Being an REO agent you learn that there are a lot of out of pocket expenses that you must front for the bank- utilities, repairs, inspections, cfk, HOAs and even some liens. At any given time you could be out of pocket thousands of dollars. If you are a high volume REO agent, it is best to hire someone to focus on organizing the bills, inputting them correctly into each companies system and getting the reimbursements back from the bank. This could save you thousands of dollars and time that you could spend selling the property!When hiring a bookkeeper, you can post a job via craigslist, an accounting temp agency or even a referral from your CPA. The latter two choices are preferred ways of choosing a candidate. Look at other ads from employers to get ideas for a good WANT ad and be as detailed as you can to eliminate unrelated resumes. You can check going rates for bookkeepers with craigslist, the temp agency and your bookkeeper. Remember, bookkeepers don't have to work full time. Many are more than willing to work 2-3 days or even a couple hours a week.What do you look for in the resume? Look for experience for at least 2 years in the field. Also, make sure the candidate is familiar with your accounting system. If you don't have one in place, an experienced candidate can recommend an accounting system- excel and quickbooks are more popular programs. The candidate you choose will be able to set them up for you. Definitely check their references by calling their previous employers through your own resources. The phone numbers they provide for their references are more than likely friends who will them give great references. Because the hired will have access to your bank accounts, it is also recommended that you do a background check on the person.Once you have them in place, make sure you have some checks and balances to ensure there is no leakage of funds. Sign all the checks yourself, don't give them access to direct funds or passwords for access, have another person or yourself do deposits, deposit all checks separately so that you can itemize each one's deposit receipt with each bill it is related to, and lastly review your accounting reports frequently. I cannot emphasize that you must have some knowledge of your accounting system. You never know when you need to change bookkeepers, handle the books yourself, change passwords in an instant or just know the passwords when they are absent.Here's to truly making a commission on the REOs and not a net of all your expenses you paid!!
Amen! I just hired a bookkeeper and she is worth her weight in gold for the stress she has relieved. There are a lot more people out looking for work right now. I am also planning to hire, part time, one of my former escrow officer, (she got cut when the market took a dive) to handle escrow coordination etc. There is more 'good help' available out there than there has been in a long time.
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