Ok, first and foremost, let me start by explicitly stating that the following commentary is my opinion and my opinion only! It isn’t to be considered legal advice as to which I am not an attorney. I am a Realtor, specifically a RDCPro (REO Default Certified Professional) which I obtained through www.realestateeducate.com, a accepted and recognized provider of REO Education by such companies as Wells Fargo, Fannie Mae and Freddie Mac.
Now with the disclosure out of the way, let’s talk about all of these “get quick REO” offers you may be getting in the mail, over the internet, through infomercial’s or at seminars open to the general public.
First and foremost, to understand why I don’t care for these programs you must first know who makes the decision to give you a REO listing. Asset Manager’s, Loss Mitigation Officer’s and Project Manager’s are the people who have all the control over the REO listing. These are the people who assign REO’s.
So, the next question is, how do they assign REO’s? Most AM’s (Asset Managers, Loss Mitigation Officer’s and Project Manager’s) all have an analysis and reporting system that provides them with statistics based on the efficiency and accuracy of your work, as an agent. So, in other words, you’re being graded on how well you do.
Some common metrics are; List to Sell Ratio, Turn Around Time, Suggested Days on Market to Actual Days on Market Ratio, and many, many more. These metrics have a numeric value, for arguments sake, lets agree on a scale from 1-100, 100 being the best. Ok, so let’s also agree that you have obtained a designation from a recognized provider and, you have being providing BPO’s to ABC Bank for the past 6 months.
By now, ABC Bank has received enough BPO’s from you to assign you a score based on their metric reporting system. If your score is below 95% then most likely, your not going to get a REO. That’s right, 95%, for many AM’s is the minimum to get a REO. Ok, I agree, that sounds really high however, it is what is expected so, when you do those BPO’s, you best make sure your doing them as accurately as possible. Granted, I don’t believe existing REO agents, who have years of history are held to the same standard however, I am not sure much can be done about that.
So, my point with all this is, as you can see, a book from Quick REO Listing.com, isn’t going to help much other than possibly teach you how to do a BPO. That’s fine and all however, if your going to spend that kind of money, then do it right and get a BPO certification from NABPOP (National Association of Buyer Price Opinion Providers) who is recognized in our industry as THE provider for qualified, serious, BPO Providers vs. some no name, half baked, we take your money and send you a book, crack pot. (ok, so the insults may be a bit extreme but, I am sure you got the point.)
Now, of course, some people get in the business and don’t have a BPO designation from NABPOP and yes of course, some get in the business and don’t have a RCDPro designation from realestateeducate.com so, how did they do it.
Most likely those fortunate people already knew someone else in the business or, they went to a conference ready for an interview with the movers and shakers in the REO industry. What I am about to say, isn’t fair, by no stretch of the imagination but, it is the truth so, here I go.
Conferences, are the best way to get out in front of the AM’s who make this industry move. These conferences are set up so that the AM’s will have booths, teach a class, offer a FREE seminar, or hand out goodies and marketing materials to all who stop by and say hi! My best advice is to attend these conferences and be ready to interview. Hell man, it’s a captive audience so take advantage of it! Dress to impress, pop in a tic tac, slick back the hair and get those lips ready to schmooze! Walk around, shake some hands, drop off a business card AND RESUME! Look these people in the eye and express your desire to help them by making them look good to their bosses. Tell them you are ready, willing and able to help with the liquidation of their real estate portfolio holdings in your service area. Many times, this interaction is exactly the same thing as an interview. In other words, look at this opportunity as an interview for the job you want and, that is property preservation. Word of caution here, these AM’s don’t have time for you to blow smoke up their skirts or pants, if you please. They are going to know very quickly who they will work well with and who is serious. Don’t forget, everyone else in line as you, ahead and behind you, are doing the same thing as you, so be prepared to make yourself standout and be memorable otherwise, you end up a wash and the experience doesn’t net you anything. These AM’s can and will make decision on the fly and they have the authority to by pass the standard protocol’s when determining if they are going to give you a REO.
Once again, all this said to enlighten you that some book from Quick REO’s R Us, isn’t going to amount to a hill of beans here. With the money you spend on that silly book, go out and get you a REAL education with a certification or designation that is recognized and accepted in this industry and, I have only found three I would ever consider or purse. If you know of anymore, please fill me in.
They are, www.realestateeducate.com’s REO designation and www.fivestarinstitute.com’s REO designation.
Good luck and stay tuned for more of my blogs on How to start getting started in the REO business.