I am sure you know the Golden Rule: Do unto others as you would have them do unto you. I believe that all mom's teach their children this in hopes that it will keep them out of trouble, and that just maybe they will treat others fairly.Not only is this a good Biblical rule to follow because it teaches you how to treat others (unless you like being treated like crap), but most often we are rewarded with reciprocity.Reciprocity Principal: The tendency for people to treat others the way they are treated.Treat someone with kindness and most will respond with kindness. Treat someone with force and they will respond with force.In a negotiation situation if you go into the room with the attitude that you are going to bully the other party into submission, you are probably not going to get too far. They typically respond fighting back. Most people would rather have no deal than to be forced or bullied into one.However, if you treat someone with kindness and generosity, they will feel compelled, or at least obligated, to do the same. You give a little, they give a little. This goes a lot farther to negotiating a deal than the strong arm or ultimatum tactic.One of Zig Ziglar's keys to success is that "In order to get what you want, you have to help enough other people get what they want" I believe this goes hand in hand with the Golden Rule. If you help others get what they want, they will reciprocate and help you get what you want, and, If you want to be treated fairly, treat others fairly.I will call this the Silver Rule: Others will do unto you what you do unto them."So whatever you wish that men would do to you, do so to them; for this is the Law and the prophets." (Matthew 7:12 RSV)I invite you to visit and join my real estate community, RealBuzz, at www.realestateforum.ning.com.
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A couple of months ago I received an reo listing from an asset management company that sometimes sends me listings, not many, but hey every little bit helps. They ordered the CFK, and although I am usually succesful with cfks, in this case the homeowner did not agree to it. She was receiving advice from an attorney/friend that told her to stay in the house. After a while, as it happens, I was notified of the lock out date. The family was already gone on the lockout date, but they had destroyed the property. Among many other things, they took of all the electric outlet covers throughout the house and left the wires exposed. The house has illegal additions, code violations, an empty pool, electric issues, they broke walls, took all appliances, Central A/C, etc. Since I am very familiar with the way this particular city works, I sent in a document attached to the bpo explaining everything and advising what needed to be done before the house started showing to avoid problems with the city. Needless to say they sent my bpo back 3 times because the appraissal came in at a higher value. Of course the appraisser was not using reo comps with similar illegal additions and/or conversions. He failed to mention that probably more than half the house would have to be demolished because it was done without permits. Finally my price is approved and the property goes on the market, I go back to the property before listing it on the mls to make sure it was ready to be showed. When I get there, I find the only thing done was the trash out and they caped the exposed wires. I again write to the am and send pics, since they have their own preservation co to do everything, they've decided that was all they were going to do to sell the property as is. Ok, well I dont want to be a pain...To make a long story short, the house has been on the market for less than a week and somehow the city already heard about this beauty and went there today (without even notifying me) I don't know how they got in. They later faxed a 2 page long violation to my office listing everything they could think of and they want it fixed yesterday. Now for the plastic cover plates that I recommended to put on all the electric outlets just to make it look decent we have to hire an electrician, pull permits and pay fines!!! They are going to make my life miserable and hold up the sale for months and many of this problems could have been avoided by just doing some minor work in the house, not only to avoid problems with the city, but also for safety issues. Now even the mosquitoes in the neighborhood are coming from inside this house. LOL. I could only laugh when I saw what they were hitting us with. I love my job, I work very long hours, try to stay optimistic in all situations and will go the extra mile to get issues resolved and close the deal. This one will close, I know that, but Im going to have to move into the city office until everything is done the way they want it and they take pity on me or get tired of having me around. Oh... and drain my pockets while I wait for reimbursement.
