Does anyone have any experience working directly with a property management company after they foreclosure on there units after getting tired on waiting for the banks to do it? All these properties are underwater(BIG TIME) and my friend, the president, asked me to take over the whole process from negotating with banks to settle debt to eviction of occupiants to listing and reselling them at market value. I have experience with short sales & REO's but this seems a bit much.
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Monthly employment gains in May were the highest in a decade but point to a still weak private sector. Most hiring was due to the census project and like the tax credits and support for the secondary markets, the transition back to the public is key.
Defaults Cycle Through The Economy
Morgan Stanley report that 12% of mortgage defaults in February were strategic, other estimate an even higher These strategic defaults do put money back in the hands of home owners who are paying down credit card and other consumer debt. But more housing supply added to the marketplace only drives prices further down and further reduces confidence as buyers hold back and seek the bottom. This negative feedback loop only creates more uncertainty and weakness and more price declines.
Who Wins
Apartment owners will benefit from defaults as former owners become renters. Vacancy rates for all apartment buildings with 5 units or more declined to 12.1% from 12.5% in the previous quarter, according a National Multi Housing Council (NMHC). The national vacancy rate dropped to 7.2% from the prior quarters 8.2%, the lowest level for first quarter vacancy rates since late 2008.
According to a recent Marcus Milliahap study, by 2012 or 2013, the apartment sector will benefit from echo boomers which should contribute to rent growth. A Harvard study indicates that immigration combined with the echo boomers will create a young market equal in size to the boomer generation., creating a new market potential and certainly a greatly expanded renter pool. Now thats huge!
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I have read a lot of post on this website and others and it is very obvious that most of us would like to generate more business through different outlets. There are a lot companies out there want to charge up front fees to join their network with no results. It kind of dawn on me that I put time and effort to obtain my real estate license and earn my MBA and a few certifications and why am I being insulted to pay for something that I already know. Not to say that I am not open to new ideas because I am.
Yes we are in a different market but the basis are the same. Without buyers or sellers we will not earn a commission. So I said to myself I can generate my own leads with my own efforts which I have done. Yes it is better to get your own
default list and cold call, mail or door knock for business and refferals.
If I go to the store to buy milk I want to exchange at that moment. If I go out and buy a car I want that exchange at that moment. It does not work a lot in this arena. You join a company for refferal and you hope for an exchange but they say you be added to a list or refund you in a year if you do not receive anything. What a joke.
If a 1,000 agent across the country join a company at 300.00 that is 300,000 which they can put in an interest bearing account to cover their overhead and on top of that a small percentage are selected out of 1,000. Have you ever wondered why one person has 25 leads from a company you both signed up with and you live in the same area and have none? Think about it.
Going forward if I join a company and I can not receive a listing within 30 days it is not worth it. This comes down to
how I value myself and business.
There is plenty of business out there. You just have to renew you mind and make it happen for yourself.
Have a great day
Just returned from lovely Burbank CA for the Bridge asn conference:
WOW, we had such a great time. Big thank you to the staff at Bridge for hosting such a great event for the agents.
I felt this was very important event, so I asked if I could bring team member also, it is so hard to break away we always have to have back up for the business at home; I am glad we took advantage of both attending this event.
This conference was more like a learning and team building retreat. It was a lot of work to get there, and a lot stuff to learn about, but well worth the effort. And we had fun too, lots of socailizing and networking too.
I met so many people I had only before known 'online' so great to meet everyone in REAL LIFE! It was a bit overwhelming at times, even though we were a small group, I was struggling to remember all the names. I hope that we made many new friendships that will last a long time. And it was great to see a few familiar faces again too.
I did take some video of the Bridge event, depending on how it turns out I will try to post it here on REOPRO. If anyone out there has tips for video in our industry let me know, I am trying to learn the best ways to use video to increase sales and reach more customer, maximize returns etc. I also got a couple fun pictures at Bob Hope airport as we were on our way out of town, I will post those soon.
It is so great to see all of the positive posts on threads about Bridge in the past few days form everyone who attended. I hope this will be the first of a few events of this type. Possibly more invitation only events in future years with Bridge asn?? And, I honestly hope that other companies will look at this company as one to emulate a model for new ways to do things in our industry of default management and sales of REO and related investor / distress properties.
