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I just got my brokers license here in Texas and ventured off on my own, at my previous company I acquired distressed homes for a company with majority of them being REOs. Just wanted to see if it still worth trying to get into the REO business? Here in San Antonio there is about 6 agents that pretty much have it all locked down and have been doing them for years.
Ive signed up for 15 or so valuation companies to start doing BPO's, have only got one assignment emailed to me but was quickly taken by another agent. Please give me your thoughts/advice I would really appreciate it.
Study how Alt-Option Arms work. And the time frames associated with them.
Alt-Option Arms were used by people who could not possibly afford the homes
that they bought in the belief that they could flip them in 6 months for a $100K
profit. These are higher quality homes than the hovels that defined the industry
in 2010. Now these people who were left without a seat when the music stopped
(Because in FL we are a judicial state and it takes anywhere for 24-60 months
to foreclose) IMHO we are about to see the second wave. Regular people who
bought homes for themselves are finally coming out of being under water.
The speculators who got loans where the payments were less than the interest
per month (yes that means the balance of their loans was increasing each month
as the value of the properties tanked are seeing their payments go from $900 per
month to $5,000 overnight. Study the difference between an interest rate resetting
and and Alt-Option Arm Recasting. It will be a REAL eyeopener for a lot of agents.
It all depends on where you live. I am in Texas and our BPOs and REO's are drying up. I get a few REO's but not many. Some of the BPO companies pay $15..really? Not gonna do it. HUD is drying up as well, I have been a HUD agent and there are only about 215 HUDs in the entire state. Our housing costs have drastically increased so no one is really under water any more. If Dodd-Frank is repealed, who knows what may happen...