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I decided to pull some statistics out of curiosity. NRBA is probably one of the most prestigious and most recognized of all realtor organizations and they have a designation called CREO (Certified REO) that, I believe, cost members about $300 to take the course and get their CREO designation. Currently, NRBA has 1,039 agents throughout the country and guess what? Out of 1,039 agents only 63 have their CREO designation! Wow, by my calculations that is about 6% of their members! I do not mean to be negative, just being cautious. I was surprised and a little disappointed by these numbers. The NRBA has been around since 1998 and I remember how everyone was a little cautious of them at first. But, considering the number of licensed agents (and yes, they do have an approval process) they have a small membership. So, I did some more digging and discovered that many top REO agents do not have any designations/certifications/titles. Of course, by now, they are fully ingrained as REO agents and do not need these designations.And one more bid of information, I sent out a blast email to many asset managers, VP's, SVP's directly to the banks/mortgage companies and the ones who responded were unanimous in saying that designations/certs/titles mean absolutely nothing compared to your perfomance as an REO agent.With that said, I, for one, am no longer going to "contribute" my hard earned money to companies that want to charge for you to join in order to get REO listings. It is still going to take hard work, patience and a long term commitment in the "waiting game". My best contacts, so far, have been through networking and this has been a fantastic site to do just that. However, on the positive side, if you need the training because you are not that familiar with the REO process, then I would encourage you to take courses that would help you with a career in REO. Remember, REO is a 24/7 job, vacations are almost nil and void unless you have a highly dependable person to cover for you or take your laptop and blackberry wherever you go! And don't forget the expense, can you front $15k to $40k for repairs/maintenance/utilities and then wait 90 to 180 days for reimbursement? Before doling out the money, do some serious soul-searching, is REO really for you?
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Lee County, FL. Property Values:Lee County, FL.2007: $96.4 Billion2008: $84.5 Billion2009: $63.5 Billion2008-2009 % Change: -24.8%Cape Coral, FL2007: $21 Billion2008: $15.7 Billion2009: $10.4 Billion2008-2009 % Change: -33.5%Lehigh Acres, FL2007: $7.19 Billion2008: $6.362009: $3.372008-2009% Change: -46.9%Fort Myers, FL2007: $7 Billion2008: $6.8 Billion2009: $5.2 Billion2008-2009 % Change: -23.4Local Unemployment Rate in Lee County, FL. in May 2009 was 12.4%How crazy are these numbers? What goes up, must come down right? The local real estate market is actually turning before our eyes into a sellers market due to the affordability returning to the market. The only contributing factor I see for this is the moratoriums.Media outlets and so called "Experts" (no one at the Fort Myers News-Press has ever been confused with being an expert) all are hyping the fact that properties are getting multiple offers and bidding wars are back again. Buy Now, Buy Now they all scream. Most of the hype is right, or is it?Fannie Mae alone, has more assets that haven't hit the market then Obama has ideas on ways to raise taxes on everyone. If anyone knows about the Elliot Wave, could this be the False Bounce? Is NOW THE TIME TO BUY or is that just a catchy slogan by the local real estate board who is trying to keep members from leaving the industry and taking their annual dues with them?
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So Fridays are usually my day off. I was going to go play golf and get my mind off of business for a day. But I get to Flyers handed to me.First flyer is to attend the Womens Council of Realtors (southwest Los angeles Chapter) for $25.00They are having their month business builder meeting "Navigating through the REO maze" with special guest Mike Riley and guest speaker Marie chung in Marina del Rey.The second flyer was to attend Lion Gate FN class on free traing "How to become an REO Listing Agent" in Pasadena.Which one should I attend or should I play 18 holes and have some fun on the 19th hole?Any feedback people?Mark Anthony Ruiz
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Happy good afternoon, did anyone know about the BPO & REO kit for sale? How attendible they are? I see same kit online that they offer a certification CFS or CDPE. I like start with BPO,REO,and Short sale. I like to get a road map to do that. Anyone that already had a test drive of this online kit, can answer or mail. I appreciate thanks
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I just finished the prep for this week's REO Master's Network Teleconference. I have to say that it's hard to out-perform someone like Richard Hartel who has over 2 decades of asset management experience, but I think we are going to come close this week.I was listening to all of the REOPRO, Twitter, and ActiveRain users and members over the last couple of weeks when we started receiving feedback from the first call that I was on. Much like many of you, I was also trying to assimilate in my mind what the heck was going on between NFSTI and REOM - but the truth of the matter is that for as many little details that we're still sorting through (mostly future projects and marketing plans for our Network), there are 100 amazing things happening that are making me smile from ear-to-ear. That's why I've been able to just persevere and move forward with 100% conviction.The call this week is at a different time (1 PM PST Thursday July 9). Please call in even if you called in the last couple of weeks (instructions are at the REOM website). We have a new guest, Lauren Galey. She is a loan modification and loan acceleration expert and will be adding that component to our REO Mastery Weekend training. She divulges a lot of great FREE information during this call including:A free downloadable eBook about getting updated on Loan Modification as a RealtorHow to Apply with a reputable Loan Mod company and get