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I use to get REO's from Land America, IAS, Servicelink, USRES, LAMCO. It seems now everyone wants you to pay a membership fee in hope of receiving REO listings. For several years, I've paid from $200-$500 in fees and have not received one REO. But, I continue to see REO's all around Colorado. I know IAS and Land America are out of business. I feel, I'm being hassled when I'm required to pay a fee in hope of getting an REO. I have an excellent track record. I've even run adds in DS News to no avail. I use to manage all preservation task (trash out, rekey, clean, lawn cut, cash for keys, winterization, board/secure, etcetera), for all my clients with REO properties in Colorado. Every REO, I received went under contract within days of the listing and closed accordingly. I specialize in getting the highest possible market value for REO properties. Ninety percent of my business was REO and now, I don't receive any REO properties. I went from receiving 20-25 properties per year to nothing.What am I doing wrong? Most of my old asset manager contacts are gone and/or the company closed. Who has some good advice??????
Hernab, The market is changing. My business is way up over 4 years ago. Several things, never be content with today's clients. Here today gone in the morning. Knowledge is power. I know who has what in my market and I go after it. I execute to a T. My score cards are perfect. I have watched many others in my market go by the way side and I have taken their clients. They miss a deadline I am next on that asset managers list and have that listing. I picked up Fannie Mae last year for their RMS program, I am the back up on HUD for several counties. I watch every player and every amc in my market. I can tell you if Jeff was sick and missed a deadline. I emailed to call on "his accounts' because since he was sick he got behind. I am a broker owner and I have employees who I pay very well and as a team we execute.
I had that problem too for awhile. I still have some that have fallen by the wayside. In fact you have to really keep in contact with certain people. I know that many companies change contacts and they do not know who you are. Also, you may have to sign up for more websites ( a necessary evil) and a lot of them. Some are free, some are not. REO Network, Resnet and Dispo are some of them. Send emails to your old asset managers and find out what the issue is. It may be as simple as you have not updated your profile. Also, some are outsourcing to new companies and the new servicers may not know who you are. I have also found that it is slower. Just look at the number of Freddie Mac, Fannie Mae and Hud listings. They are down dramatically. In 2009 and 2010 I went from 100 sales a year to about 30 (average commission was $1000 a property, very bad years) and then started to pick up again in late 2010. I found that not having premium memberships hurt and also there were more REO agents or wannabe REO agents crowding the business. I have picked up dramatically in the last year and have reached out to new companies. In the last month I have had new listings from companies I had not heard from in several years. I think if you can afford to pay for some of these websites. and be careful, not just any website, you should pick up. That and reaching out to people will help. I would also suggest signing up for BPO companies because I have gotten listings from banks and REO clients who liked my bpo reports. I hope this helps.
You are doing nothing wrong, but sorry to say, the "train has left the station", and we have a new market that will have minimal REO business. Best to keep your cash in the bank, and not pay up front. Agree to pay any fees at closing.
I don't know if I totally agree with that. I think in some areas, yes, however there are new REO clients that are focusing in different areas. REO is just changing and you have to know where to go. I do agree that you should be careful of paying out to certain vendors. but sites like REO Network and RESNET do help.
Michael - You are dead on correct!
Will anyone listen? Afraid not! Mot will keep slipping deeper and deeper into the REO hole until it dries up and they are left with no business.
For 7 years I worked with IAS, during that time only getting 4 REO listings. Go to google.com and type in Integrated Asset Services and see the lawsuits, and bankruptcy reports on them. I don't care if they do restructure, I'd never do another think for them and many others are in the same boat. Always go to google.com and type in the company you are considering doing work for before you start anything. Even on this site IAS is still listed with 3 stars and they shouldn't be. I tried to get their stars off, but they said they couldn't do it, so beware of the REO companies on this site and go directly to google.com and type in any new ones you are considering.
Same thing here, all my clients either closed down, were bought out or the assignments dropped to next to nothing. I personally am tired of the pay to play in the REO business. For example I had one client that went to Dispo. Between 2000-2006 or so they were good for 25-30 listings a year with a 25% referral fee back to them. From 2009-2013 I got 5 listings. They went to a 33% referral fee, $300 a year for Dispo, $5 per invoice for reimbursements plus a $75 tech fee to Dispo at closing on the last two. The last one I figure I made 1.6% on a $105K sale. Last July when it was time to renew my Dispo subscription I didn't. I figure I could put all the money I'm giving them, with no guarantee of any business, into mailing a farm area or mailing NOD lists for short sales.
