After completing a 2014 P&L this is what became apparent:
1,000 BPOs completed
$30,0000 expenses to complete BPOs including a part time assistant.
That means, just to be in business to complete BPOs we need to budget $30 per BPO.
Therefore at $50 per BPO, on average -
we net $20 per BPO before social security taxes and health insurance.
Anyone who completes BPOs for $35 or $40 cannot possibly be making a profit.
Im getting orders from many portals. This reminds me of 3 years ago when everyone was trying to do loan mods (what a joke) Anyway, orders are coming faster than I can handle them and Im having to turn some down. Ive noticed that there is a higher percentage of very hard to do properties as compared to 'the old days'. Many are not worth the time. After 3,000 BPOs Im tired of the entire thing. Yeah, kept the light bill paid but I dont have a new sailboat anchored off the coast of Greece so Im getting out.
Thing is, what is al this activity and will it last? Its because lenders had been standing back watching supreme court decisions and different government agencies that were wading into the fray to put protection measures for consumers. Joke number two. Now the lenders, who had been changing to judicial foreclosure to get around laws designed for auction foreclosure, are brave and starting to fight. They do not and NEVER DID want to loan mod. They do want full non judicial foreclosaure so they can make use of any mortgage insurance and get government backed money thrown at them to keep them healthy.
ANd now another ugly face of theirs is showing---REOS , instead of being placed in the market through real estate brokers, will be sold in bulk as securities to big money concerns. We are becoming a rental nation with huge corps as the landlords. This new flurry is mostly short sale and some full FC, at least thats what mine are with more full interiors than Ive had for a long time.
Going to last? No. Nope. It will start to decline. We also have a few million owners, especially those who actually got loan mods, going back to default but not in numbers weve bee used to. Even FARVV is cutting back and reducing fees to brokers. They see the writing on the wall. These are the beginning death throws, my friends. If you aregoing to depend on BPOS for a living, better have a backup job in plan.
Earlier this year I had a scare when my 3yr old daughter started sneezing and later coughing up blood. I did my best to keep my cool, but I inside I was freaked out. What I needed as I drove to Kaiser was an accurate diagnosis of what was wrong so we could make the best decisions possible.
Later this got me thinking about blast BPO companies (don’t ask me why). These blast BPO companies are paid by their client to compile the most accurate information possible, but instead send the order to the first person that raises their hand. What if instead of going to a qualified pediatrician for my daughter, I sent out a blast message to anyone who had taken a science class? What if I didn’t choose the person with the most experience, or the person that had performed well in this area in the past, but rather I chose the first person to respond??
That would be STUPID!! I’d probably end up with some college dropout who took a semester of biology instead of a trained physician. Isn’t it just as STUPID though when we’re talking about a family’s home? This BPO can decide whether that family gets a needed loan mod or gets rejected; whether they successfully short sale their home or go to foreclosure? Whether the underling investor loses 150k or 225k?
Just a thought, who do you think is more likely to be sitting in front of their computer all day fondling the refresh button hoping to capture an order? The successful broker who has sold tons in the area, or rather the lame-brain agent who last sold a home when Reagan was in office?
Anyone else have a different take on this? Which BPO companies have you had the worst experiences with?
COMPLETED REM CORPORATION BPO IN TWENTY MINUTES BY USING REALTY PILOT SOFTWARE
I am into my second month when it comes to doing BPOs as a real estate agent. I was told that it would be a great way to start breaking into the REO business. This is all new to me. I consider myself an expert when it comes to fixing and flipping homes as I continue to assist real estate investors. However, I want to use my skill sets to list bank owned properties.
I continually sign myself up to become a vendor for asset management companies on a weekly basis. I believe I have been approved by 23 companies to conduct BPOs. I sign up with five asset management companies per week. I would suggest that you Email point of contact each week until you are accepted BPO vendor. The squeaky wheel gets the BPO business.
I have to be pretty fast on the keys to accept BPOs. I accepted a BPO from REM Corporation. The first thing I do is take pictures of the property. Then, I come home to complete the comparative marketing analysis on the home. Finally, I give them my Broker Price Opinion based upon my report. That was the easy part. How am I going to transfer the data into the necessary fields to get paid for this BPO. ANSWER: REALTY PILOT SOFTWARE.
The hardest thing for me to do when completing a BPO with Realty Pilot is taking the pictures of the home. Are you serious? Yes, I am living proof. Realty Pilot populates data from my MLS into Realty Pilot. Then, I complete the BPO in Realty Pilot. Then, I hit the Macro button to transfer the data from Realty Pilot into REM Corporation web site forms. This whole process takes me twenty minutes or less by using Realty Pilot.
I AM READY TO DO MORE BPOS THIS WEEK. BRING IT ON!
