Little things matter!!!!!- avoid contacting AM on Monday ( the busiest day of the week)- avoid contacting AM in the last days of the month- call to ask for business between 5th and 15th of the month.- avoid calling - use e-mails- always suggest at least two solutions to the problem- if you have already made your two suggestions - do not question the decision of your AM.- write your e-mail requests in such form that the AM can respond with "Yes" or "No".( time is in the essence )- anticipate the needs of your AM- know your AM - their week and strong sides (even if it is the same AM company... different AM have different approach of doing business).- MANAGE YOUR AM ( probably this is the best advice I can give you)- communicate with your AMs on such high level so they do not need to call you for update.- when sending updates make sure the notes are good enough to be copied into official report.- advise your AM what will happen in the next two weeks with open escrows.- ask if your AM needs your opinion ( don't waste time with Real Estate cliches )- your AM doesn't know everything...address your question to the right person and copy your AM ( escrow ? to the closing dept, billing ? to accounting.....etc)- acknowledge the receipt of a important document or any requests.( I use : "Thanks".."OK".. "You got it"..."I am on it"..."Thanks, your rock!" ... "Thanks for the business"......)- the comments are the most important part of your BPO- pictures are the next one. (take it further... we do videos for our AMs)- do not say it wasn't your fault. Get it done!!!- it is not always about business, I use P.S. comments when it is appropriate.. remember ...know your AM ( example..."P.S. I am so happy today, it is raining in Arizona. It's been only few months." ...It's like blogging in you e-mails.)- do not question the listing price even if it is far away from your BPO price.I know that everybody has their unique way of doing business. What is your "Little thing"?
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Posted by Vivian Conley on August 22, 2009 at 4:55am
Five Star has a lot to offer. I'm looking forward to all the events and education opportunities. Has anyone planned a time and place for REOPRO members to meet up and get aquainted in person (network) during five star or would anyone be interested in meeting up as a group?
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Posted by Mykel Martin on August 21, 2009 at 5:30pm
Hey, who’s going to Five Star? I responded to a post about a month ago that I thought I’d share with you if you’re going.
The Post:I will be attending the 5 Star conference this year in hopes to further the REO business for my company. Can anyone that has attended this in the past give me any pointers.My Reply:Just remember...when you go, you are there to get information - you are on a fact finding expedition. Collect more cards than you pass out; don't take brochures and the like. Remember, most of the AMs there are from out of the area. They are not going to pay extra to add your brochure to their luggage weight. Guess where your brochure is going? Correct! So you can see how important it is to collect their contact information instead, so that when you get back home, you can solicit them. Any thing you do hand out, be sure it has your phone number and email address on it. Additionally, once back home be on the look out for an excel spreadsheet that will come via email and include the contact information of each and every attendee of the conference.Hope this helps. Good Luck!
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Posted by Mykel Martin on August 21, 2009 at 4:30pm
If you've been passing up homes that require repairs, there’s renewed interest in the 203(k) FHA loan program that lets qualifying candidates borrow a single loan with a 3.5 percent down payment to cover both the home’s selling price and the cost of licensed contract work to improve the property.Popularity in the 203(k) FHA loan program, or Rehab loan as it is often called, has nearly doubled since last year due to the large inventory of REO homes. This years, demand is on pace to double again.The main advantage of this program is it allows buyers to purchase a home that needs work and not have to come out of pocket with cash to complete the repairs. The biggest disadvantages is most lenders aren't experienced with Rehab loans and show little interest in promoting them because they can take up to 60 days to close.Even though the application process is long and it is difficult to find a lender versed in doing them, the FHA Rehab loan may the rare modern-day wild card loan that keeps the industry afloat. Helping our Buyers get the best deals, often in area they otherwise couldn’t afford, and helping us close on more deals. . . sounds like a win-win to me!FYI – I have an REO with Wells Fargo right now that is a perfect candidate for this financing. I’ll let you know how it goes.
