Isn't that a question almost all of us asks? How much am I really going to spend on this trip and what am I really going to get out of it?Well, there are a number of ways to look at to determine if it's "worth it" or not. I guess we need to start by figuring out what the cost actually is. We can use the round numbers from my trip as a basis. I got a decent plane fair, an average "king" room, add in the cost of the conference and the cost of food and drink. I can round it out to just under $3000.00. Now, what do you get for your hard-earned $3000.00? A lot of that depends on what you intend to get for it. You can go to the conference for the education, for the networking or to gain business.If you go for the education you can definitely get your money's worth. There were a multitude of courses and panels with the most up-to-date information available, ranging from information on short-sales and BPOs all the way through Bulk REO sales. The classes and panels are conducted by industry experts. Additionally there were speakers like Steve Forbes and James B. Lockhart III. You can get great industry information there, some of which you can find else where, but most of which you will NOT get anywhere else. So, if you go for the education, you can get your money's worth. It may be an expensive education, but you can load up with classes all-day, everyday of the conference.If you go for the networking, you'll probably find the best networking you'll find anywhere. Networking with agents from areas outside your market area is one of the best ways to gain insight into the industry. There were hundreds, if not thousands of agents from all over the country at the conference. In addition to that, there were countless opportunities to network with those agents at the conference and outside the conference.If you go to gain business, you can do it, you just have to go with the right attitude, the right plan and be a networker. You must realize that you are competing with those "hundreds, if not thousands of agents from all over the country". I can honestly say that I have either gained new business or strengthened the bond with an existing client at every conference I've been to except for one. I've been to seven conferences in the past 2 1/2 years.Now back to the cost...so, if you gain insight into the industry through a class, from another agent or if you happen to get the attention of someone in the asset management community or the valuation community, what would it take to make it worth your money? A couple REO assets? 50 or 60 BPOs? After you write-off the trip, what would it take to make it worthwhile? Just the education? I have a friend that currently works with about 38 different banks/asset management companies and STILL attends all the conferences. Why? It must be worth the time to him.I'm not here to tell you should or shouldn't attend the conferences, but hopefully I've given you enough information to make an educated decision on your own. Of course, this is all just my point of view... :)
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Posted by Beth Ross on September 27, 2009 at 1:37pm
I would like to share a wonderful tool that I have discovered to you. I know that many of you may already have this tool however, it never hurts to share again and I didn't see it in the archives of this platform.This wonderful tool is called - Google ChromeWow - that is all I can say.Had I known this tool existed it would have made my life so much easier.It is an additional browser that you can use in addition to Explorer, foxfire, etc. But the capabilities far exceed anything they do. It is wonderful for those of us that have to constantly check sites for BPO orders, REO tasks, etc. You can set this program up so that when you open it, ALL of the sites YOU CHOSE open up at the same time, with one click!This is a free program, easy to use and decipher. It has even lead me to Google Docs and many other tools I didn't know existed.To download it - go to www.google.com/chrome and download the program - you will be AMAZED at what it does.Play with it, enjoy it and realize the time that this program is going to save you in opening sites alone!!!! Not to mention the faster speed in which they open.I know that I haven't even hit all of the highlights, but was excited to share this great find with you and help you make your life easier.Hope you are having a better than great day!
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•Are you interested in increasing REO?•What about Commercial REO?•Do you know what to say to an Asset Manager?WEEK ONE•Foreclosure Angel Foundation Introduction (Today - Friday)WEEK TWO•8/31/09 - State of the Market•9/01/09 - Explosive Commercial REO Oportunities•9/02/09 - BPO Automation Made Simple and Profitable•9/03/09 - Loan Modification as a Secondary Revenue Stream•9/04/09 - Social Media - The Blogging EffectWEEK THREE•9/08/09 - Foreclosure Angel Foundation•9/09/09 - Putting the 'Short & Sweet' into Short Sales•9/10/09 - Razor Sharp Seling Skills w/Side of Motivation•9/10/09 - How to Attract More Buyers Than You Ever Thought Possible•9/11/09 - Social Media Marketing Strategy for REO AgentsWEEK FOUR•9/14/09 - Office Organization, Systems adn Peace of Mind•9/15/09 - REO Task Management Simplified & Served Hot!•9/10/09 - How to Talk with An Asset ManagerThe best REO coaches in the nation are coming together to benefit the Foreclosure Angel Foundation. For more information go to www.clubtsunami.netBe A Piece Of The Solution!
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What an awesome seminar this was! Full of a ton of useful information presented in an informal, casual way that allowed all questions to be addressed on all topics.The highly experienced asset manager and top REO agent who were the presenters, were a wealth of knowledge and I felt it was very worth the time and money to attend.
