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Are you paying attention to the Federal Reserve?

Realtors, be warned. The Federal Reserve announced that it will begin drawing back the bond purchasing program called Quantitative Easing. This is extremely important for us Realtors to know and understand because; this will have a dramatic impact on buyers or those considering buying a home. Let me explain.

In the past few years, we have seen traditionally third world countries see a huge growth in development. For example, did you know that Mexico is now one of the worlds largest producers of aircraft? Yeah, I didn’t know that either but, it’s true. In fact, countries Africa may be one of the continents with the largest expansion of unprecedented wealth. South Africa, Nigeria, Angola, Ghana and Ethiopia were all named 2013’s countries to watch and invest money in due to rapid expansive growth.  So, you may be setting back and wondering, what does these countries have to do with Mr. Jones’s property down the street….well, just keep reading.

The growth these countries have been seeing has been unprecedented and I wanted to know how this was all happening so, I did some research and found that it’s in large part due to the US Federal Reserve. The Quantitative Easing policy of the Federal Reserve has been blazing a trail for the other central banks across the world by essentially manufacturing trillions of US Dollars to buy bonds and drop interest rates around the world. By doing this, the US Federal Reserve has made it easier and more attractive with larger returns to allow investors to move money into third world countries. Investors like those large retirement firms that hold the cash of American retirees. Ok…, are you seeing it now, are you starting to understand where I am going? If not, no worries, just keep reading.

So this week, the Federal Reserve announced it was going to draw back and end Quantitative Easing in 2014. It will taper off the amount of purchasing it does monthly and in effect, buying less and less bonds. So, in other words, you are going to see less developed countries that saw huge developments in the past two years begin to have much less cash flow coming in. You will even see Investors pulling out of these countries because, instead of developing more sound political and economic infrastructures with governmental policies, these countries did what any other country would do when they all of a sudden were rich from a windfall, they partied like it was 1999. In short, these countries will not be prepared for the withdrawal of funds and will do one of two likely scenarios. Either they will simply watch their country “ease” back into third world status or the will put in place protectionism policies that will strangle further growth and severely limit investors from moving cash out of the country. In essence, locking up American retiree cash in a third world abyss. I predict that the first two quarters of 2014 will see dramatic cash pull out of third world countries, currencies and, bonds. This will be the start of a mini global recession due to a lack of demand for goods and services.

If that isn’t enough, let’s not forget about inflation. Oh yes, the big bad “I” word. Inflation is the elephant in the room that most people are trying to desperately ignore. Even the Federal Reserve stated that the QE (Quantitative Easing) drawback would have to be timed perfectly to negate the real risk of inflation. In fact, the Federal Reserve said that the reason it’s thinking of doing this drawback now is because, they believe the timing is correct. Now, how they come to that decision, I don’t really understand but, it’s primarily based on the ideology that our economy is growing and the country if financially doing better as a whole. Well, try telling that to the 53% of Americans who are on some form of government assistance right now.

So, just a quick note on inflation, we get inflation when we have too much money in the system. In short, when everyone has a tone of dollars, how much is a dollar really worth? Well, it’s not worth much if everyone has them. So, it takes more dollars to make a gallon of milk or loaf of bread and thus you have inflation. Remember me talking earlier about all those trillions of dollars that the fed has been pumping out into buying bonds….well, those trillions of dollars have got to go somewhere and guess where they are likely to go, right back home, here in the good ole USA. In fact, we are already seeing it happen. Why do you think the stock market has been on FIRE, lately. Those dollars are coming home to roost. When all that cash starts looking to escape Mexico, Rwanda, Honduras, South Africa, Angola, etc… it’s going to all come here and the value of the US Dollar will start falling. In fact, the dollar has seen some of the most recognizable loss of value against the Euro since 2011. Back then, 1 Euro was worth 1.29 dollars, in August of this year, it was worth 1.33 dollars and right now, as of today, it’s worth .73cents. Are you stumped? It took years for the euro to rise .04 cents from 2011to 2013 but, it only took months for it to lose almost half its value…wonder why? You know why, I just told you, all of those dollars….those trillions of dollars through the Federal Reserve QE program is coming home and like any bubble, it’s got to bust at some point. The Federal Reserve is gambling that our economy will be strong enough to handle it when it does but, I am not so sure.

