So I got assigned a pre-listing where I needed to verify occupany within 24 hrs. I arrive at the property and peeking into the windows I see no furniture, no personal belongings (couches were already outside) and I even asked the neighbors if anybody lived in the property. All indications that the property was left vacant. I slap my lockbox and order my rekey and confirm with the AM system that we're a go with the status. I make it a habit to leave the occupancy letter just incase. Low and behold I get a call the next morning from the owner of the house and he was inquiring about the letter! I explained to him that he no longer owns the property and the bank has hired me to sell the property. Naturally he insists that its still his property, the bank never sent any kind of warnings. I had to call off the remaining tasks and revert to a occupied status. The AM was not happy, and of course now I need to assist with the evict. Who has this happen to? I assume we can make these mistakes with all the assets we need to followup on. I'd like to hear some stories. Did you not know it was occupied and rekey a home? Did the AM give you negative scores for giving the wrong info? Inquiring minds want to know...
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How important is it that you belong to a REO organization or have a REO Designation (which have started popping up the last 2 years)? Is there a clear cut answer? I have talked to many people over the years about this. I have attended the Five Star Conference the last 3 years and I have been a member of the NRBA (National REO Broker's Association) for probably 7 to 9 years (not sure). The question you have to ask yourself, is what or how do they benefit you. I have found that the number one thing that they provide to you - is NETWORKING with other Realtors, Asset Managers, and industry representatives. You can not attend one of these groups annual meetings and not learn something that benefits you in your day to day operations. Their monthly newsletters and magazines are full of information that can and will benefit anyone in real estate. I have not personally worked toward any REO designations, but do feel that it would be a benefit to any Realtor (as long as the designations are offered by a reputable organization).
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Buyers need to jump off the fence now if they're going to snag the best deal!Yesterday I received a call from an Agent who wanted to show one of my REO Listings. He hadn't shown it yet...he wanted to be sure it was still fully available. According to this Agent, almost every Bank-owned listing that he has called on to set appointments already has contracts.WOW!Come to think of it, the last 2 REO Listings I sold each had multiple offers...In Northern Virginia, it looks like the Spring market is in full swing. I just did a search in our MLS...In Loudoun County, approximately 47% of all Bank-owned properties listed in our MLS are currently Under Contract.In Fairfax County, approximately 43% of the Bank-owned properties are listed Under Contract.Yes, there are so many great properties still available for the savvy Buyers -- but these days they'll need to act fast!!What's your spring market like??
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Here's a question for all the realtors out there: Have you had a deal lately that went to a loan officer, and the deal falls into a black hole, and 45-60 days later you're still trying to figure out what happened?It's all too common in this market. Three years ago, the industry had what I call "Pulse Loans"...in other words, if you had a pulse, you were approved. And this secondary-market environment led to a dumbing-down of the lending industry. You didn't have to know much to get someone into a house, so more and more people got into the business with no education, no training, and no financial knowledge whatsoever.What I am seeing now is that a lot of the inexperienced loan officers are trying to portray themselves FHA experts after only having attended a 3-day training...or worse, none at all. The same is largely true for short sales and REO transactions. There are subtleties and nuances to these deals that, if not known, can kill your deal as a realtor, and cost you your commission check!If I were a realtor, I would absolutely be seeing the value in this market of having a PARTNER to rely on for all my deals...someone proven with a reputation, knowledge-base, and experience to ge tmy deals through to the closing table.The next two years are going to continue to be a weeding-out process of part-time realtors, part-time loan officers, and part-time title companies. The key to not losing your commission to a mistake by a rookie or part-timer is to find someone you can trust your business to...to TRULY partner with...to grow your businesses together over the next 5 to 10 years, and have long-term accountability with each other.Personally, when I meet a new realtor and discuss a partnership, I have a system that I go through to line our business models up side by side, and see if it makes sense to work together. Too many people in our industries are so desperate that they will work with anyone anytime. But the fact of teh matter is this: the more selective you are, and the more control you have over each transaction, the greater the percentage of your deals that close, and the more you get cross-selled by those business partners. And the end result of being more selective? Your business GROWS.If you would like more information on how to select a business parter, or if you would like to talk with me specifically about looking into a partnership, please don't hesitate to contact me. My goal in this market is to help as many serious, solid realtors as possible to grow their business!