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Are you a REO agent providing minimal information about each bank owned listing? The bank expects you to market each listing as much as possible so the best possible offer is received. You should never look at an REO property as a burden and/or think little effort is required. Remember, each successful sale contributes to the next listing you receive from the REO Company/Bank.Here are a few tips when listing the REO:• Take the time to take incredible picture of the property. If the property has been de-trashed after the listing, upload the new pictures to the MLS. Do not leave the garbage-ridden pictures on the MLS or your flyers.• Take the time to write about the property and its features. There is more to a property besides the standard, "Bank owned, sold as-is, great property." Write about the upgrades, good features, kitchen, amenities, etc. Give the property much needed attention.• Fill out the square footage and acres if your MLS does not import all of the information from the tax records.• Make sure your email address and fax is accurate.• Always list the docs required from the bank in the broker area regarding all offers.• Create a flyer and upload as an attachment in the MLS.• Upload the offer instructions and letter of intentions as attachments to the MLS.• List the property on various FREE websites. It is a good way to obtain buyers and investors for your database and sphere.• Keep copies (PDF) of all marketing efforts so the banks will know that you are giving your best.• Schedule showings and obtain feedbacks. You will need this information for the MMRs. If your area does not have a showing system, hire one or hire an assistant that can assist with your showings and feedback collection.• If you do not have your own website, consider getting a site through Point2 so you can display your REO listings or have a site created.• Create a network among local agents. Send updated listings to each on a weekly basis. Make sure you have permission. Even though marketing is an effort performed by all agents, I am still amazed at the number that balks when new listing emails are received.Some of these tips appear as common sense but it is not all common.Carolyn Dobbs, www.onlinerepa.com | www.reobookkeeper.com | www.point2close.comRead more…
Do you have a plan that will help you manage your properties? How organized are your files and if the bank calls you regarding an invoice submitted three months ago or inquires about the details of a property, are you prepared? I help several agents remotely organize their files and provide different resolution based on their setup.Here are a few tips that will help keep you organized. It may not pertain to everyone and depends on the current process being used.• Get rid of the post-it notes. They are not meant to be used as long term solutions to tracking notes.• Create a spreadsheet or pay an expert database designer to create a MS Access database that runs on queries. If you would like to create a secure online program, you will need to hire an expert programmer.• If you are not ready to go paperless, I suggest using 3-ring binders and index tabs to keep your files sorted by banks and property address, and/or• Use the correct folders so proper recording is maintain. Go to http://www.filesource.com/ for an assortment of real estate related folders, or use the classification folder with dividers, click here, and/or• Use an online transaction management program for online storage and upload all pertinent documents to the BPO or bank system immediately and check off as completed.• Upload your action plans online or use Outlook to track due dates and send out reminders.• Only use one email address to communicate with the BPO Companies or banks. Multiple emails accounts increase the chance of mail being sent to the junk box or deleted. Include your full contact information in the signature line and account name section.• If you find that you are always responding too late or missing the BPO orders, setup alerts through your Blackberry or a compatible email account such as Yahoo or Hotmail so you can receive your notifications via text message. You can also hire an assistant that will work as a backup to catch those that you have missed and begin the process of ordering photos, pulling comps, etc• If you decide to go paperless, invest in a PDF converter that will allow you to extract documents, delete documents, sort pages, insert files, etc. As the transaction progress, you can add the new pages and/or delete the amended pages and more.• Once the property has closed, remove all old and completed transactions. Archive each to CD or DVD. Make multiple copies if needed.• Use the task reminder of you contact management program. Once you input a task based on a property, you will receive the alerts. This will increase your responsiveness to the bank and buyer agent.•Use Microsoft Street & Trips to calculate proximity if you are looking for a reliable program.• Keep an updated copy of all bank guideline at the front of the binder and/or store online within your OTM program.• Store each property file separately on your computer and label each property using the property address. Example: 1234 Mockingbird Lane, Anywhere US 01234. Then create subfolders. One for the listing documents and the other for the closing documents.• Add the full contact information for each bank, asset manager, accounts payable, etc to your Outlook contact file for the bank using categories. Print out the contact sheet and include it in your binder, folder, or online within the OTM program. This will provide quicker access to contacts when on the road and less searching on the PDA.• Offer a fillable PDF of the Offer to Purchase and all bank documents on your website. By doing so, this will give the buyer agent the opportunity to present a clearly written offer with all required fields completed. You can also include a check list as a part of the download. If the agent doesn't provide all of the check list items, they don't have a serious buyer.• Learn how to improve your process. If one method does not work, move on to something better, not worse.• Know what you have in inventory at all times. A simple spreadsheet can be used to track your inventory and the status.How do you keep your files organized?Carolyn Dobbs, Carolyn@REOBookkeeper.com | www.reobookkeeper.com | www.onlinerepa.com | www.point2close.comRead more…
