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I have found that being in the BPO and REO business is much like playing a competitive sport when you were a youngster. Whether your favorite sport is football, basketball, baseball, soccer or any other sport, one of the first things you were taught was offensive skills, which of course was soon followed by defensive skills. The better you were at both, the more likely that you would be successful at beating your opponent, right?

The same scenario and expectations applies within anyone's BPO and REO business, the only difference is that we are now all grown up and more is on the line and at stake.

When I got started in the BPO business in Sept. of 2006 the phrase, 'Broker Price Opinions' was something that a very select group of people in the real estate business knew about. I'm guessing that the percentage was very low at the time.

I was able to put together a BPO Manual for others (in Jan 2008) who wondered what a BPO was, what it involved and every possible question under the sun as it applied to broker price opinions. Sales of my BPO Manual really took off in early to mid 2007. I had to presume that at this point the 'secret' was out of the bag. So, it had to be a matter of time before everyone jumped on the bandwagon. I was right!

For those that heard about and saw the tremendous opportunity they benefited greatly if they dove into doing BPO's. For many REO listing became the next logical product of the vast amount of BPO work they did. For the next two years, I saw more and more people jumping into the BPO and REO business.

During this time I also talked to lots and lots of people in the business. They came from all walks of life, backgrounds, time in the real estate business and everyone had own their opinions about the BPO business. I appreciated each and every phone call, email and letter that I shared with my fellow peers. They helped me understand so much about the business that I would never have been able to figure out on my own. I owe a lot to these countless number of fine folks. If you are one of them, thank you very much for everything! :-)

I guess a good secret can't stay hidden for long though, huh! Thank goodness. This business is filled to the brim with open-ended possibilities.

And in the end, if you have found or are finding that many in this business stay very guarded and extremely secretive about their own BPO and REO business (I can respect and understand the need behind this) there are a few others that will share their knowledge and expertise with you. Me being one!

Feel free to drop me a line sometime, I'd be more than happy to help in anyway I can!

Keep your chin up and keep shooting for the stars!

Warmly,

Nicole Ocean

Today I was doing a few more drive bys, and I noticed sooo many for sale signs and foreclosed properties literally in just one street. Then about 2 blocks down only a few signs were visible.

Sometimes I think these mortgage companies prefer to hit one specific area and just wipe them out all at once. Is there an advantage for them when they do this?

Are they trying to get rid of the current homeowners to bring in a whole new different type of community?

If this is the case, then how are the realtors supposed to market these homes when their clients come to the neighborhood and see all these signs up?

You should market your REO team that you work with. This would include your vendors. Such as:

1. Maintenance and Repair and/or

2. Property Preservationist

3. Accountants

4. Assistants

5. Listing Coordinators

6. Transaction Coordinators

7. BPO/MMR Coordinators

Sometimes asset management companies would like to know if you work with a team and what are themilestones you have reached. So if you do work with an REO team, you shouldtake the time to create a marketing package that includes a brief descriptionof each team members unique qualifications that contribute to the success ofyour REO team.

This also allows the asset company to see that you are equipped to take on a good amount of REO work and completeit successfully.

As you can imagine the answer to this question depends on who you talk to. For me, I have personally experienced doing BPO's in a rural setting and talked with numerous agents all over the U.S. who work in very urban settings.

My experience leads me to believe that doing BPO work in a rural setting is much more limiting. It is difficult to find comps that just aren't there, even after going out up to 10 miles from the subject property. If you go further than this than it is likely that your vendor rating goes down and your QC issues go up.

One thing that has really helped me was to not guess at what I was supposed to do or assume what I was expected to do when given a challenging rural BPO. Instead, I had absolutely no hesitation in calling up the company that gave me the BPO order. I'd ask for their advise and guidance on what to do in the situation that I was up against. Someone in their QC (Quality Control/Quality Review) department would likely get on the phone and walk me through which parameters I should use as to avoid getting my order kicked back because of inappropriate comps.