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www.NRBA.com or National REO Brokers’ Association of America is a new site to me. I just came across it from a fellow REO Broker who gave NRBA some high marks. I have to be honest, when first viewing the website, it didn’t instill any confidence at all. It appeared to me as if they were some awkward knock off of Shop at Home.com. All those little boxes, solid white background, red writing, I swear I thought I was about to buy a gold electro plated magnetized wrist joint amplifier for 3 easy payments of only 19.99. Either way, I am glad to see they are “renovating” the site, hopefully it helps.
Once I got passed the strange exterior, I decided to dig a bit deeper and see what this site is all about so, I did what any red or blue (depending on what part of the country your from) blooded REO Broker would do and that was click on “Real Estate Professionals Start Here”. Ok, I may have been a bit hard on NRBA in paragraph 1 of this commentary however, now I am truly being as serious as I can be. After clicking the link, I am taken to a black background with red and white writing power point flash presentation of how I can make 6 figures by becoming a member of NRBA! By this time, I am now truly turned off, to me, this whole thing has come off as a rainy day garage sale on the wrong side of town. Truly, I tell you, this whole website has just come off as if they went into Goodwill and asked the marketing person to design a website. So, 2nd class…… (by the way, I like Goodwill, when I was kid, it was the only place we shopped, we didn’t have much back then. In fact, sometimes I still go, now it’s a bit different obviously but, I do like the store and donate maybe once or twice a year.) As I suspected, it was fairly predictable where this screen shot presentation was leading, I was asked the 20,000.00 question, “Join Now!” My first thought was, are they serious? Then I quickly realized, oh hell yeah they are serious…….lol.
So I pressed the button, not because I was impressed by the presentation or marketing ploy but, because my REOPro Agent colleague gave this group of people a huge thumbs up and said I should join. Once you hit the button, you’re taken to a 2nd screen where you can read some of the FAQ’s, it’s small so you have to be determined to look for them but, you can find them and read them over. The first question is, “Can anyone be a REO Broker?” ultimately the answer was No! but, not for the obvious reasons like, commitment, dedication, work load, long hours, etc….., they said it was because they all wanted to protect their 6+ figure income. ROFLMAO! Are you serious, by now I really felt this was an exercise in the absurd but, I went along with it. After reading over all the FAQ’s I felt as if I had just finished reading a bad version of the Top 10 List with David Letterman. Granted, I found some useful information like cost, which my REOPro Agent Colleague forgot to mention but, overall the FAQ’s almost seemed a waste of web space and band width.
Speaking of cost, it isn’t cheap, it’s 1999.00 a year paid monthly or annually. That wasn’t cheap for me, I am a bit of a tight ass hence, I still visit Goodwill occasionally however, I didn’t think 1999.00 wasn’t going to be a cost that many Realtors would be interested in paying in the first place, I am sure it’s going to protect some bodies 6+ figure income. I read a little further because I still had this overwhelming almost nagging voice of my REOPro colleague saying, “you should try it, I did and it is working for me” screatch across my forehead like a Mack truck applying the brakes on a downhill 9% grade highway. So, I got ready to hit the Join Now button and, then BANG! A flash of lightning hits my neighbors tree and we loose power. Ok, I will be honest, no flash of lightning however, I did loose my power because my dog’s tail wagged and somehow turned off the power strip. So, here I am now, not sure if I should join or not, I don’t really know much about this organization other than what my REOPro colleague said about it. I figure I should get some more insight so, if you are a NRBA member or a holder of the CREO Designation they offer please, leave a comment and convince me either way, should I join, or should I steer clear!