Deciding to work with a BPO and/or REO company should be a two-way interviewing process. Brokers and agents eagerly try to get into the business by randomly completing the online or hard copy application process then several weeks or months after completing a BPO, act like a disgruntle employee by complaining to others because he/she/they did not get paid. Well, how much research did you do?You should never leave your business and services to chance and hope. Neither will pay your expenses nor will it guarantee that you will be paid. So what do you do during the initial process while researching and signing up for BPOs and REOs?1. Review the company history (website, financial data, etc) and read what others are writing on various forums.2. Randomly send out inquiries to ten or fifteen brokers and agents (in and out of state). If a broker or agent "outside" of your area/state freely gives the thumbs down, the company may not be a benefit.3. Check with the Better Business Bureau where the company is located.4. Run a $19.99 D & B check. http://www.dnb.com/us/5. Inquire with some of the title companies or closing attorneys in your area. What do they have to say?6. If you have noticed that some of the big firms or a top agent no longer service a particular company, chances are the asset management company is a slow payer and/owes big bucks.7. Talk to some of the property preservation companies in the area, are they being paid in an appropriate amount of time, 14 - 60 days or 60 - 365+ days?8. Review the company's service agreement thoroughly. What are there terms, what is the process for accepting BPOs, how do you submit BPOs, are there any documented instructions, are the BPOs also guaranteed listings (if listings are what you are seeking), what is the rating system, etc?9. How are the BPO and REO process handled? Is it managed through a user-friendly system such as RESnet, IAS, REOTrans, Wells Fargo, or Citi Residential? Let's hope that they are not on the fax or email system whereas it is assumed that your fax or email is received before the deadline and not afterwards.10. Know the phone, fax, and email for Accounts Payable. Get a name if possible.11. Cost - review the cost. If you are going to pay big bucks to join, you should be getting a huge return on your investment. Yes, it does take money to make money but you don't go broke in the process. If you are paying by the zip code, be selective with the zip codes. Don't select areas where there is a high mixture of residential and commercial properties unless you service both.12. Customer service - if you call customer service, is the person on the other end receptive, confused, rude, or hanging out in the twilight zone and need to walk toward the light?13. Read the reviews of your peers. Are the compliments and/or complaints legitimate?Take your time when researching BPO and REO companies. Don't assume that working BPOs and REOs is a piece of cake. All of the agents I work with are hard at work at midnight and back online before the sun comes up most days. It's called dedication. Reaching that level of success did not come overnight. There were a lot of bumps, bruises, missed school events, late dinner, and delayed vacations that paid the price. I'm sure many of the veterans have other questions that should be ask. These are a few I have been faced with over the past five years when I research companies and make general inquiries before wasting my time with the application process on behalf of brokers and agent.ARE YOU REALLY READY TO WORK IN THIS INDUSTRY?Food for Thought!Carolyn Dobbs, www.reobookkeeper.comJoin the BPO and REO Solutions Group!
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Yesterday I attended an awesome REO seminar from www.NFSTI.com, National Foreclosure Sales Training Institute in Santa Monica, California. The featured speakers were 2 top REO listing agents and we had some surprise guest speakers. One was a top Asset Manager (can't mention any names, sorry). Another guest speaker was Thomas Moore from eBrokerHouse and he demonstrated their software live!Following is a photo of top REO listing agent Pam Eikelberry from Northern Nevada, giving instruction:
BPO Training.docThought the group might find this helpful. Attached is a message I recieved from IAS. The same has been said from a few different suppliers that I'm currently working with. Anyway, more importantly for those doing BPO's you might find the attachment training doc helpful. With that being said I plan on being busy for the rest of this month so you may not hear from me for a while but please feel free to shoot me an email.Good afternoon,Attached above is a copy of new requirements that all of our clients will need to have on the bpo's from here on out. The clients have returned to IAS with some feedback on how they would like the bpo's to be done in the future. There are some things on there that we already do, and there are some new things that we will need to be focusing on in the future.Page 3 and 4 are especially important to focus on when looking at the comparables. A major problem we are having with the bpo's is that the market data is not being justified. When comps provided cannot be provided within guidelines (which is in many cases), we have to make sure that we are explaining to the client exactly why. The client needs statements of facts, not opinions. On pages 3 and 4 are the new guidelines as to what needs to be in your bpo if there are more than 2 comps outside of the neighborhood. Also, when we refer to a "subdivision" or "inside the box", we are looking at the map. That is the very first thing we look at when reviewing a bpo. Any streets that are highlighted darker than the others, surrounding the subject is what we call "inside the box". For all properties that are located in suburban or urban areas, comps need to be inside the box. If you cannot find comps inside the box or within other required parameters, the procedures are listed on pages 3 and 4.I am sending this to all of my agents who I work with on a consistent basis because I want to make sure we are all on the same page. I want to give you the information the client is giving us in hopes to prevent the bpo's from being sent back and to save time on both my side and yours. If there are any questions what so ever regarding any information on the attachment above, please feel free to call me or email me. I am here for any questions you may have! This month, we are expecting more volume than we have ever done in a month before (it will probably hit mid month), and I want to get all these issues squared away before we are all swamped with other things!!