When this bubble burst, it will mean run away inflation and we as a country aren’t ready for that. 2007 will pale in comparison and in fact, I have read many analysis say The Great Depression will pale in comparison. Unfortunately, it isn’t like we are navigating uncharted water here. This has happened before around the world just ask the Weimar Republic….or what used to be the Weimar Republic.

Go visit this wiki site, about the Weimar Republic and then ask yourself, do you now understand how this will impact Mr. Jones’s house down the street?

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You are Paying for Motivation?

You are Paying for Motivation?

Ok….so, last week I was contacted by a lead generation company which, for now, will go nameless. I do like getting calls from these types of companies because, I love drilling the poor, unfortunate soul who has to try to convince me that I want to buy leads. Good luck with that. So, they guys starts of telling me that I can be the exclusive agent for their program in my area. They like using the word exclusive, it makes them sound important. He goes on to blow up my ego by telling me that they only accept the top producing agents and he found my information on Google so, he knows I am a top producer….lol. Finally he goes on to tell me that he has a limited time frame that he can hold this exclusive spot reserved only for top producing agents and I need to make a decision today.

Well, I felt like I was going to tell him, “No body puts baby in a corner” but, I totally restrained myself and was like, “Oh my god, that sounds so fabulous” I don’t think he caught it that I was joking with him because, then he went on to tell my about his companies exclusive IDX and how it generates thousands and thousands of hits on their site for my zip code each week. At this point, it reminded me of being back in school, having to listen to my teacher, kind of like Charlie Brown and his teacher. It’s also kind of like when a woman is mad at you and she starts to raise her voice but, all of a sudden, she hits a particular tone and my ears start shutting down and before you know it, I can’t understand a word she is saying.

Finally, the spill is over and truth be told, I wasn’t buying crap but, I thought, let’s have a little fun here. Let me ask if maybe they can give me some numbers, specific numbers so, I asked, “How many leads a week can I expect to get?” Now, the preverbal crap hits the fan and he diverts the question and starts talking about how they have a wonderful motivational series and I will get a daily inspirational thought, inspirational message and once a week, a inspirational phone message / webinar. I was a little taken back because I have never really had someone completely ignore my question so, I asked it again, “How many leads can I expect each week?” He then tells me that the program can’t guarantee a number of leads because it’s all based on business need but, I will get these motivational messages regularly, I can attend training webinars they do monthly, etc… etc….

At this point, I am over it, I am spent so, I stopped him and said, “So you are telling me that I would primarily be paying for motivation?” The call got silent and as he started to talk some more, I ended the call with a nice, “Thanks but, no thanks……

One of the members of this network gave me some really valuable advice once. It rang so true to me that even now, I hold it close and don’t steer away. We were talking about this same thing, these lead generation companies who really aren’t provided leads as they are providing something else, motivation, training, etc…. He said, “If you as the lead provider don’t have enough faith in the lead you are providing me to work, to take your fee at closing, why would I have faith the lead would ever close and why would I pay you up front for it.”

Food for thought?!?!?!?

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Why you should attend the Short Sale Symposium at Sea.

In the past couple days, I have gotten a few calls and emails from members wanting to know what my thoughts are on the Short Sale Symposium at Sea by the Short Sale Specialist Network so, let me make this easy for everyone and just write a blog about it.

1. It's a CRUISE! I really need to say more? Surely not....but, I

  • Hassle Free: This is the best part for me. I pack and unpack once. I don't have to drive around, look for a hotel, wonder if the part of town I am in is safe or where I am going to eat.
  • Get Away: I love being out of the country, truly away from the daily's so refreshing. No alarm clocks, no PHONES, no emails, etc... (NOTE: If you really need it, you actually can get email on the boat, if you want to pay a little extra)
  • It's First Class: The cruise staff treats you well. People are nice, they go out of their way to make your experience a first class experience.
  • Do It All or Nothing At All: It's a cruise, you choose what you do, when you do it.
  • A New Place Daily: I love being able to come back and tell my friends and family about all the places I have been, Jamaica, Grand Cayman....all on one trip.
  • I Am Never Bored: These ships have all kinds of things to do. From shows, dining, events, activities, etc.... you can't get bored. Just between us, I am more a cocktail pool side kind of guy.
  • Shopping!: Yes, we love shopping at all the local shops in port, getting to experience the locals and having a good time on land.
  • Friends Everywhere: Cruises are designed to're on a ship and everyone is there to have a good time so, meet some people and have a good time, make a friend or two.
  • Romance: Ok...yes, cruises are very romantic, something about taking your spouse with you, having a day full of classes and learning, then a nice romantic dinner on your cabin balcony, watching the sun set......uummm, well, that is enough of that, you get the point.

