5 Ways to get REO business
REOs are assets that the bank foreclosed and obtained possession of the Note. The bank is now the owner, and the asset is officially considered an REO. The bank isn’t a residential management company by all means and wants to get rid of the property and return as much money possible from the previous loss. Some banks have their own in-house REO department that manage the redemption, eviction and sale process, while others outsource it to a third party… whatever the case may be, they still need a local real estate agent to execute all the tasks involved with a successful legal transaction. My team has been selling Foreclosures in VA, Foreclosures in MD, and Foreclosures in DC.
So how do you become that REO agent?
1. DO YOUR RESEARCH
Research banks (there are hundreds of them), locate the ones that produce a high volume of REO sales a year in your area. Find out if they manage and sell REOS in-house or thru a third party, and which (if any) portal is used.
2. REGISTER WITH AS MANY LOSS MITIGATION ORGANIZATIONS AS POSSIBLE
In order to be considered as an REO agent, you must be registered in their system as an approved agent. Compile a list and sign-up, sign-up, sign-up! When registering you will need to provide them with your resume, E&O Insurance, list of areas you service, copy of your …etc. Most Asset Companies can be found on-line, but because it’s such a long and tedious process, I use a company that signs me up and they provided me with a full list of companies as well. If you email me at Dan@greetingsvirginia.com, I will provide you with the contact information of the company that I use to sign my team up.
3. OBTAIN ACCESS TO PORTALS
Most asset managers sell their properties by using a portal that tracks the entire REO process (i.e. Equator, RES, etc). Signing up for these companies will not guarantee you listings, but will likely be necessary to sell REO, be sure to include a list of portals you have access to in your resume!
4. BPOS, BPOS, BPOS
Do plenty of BPOs… not only will this expand your experience, but it is also the best way to market yourself! I was, and still am, doing about 250-300 BPOs a month, signing my name on the bottom of those forms and having them viewed by hundreds of AMs is the best exposure! Not doing enough BPOs? Call your provider and ask to increase your cap limit! Be sure to keep your profile up to date and build a relationship with your account manager so that they can put in a word for you with asset managers they work with.
5. PARTNER WITH AN EXPERIENCED REO AGENT
I believe that this is the best way to get started because it will give you a taste of the REO process (bpos, occupancy checks, cash for keys, etc…). In addition to building your credentials, you will find out if you are well suited for the business.
Keep in mind, REO sales is not for every agent. To be successful, it takes much hard work, great systems, a strong dispositon, and the ability to manage well.
I wish you success!
