I am a Realtor in North Idaho. Coeur d' Alene, ID to be exact. I have been in the business for 8 years. Two years ago I saw that the market was shifting downward. Our foreclosure rates were on the rise and I saw an opportunity in a field that I had always wanted to pursue. I had done three bank owned deals in my career. They were all with local mom and pop banks. How did I break into the REO's?Well for one, I refused to accept the mantra that it is a closed field. I followed FC notices in our paper and followed homes that interested me all the way through the sale. When no one bid at the auction, I googled XYZ bank REO department. I called and stayed on hold forever. I was always polite. When I got through to the right person, I would say "Hi I am an agent that works in the area that your bank just took a home back in. How would I go about getting on the list to be an approved Realtor to help sell this asset for you? Most times they would say "we are not interested". This actually rarely worked but I kept at it. One day I was walking in my neighborhood and I noticed a vacant house with dead grass (the REO calling card!) The neighbor was super helpful and told me she heard a bank out of TX owned it now. I googled this bank and got the right number to call them. I gave the lady my spill and she said "I was just about to assign that one; it is right in front of me. What is your fax number and I'll send you over the agreement!" I don’t know if cloud 9 would be high enough for how high I was floating!I may have been on cloud 9 but I was clueless too! I knew how to sell homes but the REO side was new to me. I never let my seller know how clueless I was. Anytime something came up that I was unsure about I got online and googled till I figured it out. I registered on the various sites to upload the offers and forms, again learning as I went. I paid invoices with no idea of how I was going to get paid back. I was able to get this little home sold for a good price and the asset manager was happy. Not a week later the same bank sent me two more REO listings!From there, I could see that I was on to a good thing and that this is something I needed to pursue all out. I began buying courses, googling, reading blogs, and just getting information anyway I could. One of my courses gave me a list of banks to register with. I built a resume and gathered the necessary forms. I spent one week registering with every single bank on the list. I paid for memberships to several REO platforms so asset managers could find me. I continued following foreclosures in the paper all the way through the sell. I continued calling those banks. My business grew and grew.To this day I continue doing all of the above. I never sit still or take my inventory for granted. I would say that I am one of the smaller fish in this huge pond of REO brokers. I currently have 12 REO's in some stage of the process. Just yesterday I closed two and one more is signing today. I have been able to build a list of investors that want these properties so I find myself doing both sides of about 25% of my properties. I consult with them throughout the remodel and then help them sell them if they are flip deals.I learned early on that you have to build systems to maintain the influx of properties. My scanner and Blackberry are my new best friends! People drive me crazy when they say "ohh, you are so lucky to have all these deals in a dead market." My broker once told me the harder you work the luckier you are. Now that I can believe. If you want to get started in REO's work at it, envision it, be determined, and stick to a plan. I believe this REO boom will be around for awhile. Grasp the opportunity and go for it!P.S. I am envisioning myself working with Bank of America and Wells Fargo! I'm not sure how that is going to come about but I know it will! Any tips?The Holy Grail in my business would be to get in with Bank of America or Wells Fargo. If anyone has any tips there, that would be great.
I got into REO the old fashion way, doing BPO's. BPO's have slacked off substantially since last year in this market place. Early last year I was doing 80-100 BPO's a month, all myself, drive by, interiors's. This was a 7 day a week business for me. My clients then began to ask me to do their REO's, now I close 2-3 a month, small operation here, but very steady. MOST RE agents are NOT suited to the REO world. I have a friend here in Tampa Bay who is an agent, very experienced, REO type. She had an agent in her office pestering here about getting 'into REO' - her broker even approached here to 'take the lady with ya on one'. Well she did. The subject was very common for this area and had it's share of: Fleas (live and dead), dog poop through most of the house, that distinctive 'roach' smell etc. Well that was the last time that new lady in the office ever mentioned REO to my friend.
There is no easy answer. Personal contacts are a GOOD way in. I recommend doing BPO's. I have one BPO mill now that added 2 new questions to the forms: Are you an REO BROKER, Number of REO Sales in the last 12 months (there was a third, but I forgot what it was. It appears they are getting the BPO providers name in front of the REO managers.
John, Thank you for sharing your story. I do have a question for you, or anyone else who might be able to offer advice. I have been an agent for 5 years, mainly doing buyer representation. Prior to that I was Director of Finance Products for a software company, and I had all of the responsibilities that go along with mgmt. I also have a degree in Business Mgmt. I know how to do a buiness resume, but I'm feeling a little lost on a Realtor resume. If you are trying to break in to the REO market but have no REO listing experience, how do you write your resume to put yourself in the most attractive light? Does an asset manager care about prior experience outside of the REO world? I would truly appreciate any insight you can all offer!!!
Good Job John! I just got my first batch of listings from BoA and I'm so excited. So far they have a dream to work with. I took my 9 months from first contact with the A/M until I got these listings just last week. It takes time, effort and improving your marketing plan when you see a flaw. Keep up the good work! There's lots of work out there for those who learn how to get it!!!
Very nice story John. BofA and Wells....I am fortunate to do business with both, and it this point the only advise I can offer is, make personal contacts, anyway, anyhow. Both Companies are of course closed, and actually thinning the herd a bit more. I would take advantage of linkedin or other social networking groups to try and make a one on one contact with someone who might be able to open a small crack in the armor someplace
Thank you for sharing your experience and sending the positive vibes. Keep up the good work, someone has to take a chance on the newbie. Sometimes the newbies outperform the pros.
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There is no easy answer. Personal contacts are a GOOD way in. I recommend doing BPO's. I have one BPO mill now that added 2 new questions to the forms: Are you an REO BROKER, Number of REO Sales in the last 12 months (there was a third, but I forgot what it was. It appears they are getting the BPO providers name in front of the REO managers.