That about sums up the first reason I give people why I love the Short Sale Symposium at Sea now for reason # 2.

2. The Short Sale Symposium at Sea is the most unique and fun-filled conference our industry has. Who said a conference can't be a freaking blast? It doesn't have to be filled with suits and ties, stuffy lecture halls and crazy schedules. Instead, why can't we learn and network in shorts, t-shirts and flip flops? Oh...wait, we can, it's called Short Sale Symposium at Sea. It's a relaxed environment and offers incredible opportunities to learn, network and get to know other professionals and how they are working in their home markets. It really is a conference but, much more fun.

After those two reasons, do you need anymore? Well, you don't have to take my word for it, go to and listen to the testimonials of the other attendees yourself, then you decide.

I really hope to see you there.

Jesse G.

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I just heard an incredible story that I don't know is true or not but, the point the story makes is going to be a key to any aspiring REO agents success and that is what I want to talk about.

So, Lisa the REO Listing Agent calls me wanting to know if I had ever heard of Rodger the REO Expert. I told Lisa yes, I had heard of Rodger. She stops me mid sentence and ask me if I think he is any good. I wasn't sure exactly what she was referring to so I asked her, good at what? Lisa tells me that Rodger is selling a program where he can get you into REO Bank of North America and he only charges $20,000.00.

After I picked up my chin from the floor I started laughing, it's only $20,000.00, I would charge more than that....I thought to myself. She asked me why I was laughing and I asked her, if Rodger guaranteed she would make her money back. She said on yeah, he told me he could get me in to REO Bank of North America in a couple of months when I join him and a representative of REO Bank at the conference in Dallas later in July. So, I asked her, did he give you that guarantee in writing? She said no however, he was sending over documents via email. I told her to call me when she got the documents.

So, a couple days go by, I heard nothing back from Lisa so, I called her. She got the documents, she was all excited, she was finally going to be in at REO Bank of North America in just a couple of months. So, I asked her, did he give you a guarantee. She said yeah, it's right here in these documents so, I asked he if she wouldn't mind letting me look them over for her, what could it hurt, having an extra pair of eyes, right? A few minutes later, I have the agreement .....and.....well, I didn't see any guarantee.

I called her up and I was like, Lisa, Lisa, Lisa, can you tell me where the guarantee is. She says, yeah, look at page 3, first paragraph......

I read it over and I didn't see any guarantee but I did see, a statement on their commitment to doing all they can to help her get introduced to a Bank of America employee.

I explained to her, what my thoughts on the agreement were and I told her, part of this you are not catching is something the Bank refers to as "Business Need". The bank, regardless of how experienced, nice, bubbly, and charming you are has to have a business need in your area before they are just going to add you to their ranks. Without that, regardless of how much you pay for access, you won't get in. Well, she just didn't want to hear that. Rodger the REO Expert had this big, nice agreement, had a nice car, was at all the conventions speaking, he had to have the inside scoop. In fact, Rodger even gave her references of others he had helped, 2 in fact. So, against my advice, off to the races she went. Paid the $20,000...all up front and now we are about 8 months down the road and she still isn't a REO Listing Agent...with anyone, Rodger is telling her that he is going to shop her out to a couple other banks.

Needless to say, she is beyond pissed off, that $20,000 she paid was her 401k she cashed out and here we are in the midst of tax season and she doesn't have the money to pay the penalty. She can't do much about Rodger, the agreement she signed was very clear and specific, all he was doing was selling access to one bank and if that didn't work out...for whatever the reason, he would shop her around to others.

I guess she got what she paid for.

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Not to toot my own horn……………….ok…………….maybe a little but, it’s worth writing about.

I got an email from one of my Asset Manager’s a couple days ago, an Asset Manager I don’t hear much from. Don’t get me wrong, he keeps me busy, I have 6 of his listings but, as far as communication……we just don’t talk much. It really never bothered me, I always figured that if I am really doing my job well, he shouldn’t have to communicate with me much anyways but, after about 2 months of complete silence I started to wonder. Does he not like me, does he think ill of me, why isn’t he shooting me an email once in a while rather than task.

