Quote,
"...if all of these REO companies are scaling back, why bother purchase AMP under res.net or get certified with REOtrans if we don't know if there is going to be enough work for those of us who can't get into any other company or the other companies are telling us that they are going to give their work to the preferred brokers ?" Anonymous
As I have always said and will always tell you, it's not the "company" you're with or the subscription level you paid for that is going to give you any chance at getting a REO.
The REO industry is the preverbal “boys club” and for those agents who don’t understand this concept, you will fall victim to false promises made by Asset Management Companies and Technology Platforms alike.
I have preached, revealed, screamed, wrote, published and explained to all of you through my blogs that unless you are actively contributing to this industry…..your success in breaking in is going to be less than stellar, if at all.
“Ned” our resident Asset Manager has revealed to many of his weekly column readers how to either break in or get more business. In fact, his most recent column is about this very topic yet, I didn’t but, 3 orders come in today for a FREE Agent Site, through the REOPro store, I only approved 2 blogs today and the forums seem dead today. Not to mention, I counted at least 4 articles in the Ask the AM archive on this particular topic or at the very least topics very similar and I have about 3 blogs myself I have written along with 1 blog that is nothing more than my top 8 blogs that any REO agent should read. So, with all that being said, why do we still get members who fall prey to the false and blatant lies running rampant through our industry like hungry lions on the plains of the Serengeti?
Granted, even industry juggernauts like REOTrans or RESNET seem to be participating in the “Realtor mop up” but, their lofty place as industry captains makes people like myself see these actions by them as shameless and disgusting yet, we still get agents who are clamoring, saving up thousands of dollars and purchasing higher and higher levels of “preferred status” for nothing more than the promise of a chance.
I read a recent forum thread titled “Valigent” posted by Janet Frederick on REOPro where one of our members Byron Guillermo copied and pasted a reply from an Executive with Valligent named Jeremy that said, Quote…
“Lenders take advantage of the fact that many real estate agents in this economy are desperate for listings,”
HELLO! CLUE PHONE IS RINGING! It’s not just the lenders….it’s everyone in the industry. My point is, they can make the promise of a chance, with no guarantee and they will still make money hand over fist from the contract they have with the bank, to the “technology fee” you kick back and then your monthly membership fee and annual “preferred broker” fee. It’s a cash cow because of the very statement made by Jeremy with Valligent.
I am trying to explain to you, if you feel victimized, if you feel as if you have been taken to the cleaners, if you feel like no matter where you go, it’s more and more money……well, yeah, you’re right but, that’s because people are paying for it. Caveat Emptor my friends, or in other words, Let the Buyer Beware.
So, how do you avoid these people and scams, how do you break in……well, it’s as I have always said, it’s about developing relationships, providing a useful service and becoming an expert in your field. If you want to know more about my opinions on these things, read over my blogs, read the AM column this week and search through the archives.
Comments
This happened to a close personal friend that is really just trying to do a loan mod. The lender sent out an "INSPECTION COMPANY".... not a bill collector like Titanium, who read the mini Miranda... its a twist the lender believed they could get away with... But the guy was an agent doing a BPO reporting back about the interior condition of the home and who lived there... sounds like collection information to me.... Chase send one of these inspectors out to one of my clients home to do a BPO.. on a short sale.. they are working for a bill collector thus they are a bill collector, at least in my view.. But they state they were only doing an inspection and the guy leaves behind his Real Estate Card.
Interesting times... we are living in.
The first reason these business can't guarantee business is because, they don't have any business to start with. Many.....MANY, AMC's (Asset Management Companies) are start ups and don't have relationships with those decision makers that can send them business, kind of the same way we have an influx of Realtors entering this industry but, none of them can get business because they don't have relationships with the AM (Asset Managers) that can send them business.
The sad part of this concept is, most of these companies have business plans and, management styles that don't make them competitive. In fact, most of these companies are doing nothing more than copying what they see another successful company doing. Once again, much like the influx of Realtors coming into this industry for the first time.