New proposal would extend the CLOSING time until September 30th, 2010.
This is for those ALREADY under contract. The current tax credit has to close on the home by the end of this month - June 30th.
We all know what a mad dash it was to get the homes under contract for the buyers now getting them all closed by the end of this month is a monumental task and there are a lot of buyers that are going to miss the deadline. Lenders and title companies are swamped.
There are so many buyers here tied up with Las Vegas Short Sales, (as I'm sure it is across the country) that are waiting for the banks to approve these short sales that it just isn't going to happen by the end of the month for so many.
This in turn could lead to a lot of homes being dumped back on the market because if you had a buyer only buying a home to get the tax credit, they may walk away from the deal now.
I know for several of my buyers that are hanging in there, they now are crossing their fingers even more!
Refinance Index: decreased 14.3 percent from the previous week and the seasonally adjusted Purchase Index decreased 5.7 percent from one week earlier
Purchase Index: decreased 16.3 percent compared with the previous week and was 30.4 percent lower than Memorial Day week last year.
Refinance Share of Mortgage Activity: decreased to 72.2 percent of total applications from 73.8 percent the previous week. This is the first decline in the refinance share in five weeks
Arm Share: decreased to 5.1 percent from 5.2 percent of total applications from the previous week, which is the third consecutive weekly decrease.
MBA outlook: (Excerpted from mbaa.org)
We predict that mortgage originations will fall to $1.37 trillion in 2010 from an estimated $2.1 trillion in 2009, a 35 percent decline. Purchase originations will decline very slightly by around 3 percent to $717 billion, as home prices stabilize, and home sales increase. Refinance originations will fall by about 52 percent to $656 billion in 2010 as mortgage rates are expected to rise through the year. Refinance volumes in the first half of the year are likely to be somewhat higher than anticipated in prior forecasts as rates decreased sharply in recent weeks due to the crisis in Europe. We have adjusted our refinance forecast upwards in response.
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The 15-year fixed-rate mortgage: Averaged 4.17 percent with an average 0.7 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 5.06 percent. The 15-year FRM has not been lower since Freddie Mac started tracking the 15-year FRM in August of 1991 and sets another record low for the fourth straight week.
Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.92 percent this week, with an average 0.7 point, down from last week when it averaged 3.94 percent. A year ago, the 5-year ARM averaged 5.17 percent.
One-year Treasury-indexed ARMs: Averaged 3.91 percent this week with an average 0.6 point, down from last week when it averaged 3.95 percent. At this time last year, the 1-year ARM averaged 5.04 percent. The 1-year ARM has not been lower since the week ending May 27, 2004 when it averaged 3.87 percent.
Freddie Sayz
Following a relatively weak employment report, bond yields fell this week and mortgage rates followed, said Frank Nothaft, Freddie Mac vice president and chief economist. Private payrolls rose by 41,000 jobs in May, less than a quarter of the market forecast consensus of an 180,000 gain. Interest rates on 30-year fixed mortgage hover near the record low set on December 3, 2009 in our survey; the Primary Mortgage Market Survey began in April 1971.
Meanwhile, rates on 15-year fixed mortgages set another record low for the fourth week in a row. Overall, the economy does show signs of improvement. The Federal Reserve reported in its June 9th regional economic review that the economy strengthened in all 12 of its Districts over April and May. It also noted that loan quality was stable or improving in most Districts, but remained an issue for banks with large exposure to real estate
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Anyone else seeing an increase in activity due to NSP funds? We have a couple of non-profits using NSP funds to purchase low income properties. These non-profits are getting unlimited funds from the state government and are making full price offers on some pretty bad properties. Not a bad deal for the seller. The down side is that they are putting a lot of investors, you know, the guys that have been buying all of these blighted homes and the ones that will be buying them when the NSP funds expire, out of business. The non-profits are able to buy FannieMae properties within the 15 day First Look option. It is hard to compete with that.
I am a little concerned about that often over looked law called the Law of Unintended Consequences.
Any thoughts from anyone else.