Another thing that was extremely beneficial to me was to seek out each companies 'Guidelines' or their set of 'rules' that they wanted for me to adhere to when doing BPO work for them. Most times I found this information was listed somewhere on their website. If for some reason I couldn't find it easily then I would give them a call and ask where I could find it. By doing this, it makes you look good and helps build a rapport with the rep that you talked to.

Who doesn't want to do their job to the best of their ability? Sometimes we just need a small compass to help guide us safely and confidently to our destination.

Please feel free to share your thoughts on this too. What are your experiences with this?

Warmly,

Nicole Ocean

Certified Real Estate Instructor/Founder of BPO University

Hot off the presses! Huge News for ANY REO Listing Agent....

Freddie Mac/Homesteps just announced that they will be doing live on-site interviews at the upcoming REO Expo Event for open positions they have for listing brokers around the nation. Don't miss out or waste any time because this opportunity will pass by quickly!

To learn more check out this link for all of the details: http://www.reoexpo2010.com/freddie-mac

Plus, if you looked at the above page and want to get a head start, download their questionnaire/application to hand to them live and in-person at the REO Expo do so by clicking here: http://www.reoexpo2010.com/FreddieMac_Pre-Interview_Questionnaire.pdf

Please note: They do not have openings in every state, but don't let that stop you from trying anyway. As you know in this business, there are no guarantees and you never know when doors to opportunity will open up.

Lastly, NFSTI & The BPO Automation Group will host a 10x10 booth to help promote our networks during the REO Expo convention. During the negotiations with the guys of REO Expo we were able to heat up the offer for attendees who use our discount code (REOXNFSTI).

All members utilizing this code will receive a $100 discount off the registration price.

Here are the details of the REO Expo:

• What: The REO Expo
• Who: Hosted by Housing Wire and REO Insider Magazines, MC'd by Pro Football Hall of Fame Inductee Emmitt Smith!
• When: June 6-9
• Where: Dallas, TX (Hyatt Regency Reunion Tower)
• Why: To share the latest in Default Servicing, Display new technology, learn new aspects of the REO trade, and for the Pinnacle Award Ceremony.
• How: Registration is online at www.REOExpo2010.com. Be sure to sign up sooner than later because attendance is capped and the free classes that we're being offered through the Open Door Institute and Default School are closing up fast.

Don't Miss Out....Sign up Today!

Nicole Ocean

When a sump pump is running and pumping water from its basin to the outside, strange noises can be heard. When the pump transitions from running to shutting off, there is a loud slurping/gurgling sound as it searches for water before shutting off. After speaking with an REO agent who is listing a home in my area last week, all I could think was, have asset managers really reach the bottom of the barrel?

There is an active property, attractively priced for its location and size, that shows up contingent with a kickout. A client of mine inquires about the property and the nature of the kickout. The MLS states there is a home inspection contingency which while possible, would be unique for any seller to kickout an offer due to a home inspection in a slower market.

Upon calling the agent, she states that she is “new” and asks me how she should have updated the status from active? Dumbfounded I ask her if her client, a credit union has the option of kicking out the contract based on the home inspection, answer- no. Not wanting to embarrass, I explain to the agent that since she does business in a neighboring state, maybe that’s how they do it there. She states that she simply didn’t know and after checking, she has been licensed for 5 months.

There are volumes written and ranted about regarding agents that are trying to break into the REO business. There are viable companies out there selling education, more designations, platforms to become members of, and on and on and on. I find it insane that quality agents are seemingly overlooked for ones that couldn’t find their way out of a cornmaze!

We have experience in working with most REO agents in our area by being a major supplier for BPO’s in the Maryland market. As we see on a daily basis, REO agents are limited in time, so follow up, and returning calls can sometimes be lacking, However, these are agents that typically know their business very well. Once their business is cultivated, they are sent great distances to preserve, market and sell distressed properties. Often times too far. As agents, we have a fiduciary responsibility to serve out clients. Is there a fiduciary responsibility in selecting a qualified real estate agent that serves the market the subject property is located in? I would hope so!

How Not Having the Proper REO Team can Jeopardize your REO Business.

If you have your REO Systems in place and you are experiencing growth, have you considered an REO Team?