The criminal part of this, at least in my opinion is that the fees they are charging are really the way they fund their start up. You see, many of these companies couldn't go get a loan from a bank because, they either don't have a business plan or as I previously said, it's fatally flawed and the banks see that and therefore, they don't give them loans. So, unfortunately, they have no other choice but to get their start up funds from unsuspecting Realtors.
The second reason these business can’t guarantee business is because the banking sector isn’t stable. In other words, bank merge, banks get taken over by the FDIC or banks go under so, decision makers change, are out of work, or find other industries to move into so, contracts end, revenue streams dry up and these AMC’s aren’t diversified enough to save their own business. They crash with their bank clients. It’s just not possible to guarantee business when you yourself don’t even have any assurance the person sending you business will stay in business.
The third reason these business can’t guarantee business is because they never intend to send business your way in the first place. This to me is why some of these AMC owners should be locked up. I can’t stress this enough, some “reputable” companies are out there fleecing Realtors. Some of you, yourselves have fallen victim to this, I have myself, TWICE! It’s awful, it was a hard lesson learned, I lost about $1,500.00 dollars, lot’s of time, energy and confidence because of this AMC. BUYER BEWARE!
The three most important things you can do to get in this business, stay in this business, and thrive in this business is to develop relationships, provide a high quality service and become an expert in this industry. I will say it till I am blue in the face because it’s the secret…….well, it’s not really a secret but, you get my point.
conferences and training, that I still might not get REO business?
Paradigm - $1,000
United REO - $324
Absolute REO - $295
Universal REO - $295
AMP - $495
REO RED BOOK- $1,200 Directory Ad
Assign REO - $99 Premium Member
REO Network - $1,100 Premium Member
RES.NET - $250
Disposolutions - $125
Equator - $600 for Zip code coverage
Default School Training - Citi - $295
Default School Training - AMHSI - $800
Default School Training - Wells Fargo - $700
Default School Training - One West - $400
REOMAC - Spring Conference - $895
FIVE Star Conference - $800
REOMAC Fall Conference - $895
Fidelity Conference - $600
Green River Conference - $125
CAMREO - $299
LAMCO - $199
ETC REO - $250
Please advise which ones I should send checks to first...
Mike Shannon
Should I go on...?
Asset managers are people too. They talk to their industry friends in discussions you and I would never be privy to. Even if you never pay a dime, if you have a few well connected clients that you hit it out of the park for consistently, you will never want for a listing.
Don Hascall Broker
REO Default Certified Professional [a Default School designation]
I had a great time at the conference, met some key people and make some new friends, keep remembering that this is a peoples business. I came home and my phone didn't ring, but I keep in contact with some people, in different way, some letters, email, thank you cards, post cards, nice to meet you cards, I am bore so I am writing you cards, etc...
The conference was in Sept, I didn't hear from any of my AM contacts until December, I was seating at the table with an AM but he didn't have any cards, and he told me he was a contractor not an AM, we had a good conversation, and I gave him my card, the other agent seating at the table with us, told us that she didn't have any cards, because she was saving her cards for the AM. I received two listing in December from this AM. Met another AM from one of the pay upfront companies, and I kept in touch with her, but never $igned with the company, in January I received two assignments from her, and I still haven't $igned up with the company.
I can say today that Five Star was very successful for me, but in November I could said that I met great people there, eat good brisket and enjoyed the parties, but no business.
One of the first things a learned in real estate was farming, In REO we need to be farmers and cultivate the relations and friendships that we make. I know the birthdates, spouses names, anniversaries, kids names, grades, colleges they attend, favorite sport teams, etc from most of my asset managers. To me an AM is another client, and clients are the most important people in my business, they are my cash flow, so I always develop a sincere interest in all my clients
You're right, training would be the one thing I will always say you can't get enough of but, it is still a Buyer Beware situation. I have had a lot of training....proud of it yet, some of it wasn't worth the cost. In fact, a couple of times I felt cheated and I can remember one time specifically that I actually thought about filing a small claim suite against the organizer.
Lesson learend, now I don't attend any training that my REOPro network doesn't recommend. Kind of like how members come on to find out the experience of others with certain lenders, servicers and 3rd parties....well, i do the same for training and certifications. Just another reason why I love REOPro.