I wake up one morning last week and boom….just out of nowhere, I get this email.

“I wish all my agents were as on top of things as you are!!! Not sure I have conveyed this before but the reason I am not calling or emailing you very often is because you are clearly very competent and doing a great job; I have a ton of agents who are not. If you ever really need me please call.”



What he doesn’t know, I was gleaming like a little school girl with a crush on my gym teacher. Better yet, I stopped and thought to myself, how many other agents out there…..even the good ones can say they get a compliment like this.

Mark actually feels he can put me on auto pilot and let go. Granted, I am sure that isn’t his normal practice, he is a very aware Asset Manage but, none the less, the point was made.

This is the type of business all of us REO agents who are currently working inventory should be running. Our Asset Managers should feel and be comfortable and CONFIDENT enough to say, in writing..,

“you are clearly very competent and doing a great job”

In fact, I have made it a goal of mine, I want to get at least one written compliment from my Asset Managers a month.

Just another thought real quick, before I end this blog. This kind of compliment shows you the passion I have for what I do. Passion that wakes me up in the morning, causes me to commit to not just doing my job but, making sure I am the best at my job. I didn’t enter the default real estate industry because it’s the hot market right now, I entered because I love it.

For all you Realtors who have decided that this default thing may be around longer than you expected and well… are going to have to try to make it happen or get out all together…..let me just say, “YOU BETTER WORK IT” because, I have set the bar high and if you don’t have passion, commitment, tenacity and a love for this industry, don’t expect to catch up.

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(Phone in my office) **Ring, Ring-------Ring, Ring-------Ring, Ring**

(Jesse) Jesse Gonzalez

(Anonymous Caller) Hi, is this Jesse?

(Jesse) Speaking, how can I help you?

(Anonymous Caller) My name is *Bleep* and I am hoping you can help me.

(Jesse) Ok, what can I do for you?

(Anonymous Caller) I am so frustrated with signing up with all these companies and getting nothing. I have 4 years experience, money to carry my listings and I do a better job than all these “experienced” listing agents, can you help me?

(Jesse) Who are you again?

(Anonymous Caller) You and I met a couple months ago at a conference in Dallas, remember….I was wearing those hot pink spandex Capri pants with that black dominatrix leather top?

(Jesse) I am sure I would have remembered that but, no….sorry, I don’t remember you.

(Anonymous Caller) Well, that’s ok…..can you help me?

(Jesse) I just did, I told you that I don’t remember you. In fact, I went online to REOPro and looked at your profile page and saw you have never written a blog, never created a forum thread, never responded to anyone else’s blog or forums, never submitted a question to our Ask the AM…..

(Anonymous Caller) I don’t mean to interrupt you (thought bubble above my head, “but you just did) however, I didn’t know I had to do all that?

(Jesse) Not to be rude (but I really am being rude) however, did you believe simply asking me to help you would be enough to get me to help you?

(Anonymous Caller) I have read some of your blogs and forums and really like you, I think we think a lot alike and I was hoping you could help me increase my business.

(Jesse) Which blogs did you read? I am asking because I have written many blogs on how to get into the business, how to increase your business, how to network and everything else you might need to do just that.

(Anonymous Caller) Well, I don’t remember specifically which blogs but, it’s ok……I know your busy, thank you though.

(Jesse) Wait a second………just curious, did you get the point I was making?

(Anonymous Caller) You know Jesse, I don’t think you were making any point at all. I think you were just being rude.

(Jesse) Ok, sorry if you thought I was being rude (not really sorry, just saying it because I learned from my years working for someone else, sometimes you say sorry just to make the other person feel better about themselves.) but, my point was, I don’t know you. If I don’t know you, then that tells me you’re not very active on my network and from that I assume you aren’t very active on any network or for that matter, getting your name out there and telling people you are the best at what you do.

(Anonymous Caller) I really don’t have time for this……

(Jesse) Then you really don’t have time for success, have a good day, I wish you the best.

The caller missed the point all together, did you?

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Recently, one of our members sent me some hate mail, yes….I get hate mail and, I wanted to share some of it with you so that I can clarify some points, just to make sure we are all on the same page.

