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Can anyone tell me their story on how they obtained their first REO assignment.. I have been a full-time
BPO agent for the past 4 years and never ever acquired a REO listing in all of the thousand of BPO
work.. I did. I really worked night and day over a thousands of BPO's in three counties in the state of California.. I now have been so depressed in my business and feel as if I wasted four years of my
Real Estate career.. I am so behind in finances now with my life and wanted nothing more than to
experience the REO listing side of the business.. I wish I had names of asset managers to contact directly.. or had the insight as to how other agents became a REO agent in their careers?
I have a similar story. Where in California are you? I'd like to find a partner in figuring this all out. So far, I've done BPO's for brokerpriceopinion (which I'm now reading a thread that people aren't getting paid from them) and ireopro, which they told me I will get the listings if they are repo'd by the bank, but, also now reading they may be a scam. I'm sick of bring taken advantage of. But, I haven't put a hold on the rest of my real estate business so, I do have escrows and upcoming listings and buyers. My cell is 530-949-9742 and my work email is email@example.com if you'd like to talk about all this.
Dorothy, there's nothing to figure out. Just do a search on any company that approaches you for listings or BPOs. I stopped doing BPOs for brokerpriceopinion.com over 4 years ago for nonpayment and they are still duping agents. The $400 upfront schemes continually show up under different names. Most are out of Colorado.
I am done trying now.. I made a decision as of last year if it did not happen for me by then.. I would move
forward.. I moved this year.. and now I am moving forward with my business to learn new ways to market
myself. and look to find new clients.. I am in Southern California. Where are you located?
Hi Stephanie, I have been all over California, most recently moved from Oceanside to Brentwood. Not the Brentwood in SoCal where OJ Simpson lived, but the one in the S.F. Bay Area. It has taken me about a year here to get things going and now I have escrows, listings and new buyers. I suppose it would have been faster had I not gotten sidelined with an illness that left me unable to walk for a few months. I have sold real estate in Sacramento and my business there took off right away. That was in 2008. I plan to be here for another 4-5 years. My personal email's if you would like to continue corresponding is firstname.lastname@example.org or email@example.com. What part of SoCal are you in? Good luck to you!
REO real estate is very hard to get initially started. There are portals to join, e maillists of asset managers to buy or borrow. Associations like NRBA and REOMAC that once you get big enough will let you in and your career will take off.
BPO's are for pocket money and to keep up cash flow. One problem is the amount of cash needed for each listing. I am the broker owner of a shop that lists for almost every major player. The margins in this industry are very small. It takes a huge volume. When I started 15 years ago, I found out about what portals banks used and joined. I then got a list a asset managers/banks and either signed on line or e mailed requesting being put on their list. After I had a respectable volume I joined NRBA and REOMAC. Now I have lots of listings but the margins are small. Much smaller than 15 years ago. Now also every body uses scorecards. Execute well and feast execute slow and fail.
Thank you for your information.. I am moving on now looking at new ways to market myself and get my
business up and running again. I hope it doesn't take to long to get escrows and start closing deals again.
I really need a lift and to feel better.
BPOs will never lead to REO listings. Most companies will either outsource BPOs or at least it's separate databases of agents.
When I started, way back in 2000, I signed up with any companies I could online and I mailed (I had a list of asset managers). My very first assignment was because my letter hit the desk of a frustrated asset manager at the right time. She had a lingering listing in my area and wasn't happy with the agent. She called and said if you want this listing I'll fire this other agent right now. That lead about 20-25 listing a year.
I recently dropped that client because I had to pay $300 a year to be in their portal, 33% referral fee, $75 tech fee, $5 per invoice fee and so on. All for 1 listing a year the last three. I really haven't done any REO for about 2 years. Just got tired of the pay to play. I'm doing BPOs as I try to get back into retail. I may, at some point try REO again (thinking about going after smaller local and regional lenders), but I will never make it 100% of my business again. Three clients go under or get bought out, two others make you pay to be in their system and then add so many agents that your volume goes to next to nothing and you quickly find yourself going from 50 closings a year to 5. Don't rely on REO. Do it as a sideline or in addition to other business but develop a diversified business.
By the way contacting asset managers really won't help you anymore. Used to be you worked with one from assignment to closing. Now there are vendor coordinators, pre-marketing specialists, eviction specialists, closing coordinators. You deal with a different person each step and asset managers have little or no control over who gets the listing anymore at most companies.
Thank you for your response.
My first REO was w/Altisource out of my area but I took it to get the experience, now I'm 10 REOs sold in the last year. BPOs did not get me the REO. Just put yourself out there in every aspect of the business.
I am moving forward... thanks for your response.
There are still REO's but certainly not the amount as in previous years. Some data bases are still open, but for the most part the Asset Management companies are looking for agents in rural areas. When I was the President of REOMAC in 2008 and 2009, the market was huge for REO's. As an Asset Manager at that time, I was always looking for agents. Now, it is time for all agents to build on other opportunities. I spoke with Freddie Mac recently and their inventory is continuing to drop. Depending on where your market is will determine the opportunity to get into REO. But never give up on traditional real estate. Now that I am the Executive Director of WinDS (Women in Diversified Services) I know how hard some of our members are struggling. At our conference May 3-5 at the Marriott Newport Beach, Newport Beach, CA we are bringing a varied array of speakers that will give other ways to grow your business. We also have Asset Managers that are still looking to add to their data base. The REO field is not dead, just clinging to life right now. But as is the nature of the business, all cycles come full circle, so who knows when the REO market will pick up again. If you are interested in finding out more about the WinDS conference go to www.windsconference2015.com Conference is open to both men and women.
Thank you for your response.