Thanks in advance for the help!
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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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I recently was asked why do I blog and isn't time consuming?? It took me bit to come up with the answer but it went something like this:Importance of blogging.........Blogging help raise your google/yahoo ranking for free. Good blogs with tags and links and widgets that are linked deep into your website help create a web crawl. Once the web crawl locates the content it has to go back out thru every page of your site. I am working on that right now. Also it is educational. Not only for other people but for yourself. Time consuming??? You bet, but how else can you be a pro without just blowing pro smoke?? People in my city see my name (since I don't just work with REO's and they call me) Crazy since I look so young and I am kinda spacey but.....I do know my stuff!! Blogging also helps you find out about other things you might not have found otherwise.My site and my biz are important and blogging helps me to be more innovative then other agents and help me to stand out!! Everybody and their mom is a Realtor or reo agent. What is going to set you apart from everybody else??I left the part out that I really really like it and it is fun for me. You know I have been an AR member since the beginning. I think I was the 180 person to join. Maybe a little more maybe a little less. I was a member when AR was a totally different platform. I didn't really know what to make of it till recently when I found out what a innovative tool it was and how it could really help me. And help me it has.....Now I am a member of REOpro and I am stoked to have a place for my niche to learn and grow.
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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.
OK, this may be a little optimistic, but the Wall Street Journal recently published an article with the same headlineYou can check it out here.Go ahead and read it - and them please leave you thoughts below as to how this relates to the REO market in your area....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.
REOPRO is a new site that is focused on REO Agent education. At the time of this writing, there are about 150 members. From a very rough review of the site, my guess is about half of us have little or no REO experience and want to break into the niche du jour while the other half has been doing this long enough to think they know what they are doing. I like to think I fall into the later category.As with any new site, our success depends on one another. I hope that we do not fall into two different camps – those in the know and those wanting to know. We are all here, I assume, to grow and better perfect our trade.MY METHOD - BLOGA method that I have been very successful with in my own personal growth is to teach. When I teach, I am forced to research and know the answers before I share them. Now, I don’t teach in a traditional classroom or even with traditional students. Rather I write.That’s right, I will find a topic of interest to me – typically one that I know enough about to be dangerous – but not an expert. What usually prompts me is I question something that I think I know, but am not sure of. So, I research and I document my research. Other times, I write about my experiences as I go through a certain aspect of my business / life.If you are a seasoned REO Agent, then you have something to share. I know you are busy, but this is an effort that will come back and reward you many times over – if you do it right.If you were to Google my name, you’d find that I have over 400 articles published – most on my primary blog – HemetRealEstateBlog.Com. I do have 4 or 5 other blogs that I write to on occasion, plus I am a guest author on another handful of blogs. When you Google me, make sure you check out Video as a search option and you’ll find that I have nearly 200 videos published as well – all of them from the very early days of video on the internet – March to June 2006. I quit, because I was not satisfied with my editing capabilities and I thought I looked goofy. However, there is not a month that goes by when I still don’t receive a phone call or email asking a specific question about the content of one of my videos.I share this because a public forum like REOPro can give you instant credibility and it helps everyone else who participates.MAKE THE MOST OF REOPRONow, this is a site that is dedicated to REO real estate and not all aspects of real estate. So, I for one truly hope that we will not see a bunch of articles that are off topic – you know what I mean…no one cares bout new home sales, FSBO’s, or any other real estate topic that cannot be tied to REO’s.OK, so if you are new, what can you write about? Well that’s easy…document your journey. Write a diary of what you go through to build your business. When you see something that someone in your market is doing good, let us know…then again if you see something that someone in your agent is doing that gives REO’s a bad name, let us know that too.Being new to the niche will mean you have the most questions. Instead of asking the same questions over and over again in different blogs, why not turn your question into your won blog post and solicit help from readers. I would suggest a format where you ask the question and give your best idea of what the answer is – and ask for clarification and further input.GOOGLE AND SEOBy generating your own blog, you are now generating your own credibility – both here in the REOPro community as well as in your own market. The good news, the more article that are written the more Google and the other search engines will respect this site and give us higher search engines in our own market. I’ll add some article here about blogging and the search engines – but believe me when I say, the more the merrier for everyone.The second step you can take to make REOPro a more productive networking platform is to add comments to others blogs. If you read something that makes sense to you – or maybe it doesn’t….leave a comment for the author. As a blog writer I can tell you that comments on my blog validate me which encourage me to write more. Maybe you missed Stacie Cunninghamsblog article about me - well, I've got to tell you it motivated me to start contributing here.Way to network Stacie!Another task you can take on yourself is to invite others to REOPro - remember, the Team spirit - Together Everyone Achieves More!Finally, the way I see it, REOPro is so new that we are on the ground floor. This can get as big and as important in our industry as we make it. Can you imagine the clout the agents who started NRBA or REOMAC have in those organizations today?So, to all of those REO REALTORS and those who want to be, welcome to this site and I hope you will make it your own.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.