The story continues in Seattle. Another local bank that has had troubles dealing with Special Assets related to their new construction loan departments has gone down again. This bank as many before it fails to recognize that they need to make changes with regard to how they are handling these distressed assets. Many properties are in the wrong hands of Reators who simply do not have the band width or knowledge of how to dispose of these properties. The bank managers are not willing to change, be transparent, or even discuss options. They just sit on their hands as the ship goes under. No surprise for many of us who watch this daily. Some banks are willing to take advantage of well trained and talented Realtors who know how to re position and sell bank owned multifamily properties. See the story below;
Washington First International Bank, Seattle, Washington, was closed today by the Washington Department of Financial Institutions, whichappointed the Federal Deposit Insurance Corporation (FDIC) as receiver.To protect the depositors, the FDIC entered into a purchase andassumption agreement with East West Bank, Pasadena, California, toassume all of the deposits of Washington First International Bank.
The four branches of Washington First International Bank will reopen during normal business hours beginning Saturday as branches of EastWest Bank. Depositors of Washington First International Bank willautomatically become depositors of East West Bank. Deposits willcontinue to be insured by the FDIC, so there is no need for customersto change their banking relationship to retain their deposit insurancecoverage. Customers of Washington First International Bank shouldcontinue to use their existing branch until they receive notice fromEast West Bank that it has completed systems changes to allow otherEast West Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Washington First International Bank can access their money by writing checks or usingATM or debit cards. Checks drawn on the bank will continue to beprocessed. Loan customers should continue to make their payments asusual.
As of March 31, 2010, Washington First International Bank had approximately $520.9 million in total assets and $441.4 million intotal deposits. East West Bank will pay the FDIC a premium of 0.5percent to assume all of the deposits of Washington First InternationalBank. In addition to assuming all of the deposits of the failed bank,East West Bank agreed to purchase approximately $501.0 million of thefailed bank's assets. The FDIC will retain the remaining assets forlater disposition.
The FDIC and East West Bank entered into a loss-share transaction on $418.8 million of Washington First International Bank's assets. EastWest Bank will share in the losses on the asset pools covered under theloss-share agreement. The loss-share transaction is projected tomaximize returns on the assets covered by keeping them in the privatesector. The transaction also is expected to minimize disruptions forloan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
The first and foremost impression was the humbleness of Mr. Bobby Funk. What is the saying? You have 3-10 seconds to make a GOOD first impression... Well, he definitely did that and after actually talking with Mr. Funk, my first impression of him was confirmed!!
How often do you meet the CEO of an asset company??? I never have....Awesome!! Then there is Ms. Angelique...She took time out to probably meet and speak with every participant attending the conference. All supporting staff and CFO, etc. were all accessible throughout the ENTIRE two-day conference.
I was exposed to sheer "top dogs" (no disrespect). Ms. Shelly Kaye, thank you for accepting my application into member with Women In Default Services. I will see you in Las Vegas. Okay, then the icing on the cake.....I was invited and welcomed to sit next to and have lunch with Marla Webb. Marla is was a GREAT pleasure to meet you. You are such a beautiful person, inside and out!!.
Finally, to all of the new associates that I met, exchanged business cards with and soon to meet. We are blessed to have taken this leap of faith and partner ourselves with an awesome company!!
Jessee, thanks for always keeping all of REOPRO agents in the loop with current events and information.
Not just another REO Asset Management company, really?
Well, after talking with the Executive Management Team, interviewing on BlogTalkRadio and, now attending their conference, I can truly say I believe they are different.
Unlike all the pretenders who say that they aren’t just another AMC I can truly say that I know Bridge is different and in a really good way.
So what makes them different…….let’s start with the money back guarantee.
I have in writing a Money Back Guarantee that was signed in front of me by Alester Waddell CFO and notarized. Now, I am not going to go into detail about every single detail in this guarantee but, just let me say, Bridge really stepped up and is doing the right thing with it.
Secondly, their purchase power is a bit sexy…..if you know what I mean? Not that I wanted to be impressed of felt as if they were being boastful or pride full but, let’s just say, if size really mattered………….they would be masters of the universe and rock your world.
Thirdly, the technology, thank goodness someone has built a technology that appears to be fairly seamless and transparent. I have a bit more to learn here so, I won’t say more than, it looks good and if it can do all they say it can…….it will be incredible.
Fourthly, relationships! I am so glad I got to meet and have dinner with the owners and Executive Team…..that is so missing in this industry. Let me be clear, they didn’t just have dinner with me and excluded themselves from the rest of the pack. They mingled, sat at different tables, got to know the Realtors they are partnering with……………..why can’t the rest of our industry be like this?