Before I do this, just so you know, I won’t be revealing who this person is so, don’t ask.

Point # 1 –

I am here to make money.

Quote, “I truly believe that you are trying to build something big for yourself

Yeah, was anyone under the impression I wasn’t? I am a capitalist……tried and true. I believe a person’s dedication, commitment, desire, ambition and liberty to follow their own dream is the American Dream. Absolutely I am trying to build a huge network of default professionals for myself and anyone else who decides to join me, walk along side me and pursue their dreams with me. If my ambition and dreams aren’t in line with yours, go find another network to join or start your own. The father of modern economics said that competition leads to the greater good so, if you don’t like me, if you don’t like what I am doing, if you think I am living Satan spawn then……..take a number, get in line, be patient and hold your breath.

Quote, “You know, we don’t really have to have you to get screwed out of our money”

Screwed out of your money……..are you serious? I want everyone to know, since May of 2008 I have made less than $1,500.00 off REOPro. Yep, that’s right, no more than $1,500.00! Just to be even more clear, $1,400.00 of that came from sponsors buying advertisement space. I don’t ask for donations, which would be nice, I don’t charge a membership fee, I don’t charge a set up fee, I don’t charge an inactivity fee (which is where I would make the most money)………I DON’T CHARGE MEMBERS A DIME! What money are members getting screwed out of by REOPro?

I have recommended service providers to this network, service providers that I use myself and find a lot of benefit in using. If you took my word to join any service I have recommended, guess what…………I DIDN’T MAKE ANY MONEY FROM YOU JOINING THEM!

Oh, wait a minute, I take that back……I did make about $40.00 off of 2 people who upgraded their alamode account a couple months ago. I do make money if you purchase any upgrades to your alamode account through the REOPro store but, out of almost 150 orders……I have made $40.00. In fact, it’s been such a failure that I have even thought about getting rid of it but, that is a different topic for another day.

Quote, “What are the benefits to ME when I suggest that people join the site? Does it make ME look bigger and more organized? Or you?? I really think you are self-serving and only out for yourself. I think the Alamode website deal was the clincher for me. Do you really think you saved people money?”

Oh dear golly goodness, is this person serious? What are the benefits to you when you suggest that people join the REOPro site? Building this network gives us a greater pool of resources to pull from. More people joining equals more people writing blogs, responding to forums and organically creates an environment for sharing. Sharing is good, it cost you nothing but, it could change your business. In fact, I am aware of several people who have come on-line, wrote a blog of forum, read the responses, created connections and got referrals to join companies that changed their business. The direct benefit to getting people to join REOPro is so that our community develops and in that we find strength, knowledge, power and the ability to have a voice in an industry where we are drowned out by bank policies, government regulation, inactivity of NAR and consumers. If you can’t see this….why are you still a member?

As for Alamode……hell yeah it saved people money! Alamode guarantees my members who order products and services through the REOPro store a better price than they could get direct. Did you know that….of course you didn’t because, it’s none of your business what the details of the deal I worked out with Alamode are. I challenge you to go to Alamode, order a website and then go to the REOPro store, order the same product and compare the prices. See for yourself.

Quote, “A site like this would be great if it kept out the vultures.”

Keep out the vultures….who do you think I am? I am not the Judge and Jury of the Default Real Estate Industry. Maybe, one day, we can get to the point where we can centralize and control some sort of BBB of the Default Real Estate Industry but, the reality is that I don’t make enough money on this site a year to pay 1 months mortgage payment, let alone pour my resources in with no monetary return.

Better yet, our members have stepped up and become REOPro leaders. For instance, Tim Ventura with The BPO Automation Group have sponsored a service you can find on our main page where our members can go and rate the BPO companies they have worked with, anonymously. This has been great because it allows our members to go in and see for themselves what our members think of a particular company and then you can use that information to determine for yourself if it’s worth your time, money and energy.

What about the “Non Paying BPO Company” Group (their name is something like that) where you can go in and see what BPO companies are milking people out of hard earned cash.

Quote, “. I just sense too much of your own purposes being served here.”

I hope you do get the sense that I am serving my own self purpose because I am! My purpose is to create a network of professionals that can change the direction of the wind! Granted, that may be a bit lofty but, you get the idea. My purpose is to help Agents, Asset Managers, Title Agents, Locksmiths, Land Scappers, and everyone else in this cut throat industry to feed their families. I am hell bent on making this happen and guess what, that means I may end up making a lot of money but, have you ever known a poor person being able to provide you with a job or work?

