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Fellow REOPros. If you complete BPOs, I offer a way to calculate what your minimum fee should be instead of just taking low ball offers for your hardwork. Here is the spreadsheet I use below. This is for residential properties only. I have attached the spreadsheet to this post. Download it if you like. And if the spreadsheet comes out less than $50. I use $50 as my rate for exterior drive by. For interiors my minimum is $75. Thanks.
1) Open a spreadsheet.
2) In cell A1, type in Minimum hourly rate, in cell C1, place your minimum hourly rate, say $25 or $30 or whatever rate use so choose.
3) Now take the address of the offered BPO location and go to Google Maps and look up the distance and time from your base location(Office, Home). Write them down.
4) In cell A2, type in Travel time, enter the travel time from Google Maps cell B2.
5) In cell A3, type in Round trip, enter the number 2 in cell B3.
6) In cell A4, type in Total travel time, enter the following formula in B4. Formula =B2*B3
7) In cell A5, type in Desk time, in B5 enter (with 2 decimal places, x.xx), Say for this example this is 1.25.
8) In cell A6, type in Total BPO time, in C6, put the following formula, Formula =B4+B5
9) In cell A7, Dollars for travel time and desk time, In cell C7 put the following formula,
10) In cell A8, type Mileage from Google Maps, enter travel distance from Google Maps in cell B8.
11) In cell A9, type in Round trip, enter the number 2 in B9
12) In cell A10, type in Total mileage roundtrip, enter the following formula in B10, Formula =B8*B9.
13) In cell A11, type in IRS current mileage rate, in B11 enter the current rate, 2017 rate is 0.535
14) In cell A12, type in Total mileage dollars, in cell B11 enter the following formula, Formula =B10*B11
15) In cell A13, type in BPO compensation, in cell C13 enter the following formula, Formula =C7+C12
|Min Hly Rate||$40|
|Total BPO Time||56|
|$ Travel Time||$96|
|IRS Mile Rate||0.535|
|Total Mile $||16.585|
|BPO Comp $||$96|
OK, so this mean that if I do a BPO and it takes me 2 hours I should get paid $96 dollars in order to make a profit, and I am loosing money by accepting $40?
Why would take 2 hours to do a BPO? You are not doing an appraisal. My typical desk time for 1 BPO is 20 minutes. I typically group together numerous BPO's in one drive so I am not going out for just one.
My average "salary per hour" on one BPO is aprox $45/per hour doing about 70-90 per month. Pay range is anywhere from $35 to $150 per order.
You dont need a spreadsheet to figure this out nor is doing the whole, take out for gas,miles, etc on one order accurate. I have been doing this for 15 years...