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 YJoin our Facebook Group at:  https://www.facebook.com/groups/realestateassetadvisorsDownload a copy of my book, "If you list, you last!" at www.15HourMethod.com