Just to be clear, I am a LIBERTY loving, constitution toting, private property rights supporting, God fearing, profit motivated, big hearted, loyal as a dog man who believes I can change the world one person at a time so that we all benefit through capitalist principles and if this isn’t what you signed up for, good luck and I wish you the best.

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Agent says No Thank You to REOPro Lead.

No joke, I was actually told, “no thank you” by a Agent who I offered a lead to.

So, here is what happened.

As many of you know, I have been looking for some agents to work some leads we got in from our investor.

These leads are as hot as they come. Basically a buyer / seller searching online comes across the investor website and ask to be referred to a local agent who will provide them a FREE CMA on a home they want to buy or sell. REOPro then turns around, and distributes the lead, manages the lead and helps it get to closing. We don’t get paid otherwise.

Well, we had no one in RealtyPilot (the REOPro platform) that worked this zip code so I searched the REOPro.NING sit. I found an agent, called him up, offered him the lead and he actually said that he was tired of paying for things he would never use and declined to take the lead.

Just so you know, the lead wrote in the comments section of her application for assistance, “I want to list and sell my home

Now, here is what chaps my cheeks. To get the lead, all he will be out is the $30.00 a month from RealtyPilot…that’s it. In fact, once he is done working the lead, he can cancel his subscription, it’s not like RealtyPilot has long term contract but, he was so oblivious to who I was, to who REOPro was, to who RealtyPilot was, to the nature of the REOPro / RealtyPilot alliance, he complete lost a great opportunity.

Now, here I am, with a lead….a seller, which is as hot as they come and no one from my network to work the lead. Now I have to go to REORedbook, search through the database and hopefully get myself a agent for a handout!

Honestly, I should have known better to call this guy. He had zero blogs, zero forums, zero comments and his profile didn’t even have his website, phone number or contact information.

Why is it, I have to go and find agents when I have leads to give out? Don’t tell me it’s because you have to pay for the technology platform. If its that much of a cost for you, cancel when you don’t want to use it. This way, you’re only out the $30.00 a month when you actually have a lead to work however, understand…….I am not going to go out looking for you each time I have a lead, I provide those people in RealtyPilot the first opportunity.

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Are you “REO Institutionalized”?

Every single day, I am asked, “How do I become a REO Agent?” What do I mean by “REO Institutionalized?” Do you know how many default properties sold in your home zip code last month? No…..why not? Do you know your home zip codes total number of Single Family Homes that sold and what percentage were distressed properties, from foreclosures to short sales? Of the distressed properties, do you know what bank sold the most assets and how much of a potential loss they took, if any? My point is, even if you aren’t closing 500 REOs a year, it’s still important for you to know these statistics, it’s what a REOPro does. For example, I know that in my home zip code, last month we had 35 properties closed, 10 or almost a third were distressed. I know that my home zip code as a 98% list to sale ratio and the neighborhoods with the most activity were Hermitage Hill and Hermitage Meadows with three closings each. Now, I am not closing hundreds of REOs a year, I can always grow my business but, I am ready to provide an AM with quality information for my area when and if I bring on a new client. I am REO Institutionalized. It always has surprised me that as active as our REOPro Blogs are, we can still have days go by with no new blogs. Why is this so shocking you ask? Oh….let me explain once again. So, you as a mildly successful REO Agent who wants to grow your office but, you can’t seem to get your foot in the door and no one seems to take you seriously. In my last interview on BlogTalkRadio, I had Frank Marshall President of Default Resources on and he said it was all a matter of credibility. He was dead on! No one is going to pick up the phone and call you, no one is going to keep your resume, no one is going to assign you an asset if they don’t know you! It takes more than a voice mail, email, bag of cookies and a smile to break into or even stay in this business. You have got to make a name for yourself and if your idea of “branding” is putting you picture on your business card…..get out now! Blogging no an active network like REOPro for Default Professionals, is a huge way to get some serious credibility. Yeah, you can blog over on Active Rain, Yahoo, Trulia, Linkedin and whoever else is out there but, these sites are dedicated strictly to default, where as REOPro is….why, because REOPro is REO Institutionalized! To have a REO Blog on REOPro where it can be read, criticized and possibly accepted by your peers gives you an incredible amount of credibility, above and beyond what you can get at other sites. Simply stated, REOPro is made up of an array of Default Professionals so, if you post something there, we will all know quickly if it’s full of B.S.! Lastly, it takes time….time is crucial because it also substantiates your credibility. Time coupled with activity creates credibility. You may write a successful blog every day but, if you only have been doing it for a week……no one is going to take you as seriously as someone who has been doing it for a year. It all gets back to being “REO Institutionalized”. Other REO Professionals want to work with REO Professionals…not some snotty nosed, “entitled” upstart………yuk! Now, that doesn’t mean that if you’re new, you don’t have a future in this business, it just means you are going to have to work harder…..without complaining! Ultimately, think of your competition…..think of the people in your market who are closing hundreds of deals a year, are you more knowledgeable than them? No excuses folks……are you more knowledgeable than the top producing REO Agent in your market? If not…..then don’t ever expect to obtain their level of business because, you will be in direct competition with them every step of the way. By the way, you don’t have to have hundreds of closing to work smarter, more efficient and overall better than anyone else, you can prove that by blogging about your experience and knowledge over time.
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Do you pay to get listings?