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Posted by Seb Frey on September 10, 2008 at 5:30am
I often wonder, how good am I doing, really? You always hear about how the asset management companies grade and score you. A few of them, you can actually see your score - but the rest? Pfft. Who knows. So long as the listings keep coming, I guess we're doing OK.This morning, I got a broadcast BPO request from a company that also does REOs, but I have never listed an REO with them. The guy who sent the request out mistakenly did not use a "bcc" - blind carbon copy; that is, every recipient got to see all the other recipients. It was interesting to see who else in my area is doing BPOs!One of the recipients did a reply-all back, and said:"The one and only time I did BPO work for your company it took more than 90 days to get paid, and I had to write letters and threaten to sue you to get paid at all. $60 for an interior BPO? Are you sure you want to pay that much? Perhaps you can find someone who will do it free of charge, just to do you a favor."Yeah, $60 is cheap for an interior BPO. But you're missing the point. Even $100 is a trifle, if you value your time. Is not the whole point of slogging thorugh these miserable BPOs to get a crack at the listing? This business is really a lot of work. I guess if you're trying to make a living on BPO fees, I can see the rancor. But that's thinking pretty small, IMO.Also this morning, I got an e-mail from an asset manager questioning one of the BPOs I did for another agent's upcoming listing. There was a big discrepancy in the square footage between me and the other agent - about 1,000 square feet. I had used the actual assessor's data for the square footage figure, which as I understand it, we're only supposed to count legal square footage. So I wrote back to the asset manager, and explained the discrepancy, sent along a copy of the assessor's data sheet, and also mentioned how when the house had sold in 2005, it had sold in-line with prices for 2,000 square foot homes, not 3,000 square foot homes.I am guessing that the listing agent for this property didn't actually look at the assessor's data, but pulled the data off the MLS. But that's not the shocking thing. The shocking thing is the image that was used for the "front view" of the property. This company uses the "front view" image from the BPO as their "thumbnail" image for the property, which they show on their consumer web site of REO listings.What was the biggest thing in the picture? The side-view mirror of the agent's car. The house itself was practically a speck, partially obscured by trees, and the clearest thing in the picture was that side-view mirror.I have a theory. My theory is that most people do a mediocre job of whatever it is they are doing. Surgeons, lawyers, physicists, carpenters, presidents - you name it, the average person in that capacity does mediocre work. Few are truly exceptional. The same is true in the default services side of the real estate business. Actually, that's also true in the traditional "retail" side of residential real estate as well.The lesson here is: don't waste time worrying about how you're doing, especially not compared to how everyone else is doing. Be diligent, apply yourself, be honest, and work like hell. The rest should take care of itself.
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Back in November of last year, I did an exterior BPO on a rural property. When I do a BPO, I pretty much always do this: find "neighborhood" actives, "neighborhood" solds, and then comparable actives and solds that are ideally within a mile of the subject, but for these rural properties, the distance is often much greater than a mile.I put the "neighborhood" in quotes because out in the sticks like that, it's kind of hard to say where exactly the neighborhood is. In these cases, I generally use at least the nearest half-dozen listings or recently solds to comprise the "neighborhood."The other day, I got an interior BPO request. It turns out, I had done an exterior BPO for this property back in November of last year. This happens from time to time, and what I like to do is go back and look at what happened to the "active" listings I based my previous BPO on.In this case, there were ten listings in the "neighborhood." Of those 10, one sold. The rest all expired or got cancelled. Zoinks. And, the three "active" comparables I used formy BPO - two expired, one cancelled. Double zoinks.Let that be a lesson out there to all you sellers. Need to sell? Get aggressive. There's no time to waste in a market like this.
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I did an interior BPO a week or two ago on a rural property out in a kind of exclusive part of Santa Cruz county. None of the homes are alike, the parcel sizes and qualities are all different, the houses range from brand new estate-type properties to...well, older estate-type properties. There are probably a few normal houses thrown in here and there, tucked away behind different hills and knolls.One thing I sure hate to do is tell a client the asset is worth more than it is. Hate it. So I spent a long time on that BPO, weighing various factors, and came up with a price that I was sure it would sell by in 30 days. This is in a very desirable area, where there have not been any REOs in recent memory.The listing hit the streets today (not mine): $100,000 lower than what I said in my BPO. Yowza. That ought to sell in a matter of days. I expect I'll see it 'pending' here by this time next week, unless they get multiple offers (very possible) and the process drags on a bit.But it's a point well taken. I have another REO listing - big, beautiful, 5-year old house, the kind that everyone in town wants to buy (if they can afford it). I listed it based on the active comps and recent solds - lower than all the active comps, lower than all the recent solds (most of them also REOs - or short sales). Actually, lower than all solds for all time in that subdivision.And then, one after another, new REOs came on up and under-cut my asking price by 10%. And they went into escrow, blip blip blip. And then the short sales in the neighborhood dropped their price. And now, suddenly, in a matter of 3 weeks, the listing goes from the best priced in the neighborhood to practically the highest priced.The lesson here? Get super aggressive with the pricing. The asset manager sets the price, anyway - better to price it a little low then to risk getting stuck with a listing that can turn out to be priced too high and have everyone beat you on a race to the bottom.