Just sending out some feelers as to how many REO listings turn into "auction". I've had 2 in the last 6 weeks, one sold at auction 25% under asking, the other went back on market and sold $2k over asking. Is this becoming more frequent in an effort to clear the pipe line? Any input?Kristine LaDueOgden the real estate company262-707-7510 mobile262-922-4105 faxkrisladue@aol.comwww.krisladue.comRead more…
Many agents rush through BPOs and don't take the time to do a good job on the comps and give a proper value recommendation. However, the BPO is an important tool for an AM to do his strategy and submit to the committee for approval. Once a strategy is approved the asset is listed and becomes part of the AM's portfolio. AM's are compensated and rated on many factors. One of those is the percentage of FMV the property sold for. AMs get pretty ticked off when a property sells far below the BPO he took into consideration to get his strategy approved. Not only does it throw of their required % to meet goals but also makes them look incompetent in front of superiors. Some agents brag about how many BPOs they do and wonder why they don't get any REO listings. It's about quality and not quantity if you're looking for REO listings!Read more…
It's been some time since I've written a blog entry - so many REOs, so little time. OK, there have not been that many REOs, we are probably averaging only about one new listing a week these days. We are still anticipating this big flood of REOs in California that everyone still says is coming, although it keeps getting pushed back until later in the year. I just attended a meeting sponsored by RELS (a joint venture between Wells Fargo and FIrst American) where they did indeed confirm they are expecting to see a lot of inventory coming in the next few months.However, I'm not sitting still. I am hitting the road - to the Five Star Conference in Dallas coming up in September. I know, last year was kind of a debacle - way too many people crowded into far too small a place for starters. But I'm giving it another shot, and this year, we're having a booth at the conference, all in the hopes of finding some new clients. After all, if there is to be a huge deluge in the fall, I expect there will be some REO outsourcers looking for experienced, hard-working REO brokers in Northern California, right?If you will be at Five Star, please come and say hi. My partner Heidi and I will be there to talk about our business, our booth # is 221.I should also mention, we have re-worked our web site, too. Check it out, let me know what you think!http://www.calwestreo.comSee you in Dallas I hope!
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Posted by Linda Landry on August 19, 2009 at 6:39am
Ok, I understand the importance of networking and a presence on the net via social networking sites, blogs and google ranking. I truly do not understand the twitter/tweet thing. Do I need to let everyone know my every move? Do I have time to do so? Do I want my blackberry phone to turn crackberry with all the tweets I could recieve if I am truly connected? Do I want to become a tweet freak or a twit? Does anyone really care what I am doing? Would posting a listing benefit the seller, buyer or the agent? Has anyone begun or closed a transaction after a tweet? Please, someone, tell me the advantage of twittering. Or am I a twit for not being in the tweet loop?
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Posted by Henry B. Torn on August 19, 2009 at 2:57am
As a Buyer's Agent for REO's I want to voice the opinion of so many prospective home buyers out there today.RELEASE MORE INVENTORY!! We all appreciate the 'measured' approach that Banks/Asset Managment companies are taking to market REO's (Supply) in order not to flood the market and cause prices to decline even further at a more rapid rate. Yet the BUY (Demand) side is screaming for more REO's to hit the market and hit it now!Clearly there is a very methodical and measured release of this inventory that is being 'gobbled' up by homebuyers as they hit the market provided they are in decent condition and priced right. Yet there are so many 'would be' homebuyers that want to purchase an REO based on their perceived value yet get discouraged quickly once they lose out on a couple of multiple offers, selling the day it hits the market and of course, CASH BUYERS!I feel like this is WAL MART the day after Thanksgiving at 6AM right before the doors open! Where the customers are literally pounding down the door and trampling employees to get what they want when they want it. Buyers have become like the spoiled millionaire girl in the movie Charlie and the Chocolate Factory, "But Daddy I want it and I want it NOW!!!"There is a special need to release more inventory up here in the North. Yes WINTER is coming which will only deterioate conditions of the asset no matter how well it is Winterized which will only decrease the value. These REO's are remaining vacant for far too long and the buying public is READY, WILLING and ABLE to buy (1st Time Homebuyer Tax Credit or Not).Why not let good ole market forces work here. Believe me when I say, RELEASE THE INVENTORY AND THEY WILL BUY!!!!Any comments from my fellow REO Comrades???
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I've chatted with a few of you about the new NAR Certification course in Loss Mitigation. I got mine today and here's the scoop. Not much. I'm tremendously glad that NAR is doing something to address the reo segment. Obviously it's not going away any time soon even if it does slow down and the banks do a 180 and start helping people modify. That being said though, this course doesn't merit much in the way of certification. (Shhhhh. don't tell anyone I said so since I will proudly display my certificate).The biggest problem as I see it is the fact that it seems to be a 101 course and I think it would be much more effective if it were expanded and then done in two parts. My class had about 30 people and it was about evenly divided between those who were actively involved in REO and those who thought it might be a good thing to try. It is a good thing to try but the class that explains what cash for keys and trashout is should not be the same class that tries (not very well) to explain the intricacies of a short sale or a comparison of data upload platforms.I'd really like to see a weightier Certification that a beginning/intermediate/advanced level would bring. I also think they focused on short sales too much and as we all know there are few hard fast rules for those. They made some very good points about liability though and emphasized why all the T's must be crossed and I's dotted. Who has taken this so far? What are your thoughts?
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For many Asset Managers, agents calling with their problems rather than with their resolutions are some of the biggest headaches they get.