AB 2678 (Núñez) was passed by the Assembly on a 44-33 vote on Wednesday. The bill needed 41 votes to pass. AB 2678 would require, among other things, that ALL homes and commercial property in California have an energy audit at point-of-sale, and that mandatory energy efficiency investments be made. While C.A.R. appreciates the goal of energy conservation, C.A.R. strongly opposes the point-of-sale requirements in AB 2678 because they are not necessary to achieve the bill’s objectives and such mandates will weaken the housing market. If enacted, AB 2678 could add thousands of dollars to the cost of purchasing a home, including up to $400 just to have the home audited. AB 2678 will next be considered by the state Senate. Stay tuned for a Red Alert on the bill.Here’s how Assembly members voted:Yes Votes: Bass, Beall, Berg, Brownley, Caballero, Calderon, Carter, Coto, Davis, De La Torre, De Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes, Furutani, Hancock, Hayashi, Hernandez, Jones, Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu, Ma, Mendoza, Mullin, Nava, Núñez, Parra, Portantino, Price, Ruskin, Salas, Saldaña, Solorio, Swanson, Torrico, and Wolk.No Votes: Adams, Aghazarian, Anderson, Arambula, Benoit, Berryhill, Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller, Gaines, Galgiani, Garcia, Garrick, Horton, Huff, Jeffries, Keene, La Malfa, Maze, Nakanishi, Niello, Plescia, Runner, Silva, Smyth, Spitzer, Strickland, Tran, Villines and Walters.Not Voting: Houston, Huffman and Soto.
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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.
As most of you know I don't get out much and I love to blog about REO stuff and the crazy situations I get into but..... I want to take a minute to introduce my friend and fellow blogger John Occhi. He is also a REO master like myself but when he writes.... I read. Every blog he has written (www.hemetrealestateblog.com) is useful. He is a wise teacher and I am a young grasshopper! I get asked daily who, what, when, where, and why and I do have these answers but...... John has better ones. My answers and my blogs are ment for me and to entertain myself. If other people find my blogs useful than I am excited but John's blogs are elequent. He is my teacher. So.... If you see a blog by John Occhi them read it and you can Thank Me later!!! :)
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Not every Agent has experience with REO transactions, so there are a few items the Buyer's Agent should know at the onset of the transaction. Passing along this information In Advance will help alleviate tension and will also help the Buyers Agent look good to their client. So here's my list:1. The Property is Sold AS-IS. If the Buyer will be asking for repairs, please ask for a "not to exceed" dollar figure for any repairs at the time the contract/offer is presented. This may sound like the wrong time to ask - but for the Asset Managers this is the best time, so they know exactly how much they will net from the sale.2. The Property is Sold AS-IS. As such, a Home Inspection Contingency will most likely be turned down BUT a Buyer's Agent should be sure to add a Professional Home Inspection "For Information Only" -- so the Buyers are fully aware of what they are buying (warts and all). And please do not ask for repairs after the Home Inspection unless Item 1 was added to the original contract.3. Inform the Buyers Agent which utilities are on and which are off. If the Buyer's Agent wants utilities on during the Home Inspection -- this will need to be approved by the Asset Manager in advance. Additionally, it takes a few days for the approval plus a few more days to have the utilities turned on (if approved). An Asset Manager may say no and then the Buyers Agent can decide if they want to add utilities in their name for the inspection.4. If Buyers' Agent insists on their own Settlement Company (this is often the case in Virginia), please use someone who is tenacious and who will work with the Seller's Title Company to get this