Ok, this blog is going to cause a lot of friction however, please understand that is my goal. I really want to hear your thoughts, both the pro’s and con’s.
Our industry has a lot of REO / BPO Firms popping up out of no where making huge promises if only you pay 199.99 for their training / certification / designation. The problem is, most of these companies aren’t what they are cracked up to be.
In fact, it has come to my attention through an anonymous source that many (how much exactly I don’t know and neither did my source) of these REO / BPO companies using their “designations, certifications and training” as their start up capital vs. going out and getting real funding from a bank or private capitalist. Well, you maybe thinking, “what is so wrong with that?”…….let me explain!
These companies don’t intend to ever produce a REO / BPO for their agents…..that’s right, you read correctly.
What these companies are doing is putting together a list of Realtors who are “certified” then they shop that list out to a Asset Manager list they bought from a data source like, Datasource.us. In other words, they aren’t doing anything more for you than you can do for yourself!
Read their agreements very carefully. They say things like, “Participate in our Advertising Program or We Assist our Clients in Finding the Right REO Agent to Sell Their Listings or Lenders Choose from our Experience List of Agents….blah….blah….blah.
You never hear them say, “Mrs. Jane Doe Realtor Extrodinare, our client…ABC Bank has three REO’s we need to assign in zip code XXXXX so, can you work that for us?”
In other words, they never quantify, qualify or guarantee and, that is because they can’t…..your just another name on a list of hundreds, if not thousands of other agents that are mailed out to these AM’s and after reading over the latest edition of “Ask the AM” we know how far that will get ya.
So, what about that 199.99 you paid, what is that getting you…..NOTHING! In fact, rather than going out and raising start up capital like any other legitimate business, these people are pocketing your training fee and using those funds to keep their illegitimate business cycle a float. These people can’t get start up capital from a bank or private investor because they can’t prove they will ever produce a single REO / BPO. So, if that is the case, why in all of creation do you think you are ever going to get a REO / BPO from them.
Now, let me make one disclaimer. I work for a company who charged me a 100.00 training fee and yes, I have their “certification / title” but, I researched the hell out of that company before I paid them and now I can tell you, it was one of the best decisions I ever made. I won’t name the company in this particular blog but, if you know me well enough, you know what company I rave and support vigorously. If you dn’t know me that well…..read my blog archive, I have blogged about them several time and love them.
Now back on topic….so, as I was saying, many Realtors are paying these fees to never see a single REO or BPO only because, the company they signed up for never intended to produce a REO / BPO in the first place.
Even if they did go into the AM business with true intentions but, after 3 months, you haven’t gotten a single assignment, ask yourself…what is going on.
Truth is, with the high number of REO’s and BPO’s going on right now, to wait more than a couple of weeks for an assignment that cost you 199.99……..something is terribly wrong.