Now, granted, someone might argue that the problem can only be rectified by the AM and in those few and far between issues, ok…I get it however, it’s important to note than many agents just don’t take it upon themselves to solve problems.
Ok, I am not going to take the typical approach to this issue that you are accustomed to reading or hearing about. I am not going to tell you about how the AM is paid on a graduated performance scale and the more time he can spending closing deals, the more he gets paid and the happier we all are.
My approach to this is a little different. It’s how your silly call about what you need to do with all the personal property left in the home caused my very important call from my Title Agent to go missed by the AM and now we have a buyer wanting to walk from the deal at closing!
If you are one of those agents eating my AMs time because you don’t know what to do, how to do it, when to do it, go and get you some training. I don’t want to come off harsh or insensitive but, my AM doesn’t have time to teach you, he needs to close deals and the more deals he closes, the more successful I am so please don’t waster his time, it’s my money you are playing with!
Get proactive, call with a resolution, leave it on voicemail and tell the AM to only respond if necessary. Take ownership, satisfy all parties, save as much money as you can but most importantly, don’t waste my AMs time, it will come back to benefit you….and me!
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Many times before, I have written on the importance of blogging and, I am not sure I have made that big of an impact however, let me share with you a recent chance encounter that lead to business for me.
As many of you know, I am a huge blogger, I love it so, to get me to do it, isn’t that hard and after I tell you what happened recently, I hope you to see blogging in a different light.
Too make a long story short, I got directly contacted by an AM who googled me after reading my blog here on REOPro. He was directed to REOPro by searching, “REO Professionals” where www.REOPro.NING.com came up in the 3rd spot. After seeing my blog and reading it over, he then googled, “Jesse Gonzalez” where I have the 2 and 6 spot. From there he was able to easily find my personal website and from there, he contacted me directly using the “Got a Question” feature.
My point, blogging is a form of advertising and if you aren’t using it as such, you really aren’t utilizing to the fullest. Granted, it’s like farming, it can take a while to get established but, when you do, it pays off big.
The lesson here, blog, blog, blog. It’s a great way to get in the community and, allow others to use your editorial almost as a long term online interview.
So, I got 1 question for ya, did you Google me?
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Ok, I am about to vent so, if you don’t want to hear an angry rant about how I feel, it’s best you stop reading now and move on!
I have this short sale, since January and it’s in poor condition. For example, pipe burst in ceiling, sever mold, exposed sub-flooring through 75% of home, torn wall paper, huge holes in walls, missing fixtures, standing water in crawl space, etc….get the idea? It’s in poor condition and my contractor estimated 30k ($30,000.00) in repairs to make it livable!
Since it has been on the market, I have received approximately 10 or so offers, all of which were below $70K except one which was $89,900.00. The bank countered or rejected all offers (all these offers came in the first 2 months)! Surprised and perplexed I asked why and I was told because the appraisal came in at $110,000.00 and that is what they expect to get. So, 2 months turns into 6 and, no offers. In the meantime, I have provided a CMA / BPO showing these freaks, the home is worth 60k at best! THEY AREN’T LISTENING TO ME!
So, the negotiator says, we can now order a new appraisal. Excited, I meet the appraiser out there and show him my BPO, show him my comps, show him my search criteria, show him the feedback comments of the agents who have shown the home, which are months old because no one has shown the home in months.
A week later, I get the appraisal from the negotiator and it’s $100,000.00! 10k less than the original (UGH!) So, I have it listed at $100,000.00 now and not a single showing / offer, what is it going to take!
I asked if I can rebut the appraisal, sure….so I send my rebuttal in and I am told, none of these homes are adequate because they aren’t like homes. I am tripping because my comps are from the neighborhood and less than a quarter mile from the subject property! These are tract homes by the same builder…..why wouldn’t they be similar? I looked at the appraiser’s comps and they aren’t even in the same neighborhood!!!!!!!!!!
So, I asked, can we get our own appraisal, they say yes so, we are now on the hunt for an appraiser. I will keep this blog up to date, I am sure you will love to know where I go with this one.
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Posted by Linda Landry on August 16, 2009 at 4:41am
I truly like this phrase! It speaks for itself doesn't it? I think so and it is so very pertinent when it comes to the current first time home buyers tax credit which expires at the end of November. In order to take advantage of this credit the transaction has to close/record before December 1, 2009. Since escrow dealings can take 30-45 days that means the transaction needs to be negotiated/accepted within the next sixty days. Not only is finding the right property time consuming but keep in mind you need to find the right real estate professional to assist you, the right lender and property inspectors. You will need to research details of the property; the inspections should include at the very least a termite and property inspector. If you or anyone you know is planning to take advantage of this opportunity the time to act is now!
