Anyone have relationships with Top REO Agents?

Question

Hello, I'm wondering if this is even worth attempting?  I'm able to make relationships with low to mid level reo agents and they throw me a few deals here and there.  Does anyone have relationships with the Top 3 or so agents in the area?  How did you go about speaking with them and getting through their office managers etc.?  Thanks!

Ed L. · Answer

There are 6 agents that handle most of the REO in my market..

3 Are genuinely good people, and treat me nicely because they know I don't waste their time.
1 is indifferent... 
1 Funnels deals to his own investors.
1 is the devil.

Curt Davis · Answer

To get a relationship with a top REO agent you must be able to pay cash and close on everything!!!  Sometimes it just comes with time.  Buying a lot from them and letting them take both sides of the commission is almost a must also. Good luck

J Scott · Answer

We have good relationships with at least a couple folks in all the top REO offices and also do our best to form relationships with the smaller REO agents (these are often more valuable, though on a smaller percentage of deals).

The two biggest REO brokerage in my area generally have about 400 and 100 properties listed at a given time, respectively.  They have no published phone numbers directly to the agents, and if you call the main number, you get a recording.  Offers are submitted online, and confirmations come from a no-reply email address.

But, once you get an offer accepted, you suddenly have access to an agent.  From there, it's about performing consistently, making the agent's job as easy as possible and better yet, tossing a bonus to the agent every time they work the other side of a deal (though strangely enough, many of the top agents won't take a bonus anymore).

We've found that with these two brokerages, we have a couple agents that we are very close with.  If we have any questions about a property listed by their brokerage (whether they are the specific agent or not), they are happy to pick up the phone when we call and answer our questions.  And we now just submit our offers through them instead of going through the online system.

These agents tend not to give us much advantage over other buyers, but on occasion, they'll give us information that really helps us (in some cases, telling us exactly where our bid needs to come in).  But, more importantly, it makes our lives easier when we don't have to deal with a faceless entity and wonder if our offers are going into a black hole.

Honestly, I'm not sure we could have built these relationships without my wife and I having our licenses, but as agents, it's easy to get a foot in the door.  From there, it's just about being friendly, performing on your agreements and plain old relationship building.

Anson Young · Answer

We should team up and write a book...  :-)

Anson Young · Answer

I'm on both sides here.  I could write a book on the inner workings of top REO companies.

That said, I personally go for both approaches.  I know a few agents and obviously the firm I was with for 3 years, but rarely get inside deals since management is watching very closely these days and the agents know it.  The pending hijack, or emailing 30 deals off the MLS to see if they are falling through usually nets me 1-4 leads.  Did this in the PHX market and got 3 off 13 emails.  Not a bad use of 10 minutes.  I got them wrapped up before they went back on the market and noone is the wiser.

I'm a big fan of getting ahead of the price reduction too, if an agent can give me a heads up I can get them an offer between the time they complete the price reduction task and they update MLS.  On the seller system, it shows the new price, and my offer comes in around there (if that works out), usually can get acceptance before or right after the price reduction.

FHA always screws up, I catch those deals all the time...

J Scott · Answer

This is not true in my market.  Here, many deals go to "highest and best" and the larger asset companies and banks will often select an owner occupant bid over an investor bid, even if the investor bid is a bit better.  This is especially true for FNMA and FMAC properties (which make up a large percentage of our listings these days).

More than 50% of the time, the OO deal will fall apart, it will again go to highest and best, and it will again go to an OO.  50% of the time, the deal will fall apart, and on the third attempt, investors will be given priority (asset manager will only take cash offers).

Many of our deals these days are these properties that are falling out of escrow twice with OO...

And yes, many times listing agents will act unethically by giving their favorite customers "inside information."  I don't condone it, but I'm happy to benefit from it...

Will Barnard · Answer

As to the pipelines, gaining access to REO properties before the MLS so that you can complete your due diligence and arrive at your offer price is crucial. This only comes with buidling relationships.

Jason S. · Answer

Come on Greg, let's not give up all the info and create too much competition.  You may have that large nest egg but mine is limited and I am competing out here.

The fact is though, most deals seem to close the first time out the gate - the top agent will give you there pipeline ahead of time and you can have all your research done before anyone else even knows it exists.  Even if the bank insists it hit the MLS, which most do, your offer is in the day before.

J Scott · Answer

We know the husband/wife teams who runs both the brokerages I mention above.  But, we have never found any advantage to knowing them over the senior agents in the office.

The agents have the power (from our perspective) in these two cases...

Anyone have relationships with Top REO Agents?

Most Popular Reply