referral business (she will also tell you how to get registered and avoid the $150 application fees that usually go along with this business).How to get the "Mortgage Mess Cleanup Kit" for FREEScott McLaine, the CEO of REO Masters Network, is really reaching out to the cream-of-crop right now (as you'll see from the call, he's really wearing his thoughts and plans on his sleeve). Also, I just received word that I am going to be able to give each attendee at the REO Mastery Weekend a copy of a hot-off-the-press publication called, "The Big Four Manual". This book teaches you how to become an approved REO agent with the Big Four Servicers (Bank of America, Wells Fargo, Chase, and Citi) and their outsourcers. At this time this book is ONLY for our State and Executive members and will be for sale later in the month with the original author for a fee (which I don't know how much that will be). I'm reading it right now and it's short, sweet, and awesome!Hope to see (hear) you there~Sincerely,Dan WatermanCEONFSTIREO Masters Network
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For the past 3 years my life has consisted of one thing - researching REO. Every aspect of REO that is. When you have thousands of members and clients that depend on your company for results it can be a daunting thing. Especially when the government makes over 20 changes to the TARP program within 9 months!The past 3 weeks have been dedicated to the development of our new levels of training (2 and 3) which are going to be geared towards the REO Masters Network directors. The way that this network is being designed resembles an undergraduate and graduate program. With the REOM being the "graduate" program I had to step it up a little bit with content. So, with that end in mind I began with a "State of the Market" initial presentation, ended with a "Future Projections" summary and then sandwiched some cutting-edge REO stuff in between. I should have given myself 3 MONTHS!I can say that I've learned a lot, which is always a great thing. I was kind of waiting-out the whole government involvement of real estate until the dust settled so as not to fry any of my mental circuitry. I watched from September 08 through March of 09 as colleagues were trying to decipher the realities of the real estate market, TARP, the Financial Stability Plan, "Making Home Affordable", HOPE NOW, and the mergers of banks left and right. In my little universe I was telling myself the whole time, "just keep track of everything, but don't try to figure it out yet". Whew! Glad I made that decision and stuck with it.Fellow professionals I'm here to say that this market is absolutely, undoubtedly one of the craziest markets in American history. Go watch some of the real estate market videos on YouTube of Mark Zandi of Moody's or Glenn Beck (whatever your personal opinion may be, these guys toss out some pretty indisputable stats).Oh, and if you have a couple of minutes, check out the Wall Street Journal's take on the history of the meltdown (there are 3 parts, but I'm only embedding part 1):OK, back to the think tank.Sincerely,Dan Waterman
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Not too long ago I posted questions about any contacts out there for the FDIC. Several folks were very generous with the information they had and I seriously followed up. I thought I would update you now with what I mostly HAVEN'T been able to find out.Prescient is a mega broker for them but they do only take written applications that should have already been mailed. I wouldn't let that stop me though. Prescient's web site leaves much to be desired. Static links and lots of 'coming soon' features. My impression is that this could take a while. I have a townhome complex I am bird dogging for a client but there is absolutely no one I can find to talk to or submit an offer. I know that the loan was bad and that the FDIC took over the lender. I can't find any deed of foreclosure though and I'm afraid that the FDIC pulled the trigger before the actual sale on the courthouse steps. That could be a problem. Anyone run into this before?I don't know what is going on with them but from my perspective they are MIA. Has anyone been accepted by Precient yet? Are they just going to bundle this stuff and sell it off blind to investors? Anybody? Anything?Thanks for your input.Chris
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After reading a message Regina posted about nfsti's training and education I quickly went to their website www.nfsti.com to check it out. I wondered how they were any different than the other companies and how they're website compared to others. I'd browsed through it when I noticed their instructors and coaches are actual AM's and people in the industry who are experienced and up to date on the times. I was impressed to see the amount of advise and resources they offer. It's nice to see they're not like a lot of these other companies that are obviously a get rich quick scheme. I became a member over a month ago and love it. They offer REO courses you really should check out.Last week there was a conference call talking about they're 3 different levels of marketing and how nfsti and REOMasters Network are teaming up to provide some positive and productive marketing resources, tools and support for both AM's and REO Agents (both seasoned and new). I heard Jesse ask some great questions about their marketing plan along with a bunch of other agents looking for advice on how to get in with AM's - the good and bad, which helped to answer alot of questions I've had as an agent breaking into the REO industry. Their marketing strategy makes sense for both sides of the industry, REO Agents as well as AM's which is awesome. My opinion - it encourages us all to work together more as a team instead of people maintaining the gimme gimme attitudes. I'm hoping to be able to sign up for the Executive level and go through the REO 2-day courses. It is costly for someone like me who is breaking into the REO's but it's definetly worth it and will pay off throughout my business. As soon as I can invest in it I will. I'm looking forward to working my business as it grows while teaming up with great companies like REOPRO, nfsti and REOMasters.Check it out and let me know what you all think!
