Episode 48 – How to get involved in the REO listing market

SUMMARY:  Host: Bob Mangold, "The Listing Coach."Podcast: Episode 48 of the If You List, You’ll Last podcast.Focus: Getting involved in the REO (Real Estate Owned) listing market.Interviewees: Jerry Stapp and Robert White, both experts in the REO space, sharing insights about the process.Introduction and Key Points:REO Overview: The podcast skips the mortgage market update and focuses on REO listings.Expert Insights: Jerry Stapp and Robert White have extensive REO experience, discussing the good, the bad, and the ugly of the REO market.Lead Generation Tip: A simple strategy for using HUD-owned homes for lead generation is shared at the end.Introduction to Experts:Jerry: Managed brokers for one of the largest REO lenders with over 20 years of REO experience.Robert: Started in real estate in 1986, specializing in REO from an early stage, currently working with over 44 banks.REO Market Realities:REO Myths: Not all REO brokers make huge profits; it’s hard work.Foreclosure Market: Foreclosure "floodgates" are not expected like 2008, but some areas may see higher activity than others.Consistent Waves: Foreclosures will likely come in waves rather than a tsunami.Getting into the REO Space:Building Relationships: REO is relationship-based, requiring time and effort to build connections.Starting Steps:Learn how to evaluate properties (BPOs, cash for keys).Create a marketing strategy that showcases your experience and capabilities.Apply to portals like ResNet, Equator, and Pyramid for BPOs and REO listings.BPO (Broker Price Opinion) Importance:BPOs as a Key Entry Point: BPOs are critical for breaking into the REO space and demonstrating your competence to asset managers.Doing it Right: High-quality BPOs build your credibility with asset managers.Logistics and Challenges in REO:Vendor Relationships: Strong relationships with vendors are necessary for managing REO properties.Receipts and Reimbursements: Always collect receipts and submit them on time to ensure reimbursement.REO Listing Process:Step-by-Step:Accept the listing and check property occupancy.Report occupancy status quickly (within 24 hours) and handle BPO tasks accordingly.Follow the REO task list strictly to maintain a high score with asset managers.REO Compensation:Typical Fees: Expect 1% to 2.5% per side (listing and buying agent), with some fees going to asset management companies.BPO Pay: BPOs typically pay $50-$75, but the real value lies in the opportunity to build relationships.Additional Lead Generation Tips:Use Bank-Owned Properties: Advertise REO listings as "bank-owned" to generate buyer leads.HUD Homes and Open Houses: Leverage HUD properties to hold open houses, promoting them with signs and advertising to attract leads.Preparing for the REO Market:Marketing Materials: Create a professional resume and marketing plan that demonstrates your ability to handle REO listings.Events and Certifications: Attend events like Five Star and NADP, and get certified in REO processes.Building Your Database:Use Open Houses to Build a Buyer Base: Bank-owned open houses attract significant traffic, which can be turned into future business.Good Neighbor Next Door Program: A HUD program offering 50% off home prices for qualifying buyers (e.g., firefightersI’ve written a new book, that listeners can download for free!  The title of the book is: The BOSS...An AI Machine That Can Run Any Real Estate Business While The Agent Is Out Selling Homes. Who should read the book? Any agent that finds their marketing stops when they get busy, their database sits untouched, and follow-up depends on their memory. This guide shows how AI can keep the business-building work moving behind the scenes. Download it and see how experienced agents are using AI behind the scenes to earn more while working less! You can grab it now at www.TheAIBossBlueprint.com