Anyone else given up yet?

I am just curious! Has anyone else given up yet on becoming an REO Agent for any new banks, servicing companies or third-party asset managers? I have been selling REO for about 3 years now and was fortunate enough to get approved by a few good and long-lasting companies in my initial stages before the storm of other agents realized what a good decision it would be to sell REO Assets. I spent the first few years signing up and selling, signing up and selling, going to REO Events, signing up and selling, going to REO Events. I kept hearing the promises that I would see assets. I kept hearing the experts say, keeping applying, keep showing up to the REO Events and it will happen. Well, it's been about 2 years since I have been approved by any new asset management companies. I have stopped attending the REO Events. I don't want this to be a "Debbie-Downer" blog post, but I'm tired. And, to be honest, it feels like the tide is turning. We are now seeing values beginning to stabilize. We are now seeing Short Sales dominate the market and recently we have also begun to see delinquencies and pending foreclosure actions begin to decline. While I know the flow of REO Inventory will continue for a few more years, in my mind, I feel like the parties over...or at least beginning of "last call".

So, what now? On one hand, I don't want to give up, because that's not in my nature. But on the other hand, I don't want to be short-sighted about my business. I have begun to focus more time and energy on my "normal" (whatever that is) retail business. If the economy continues to push forward, real estate values and the "normal" retail real estate business should push forward as well. I will continue to market for Short Sales in the area's that I farm, but what do I do about the REO business. Has anyone been approved recently by any new companies...AND received new REO Assets?

My message today is to continue to push forward. Continue to find the markets that work for you. Continue to find the products that work for you (REO, Short Sales, "normal" retail). But I have to tell you that this is my own "self-help" blog. Really...I'm not kidding...I needed my own self-motivation today and this is it. Thanks for listening and if anyone has any feedback...I can't wait to hear it.

DON'T DO IT! Do not give up. I just received a new listing from one of my vendors I had not heard from in a year. REO prospecting is just like any other you must do to both often and consistently. The days of the MEGA REO Agents may be coming to an end except for the GSE's but that seems to be changing as I have seen three new HUD brokers put on in my area in the last 6 months. I have noticed a lower CAP rate (number of listings any one agent may carry) in the last few months but that just means the business is being spread around and that is good for everyone. As for BPO's they are a steady stream of income, great practice that keeps me on my toes on area value, and I have actually even had vendors call me from a BPO I did for a Mill and offer me the listing because my $45.00 BPO was the best they had ever seen. I put all my BPO money in a seperate savings account and low and behold I have enough money at the end of each year to take a fabulous vacation. Using systems like BPO-Automation make is so easy that I figured it out and I make $1.00 a minute doing BPO's at night leaving it open for me to prospect and work all day long. I just pop out and take all my photos on my way from one place to another. I agree with the rest that Certifications and Upgrades are a total waste of money. Please don't give up that is what your competition wants you to do. Good Luck, and go get 'em.

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Comments

Brandon Jordan May 15, 2011 at 8:18am

I am in Northwest Florida and I have had two companies that are new to me in the last two months contact me and send me listings. I feel the shadow inventory will have to work its way into the market sooner or later.
C J Johnson, Broker/SFR/CRS/ABR May 4, 2011 at 2:19am

DON'T DO IT! Do not give up. I just received a new listing from one of my vendors I had not heard from in a year. REO prospecting is just like any other you must do to both often and consistently. The days of the MEGA REO Agents may be coming to an end except for the GSE's but that seems to be changing as I have seen three new HUD brokers put on in my area in the last 6 months. I have noticed a lower CAP rate (number of listings any one agent may carry) in the last few months but that just means the business is being spread around and that is good for everyone. As for BPO's they are a steady stream of income, great practice that keeps me on my toes on area value, and I have actually even had vendors call me from a BPO I did for a Mill and offer me the listing because my $45.00 BPO was the best they had ever seen. I put all my BPO money in a seperate savings account and low and behold I have enough money at the end of each year to take a fabulous vacation. Using systems like BPO-Automation make is so easy that I figured it out and I make $1.00 a minute doing BPO's at night leaving it open for me to prospect and work all day long. I just pop out and take all my photos on my way from one place to another. I agree with the rest that Certifications and Upgrades are a total waste of money. Please don't give up that is what your competition wants you to do. Good Luck, and go get 'em.
Sherre Watson-Salcido May 3, 2011 at 8:47am

I am right there with you. I was advised the best way to break nito the REO business was to complete BPO's. Guess what after doing bulk BPO's, I have received a few REO's but not enough to talk about, I am so not seeing where it is a help to receive REO.s.
CECILIA D FOX April 29, 2011 at 10:21am

DATELINE: AKRON OHIO. I have been an REO agent for 12 years - long before the big crisis. Things were fine up until the Feds finally noticed. Between pushing loan mods which historically only worked about 30% of the time and the lender screwed up robosigning etc. holding up inventory and clients disappearing/buying up my other clients/setting up their own state-wide real estate companies (example Ocwen bought Homeq and set up Altisource offices), my business has fallen like a rock. I can usually make a full-time living doing BPOs but that has its ups and downs now also. Normal is probably not going to happen in the next 5-7 years. My listings are 90% investor owned short sales - the worst kind. I too am having to rethink my business model. ****No words of wisdom here but to let you know it's not just you or agents new to this end of the business. (You'll NEVER hear me complain about "newbies" - a term I hate!) It is also affecting the very experienced as well.
Ann Nicholas April 29, 2011 at 7:02am

John,

I have thought about this a lot. My area in particular seems to be in a recovering stage. I don't think there will be a lot more reo listings to share among all the hungry listing agents out here.
Patrick Willard April 29, 2011 at 6:11am

I haven't given on trying to get new REO business but I have given up on the idea that I can just do REO. Some of my clients are gone and the ones that are still around just don't send as many assignments as they used to. I've started listing short sales. Don't like it as much as REO but it's better than having no business. I've also given up on giving money to every out-sourer, certification program or platform that tells me I'll get more business if I just pay them. I don't mind spending the money but the reality is for the most part it doesn't bring any business. I now stop and think if I put that money into marketing for non REO business will I get a
better return that if I give it to flavor of the month REO. Unfortunately the answer is yes, it will.
Lillian Lively April 29, 2011 at 5:44am

HI John,

I have spent much of the past few years signing up and selling myself. While I cannot say that I am giving up, after only 2 listings and a jillion (a bit of an exaggeration) BPOs I am really clear that I can't ever put all my eggs in one basket. The market is so goofy right now ! To stay in the business an agent must have more than avenue to closings.
Pamela Lester April 29, 2011 at 4:01am

Hi John,

....me again. I spent $2000 in the last 6 months to get additional certifications and that has gotten me no additional business. I get most of my business through RESNET. Good luck to you.
Pamela Lester April 29, 2011 at 4:00am

Hi John,

I would like to respond to your letter if you would add me as your friend. I am an 18 year Principal Broker from Bend Oregon.

Pamela Lester
Frank Alvarez April 29, 2011 at 3:22am

I havn't given up, but I've realized (the hard way) that paying close to $1000 for Equator Platinum and short sale certifications were worthless, not to mention some other REO certifications, at $399 a pop, did nothing for me. I've probably spent close to $4000 for all the garbage including a REOMAC conference that did not add one listing I wouldn't have gotten anyway.

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