Last but not least, passion and desire with an eye to the integrity of the whole process. I was able to set down with Bobby Funk for a spell and was really glad to find someone who felt, and sounded just like me. I was impressed and thrilled that it was as if we were reading from the same play script. It was so strange I had to step back, pray and ask the Almigty…………was this possible, did I happen across a company who thought like I did? I have to admit, my last night in Burbank, I got the chance to sit down with Marla Webb and it was confirmed that YES, I did find a company who thought like I did about this industry. Marla, you are the bomb!
All in all, it was all good….better yet, incredible. I can’t wait to start making money and hopefully, I can get down to working with just one asset company……Bridge! I know for many of you that may sound like a pipe dream but, with the way this company works, let’s just say……..Bridge is my triple platinum gold credit card and I plan on using it!
I was deeply disappointed that I had not been invited to join Bridge and I would just as soon guess that I am not the only one. I allocated my calendar to it and hoped until the last minute I would be invited. I wonder about a few things: although limited to "250" agents, where did they all come from? As I look around here, only a few made mention of Bridge and I only know of one from my area that was going to go...Rosio. There was also much debate during the webcast about Bridge's legitimacy which probably raised flags with a few people considering how many of us pay to hopefully play.
As it is, it has been remarkable quiet about the whole thing...is there some sort of secrecy? I was thinking a I would read a few firsthand reports about everyone's experiences at the seminar.
As jittery as I am about throwing money at yet another enterprise, I was willing to join anyway. One of my fellow collegues with 20 years of REO experience in my office was even willing to help me with my resume and join up to my team so as to give me the experience and insight that I needed. I never got an acknowlegement that my resume package was received which would have been nice.
On a different note I went to my office meeting today and the speaker talked to us about another source of leads that is more constant than REO or Short Sales: All you have to do is go to the courthouse...PROBATE. Of course ,you have to pour through a list to see what cases are coming up and what the capacity of the estate administrator is...but it is FREE! I guess I will check it out at my local superior court this week. The county court websites were non specific as to how to actually get what I need, but seemed to glancingly indicated that it is posted, since it is public knowlege.
In the meantime I hope Angelique enlists my services someday.
By the way, although no listings quite yet, ABSREO does respond to my emails about activity in my area. I know they have been a hot button here on REOPRO from time to time.
Good night collegues.
At REO EXPO there were 3 companies promoting automation and every body was excited talking about this topic.
I would like to create a rating system for this companies: 5- good customer service and tech support, delivers good results, and it is easy to use. 4 - good customer service and support, there are problem with the scripts, easy to use. 3 - poor customer service and tech support, program works, but only 50%, it is difficult to use. 2- Can't never get an answer from the company, program has too may bugs and crashes a lot, you need to be a tech savvy to use it. 1. Do not waste your money with this gimmick.
These are the companies that I know, if you know others please add them to the list, do not make rude comments on the companies or their employees, let keep it clean and professional, but true, please keep comments to the minimum, this poll is not to get brownie points or to bash anyone, just to help fellow agents to make an educated decision if they think about purchasing any of these softwares, I don't think any of the programs is perfect.
BPO Automation Group ( ) Never use it, last year couldn't get through to customer service to purchase it, it is a larger investment upfront, but maybe cheaper in the long run.
BPO 5000 (2) lacks customer service and over half of the scripts don't work properly, input wrong information in bpo form.
Realty Pilot (2) RETS are complicated to get, no live tech support, takes a while to get an answer and you have to watch too many webminars to use it.
BPO Buddy (4) much improved customer service and tech support, some bugs with the scripts, easy to use but it can be pricey at $99 month.
Trackmyforeclosure ( ) I just purchase it price seems good, I have appointment with tech support to do MLS set up tomorrow and I will change my rating after I get a chance to use it. low price $39 a month.
Some of the them call themselves consultants, platforms, software, programs, control center, etc. but they all use Imicros and Realty Pilot RETS, but it is semantics, after all they all track bpos and do automatic filling, and maybe another gimmick here and there, but us agents care more about the automation part than anything else, we want to free our time and same our fingers from typing so much.
What do you think???