My opinion is as long as we are willing to pay these ever increasing annual fees, portal fees, referral fees and so on we'll just get less and less business. They've figured out if we are willing to pay $400 a year for the privaledge of doing business with them they can make more money off us by having 50 agents in an area and giving each 1 or 2 listing a year than if they have 2 good agents and give both 25-50 a year. I'm tired of their hands in my pockets, until/unless it changes I'll just work with regular customers.
Hustle - that is it. No matter what business you are in - you gotta hustle. We are self-employed entrepreneurs.
Make the work happen. Do not get complacent. You have to always have a business plan, be motivated and work. As far as REO goes - I am in a crazy competitive market and the business is steadily increasing. People will say - timeframes, scorecards, etc, etc. YES these help - but bottom line you gotta hustle. No one is going to give you anything based on the past. Most AM's are like us - there is little to go around and we all are hungry... We all have families, obligations, etc - isn't this why we all got into the real estate business in the first place? To make money. Track your ROI, Track your leads, track the time you spend during the day. It is UP TO YOU to hustle. You know the game, you know the demands - do not take no for an answer. Always be available. The best the I have ever done is stay consistent. I will call, email, follow up - and always say "if there is an opportunity - I would love to work with you." That's it. AM's know you want business and if they like you they might want to give it to you. But the constraints, overlays, timeframes, nuances of the investor/client etc BS bogs everyone down.
Lets take this to the simplest form - no one will give you business. you have to earn it. My motto is simple - You will NEVER get what you don't ASK for... it is just HOW you ask..."
Does this solve your problem - probably not in the short term - but in the long run you have to hustle. We all have to go through breakdowns to get to breakthroughs...
I apologize if this whole post sounds cliché - but I really felt compelled to reach out to you and others reading this as a whole. Real estate is such a fickle business. We have to stay on top of our game - daily, weekly, monthly. This is not a charity we are running - this is our livelihood. I got into the business in my early 20's - my family started selling real estate over 40 years ago in the San Diego area - my grandmother is an agent and I remember as young as 4 years old walking neighborhoods handing out little pumpkins... This is grassroots, back to basics. No one is going to hustle for you.
GET AFTER IT - because if you are someone else will. I am now in my early 30's been in the business for close to a decade - my family has grown our business from just 1 agent to having over 100 agents who work for us. I know you wont want to hear this if your only focused on REO - but establish multiple pillars of business. Stop paying for non producing ROI - invest in a coach, mentor etc - I hear great things about different coaching. My mindset is this - stop paying for DS news - invest in what gives back to you - if this makes sense to you. I have nothing bad to say about DS news - I just can not speak to the ability to produce a lead for you. invest in your personal growth - different aspects of the business... Focus on you - NOT REO, NOT BUYERS, NOT SELLERS. Approach your clients and your business as you being the only one they should turn to...
I absolutely HATE it when I see someone posting on here, FB, memberships, orgs I am apart of asking - should I pay for this company - or is this legit?!?... There are SO MANY scum sucking companies out there preying on individuals to get money. DO NOT PAY FOR A LISTING PROMISE - Go market, knock on doors, open houses, go to a Ferry / buffini / tracy / stumpf / Corcoran / anyone who is going to motivate you... Better yet - google it and there are so many youtube videos out there to PUMP you up on what you need to do. But you know what - 95% of the time you get sidetracked.
The only person who controls your business is YOU. Good luck - you got this far.
Hernab - What you are doing wrong is putting all your eggs in one basket.
REOs should be a sideline - just something to add to your REAL real estate business. Never sit back and wait for anyone to send you some business. Might work for a while, but it will play out sooner or later.
List and sell, list ad sell, list, lit, lit and lit some more. If you get a decent REO, that's just a bit of icing on a cake.
good post, however in my state, the fair market properties are just sitting on the market and will not sell. Short sales are hard to negotiate. many sellers do not want to list at the moment due to market trends and this bad winter weather did not help. I peaked with Fair market listings last year, but this year has been tough with anything other than REO. The inventory is so low at the moment that many investors cannot find any properties. it has been really weird. REO gets lapped up almost as soon as it goes on the market.
I only pay RESNET basic and Equator. I have a steady stream of REO's here in Central Kansas. My major players other that those that come thru RESNET and Equator are HSBC( not very loyal), Chase and Citi. I also lucked out and got two companies that purchase blocks of REOs. I only do REOs no owner listings.
Don't depend on doing BPOs for listings. I did about a hundred freebies for USRES and got one listing. I do about two to three BPOs a day. I raised my prices and only lost about twenty percent of my business. Doubled the price and only lost 20%. Less work more money.
Get back on line and register with every REO Company you can find. Green River, Chase, Citi, REO experts etc. I am registered with about fifty but only get business from a few. Send me an e-mail and I will send you a list. email@example.com