to closing. There are so many REOs right now and so many overworked processors...it's the squeeky-wheel theory.5. Buyer's Agent should complete a walk-through inspection prior to settlement. Sometimes things happen to vacant properties. As a Listing Agent I have a responsibility to check on my REO Listings weekly, however, there are still 6 other days where something could happen (break-ins, leaks, etc). This is the Buyer's opportunity to make sure the property still has everything they asked for (appliances, light fixtures, etc).6. Be sure walk-through is completed and HUD items are sent to Settlement Company several days in advance. The Bank will want to approve the HUD1 and that could take 48 hours once the Settlement Company has the figures. (that's 2 business days NOT 2 days)7. Settlement will most likely be delayed. There, I said it. Be sure the Buyer knows this ahead of time and does not have a moving truck waiting the day of settlement because, chances are, it won't happen on time. That's where the tenacious Settlement Company comes in.That's all I can think of for now.Based on your experience, what else could we add to this list to help our fellow Agents?...
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Ok, first and foremost, let me start by explicitly stating that the following commentary is my opinion and my opinion only! It isn’t to be considered legal advice as to which I am not an attorney. I am a Realtor, specifically a RDCPro (REO Default Certified Professional) which I obtained through www.realestateeducate.com, a accepted and recognized provider of REO Education by such companies as Wells Fargo, Fannie Mae and Freddie Mac.
Now with the disclosure out of the way, let’s talk about all of these “get quick REO” offers you may be getting in the mail, over the internet, through infomercial’s or at seminars open to the general public.
First and foremost, to understand why I don’t care for these programs you must first know who makes the decision to give you a REO listing. Asset Manager’s, Loss Mitigation Officer’s and Project Manager’s are the people who have all the control over the REO listing. These are the people who assign REO’s.
So, the next question is, how do they assign REO’s? Most AM’s (Asset Managers, Loss Mitigation Officer’s and Project Manager’s) all have an analysis and reporting system that provides them with statistics based on the efficiency and accuracy of your work, as an agent. So, in other words, you’re being graded on how well you do.
Some common metrics are; List to Sell Ratio, Turn Around Time, Suggested Days on Market to Actual Days on Market Ratio, and many, many more. These metrics have a numeric value, for arguments sake, lets agree on a scale from 1-100, 100 being the best. Ok, so let’s also agree that you have obtained a designation from a recognized provider and, you have being providing BPO’s to ABC Bank for the past 6 months.
By now, ABC Bank has received enough BPO’s from you to assign you a score based on their metric reporting system. If your score is below 95% then most likely, your not going to get a REO. That’s right, 95%, for many AM’s is the minimum to get a REO. Ok, I agree, that sounds really high however, it is what is expected so, when you do those BPO’s, you best make sure your doing them as accurately as possible. Granted, I don’t believe existing REO agents, who have years of history are held to the same standard however, I am not sure much can be done about that.
So, my point with all this is, as you can see, a book from Quick REO Listing.com, isn’t going to help much other than possibly teach you how to do a BPO. That’s fine and all however, if your going to spend that kind of money, then do it right and get a BPO certification from NABPOP (National Association of Buyer Price Opinion Providers) who is recognized in our industry as THE provider for qualified, serious, BPO Providers vs. some no name, half baked, we take your money and send you a book, crack pot. (ok, so the insults may be a bit extreme but, I am sure you got the point.)