You should market your REO team that you work with. This would include your vendors. Such as:
1. Maintenance and Repair and/or
2. Property Preservationist
3. Accountants
4. Assistants
5. Listing Coordinators
6. Transaction Coordinators
7. BPO/MMR Coordinators
Sometimes asset management companies would like to know if you work with a team and what are themilestones you have reached. So if you do work with an REO team, you shouldtake the time to create a marketing package that includes a brief descriptionof each team members unique qualifications that contribute to the success ofyour REO team.
This also allows the asset company to see that you are equipped to take on a good amount of REO work and completeit successfully.
There's a lot of chatter on real estate blogs about the steep increase in foreclosures and short sales in Palo Alto.Unfortunately many sites post stats from a company called Realty Trac which tracts everything from a Notice of Default through a listed bank owned property. Many things can happen before a home with a Notice of Default actually gets to be sold by the bank, but unless you read the fine print carefully it is easy to confuse a house that is behind a few months in payments with an actual bank owned property on the market for sale.
Most bank owned homes as well as short sales (where the seller owes more than the home is worth and the lender/lenders have agreed to accept less than the amount of the mortgage to release the debt) are sold through the MLS. So to see how many of these distressed sales have hit the market in the last year I went to the MLS and looked.
Here is what I found for single family homes:
Bank owned properties sold in last year: 4
Current Pending sales of Bank owned: 2
Short Sales sold in last year: 3
Current Pending Short Sales 1
Current Active Short Sales 1
For condo/townhomes the numbers are:
Bank owned sold: 2
Bank owned pending sales: 1
Short Sales sold: 3
Short sales pending: 4
Short sales active: 2
As you can see this is not a huge number, especially since the total number of homes sold in Palo Alto in the last year is 369, making distressed sales account for less than 2%. There have been 97 condo/townhomes sold in the same period making the distressed sales about 5% of that market. These numbers are not enough to have any impact on the price of homes in Palo Alto at this point. The percentage would have to increase several fold before Palo Alto prices are affected by distressed properties. I am not saying that this is or is not going to happen, that is a discussion for a future post, just that it has not happened yet.
Marcy Moyer
Keller Williams Realty
D.R.E. 01191194
I am currently reading the Emerging Trends Real Estate 2010 report and happened upon this quote to start the Second Chapter of the document:
“The key to success in real estate investing is to follow the capital flows, not the fundamentals. Anticipate what capital wants and be there.”
This is a must-read report for anyone in the commercial real estate world or just anyone looking for knowledge on where the industry has been and where it is going. You can download the report on the homepage at the www.CommercialREOs.com website.
According to the report:
Slowly, capital will flow back into commercial real estate markets during 2010, led by all-cash investors “looking for pop” in quality assets owned by distressed borrowers or sold by lenders out of growing REO portfolios.
... a very interesting read indeed
There are several ways to market yourself as an REO Agent to obtain more business. I am going to
focus on a few. Listed below are two marketing techniques that you can utilize
for free!
1. Social Media
a.
Blogging – as we know this is can be a very
powerful marketing tool. And really there is no shortage of subjects to blog
about. Three quick tips to successful blogging.
i. Relevant and interesting material that will
solicit comments from your readers
ii. You need to do it on a constant basis to
continually build your reading audience
iii. Address a need that maybe your readers are
struggling with. Such as key tips on how to communicate successfully with Asset
Managers.
b.
Networking – Online or through conventions
i. You can join online groups that are relevant to
your industry
1. Once you join – don’t forget to participate by
answering and asking questions!
2. Creating Groups – if you are a blogger, this is
a terrific way to network online. You can produce your own content and invite
others to join. As your readership increases, you can offer free seminars to
the group. You can also invite others to produce relevant blogs/content to help
the group.
c.
Signing up with Asset Management companies
i. If you have the time, sign up with as many as
you can. And check back every month or so, to see what your status is or if you
have to submit up to date records.
ii. Signing up as an appraiser or recommending one –
sometimes the asset management companies are looking for other vendors other
than REO agents. If you can refer another type of vendor to them, that is a
good way to network. They will remember that you took the time to help their
business.
iii. Signing up to do their short sales – the asset
companies are also looking for short sale agents. So this may be a way for you
to obtain some short sale work – that is if you are willing. But this is just
another avenue to look at.
So these are just a few marketing tips. Feel free to add any additional helpful tips that you would like to share!
