New agent wanting to get into REO's and BPO's

[Samuel Watts]

Hello! I am a relatively new agent (6 months or so) and I am wanting to get into listing REO properties and do some BPO's as well to get started. I have read a little bit about how to get started but I am by no means an expert and wanted to get some advice from someone with some experience. I am in the state of Kentucky if that helps.

I am in the process of signing up for RES.NET and wanted to get peoples advice on using this site and others like it to get BPO'S. Have sites like this one been helpful to you and are they worth the money to access them? What are other ways to approach banks to get them to send work your way? It seems like getting through to the asset manager is one way but I really don't even know where to start in contacting them and what I should say once I get ahold of them! 

Any advice would be greatly appreciated

[James C.]

Samuel,

+1 for Ronald's advice. Where you hang your license can make a big difference. If your DB/agency or an agent in your office handles a lot of BPO/REO then it makes things much easier. If not, you're in for some work.

Go visit REO properties (you need to do this to know your market anyway, and you might find a deal to buy), find out who does property preservation work. Their number is usually on the paper in the window. Call them, tell them what you want to do, and ask for their contact name, number and what institution owns the property (you do have a database set up, right?). Talk to the lawyers in town that do foreclosure work, tell them what you want to do, ask for names, numbers and companies.

Finally, your appraisers, find out if they are doing any work for REO/foreclosures, and see if you can get names/numbers. BTW you should have a couple of appraisers in your pocket. FInd out who their #1, #2 and #3 clients (Mortgage Brokers/Bankers). Then go see those Brokers/Bankers, take them out to lunch or coffee. Ask for buyer referrals, BPO/REO names and numbers. Let them know as you get listings and buyers you will send that business their way. When marketing your listed REO property, make sure there are some examples of possible financing/payments from your Bankers/Brokers in the house, and available for your buyers.

After that, it's smile, dial and service. You might want to become a full service REO person (Preservation/Repair/Management). Once you start in the BPO/REO business, this is also a good place to start to understand the NPN business. It's asking lots of questions about how that process works.

I would suggest that this is a sideline business (don't neglect the regular listing/selling business) at least until you get it up and running.

Good luck!

Jim