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I don't know if you've been hearing the rumors, but there's a gathering consensus that the sub-prime mortgage market was just the beginning of the REO wave, that next up we're going to see more "prime" mortgage defaults and foreclosures. Check out this article from the New York Times, for example.That's my sense of it, surely. Most of the REO listings I've been getting have been in Watsonville, and most of them, I'd guess, were sub-prime borrowers stuffed into loans they couldn't really afford.Now, I think we're going to be seeing lots more prime-borrowers, stuffed into loans that they could barely afford, but with with Americans being profligate spenders and abusers of debt, they have now borrowed themselves into a hole from which the only escape is foreclosure and/or bankruptcy.I kind of went through a blessed dry spell where I was not really getting many BPOs, maybe just 2-3 a week. I have kind of cut back, anyway, ignoring all broadcast requests and accepting just the BPOs from my bread-and-butter companies who also give me listings.This week, though, I have had as many orders as I've ever had - and, interestingly, many of these are higher-end properties. Some of them are very high-end: estate type properties on acreage, or beach properties with ocean views, etc.Time to wax my surf board and get ready for that next wave, I guess.
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The other day, I got a new property assignment. "Hmm," I thought, "that address looks familiar." Turns out, I had done an interior BPO on the property back in December of 2007, for a short sale. That was kind of a puzzler - I know I turned in a value higher than the contract price (the seller's agent met me out at the property and said, hey, this is our contract price) - but considering the location and lot size, the value I gave it was fair to all concerned.But OK, say that my valuation was hire than the contract price, and the buyer was not willing to come up. Strangely enough, this property was never listed for sale on the MLS. Incredible. Here you are, facing foreclosure - and you're not going to list the property for sale on the MLS to at least even try to get out from under a foreclosure?The whole strategy of "pocket listings" of short sales kind of confuses me, to be honest. I really think a Realtor is doing a disservice to their client by keeping a short sale a secret. Perhaps in some cases the client insists that nobody know - but c'mon, what shame is there in doing a short sale these days? About 1/3rd of all the listings on the MLS in my area are short sales or straight-out REO properties.Hmmm. Well, I've ended up with what should be a nice listing in a popular area. So thanks for that, but I'm sorry things had to work out this way. Now instead of being the nice Realtor who came to take pictures of your house to help you get out from under this burden, I'm the nice Realtor who's going to negotitate a Cash for Keys to get you out of the house. Sigh. All in a day's work, I guess.
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Sorry I haven't posted in a little while, I have been busy. I got another REO or two, but I have been consumed with doing BPOs lately. I view BPOs as kind of a loss leader, but I think they are an excellent way to stay on top of the market and to keep your name in front of the eyeballs of some unknown person or persons who may well one day stoke you out by sending you that fattie REO...I've also been busy workin' a few buyers. Oy vey, that's a hard way to make a living. Still, though, I'm excited to work with buyers because, as we all know, nobody ever got rich selling real estate. You get rich by buying it, and is sure a good time to buy it.So here's something funny. I wrote up a couple of offers yesterday. One of them was for a short sale, being sold by an agent - not his primary residence. Looks like we might put that one together. And today, I'm doing a BPO, and I'm researching away...nice house, estate-type property, acreage, ocean views...owned by the same Realtor who is selling the property I just put an offer in on.I make a little trip over to Realquest.com, and I see a notice of default was filed on this lovely property back in May 2008. D'oh.You see a lot of that - many Realtors are losing their homes to foreclosure. I expect the same is true of mortgage lenders. I expect appraisers, though, for the most part, are still happily ensconced in their abodes, they probably have plenty of work these days.So keep muchin' them BPOs, the taste of irony is bittersweet.
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I got a request to do an interior BPO for a house in my service area. D'oh, another listing that wasn't assigned to me. No worries, I really can't complain, I'm busy enough. So I call up the agent and say hey, I want to get in there, what's the combo box code?He says, "I don't know. You know, I don't really work in that area, it's a bit far for me, so I'm having a local agent I work with there put the lockbox on and he's working on getting it trashed out."Ahem. I know the local agent, I'm in an escrow with him now at the moment actually. He's not even with the listing agent's brokerage (the local guy has got his own brokerage).I don't know, that just doesn't seem right. What do you think? I think if you cannot service your own listing personally, which the client has entrusted you with, then you probably shouldn't accept the listing and allow another agent who (like me!) who does personally service his listings to get the job.
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Did you know you are graded on everything you do with an AM? You are graded on the quality of your BPO, the time it took you to turn it in, the pictures (following specific instruction) and if it is complete.Your REO listing is graded on all of your tasks and by each AM you come in contact with. So basically you are under a microscope the minute your profile is even viewed. Crazy huh?? I am always wondering what my grade is and I try to beat around the bush to find out what it is and they NEVER tell me. I am still getting assignments so I guess I am doing something right. Another blogger (JESSE) posted that AM's are looking for a 95% grade or higher to continue sending you REO listings. I thought....Wow an A!! I was always a B student so an A feels pretty good. I guess I should have applied myself a little more. Then I think...naaaahhhh I would probably still be where I am now in RE doing BPO's and getting REO listings. I think those A's would have been nice but THESE A's really mean something!!Point of my blog is don't be a B student. BPO mills probably don't grade but the companies that solicit for REO's should have top priority and you should put in that extra effort. Cause if you don't.....I WILL!!