Now, of course, some people get in the business and don’t have a BPO designation from NABPOP and yes of course, some get in the business and don’t have a RCDPro designation from realestateeducate.com so, how did they do it.
Most likely those fortunate people already knew someone else in the business or, they went to a conference ready for an interview with the movers and shakers in the REO industry. What I am about to say, isn’t fair, by no stretch of the imagination but, it is the truth so, here I go.
Conferences, are the best way to get out in front of the AM’s who make this industry move. These conferences are set up so that the AM’s will have booths, teach a class, offer a FREE seminar, or hand out goodies and marketing materials to all who stop by and say hi! My best advice is to attend these conferences and be ready to interview. Hell man, it’s a captive audience so take advantage of it! Dress to impress, pop in a tic tac, slick back the hair and get those lips ready to schmooze! Walk around, shake some hands, drop off a business card AND RESUME! Look these people in the eye and express your desire to help them by making them look good to their bosses. Tell them you are ready, willing and able to help with the liquidation of their real estate portfolio holdings in your service area. Many times, this interaction is exactly the same thing as an interview. In other words, look at this opportunity as an interview for the job you want and, that is property preservation. Word of caution here, these AM’s don’t have time for you to blow smoke up their skirts or pants, if you please. They are going to know very quickly who they will work well with and who is serious. Don’t forget, everyone else in line as you, ahead and behind you, are doing the same thing as you, so be prepared to make yourself standout and be memorable otherwise, you end up a wash and the experience doesn’t net you anything. These AM’s can and will make decision on the fly and they have the authority to by pass the standard protocol’s when determining if they are going to give you a REO.
Once again, all this said to enlighten you that some book from Quick REO’s R Us, isn’t going to amount to a hill of beans here. With the money you spend on that silly book, go out and get you a REAL education with a certification or designation that is recognized and accepted in this industry and, I have only found three I would ever consider or purse. If you know of anymore, please fill me in.
They are, www.realestateeducate.com’s REO designation and www.fivestarinstitute.com’s REO designation.
Good luck and stay tuned for more of my blogs on How to start getting started in the REO business.
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I see a lot of advertisement for the "REO Power Lister" e-book. Has anyone purchased this book? If so was it worth the purchase? Any other suggestions on tangible resources that would be good for referencing?Kim
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As you may guess, the number 1 question I get asked is, how can I start listing REO’s? Well, if it was as simple as a “one line” answer, then everybody would be doing it however, it isn’t that simple. In this blog, I will try to break it down for you.
First of all, get an education. If you have no experience what so ever, you need to at least get an education. Many different companies out there offer many different “certification / designations” however, be careful because you don’t always get what you pay for. I got my RCDPro (REO Certified Default Professional) designation through www.realestateeducate.com. I found them to be professional, organized and the information they provided was precise and accurate. They seem to be a bit expensive however, once you are certified, you are placed in their system and shopped out to their clients for consideration. I know they have some big clients, of which one is WellsFargo. You can also get educated through 1 of the 2 major Default Industry Conferences, 5 Star. They have a online course you can take as well however, I haven’t taken it myself. 5 Star has a lot of credibility in the industry so I am sure anything they offer is going to be reputable and recognized. You can get to their website by going to www.fivestarinstitute.com.
Now that you have an education, it’s now time to get the office ready. Through your education process, you were most likely told about what a REOPRO Agent is going to need, make no mistake, you are going to need to have your office ready. Things like high speed internet, digital camera, scanner, email, cell phone with sms and email capability, adobe acrobat, fax, access to public records, mls, organized filling system and a reliable car are essential. Other things you will need to consider are, some Asset Managers require you add them to your E&O Insurance and have a minimum of 2 million in coverage. Some even require that you carry specific liability on your automobile as well. You will want to dedicate a credit card to your business and be prepared to spend money to preserve the property. You will be reimbursed later however, some companies take 2-3 months to reimburse and you can rack up thousand of dollar per property in maintenance, utilities, vandalism remediation, etc….. In other words, be prepared to spend, you might need to.
