Posted by Cindy Edwards on August 30, 2010 at 1:37am
Ten years ago, when it was not "cool" to be working REO properties, I did it because it was a challenge and because it was part of my well rounded Real Estate business. I got called everything from "foreclosure queen" to "crazy" for working this buisness as hard as I did. I perfected and streamlined my office/team. Every member on my team became profiecient in foreclosures. Whose laughing now? Well, it is amazing to me that all these agents who have been caught up in this down market are now scrambling for a piece of the pie. My broker stands up at sales meetings and tells agents to get out there and call the banks and get the business, from me and everyone else who has been working this market hard for 10+years. Well, experience counts for something. I'm going to continue doing what I do, and doing it well. New agents fighting for my piece of the pie, you are going to have to bring your A game and learn fast.
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I am a Realtor in North Idaho. Coeur d' Alene, ID to be exact. I have been in the business for 8 years. Two years ago I saw that the market was shifting downward. Our foreclosure rates were on the rise and I saw an opportunity in a field that I had always wanted to pursue. I had done three bank owned deals in my career. They were all with local mom and pop banks. How did I break into the REO's?Well for one, I refused to accept the mantra that it is a closed field. I followed FC notices in our paper and followed homes that interested me all the way through the sale. When no one bid at the auction, I googled XYZ bank REO department. I called and stayed on hold forever. I was always polite. When I got through to the right person, I would say "Hi I am an agent that works in the area that your bank just took a home back in. How would I go about getting on the list to be an approved Realtor to help sell this asset for you? Most times they would say "we are not interested". This actually rarely worked but I kept at it. One day I was walking in my neighborhood and I noticed a vacant house with dead grass (the REO calling card!) The neighbor was super helpful and told me she heard a bank out of TX owned it now. I googled this bank and got the right number to call them. I gave the lady my spill and she said "I was just about to assign that one; it is right in front of me. What is your fax number and I'll send you over the agreement!" I don’t know if cloud 9 would be high enough for how high I was floating!I may have been on cloud 9 but I was clueless too! I knew how to sell homes but the REO side was new to me. I never let my seller know how clueless I was. Anytime something came up that I was unsure about I got online and googled till I figured it out. I registered on the various sites to upload the offers and forms, again learning as I went. I paid invoices with no idea of how I was going to get paid back. I was able to get this little home sold for a good price and the asset manager was happy. Not a week later the same bank sent me two more REO listings!From there, I could see that I was on to a good thing and that this is something I needed to pursue all out. I began buying courses, googling, reading blogs, and just getting information anyway I could. One of my courses gave me a list of banks to register with. I built a resume and gathered the necessary forms. I spent one week registering with every single bank on the list. I paid for memberships to several REO platforms so asset managers could find me. I continued following foreclosures in the paper all the way through the sell. I continued calling those banks. My business grew and grew.To this day I continue doing all of the above. I never sit still or take my inventory for granted. I would say that I am one of the smaller fish in this huge pond of REO brokers. I currently have 12 REO's in some stage of the process. Just yesterday I closed two and one more is signing today. I have been able to build a list of investors that want these properties so I find myself doing both sides of about 25% of my properties. I consult with them throughout the remodel and then help them sell them if they are flip deals.I learned early on that you have to build systems to maintain the influx of properties. My scanner and Blackberry are my new best friends! People drive me crazy when they say "ohh, you are so lucky to have all these deals in a dead market." My broker once told me the harder you work the luckier you are. Now that I can believe. If you want to get started in REO's work at it, envision it, be determined, and stick to a plan. I believe this REO boom will be around for awhile. Grasp the opportunity and go for it!P.S. I am envisioning myself working with Bank of America and Wells Fargo! I'm not sure how that is going to come about but I know it will! Any tips?The Holy Grail in my business would be to get in with Bank of America or Wells Fargo. If anyone has any tips there, that would be great.
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Apprenticeship, Experience and Referral
Ok, here it is, the secret each of you have been waiting for. I am going to tell you what it takes to become a REO Agent. Now, for some of you, this information is going to sweep over you like a tsunami while others are going to rise and surf it directly to your first REO listing.
The first concept I want to talk about is the “Apprenticeship”. Now, before I start, let me say that I don’t expect each of you to go and work for free for some over ego’d REO Agent but, I am expressing an idea that to become a REO Agent, you might first have to pay your dues and learn from the best.
So, what specifically do I mean by Apprenticeship. As a new REO Agent, you need to learn from someone who already knows. Now, yes, we have all kinds of “REO Certifications, Designations” and, the like but, the industry has no accepted standard certification! Let me say that again, THE INDUSTRY HAS NO ACCEPTED STANDARD CERTIFICATION! My point is, just like in the dark ages, to become an iron smith, you went and worked for one in exchange for his knowledge. This wasn’t because that was simply the way it was done. It was done this was because no one had set down, wrote a book and said, this is how you become an Iron Smith. So, in many ways, the default real estate industry is much like the dark ages, in that we DON’T HAVE A INDUSTRY STANDARD EDUCATION, when it comes to how to be a REO Agent. So, the next best thing is to learn from someone who is already doing it. This means, you need to seek out a successful REO Agent and, work out an agreement where you can co-list a couple of properties. I don’t want to hear anyone moan and groan about how they don’t know anyone or how they don’t get along with other agents or any other, “I am just a looser” self defeatist Bull Sh!t because, I just don’t really care that much. Actually I do care but, I have more pressing problems on my own to worry about yours.
Experience…..oh, this is key! You can have all the education both formal and apprentice education but, if your teacher never trusted you to list a property on your own or make a horse shoe by yourself……then ultimately no one is going to care who you studied under. You…yes, you, have to gain the trust of your teacher, through your knowledge and understanding, that will give them the confidence to co-list with you or let you do one on your own. This, of course, is all about being a good student and learning as much as you can! Once again, I don’t want to hear you complain about how you don’t know anyone or can’t get Mr. Super REO Agent to work with you….not really my problem. If you really want to break into this industry, then you will make it work somehow. By the way, if you can’t make it work, I am not sure you really deserve to be in this business. Just my opinion.
Now come the Referral, this is what you worked so hard for. Once you have proven you can do it, both with your education and experience, then your teacher should be able to provide the Referral. A good teacher (REO Agent) will shop you out to several Asset Managers they have working relationships with.
Ok, so, go find you a “teacher”, get a solid formal education like, RealEstateEducate.com or Five Star. Prove you can do it and co-list with another REO Agent, EARN their trust and ask for the referral
Now, all of this is just a suggestion but, it’s an idea that maybe you haven’t thought about. If you want another prospective, check out my blog, “How to start doing your first REO”
Good luck and let those questions rip…I am ready.
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