If so, what would you consider looking for as you build your team? I have just chosen three tips for this post. There are many more, but I find that these three are important to building a successful REO business.

1. Experience

2. Education

3. Integrity

Experience

How much experience does the potential member have in doing BPO’s? What asset companies have they dealt with and for how long? What about tasks such as Utility set up and ordering services from your vendors? When it comes to the closing transaction tasks, how much experience do they have in dealing with escrow/title companies, lenders and co-agents? These are just a few of the question you should consider when building your REO team.

This is important because the REO market is different for every REO agent. And it is crucial to have a good amount of experience in dealing with asset companies, asset managers, banks, title companies, lenders and other REO agents. I have found that there is a basic flow to an REO transaction, but sometimes there are exceptions. And I have found that learning from that exception, adds to my REO experience. And I can add this to my REO process to reach a successful transaction.

Education

Training is so vitally important. Would you consider adding a team member to your business who already has been trained on various REO portals or someone who you have to train? Time is critical, especially when it comes to tasks such as BPOs or determining occupation status. Do they know the criteria for searching for comps for the BPO?

And when it comes to the contract to close tasks, how much training does the team member have in using various online transaction management systems? Such as EbrokerHouse, SettlementRoom, RELAY, TransactionDesk, TAZAREO, and others? Again, your time is important and having a member who is proficient in using these systems will save you time and money.

Integrity

Enough can’t be said about this topic. Simply put, everyone needs to be honest in their business dealings with one another. I feel that this is a foundation in a truly successful business. If a member is cutting corners to try to get the job done, it will come out in the end. Just a quick example. If a bid (quote) is submitted by a vendor for a repair on the REO property, don’t change the amount when submitting it to the asset company. I have known of this to happen and the person did think they were getting away with it. And since it was just a small amount in the beginning, it was not discovered. So the person felt safe and increased their bid amounts. But when the asset company discovered this, all monies had to be refunded for all of the bids. And of course that agent lost their business with that asset company. A hard but powerful lesson.

I hope these few tips: Experience, Education and Integrity can help you in your search for a successful REO Team.

To your business success!

Roxanne

Effective Monday, May 3rd, the AutoAccepter 2.0 by BPO Automation now contains nationwide broadcast statistics for BPO order delivery. This means that for the first time ever, you can now see where, when, and how many orders are being dropped, as well as fine-tune your autoaccepter to maximize performance.

The AutoAccepter 2.0 was developed in collaboration with top national BPO companies, and provides an effective means of capturing broadcast orders while letting you stay mobile - taking photos, filling out forms, and doing listings instead of simply clicking "refresh" over and over again hoping to get orders.

The AutoAccepter 2.0 was developed as a response to customer demand for a tool that would work as a virtual assistant for them while they were on the road, and it's become more valuable than ever in today's competitive BPO market as agents compete with in-house software programs & minimum-wage staff working diligently to soak up available orders.

Broadcast BPO orders are an excellent way for new agents to break into the BPO marketplace, and our product is an ethical, cost-effective, highly-effective tool for delivering those new assignments directly to your inbox.

Visit us online at http://www.bpo-automation.com for a free 2-week trial of the AutoAccepter 2.0 today!

The Honorable Governor Arnold Schwareneggar has come to the homebuyer's rescue. He signed a bill that will give a 5% measured credit up to $10,000 payable in three annual payments. Of course you have to repay it if you sell your home prematurely. On a $250,000 home that means a warrant from the state of California at $3,333 /year for three years. Not quite as sexy as the $8000 version but it helps pay for that furniture you will need.

THE DETAILS:

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

There has been talk too of re -renewing the federal version. Although nothing is carved in stone,I have heard that it is caught up in the Senate right now...and its reicarnation will probably be a lesser credit. Maybe Obama can sneak that into his health care bill like he did the abortion thing! Kinda like burying in your short sale agreement that the lender will consider the seller's debt paid in full.