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There will not be much argument from just about anyone that Google has developed some awesome free products that make the life of a real estate agents life a lot easier. On top of making so much available for free, they allow others to go ahead and enhance and customize their applications.This is such a tool.It starts with the basic Google Maps that I am sure most who read this currently use in their lives – one way or another.The company that built this free tool is Virtuoo who promotes on their website “Stuff for Realtors!” Looking around, it appears they earn their money with some pretty nice Virtual Tours.They have developed and give away for free a “Efficient Route Calculator” that allows you to enter up to 10 random addresses before you hit the ‘Submit’ button, conveniently located right below the addresses. How simple is that?The program then opens up a new page and in just a few short moments a fully expandable standard Google Map shows up, with both the Hybrid and Satellite option. The good news is all of your locations are there and mapped out – round trip!What is nice is you can even add another destination – I have not had to use this feature, but my guess is you could add an indefinite number of locations to your route.EASY DIRECTIONSBelow the map is a section they call “Computed Data”. It starts with the round trip duration and length of your trip, if you were to drive straight through. This alone makes the program worth what you paid for it. Wait a minute, it’s FREE!!! This feature makes it worth a fortune when you are doing your taxes!!!Then in Google Map familiar fashion, you are given turn by turn directions starting with your start point continuing to each location on your route, in the most efficient route. Of course, the distance on each road is included, so you have an idea how far you must go before the next turn.NOT PERFECTJust like everything else in life, this tool is not perfect – but it really does a great job working for me.First, I prefer the Firefox for my Internet Browser and when I print the highlighted line that represents my route does not print. I understand it works best with Opera web browser and works OK with both Safari and Internet Explorer.I wish I could right click and save the map as an image, but it won’t allow that. Too bad. However, I do save each map, on a daily basis, as a web page – when I go to the FILE pull down menu and select SAVE PAGE AS (Control S) and choose the ‘Web Page, complete” option to a folder I call Daily Trips in MY DOCUMENTS. I then have a folder for each month and simply name the file the current date.What’s nice is I can go in and amend routes after I have traveled them, documenting my mileage. You know for those unexpected trips to Office Depot or something that takes you an extra 5 miles out of your way – we need to account for that mileage.There are more notes that you can follow from links at the very bottom of the page, where there has been some trouble shooting discussions taking place – but for me, the only flaw is printing with Firefox. Truth be told, as long as the icons of my route destinations show up with the turn-by-turn directions, I’m a happy camper.There is also code available to add this to your website and allowing you to create a default starting position. I get in trouble when I mess with code, so I’ll just use it the way it’s published, thank you very much. (It would be a nice widget to have in my blog though, wouldn’t it?)HOW CAN THIS BENEFIT YOU?As an REO real estate agent, I see multiple uses for this program. The obvious is to take a buyer out and show several properties with a nice clean route already determined.The tool is also very helpful for managing my inspections of my REO properties, since they are scattered in a 20 mile radius I create a new list adding the property each time I have a new assignment, in a particular area. This way at $4.25 for a gallon of gas I can maximize my driving efficiency and not letting a property slip through the cracks, when I’m in the neighborhood. It also allows me to provide the same information to my contractor, so I can accurately monitor his mileage. (We have to constantly keep costs in line, don’t we?)Another use is with BPO’s. Comps are always close by and when I have the opportunity, I like to check out as many as I can. So, when I am researching a BPO, I will add the addresses of the Subject and the Comps to the grid. This way if I need a picture, I know exactly where I am going – but it really is helpful when it lets me physically check out a comp – after all, I may have a buyer if it is that good a deal.So, how can you use this to make your life as an REO Agent easier? Please go ahead and leave your comments below.John Occhi, REO REALTOR®Century 21 Crest – CrestREOJohn Occhi is a REO REALTOR® thatspecializes in the sale of bankowned homes in the Inland Empireregion of Southern California. Hehas helped many buyers acquiregreat deals on these REO homes.His company, CrestREO, the REODivision of Century 21 Crest – the77th largest C21 in the Nation, hasSold Over $1Billion in REO Sales.