Once the education and office are out of the way, next you need to get some experience. A lot of the older more seasoned agents tell stories about how they had to do BPO’s for years before they got their first REO. This is still true through a large part of our Industry so, you most likely are going to need to sign up with every bank you can find and offer to do BPO’s. Our industry does offer a BPO certification through NABPOP (National Association of Buyer Price Opinion Professionals) and you can access their website at www.NABPOP.com. This is a nationally recognized certification and can help significantly on your way to a REO business.
Now if you have been doing BPO’s for years and still the REO seems to be elusive, then several things may be against you. First of all, keep in mind that most AM’s (Asset Managers) grade your BPO’s on a variety of metrics like, turn around speed, accuracy of information and list to sale price ratio’s. These metrics minimum standards are typically very high, for example, most lenders require a 95% or higher list to sale ratio for new agents before they will ever get a REO. It may seem a bit unfair however, it is what it is. The lesson here is to ask and you shall receive. Ask the people sending you the BPO’s and ensure you are qualified to receive a REO. If not, ask why and or what you can do to improve. If you find out all is ok and, you still haven’t gotten a REO, then more drastic steps may be in order.
For those of you who have been doing BPO’s for some time and still can’t get the REO even though you are “qualified” then you may need to go the conference’s and meet the Asset Managers in person. The annual conference’s held by REOMAC and 5 Star are our nation’s largest default servicing events. This is the place where everyone comes together and networks. Here you can get one on one with these AM’s and essentially interview for the next REO. Competition is tough, every agent there is doing the same thing you are, so being the tip of the spear is critical to your success. Dress to impress, pop in a tic tac and, get ready to schmooze. If you can convince the AM to take a chance on you due to your incredible skills interviewing, then you will have succeeded where many others will fail.
So there it is, part 1 of a continuing series on how to get started in the REO business. Look for more blogs in the near future. Hope it helps.
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I get asked this question daily. 8 years ago I asked the same question to a well known agent in my office who did high volume and was the father of a girl I played soccer in High school with. He knew who I was but I think he looked at me as an inferior and blew me off. His answer was " It's really hard unless you have a contact person already so don't spin your wheels cause you don't have enough experience." I walked away from him with my tail between my legs and I went to the internet. NADA!!! I found nothing. Well I take it back...I found 2 sites. One for HUD and one for Golden Feather. I was determined that just because I was young (at the time I am much more seasoned now ;) )to beat him not only on google but in the REO world.It didn't take me long to get my HUD key but the problem I was facing was an upswing in the market. There weren't very many HUD listings in my area. Golden Feather was good to me. They welcomed me with open arms. I sold a couple properties for them and this is how I was introduced to REO's. I loved it but just like I said before they were on and off the market so fast and so little were pooping up that I only had a small handful.Now, over the past 8 years I think every buyer I showed property to asked to see bank owned homes and they were virtually extinct. Until.......last year. I felt at the beginning of the year last year the market was staring to get soft in Orange County and I sat back and listened to all the talk about "The Bubble" and figured I wanted to stay a Realtor during the down time and how was I to do that??? Hmmmm....REO's!!! I headed straight for the internet. Guess what I saw. Something different then I had seen before. AM's!! Asset manager's. They had the same idea I had and there you have it. BPO's BPO's BPO's. This is pretty much all that the AM's were giving out at the time so to the streets I went. Now after doing BPO's and signing up for as many AM's (2-3 a week) I am REO busy!! Yay ME!! I still find that I am not signed up with all the AM's out there so I try to dedicate one day a week to searching and blogging cause people across the country want some of my info and they tend to share theirs!! Yay me!!So there you have it!! knock on that REO door by signing up with as many AM's as you can. Do your BPO's. Do them well (take a class Kim class or join NABPOP) Be patient and blog. Or at least read them!! Love & Light~StacieRead more…