I always said real estate was stimulating and I am sure it will be even more so after April 1 when HAMP kicks in and lenders really have to start working with realtors and not be so mysterious. I already am seeing a surge in BPO orders from clearinghouses that would indicate a storm is coming. They even send stuff at 3 am or 9 pm at night...they are still hard to get however. Realtors need to remember too that although we like dollar signs, the needs of our CLIENT COME FIRST! If they can manage to keep their home, then it is a good thing!

Be a servant ...to quote Cory Boatwright.

Friends,

On a current discussion on my LinkedIn Group, "REO," a person posted asking about a company who is trying to collect $149 from agents to post their profile on their site and (they claim) generate REO listings, BPO orders, and buyer referrals, etc. The company is www.HudGovAgents.

Now, none of us were born yesterday when it comes to this business, but it was interesting to me to see that post because this past January, the salesperson from HudGovAgents somehow managed to convince my ordinarily very skeptical business partner to spend $149.

Has she seen anything since? In the first week of February, she received a list of BPO servicers and was told how to apply for BPOs. Hmmm. We all have these lists. What's new? Since then, not ONE thing.

The person she dealt with is a man named Donald. If ANYBODY has ANYTHING positive to say about this service, I welcome it.

So, the point is, even a skeptic can be convinced by the right words, and the right website. I am simply committed to getting the word out so nobody else contributes their hard earned dollars.

You can find me on LinkedIn by clicking here.

I just received an email from a company that contacted me to complete a BPO on a property. Located on the river, in a rural area. Since it is rural, there are not a lot of comparables. I was worried it would be returned to me since there is a large variance in prices.

After closely reviewing what I thought was a BPO that I prepared, I noticed that "Quality Control" has made $75,000 adjustments on the form as well as a few others.

I was shocked. What is the point of me doing a BPO if their so-called Quality Control department is going to make adjustments? Obviously they know the market much better than I do.

This infuriates me -- I just wish I knew who the client is, because this is just wrong and they need to be made aware of what is going on. It helps give more power to those that think we as agents should not be doing BPOs in the first place. Maybe there should be more concern over what the BPO companies are doing to the reports once they receive them.

I don't know if anyone else has ever experienced this or not, and maybe I am overreacting....it just seems wrong to me though.

BPO MILLS, ARE VALUABLE TO THE REO AGENT/BOKER?

More often then not, I hear agents and brokers say that BPO mills are a waste of time because they don’t lead to listings. I, at one time felt the very same way. However as my business has flourished and Reo Listings are more abundant for me than they were a few years ago when I was breaking into this business, my views have changed.

BPO mills are extremely valuable to my operation and will continue to be a intricate part of the success of my business. They are valuable because they provide a training ground for agents within in my team, and those looking to be added to my team. The agents also get paid for the training.(For Example 50 drive by, my agents get 40 if the bpo is turned in on time and not rejected, for each rejection 5 bucks is taken off.) As the experienced REO Broker will tell you, as well as any Asset manager, REO begins and ends with a Good BPO. As REO agents, and Brokers, we are as strong as our weakest link. Your link starts with the BPO, therefore the more agents on your team that can do quality BPO’s, the better off you are for taking your business to the next level.

BPO mills are great because the have their own built in quality control and QA. What better training could one provide for agents looking to join their REO team? Further more this also allows you to determine when your team member or agent is ready to complete BPO’s related to listings.

My concept is simple, get your BPO’s done ahead of time, and on time at the very least, without rejections and your on your way to being added to my team of REO agents. Well, it not as easy as that. I require my agents to complete a min number of BPO’s per month from BPO mills. This allows me to continuously monitor and evaluate agents on my team. It also gives the ability to assign co-listing agents to those that have proven themselves worthy, just as all of us have as REO agents.

The more agents on your team you have trained, the better off you will be to effectively handle the massive volume that many of us will see. So, the next time you get that email from a bpo mill, consider accepting it to train another. After all, like I said earlier, your as strong as your weakest link. How many REO’s can one persons effectively handle, vs. a team of trained agents? I’m ready for the volume and to take on more. Are you ready?

Very Truly Yours

Jonathan Burgess

Code 3 Real Estate CEO