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So, I was looking around the web the other day and came across some REO training programs, of which I will not name however, after reading their pitch I realized they were puffing like a pit viper in a ring with a charging bull. In other words, they were doing some serious puffing.
I read claims like, “we are recognized as the Gold standard by Asset Managers” or “we are standardizing the default industry” and many others. To the unlearned mind, these claims would make one think this company was a power house in our industry however, the truth is another story all together.
It’s first important to understand that our Default Industry, like all of Real Estate, is only standardized by our State Real Estate Commissions. So, unless these Asset Management companies have some sort of mandate from your State’s Real Estate Commission….then, they really aren’t being completely honest with their claims.
Now, it could be argued that they are “standardizing” the industry by bringing on clients and Realtors who believe in their way of business and hold to their standard of doing things however, this truth isn’t revealed in their presentation. At least members of NAR are clearly informed about the difference of a Licensed Agent and a Realtor and we understand, being a Realtor is an option, not a necessity.
As for the “Gold” standard…come on, are they serious? This is the most pompous claim I have read yet. Knowing that our industry has no “standard” how can they claim to be the “Gold” standard? That is similar to me saying my “Southern Stand Up Slap Yo Mama Peach Cobbler” is recognized by the world as the standard to which all other Peach Cobblers are judged….well, we all know that is silly right, especially when I haven’t ever even won a blue ribbon at my county fair.
By the way, I have my own criteria of what I believe a “Gold” standard training program would be and if it doesn’t include coaching or at the very least, input from a proven successful Asset Manager or group of Asset Managers, then they are far from a “Gold” standard in my opinion.
Last but not least….I am sick and tired of people claiming, “we can’t guarantee you business”. Well why the hell not? Is your business model so up in the air you have no clue as to how much income you are going to take in your first year? Are you so flying by the seat of your damn pants that you haven’t projected or forecasted a single sale? I THINK NOT!
Even start up Asset Management companies have trending data, forecasted sales and, some sort of knowledge of where those sales are expected to come from. So, to say, “you can’t guarantee me business” is an attempt to play me as a fool and, I am not hearing it. I have done enough business plans to know that no one is going to lend you startup capital…PRIVATE OR PUBLIC without some type of forecasted ROI. I also know that when you were forecasting that ROI you had to come up with who your clients were going to be and how much business they were going to give you and where, geographically that business will come from. So, give me some type of assurance…maybe not a guarantee but at least a goal for goodness sake, I know you know.
Good luck friends, stay sharp, stay safe and let me know how I can help.
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I am often asked how to set up an REO team. Of course there are many ways to do so and some are better than others. Ultimately you have to do what works best for you and your clients. Here is how we've structured it:1. Person or team to access damage, handle lock outs, visual inspection, opens property for utilities, take pictures, check occupancy status, handles cash for keys and installs lockbox; usually has a CWP.2. BPO agent or team depending on how many listings you are getting.3. REO agent or team coordinator who inputs listings, takes in all the offers, follows up and closes transaction.4. Billing person or team to pay all vendors and make sure expenses are submitted to asset manager.5. Dedicated asset manager liaison to negotiate and handle all matters directly with the asset manager.6. Dedicated receptionist to field all incoming calls and give out to agents per broker/team leader instructions7. Agent or agents to sit open houses and field incoming buyers calls; they pay a referral on the calls only.8. Commission disbursing person or team.Besides that there are the usual dedicated repair contractors, loan officers, home inspectors, escrow officers and home warranty representative. Be careful when your starting your team that you hire ethical agents that are not going to try to take away your buyers or REO accounts. Make sure you have a detailed written contract that stipulates every member's duties.
