance does not cover property management in any form, so company policy follows suite. Anything other then normal marketing and sales (such as trash outs, lawn care, evictions, etc) are not permitted unless I want to step outside the bounds of our brokerage. This does put a damper on working with some REO's, but not all.
Tony Linton March 26, 2010 at 10:30am

Ok Steve...had to go back and read the original blog post to see where I went sideways, but in re-reading I think I did answer the original question in reference to RDCP, but I will expand my explanation on why I recommend this certification over others.

Default School (RDCP) is one of the originals if not the first REO training for agents and is the only one approved by Wells Fargo (PAS). and in my opinion the most widely accepted certification by a large group of lenders......even if not required by all it holds more weight. It is not a platform, it is training and certification only, however it holds the master list of all RDCP Pro certified agents in which many lenders refer to when choosing listing agents.

My comment about it should be the first certification that an agent should get is because it is the most accepted….why would someone get a lesser certification? Why does every big REO broker have this certification?A person could spend thousands on the fly by night new refreshing certs that mean nothing and lenders don’t recognize. If anyone is contemplating training and certification RDCP covers the most territory.

Now the reason I chose RDCP certification over 5 Star is simply the fact that Wells Fargo (PAS) does not recognize 5 Star so in fact RDCP covers more lenders regardless of whether or not you ever get a PAS property. I did just recently get a Wells Fargo property, It was because they had a need to go outside the network and I have the certification, I’m sure of it. Many other lenders (though you will never be able to find a master list) pull from the default school list.

Now as far as property management??? Please let me know what you are referring to, is it REO preservation and upkeep of your listed REO properties? Please explain your brokers policy on this including E&O insurance limits….this is important!!
Steve Adkins March 26, 2010 at 5:38am

Thanks Tony for your input! And I agree with your statements also, but you didn't answer my questions. What does RDCP and Five Star bring to the table that other classes don't? What's new and refreshing other then how to use THEIR platforms?

Some of us are prohibited from serving as a property manager, myself included, due to brokerage policy and E&O insurance. And that is not a problem with the banks I already work for as they had their property managers in place before I started working with them, BoA was one of them. So anything that has to do with property management is of no interest to me.

So I ask again, what makes these "special" certs worth the money? Some well over a $1,000. Why do you say that RDCP should be the first cert any agent should get? And I don't want to hear "because you should", I've heard this for 2 years now and it's not working anymore!

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