For many Agents, paying to get listings seems the only way to get their foot in the door. I understand why they do it and, admit…..I was one of those agents to. As you read this blog, understand that I am jaded, burned and completely angry about this business model, as described above and, for those of you doing this to agents…..well….just wait and see. (Insert evil, diabolical, angry, bone chilling laugh here) I really can’t remember who said this to me or where I read it but, it has completely stuck and I am more than happy to pass this wisdom on to my fellow REOPro members. “If the company charging you upfront fees for listings isn’t confident in their leads enough to take a payment out of closing, how can you as the agent ever be confident the leads will ever close?”……unknown. In that one statement, you can find a lot of wisdom. Well, I can tell you that many of these firms, “see a leaf fall and believe they now which way the wind blows but, I tell you that a hurricane is coming that will sweep away their pride.” Elizabeth, The Golden Age The death of these firms is that they are all doing the same thing. Everyone is charging Realtors, everyone believe us to be the cash cow, everyone wants an up front fee and the moment someone enters this industry with a new, innovative, completely crazy idea, many of these companies will wash away with the tide. The really sad part, a lot of Agents will be out hard earned cash and will bear direct witness to the folly of this business model. Sorry for all the cryptic writing and vivid imagery but, a Hurricane is coming, I can see it on the horizon, can you?
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Did you Google Me?

Many times before, I have written on the importance of blogging and, I am not sure I have made that big of an impact however, let me share with you a recent chance encounter that lead to business for me. As many of you know, I am a huge blogger, I love it so, to get me to do it, isn’t that hard and after I tell you what happened recently, I hope you to see blogging in a different light. Too make a long story short, I got directly contacted by an AM who googled me after reading my blog here on REOPro. He was directed to REOPro by searching, “REO Professionals” where came up in the 3rd spot. After seeing my blog and reading it over, he then googled, “Jesse Gonzalez” where I have the 2 and 6 spot. From there he was able to easily find my personal website and from there, he contacted me directly using the “Got a Question” feature. My point, blogging is a form of advertising and if you aren’t using it as such, you really aren’t utilizing to the fullest. Granted, it’s like farming, it can take a while to get established but, when you do, it pays off big. The lesson here, blog, blog, blog. It’s a great way to get in the community and, allow others to use your editorial almost as a long term online interview. So, I got 1 question for ya, did you Google me?
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You Appraisal is Shady