BPO or “Broker Price Opinion” is the back bone of the REO (Real Estate Owned) industry. This is the tool that banks, lenders, investors and perhaps most importantly the asset managers use to determine the value of a property once they have taken it back at auction and again after it has been on the market for 90 or more days. For this article I will refer to all of these individuals / entities as “Asset Managers”, if that is OK.A BPO is typically tasked to two or more agents to submit their opinions. Having multiple reports, it is now possible for the asset managers to determine a realistic price to list a home for, when it is assigned to an REO Agent.If the values are out of skew, the asset managers will ask for clarifications and may order an additional BPO – just to get a good feel for the property. As a BPO agent, you are the eyes and ears of the lender. This is why this is such an important task in the REO process.TYPES OF BPO’SThere are three different types of reports that a BPO agent may be asked to perform. The first is a drive-by or exterior BPO. This requires a physical trip to the subject and an assessment of the property as well as the neighborhood. The second is an interior or full BPO. An Interior BPO requires that the BPO agent gain access to the interior of the property and make a full assessment based on the condition and amenities of the property. Finally there is a Valuation or desk-top BPO report. A Valuation is simply looking at the property on paper and determining what it should sell for, with all things being equal.Perhaps the most common BPO is the drive by, or Exterior BPO. The entire process should take about 2 hours. I know there are people out there telling you they knock them out in 30 minutes – well, unless you live in a city like New York and every one of your BPO’s is in the same building, then trust me, you will easily have a couple of hours invested – even after you have completed hundreds of them, as I have.The purpose of the BPO is to provide the Asset Manager with a fairly accurate estimate of the property’s value in the current market – which means today. The opinion is made from looking at comparable properties that have recently sold and are currently on the market. Adjustments are made for all the different reasons that separate one property from another. For example, an adjustment would be made for properties that are larger or smaller than the subject. Is the lot size bigger or smaller then the subject?Yes, there are many difference that are almost a ‘give me’ that shouldn’t need to be discussed, if you are an experienced REALTOR®. What makes you a trusted expert is when you can document, adjust and report for the more subtle differences between the subject and the comps. Is one of the properties on an exterior lot (meaning does it back to an exterior street – away from the tract)? Are there improvements that may go over looked, like RV access or perhaps a custom iron gate replacing wood fencing? If the subject and comp are from different tracts – do you document the differences, regardless of how similar they are?On an Interior BPO, you have to be aware of upgrades – are kitchen cabinets, Granite, Corian, White Tile or Formica? Are the cabinets upgraded? What type of tile is on the floor – 12” tile? 16” tile, 18” tile? 20 tile”? Is it Travertine? How many rooms is it in? Does the fireplace have a matching tile surround? Is the carpet an upgrade?What about damage? It is obvious if there are holes in the wall or malicious damage. Are there missing electrical switch plates of outlet covers? Are the ceiling fans or lights missing? Has the closet organizer been stripped, leaving an empty closet? Are all of the drawers in place, or were they used as moving boxes? Are all of the appliances there? Are the appliances’ an upgrade?These questions a local expert could answer. Can You? Do you include this level of detail in your BPO?PICTURESEvery BPO requires that you take digital pictures that can be uploaded – either through a website or perhaps an email. Today, I do not know of any companies that still require that pictures be sent through the snail mail – but it has not been so long ago when that was the norm.For a Drive-By BPO, you will generally be required to take 3 pictures as a minimum – the front of the subject, address verification and a street scene. However, many clients will want more and there is nothing more frustrating to miss a picture that a new client wants, because you were doing what you considered to be the ‘norm’.Every home that I take exterior pictures of I always start with the exterior of the home followed by two address verification shots and two street scenes. The minimum any BPO will require is one of each of these.I take the 2 address verifications, if possible from two different sources – just in case one picture does not turn out right. I’ll take the curb painted with the number or the mailbox, if it is at the street. Then I look for the number on the structure itself. Sometimes this can be a challenge – for example the numbers can be painted the same color as the house.When I take the exterior, I always use my zoom to have the house fill my view finder. My clients are not interested in looking at a band of black asphalt in front of the home that looks far away – they want to see the house and what condition it is in. They also use this picture to verify that you are taking pictures of the right house. (OK, I admit I have taken the wrong pictures more than once – but I’m not going into that here.)I’ll take a picture of the street, going in each direction. If the subject is on a corner, I’ll also get pictures of the side street as well as a corner shot of the subject.What you will learn is you can never take too many pictures – remember, they are digital; it’s not like you have to pay for developing. I will never submit all of the pictures I take – but I do use them. When I am taking pictures, I average 3 homes per trip. By the time I get back to loading then and completing my BPO, it is more than possible I can get homes confused with one another (heck, I can take pictures of the wrong house, so cut me some slack – I’m getting old).I do provide as many pictures as possible, giving the Asset Manager as clear an understanding of what the property looks like and it’s current condition.The other pictures that I will always take include at least one each of each side of the property. If I can gain access to the back yard, I’ll also get one of the back of the property as well as the back yard. Remember, these pictures will help me when I am writing my report and help me offer as accurate an opinion of the value as possible – and that is what I am getting paid for.As I assess the property, I will take a photo of every nuance that I want / need to remember. This will include any apparent damage, needed repairs or deferred maintenance. I will also take pictures of any positive features that I can use to help separate