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Well here's the good news. A new account from a buyer of a bulk portfolio from one of the big 4. They assign me a listing Excitedly I rush right out to view my new beauty, and do an occupancy check, meet locksmith, etc. I pull into the neighborhood, not bad for an urban area in Connecticut.I am optomistic.The bad- house had a fire, not a total burn down to the ground, but a section of the front is chared. Interior damage to 2nd & 3rd floor contained to 3 rooms, some smoke damage.The ugly- Still waiting for the city Fire Marshall to send me a copy of the Fire Incident Report. Ordered 7 business days ago. Need it to continue, so frustrating when you have to wait......
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Posted by Leslie Hansen on August 11, 2009 at 10:28am
I am new to listing REO's, but have been specializing in short sale for several years. Also I have been doing BPO's for Goodman Dean and Land America in hope of getting my foot in the door to list REO's. So far I have made some pocket money on BPO's but no listings. I am a broker and have my own company that I opened 1 1/2 years ago after 25 years in the real estate business. I would love to develope an REO division. I see there are comments in your blog on certifications not being particularly necessary, but how do I get my foot in the door with the banks to actually start getting the listings? I started doing BPO's 25 years ago when I first got my license and got listings then, but no action now. Any suggestions greatly appreciated.Delete Comment
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I recently attended the Real Estate Connect Inman Conference in San Francisco, and it was by far one of the best conferences in real estate that I have ever attended. The number of innovative companies and latest technologies entering the industry was overwhelming and really opened me up to what is coming to the future of our industry. There is definitely change in the air in the real estate industry and it is happening quite rapidly. I encourage anyone that has not had a chance to read Inman News to log on to their website and read some of the content of the conference.I am a new agent to the REO market carving my niche and plowing through to get my initial BPO and REO orders and assignments, although, I am not new to REO ( I worked with REO properties in the early 1990's during the Savings and Loan Years). I attended series of REO track workshops at the Inman conference presented by Foreclosure Radar and Lions Gate Financial REO Education Company which were very informative and confirmed the need for agents like me to enter and apply and compete for this unique real estate business specialty.I am also attending The Five Star Institute Conference soon. Can anyone of you tell me which REO conferences in your opinion are the best to connect with REO default Servicing industry contacts that will benefit by having me provide my REO business skills and experience to them in the near future and any tips for breaking through this niche. I just got my Distressed Property Certified Specialist Designation through Default School. I am a master property preservation specialist as I have managed 17 family owned properties in the last 20 years so this experience will benefit my institutional clients handsomely. Thanks for your tips and I am looking forward to offering you mine.Ines Eiras - The REO Turnaround TeamPrudential California Realty - Stoneridge Pleasanton CAines.eiras@prurealty.com 510-305-8128 www.prurealty.com/ineseirasRead more…
I have a listing in Oakland CA and we originally called PGE to find out if there was any electricity on at the property as one of the ways we determine occupancy at a property. PGE was off and we were happy to check the property and rekey. However upon arriving at the property and rekeying, we found the property to be occupied. In fact, there was electricity in the property. The occupants were stealing it from the neighbors for illegal activities!We quickly left. Finally, after several months, we obtained possession. After having it on the market and several failed escrows, a solid offer came through. By this time, PGE came and removed the meter because of faulty installation/electrical issues. Here are the steps we had to take to get the PGE meter back on:1. contact a licensed electrician to look at the meter connection and have them repair2. Go to the Oakland City website to obtain permit application and credit card authorization form. The fee cost appx $180 for 3 inspections. An additional $110 for the 4th visit. You'll need proof of listing agreement and Grant Deed of bank possession.3. Meet the inspector at the property with the electrician- most times a window for 3 hours.If it fails, call immediately to reschedule for the next day while your electrician fixes the items requested.Some items we ran into were minor: such as electrical grease needed to be on the socket, faceplates needed to beon all outlets, proper grounding, and replacement of socket that attaches to meter.4. Have inspector sign off on permit5. Inspector sends permit directly to PGE6. PGE gives a window where they will come out.7. Pge installs meterHope this helps with getting your meter in place sooner than later!
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Posted by Linda Landry on August 9, 2009 at 9:44am
I wonder if there is anything close to being overly prepared? I carry with me nearly a complete office in my vehicle. Of course my laptop and hard copies of purchase and listing contracts as well as pens and notebooks. Additionally, I have my lawn chairs, tool box, signs and a cooler for drinks on the go. Non alcoholic beverages of course! There is still a little room to stash my gym bag in the eventful moment I may squeeze that stop in as well! Whew! No doubt I am forgetting something but I try to be prepared! I have business cards in my purse so......am I missing anything?
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