Ok, I am about to vent so, if you don’t want to hear an angry rant about how I feel, it’s best you stop reading now and move on! I have this short sale, since January and it’s in poor condition. For example, pipe burst in ceiling, sever mold, exposed sub-flooring through 75% of home, torn wall paper, huge holes in walls, missing fixtures, standing water in crawl space, etc….get the idea? It’s in poor condition and my contractor estimated 30k ($30,000.00) in repairs to make it livable! Since it has been on the market, I have received approximately 10 or so offers, all of which were below $70K except one which was $89,900.00. The bank countered or rejected all offers (all these offers came in the first 2 months)! Surprised and perplexed I asked why and I was told because the appraisal came in at $110,000.00 and that is what they expect to get. So, 2 months turns into 6 and, no offers. In the meantime, I have provided a CMA / BPO showing these freaks, the home is worth 60k at best! THEY AREN’T LISTENING TO ME! So, the negotiator says, we can now order a new appraisal. Excited, I meet the appraiser out there and show him my BPO, show him my comps, show him my search criteria, show him the feedback comments of the agents who have shown the home, which are months old because no one has shown the home in months. A week later, I get the appraisal from the negotiator and it’s $100,000.00! 10k less than the original (UGH!) So, I have it listed at $100,000.00 now and not a single showing / offer, what is it going to take! I asked if I can rebut the appraisal, sure….so I send my rebuttal in and I am told, none of these homes are adequate because they aren’t like homes. I am tripping because my comps are from the neighborhood and less than a quarter mile from the subject property! These are tract homes by the same builder…..why wouldn’t they be similar? I looked at the appraiser’s comps and they aren’t even in the same neighborhood!!!!!!!!!! So, I asked, can we get our own appraisal, they say yes so, we are now on the hunt for an appraiser. I will keep this blog up to date, I am sure you will love to know where I go with this one.
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So you want REO Listings from REOPro?

Alright, so, I sent out that pesky little Survey a couple of weeks ago and, as you know, I have made some changes accordingly. One of which is the weekly broadcast message briefing you on some of the weeks activities. I just started that last Friday and the response was good. So, I will continue to send it out each Friday. Of course, if you don’t want to get these messages you can control the messages you receive from by clicking the bottom of the message that says, “Control the messages you receive” Another change was the search by State. Don’t forget, to set this up, you need to go into the Profile section of your settings and type in your state where it says, “enter your state”. Remember to include abbreviations because some people may only search by such. For example I typed in Tennessee, TN, Tenn. Now, we have had a lot of request for advertising…..granted I was a bit surprised when 2 un-solicited request came in. Once I was aware of the need, I went ahead and put out on the home page that if anyone was interested in advertising to contact me. Well, I was a bit overwhelmed by the response and therefore, am bringing on a friend of mine to get the banner advertisements up and running. I have already seen the prelim ad’s and I am sure you will be impressed. I hope to have those up soon. Now back to the survey, ok, I heard you, you want REO listings….well, ok, let me pull those out of thin air for ya, just kidding. On a more serious note, let me explain to you what I am up against when I tell these banks, asset managers and lenders that I have a great pool of REO Professional Agents that would love to do business with them. They say, “how do we know they are really any good?” Well, ok, I get it, they need to know you can sell REO and do it well before they want to deal with you so…… is my thoughts. The money I raise from the advertisements will go right back into REOPro and start a “Certification” training program. Now, the best part, I plan on not charging for it. That’s right, a free REO Certification plan that actually will benefits it’s graduates with REO listings and BPO Opportunities. I know…..ground breaking, right!?!? My plan is to raise the funds from the advertising so, I don’t have to charge Realtors a fee for the Certification. Now, I have heard a lot of concerns from others I have shared this plan with. One argument is that, if I don’t charge for the Certification, then people won’t take it very seriously and, I truly understand that but, my argument is, the training program is going to be so intense, that only really good agents will be able to obtain it. What are your thoughts? Now, as for this Certification program, it will take a while to get up and running, I suspect 6-9 months but, in the mean time, I am working on getting some banks or at least an anonymous Asset Manager to come on and write a “Dear Abby” article once a week. This was a great suggestion from someone who responded to my recent survey and, I think I may have just the right Asset Manager. Hopefully this will give some invaluable insight as to what they are looking for and how to get more listings. Well, anyways, I got to run but, I wanted to give each of you a heads up as to what is coming down the pike. I look forward to each of you being successful and I hope I can be a part of it. Thanks for your continued support and, lets make REOPro a REO Power House!
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As I often do, I was reading over some of my favorite blogs today and a very interesting question came up. I was a bit shocked by some of the responses and I would like to know how our members would see the situation. I am not going to provide this agents name, state or contact information. Just think of this as a hypothetical situation so, here it goes…….. “I just got a contract on a REO I have listed, I learned through the city utility department that the house was fined $400.00 for lack of lawn cutting should I tell the Asset Manager or should I negotiate with the buyer and have them pay it?” Anonymous So, what are your thoughts, would you tell the Asset Manager?
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