Posted by Johnny Huang on January 11, 2010 at 4:20pm
How does one get into the REO business?Yes, Jesse, our REOPro CEO, has addressed this many times and this question is still asked by many newcomers. I'd like to make my input on how I obtained my REO listings....by doing lots of BPO's!I posted several blogs on another site and will post them here for sharing purposes.Title: BPO Stir Crazy blog dated 2/15/08 (yes 2 years ago!!)" 2 days worth of applying to companies for BPO's!! I now have a Big Pounding Oversized headache!What a chore.At the moment I have access to 3 so far, yet no orders are available. I'm waiting on a bunch for approval and I'm keep my fingers crossed to get them.Wish me luck :-)"You see here, applying to companies that assigns BPO's and being on the sites that require to capture BPO's are crucial to get started. REOPro has a list here. Use it to your advantage, it's a free list and to get started you need to apply! I've literally applied to almost all of them. Some you get, some are closed, but it's a start.Title: BPO Learning Curve dated 3/8/08Now I've done a some BPO's (Averaging 2 per week) and here's what I've learned.1. READ the email and get instructions on what the asset company wants. This is important because not all of them want the same thing.2. Have your camera ready. I made the mistake for not checking the batteries on my camera. If you don't have your camera ready, the trip is fruitless.3. Have your lockbox key ready. See above for that mistakes. Extra trips to the subject property is wasted gas money.4. Do your tax record search and MLS Comps in advance. Looking these up should be at the snap of your fingers. I like to print them out to review them, instead of browsing on my screen. It makes comparing and jotting notes easier.5. Have an idea of the price before you go. Sometimes you can "see and feel" the neighborhood with comps, so get a sense of the area before you head out.6. Bring a flashlight, jacket full of pockets, and a notepad or folder to write notes. Keep a tab on your photos and note anything you see that will impact your values.7. Call in to a collegue or friend letting them know you are at the property. For security reasons, of course. You never know what you can expect in a property that's vacant and trashed.8. Plan out an exit strategy. If you don't feel good, possibly get out. Some homes can be scary because it's trashed, vandalized, even burned. If you don't feel safe, don't do it.9. Compile all information before you start inputting in the company's website. This saves alot of time alt-tabbing screens or paper shuffling.10. Be patient for your check. :-) nuff said...This is my learning curve, hope you all enjoy. Please don't comment on how BPO's are a waste of time for the money you get. This is not part of the discussion. Thanks in advance.Took me less than 2 months to capture BPO's, granted most of them were sitting in front of the computer waiting for orders. After doing my best on the BPO's, also doing some online training, as well as taking classes, I finally landed my first listing, 5 months after initially started doing BPO's. Hard work, yes...but very well worth the learning curve.That's how I got my REO listings...blog post here (this will take you to my blogsite on activerain.com)
1. Don’t go out in severe weather conditions. It’s better to ask for an extension. I once got stuck in the snow in front of someone’s driveway on Christmas eve because I was trying to impress the AM! I had to call a tow truck after 3 hrs of cursing myself. Cost me $250 to do a $50 bpo!
2. I know you already went over the exit strategy thing Johnny but this will solidify the point. Never try to drive in reverse down a ¼ driveway while the homeowner chases you! You will back into a tree and an cause immense damage to your rear end. Always, always turn your car completely around first even if he’s catching up to you. $500 deductable on a $50 bpo!
3. Last but not least.. and this is the most important of all. When entering an abandoned property in the inner city, always, always announce your presence! You never want to find yourself in the 3rd bedroom from the exit, in the dark, and startle the new “tenant” after an all night bender. They don’t respond well. Trust me
Johnny, were you just doing BPOs for companies that also assign REOs? Or, have you gotten connected with listings somehow by doing BPOs for "mills" as well?
Amen to feast or famine Steve. Even a few listings coming in at the same time can make your head spin. 24 hours on occupancy, rekey & utilities. 48 hours for tenant information etc. and posting cfk letter or handing it to them. 72 hours for full interior bpos and add to all that coordination with the property preservation people or lining up your own. Some where in there actually having to get it into the mls and uploading to the am......Whew..... when weeks start like that forget sleeping and write EVERYTHING down!
I'm probably one of the very few exceptions to this plan, I was lucky and got direct referrals to one of the Big 4 banks thru a local bank I was already doing some work for. Two BPO's (and 2 or 3 updates) landed me a little over 50 listings so far and another larger batch coming any time. But like I said, I got lucky by answering my phone at the right time! And trust me, getting listings in large batches is tremendous work in a short period of time!
Something I usually recommend to any agent is find someone you like and can work closely with. It's always feast or famine in this business, so when you suddenly get 20 BPO's or 10 listings, and only have 24 to 48 hours to have everything completed or in the MLS's, you already have someone you can trust to be there to help you!
Johnny, great title & blog. I have done bpo's for 17 years, and you have it covered.Couple of tips to add, DON"T ever fill in form before you actually see the property. I did that once, because the home had sold within past six months, thought I'd get a jump on it. The home was a ranch, but when I arrived found out the current owner had started to add a second floor. Had to throw out all the ranch comps & start from scratch. Complete each BPO as if you were going to get the listing, in other words do your best work everytime- don't view it as "just a bpo"
I think the big secret is sitting in front of the computer...really...it is all based on pure luck as far as getting BPO's...I know because several slip through all the time and m blackberry is not fast on its email.
Comments
1. Don’t go out in severe weather conditions. It’s better to ask for an extension. I once got stuck in the snow in front of someone’s driveway on Christmas eve because I was trying to impress the AM! I had to call a tow truck after 3 hrs of cursing myself. Cost me $250 to do a $50 bpo!
2. I know you already went over the exit strategy thing Johnny but this will solidify the point. Never try to drive in reverse down a ¼ driveway while the homeowner chases you! You will back into a tree and an cause immense damage to your rear end. Always, always turn your car completely around first even if he’s catching up to you. $500 deductable on a $50 bpo!
3. Last but not least.. and this is the most important of all. When entering an abandoned property in the inner city, always, always announce your presence! You never want to find yourself in the 3rd bedroom from the exit, in the dark, and startle the new “tenant” after an all night bender. They don’t respond well. Trust me
I'm probably one of the very few exceptions to this plan, I was lucky and got direct referrals to one of the Big 4 banks thru a local bank I was already doing some work for. Two BPO's (and 2 or 3 updates) landed me a little over 50 listings so far and another larger batch coming any time. But like I said, I got lucky by answering my phone at the right time! And trust me, getting listings in large batches is tremendous work in a short period of time!
Something I usually recommend to any agent is find someone you like and can work closely with. It's always feast or famine in this business, so when you suddenly get 20 BPO's or 10 listings, and only have 24 to 48 hours to have everything completed or in the MLS's, you already have someone you can trust to be there to help you!