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OK - another pet peeve I have to air! I just completed 2 BPO's, the first one was listed and in the MLS but there were NO, ZERO, ZILCH photos for this property in the MLS system, nor were there room sizes or any additional info. This REO has been on the market since 11/16/08 and has gone from $129,900 to $115,900, what a disservice to this bank! Stats confirm that 65% of buyers find their homes on the internet with the majority on Realtor.com. Our MLS automatically inputs listings on Realtor.com provided you have photos. The other BPO I did was for a property not yet listed but the agent had his sign in the yard with his MLS logo, this is against our MLS rules to place a SIY without a listing agreement, etc. I continuously see the two examples I have given and wonder why these agents continue to get REO business. Sorry, but I just needed to vent again!
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One way that I have found AM's is through facebook. I caution you thought to have patience. Here is what I did...First I grabbed the most current list I had of website and companies. Then, I searched FB but not by the companies like you would when searching by name of a person. Lets say you search "REO****" instead of "John Doe". That is how I found Witt *******. He is wide open and may or may not add you as a friend. Then just be genuine...and attract the business.Again I caution you, with all social media, you dont go to a party and say "Let's do business!" Knock your self out. I am finding that one out of ten are unlocked and receptive..but you have to be patient...GO FOR IT people!Thanks for reading my post.
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I received 3 bpo orders today. I was really glad that two of them are possible listings. One was from Protek so I could use the 50 dollars. The other two were new assignments and the training in AZ looks like it willl finally pay off for AtPac. The best of all is that..the farthest was 2 miles from the office. The one from Konduer might be stringing me along but they said they really like what I did with my panoramic software. My set of comps were on street over all right next to each...so I improvised and took a panoramic.
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Have you heard of HVCC? Well, if you haven’t, where have you been?
HVCC is the Home Valuation Code of Conduct. It went into effect May 1, 2009. Many have their opinions on the effect HVCC will have on our industry and I haven’t learned enough about it at this time to form a valuable opinion however, check out the link to Freddie Mac’s page about it and decide for yourself.
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I am so tired of having to deal with incompetent realtors, unfortunately, this will never go away.My favorite thing is when I represent a buyer and send an offer over to the listing agent and then get this response:"Well, that is unacceptable, ridiculous offer. The property is listed for $199,000 and your buyers are offering $180K??? That's 20% below asking price, this isn't going to work"WOW - Didn't know you were the seller Mrs. Listing Agent. Didn't know you graduated #1 in Math either Einstein as that is only 10% below asking price. Why don't you present the contract to the person who actually owns the property, and let's see what they have to say instead of your huge ego getting in the way?
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Isanti Rocks! Last night there was a chance for anyone interested in learning more about the options offerred by the City of Isanti for homebuyers who would like to help clear the foreclosed properties sitting empty in the city proper. Only six of us showed up, two contractors, a lender and a buying couple (my new clients!) The city has been granted over 500K to use as downpayment assistance in the form of 0 interest loans, which are forgiven after set terms (5 years, 10 adn 15 depending on how much the 'loan" is). There are two programs, which can be used together. $12,500 in Incentive based Downpayment assistance, for anyone purchasing a home that has been vacant 90 days. $15000 for needs based downpayment assistance based on a 29% front end ratio. There is also a rehab loan for up to $30,000! They are still looking into the possibility of using the Greater Mn Housing fund $10,000- $12,000 loan in conjunction.Greater Mn. Housing Fund is for purchase of a foreclosed, OR SHORT SALE property. Must be in an incorporated city, have city sewer and water. Must complete homebuyer course, must be able to qualify for a mortgage, and must have an inspection. Income guidelines for Chisago and Isanti:Family size 1. 47,100 2 53,800 3. 60,500 4. 67,200 5. 72,600And, for first time homebuyers, this does not affect the $8000.00 tax credit!I have two buyers going out today..the money needs to be used or lost!
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