this home from the others.Interior PicturesWhen taking pictures for an Interior BPO, I always start with the front door open and then go in and take at least 3 pictures of every room – each from a different corner. As mentioned earlier, I will document any damage or deferred maintenance.. I will also take pictures of all upgrades.I walk the house, room by room so I can keep everything straight. Lets say it is a 5 bedroom home, I definitely want to make sure that I document each room with the right pictures. That may be easy when every room is painted a different color, but when they are all white, be careful. The way I do this is I always start with a picture from the bedroom door, then one from across the room looking towards the entrance followed by a 3rd with a picture of the closet (half open so I can see the inside). Any damage would be taken between the first pictured and the closet picture. Then I am ready for the next room.COMPSMore often than not, I like to do my research prior to going out and taking a look at the subject. First, I check my local Title website and pull all of the property characteristics and enter them into the BPO form. Once I know what the subject looks like on paper, I will search the MLS for comps as close as possible to the subject.There are times when I can find all of my cops in the same tract – but most of the time I have to expand my search. It is very important that you fully understand the criteria each company will tolerate. I have clients that will allow me 25% variance in the square footage and others that insist I remain within 10%.Suburban BPO’s generally allow for a one mile radius of where the comps can come from. 90% of my market is suburban – the remaining is rural where I can go 10 miles out. I have not lived in an urban area since 1992 – so check with your client if this is your market.Bedroom and bath room count is usually within tolerance of plus or minus one – but there are times when you just need to expand outside this and other criteria. Consult with your Asset Manager and seek their guidance on how they would like you to proceed. The important thing is that you completely document any variance you make. Let me take this back, the CRITICAL thing that you do is document any variance and the reason why you selected this comp.Remember, for every BPO you do, one of your peers is doing the exact same report and chances are you will never learn who it is – but the lender knows who to give the work to in the future if you mess this up.NEIGHBORHOODAll BPO’s require you to document the positive and negative aspects of the neighborhood the subject is in. Not only the neighborhood, but how about the next door neighbor. I just did a BPO where there was a RV parked right next to the property line and the subject driveway, making it impossible for a car to back out of the garage and driveway and see if anyone is coming from that direction. Well, that’s just one of the subtle little details that can make a difference and account for an adjustment in value.Is the neighborhood close to schools? Shopping? Entertainment? Commuter routes? Restaurants? Parks? Places of worship?...or is it in a secluded upscale neighborhood that residents don’t mind driving an extra couple of mile to get where they want to be?Are there negative or obsolete features? Are there overhead electrical lines? Is there a flood channel? A large vacant field that may attract rodents? How close is it to a landfill? Is there a prison at the end of the street?You get the idea – tell it like it is – Good, Bad or just downright Ugly!MARKET CONDITIONSWhen it is all said and done, you must analyze your data as you client will and offer your opinion of the value. Different clients will want different values. I created an excel spreadsheet where I can plug in the variables in a grid format and make adjustments with a variable number that I can change from report to report.When I’m finished with the BPO, I have just recently started saving a copy of the worksheet. I save it to the folder I created in ‘My Pictures’ for the BPO. This allows me to keep all of my info for each BPO in one location, even though this is not a picture.I do save all of my pictures – not sure why, other than I have a massive hard drive and I might as well use it for something. Truth is I have done a BPO for the same property – a year and a half later. This allowed me to go back and see the transition of the property – not that this is relevant for my BPO at hand, but for my market knowledge, which is why I am an expert in my local real estate market.The basic value the Asset Manager is typically looking for in a BPO is the current AS-IS Value and a REPAIRED VALUE. They many want to know what these values would be with a 30 day window to sell as well as a 30 to 90 day window and perhaps even a 90+ window.There are times when I am not comfortable with he results, based on the overall market. Here in my market, we have 2 cities, an area of unincorporated county - all in 5 zip codes with about 100,000 residents. We are isolated, so yes there are nuances between each zip code and area of the valley, it is still one market.I will use this opportunity to offer market data outside of the 1 mile radius the report is based on. For example, I may have a 4 bedroom 2500 sq ft home built in 2003. The comps may have come from across the mile radius and not the same tract. The data may tell me this home should sell for $180,000…but I am just not comfortable with that number so I’ll run the numbers valley wide and let the asset manager know that there are 45 (or however many) homes that are both newer and larger than the subject and priced between $150K and $180K – letting them know that the competition is not from the 1 mile radius, but from across the valley..FINAL DETAILSIn parting, I would need to offer this last little bit of advise if you are going to be successful with your BPO’s and ultimately your REO’s.TIME is of the ESSENCE!As REALTORS® we have been taught that time is always of the essence and believe me when I tell you, it is no more so than when working with Asset Managers who are often from different states and time zones. They are under a lot of pressure to get their job done and their performance is based on your performance.So, never ever run late – get the job done and get it done early. Most BPO’s are due in 72 hours – my goal is always 48. This is true when you are listing REO properties as well – everything is task oriented and time lines are critical – this is how you will build your business and your reputation in the REO world.John Occhi, REO REALTOR®Century 21 Crest – CrestREOJohn Occhi is a REO REALTOR® thatspecializes in the sale of bankowned homes in the Inland Empireregion of Southern California. Hehas helped many buyers acquiregreat deals on these REO homes.His company, CrestREO, the REODivision of Century 21 Crest – the77th largest C21 in the Nation, hasSold Over $1Billion in REO Sales.
