If so, what would you consider looking for as you build your team? I have just chosen three tips for this post. There are many more, but I find that these three are important to building a successful REO business.

1. Experience
2. Education
3. Integrity

Experience

How much experience does the potential member have in doing BPO’s?  What asset companies have they dealt with and for how long? What about tasks such as Utility set up and ordering services from your vendors?  When it comes to the closing transaction tasks, how much experience do they have in dealing with escrow/title companies, lenders and co-agents? These are just a few of the question you should consider when building your REO team.  This is important because the REO market is different for every REO agent. And it is crucial to have a good amount of experience in dealing with asset companies, asset managers, banks, title companies, lenders and other REO agents.  I have found that there is a basic flow to an REO transaction, but sometimes there are exceptions. And I have found that learning from that exception, adds to my REO experience. And I can add this to my REO process to reach a successful transaction.

Education

Training is so vitally important. Would you consider adding a team member to your business who already has been trained on various REO portals or someone who you have to train? Time is critical, especially when it comes to tasks such as BPOs or determining occupation status.  Do they know the criteria for searching for comps for the BPO?

And when it comes to the contract to close tasks, how much training does the team member have in using various online transaction management systems? Such as EbrokerHouse, SettlementRoom, RELAY, TransactionDesk, TAZAREO, and others?  Again, your time is important and having a member who is proficient in using these systems will save you time and money.

Integrity

Enough can’t be said about this topic. Simply put, everyone needs to be honest in their business dealings with one another.  I feel that this is a foundation in a truly successful business.  If a member is cutting corners to try to get the job done, it will come out in the end.   Just a quick example.  If a bid (quote) is submitted by a vendor for a repair on the REO property, don’t change the amount when submitting it to the asset company. I have known of this to happen and the person did think they were getting away with it. And since it was just a small amount in the beginning, it was not discovered. So the person felt safe and increased their bid amounts. But when the asset company discovered this, all monies had to be refunded for all of the bids. And of course that agent lost their business with that asset company.  A hard but powerful lesson.

I hope these few tips: Experience, Education and Integrity can help you in your search for a successful REO Team.

To your business success!

Roxanne

If you are a busy REO agent, you know that you don’t have much time between the occupancy check and the initial bpo deadline; and then contacting the vendors, setting up appointments, and organizing the turning on of utilities takes time and energy.

Do you have a customized REO system in place to run a successful REO business to where you are not juggling too many activities unsuccessfully?

In this short blog, I will address WHAT and WHY you need an REO system.

Systems are just the way in which you process your REO Assets. It is an organized and clear, step by step process.  You should have your systems documented so clearly that whoever you entrust it to could run your business smoothly in case of an emergency.

Do you have a backup system in place if you were in an emergency? I found out how important this is in the Fall of 2008. We had a terrible wind storm that took out the electricity of over three-fourths of the city.  It occurred on a Sunday, but our power was not restored until Wednesday.

I had to inform my clients via cell phone that I had no computer. So I could not work.  But because I had a documented system in place, I was able to contact my coworker who used my documented system to meet some crucial deadlines for my clients.

I speak to many agents who state they have all of their tasks in their head. Since you are running a business, your processes should be documented, in for any reason you are not around.

Listed below are three of the items could be included.

• Task Lists –
  • This would include all of the tasks that are done when you receive the asset.
  • The listing tasks
  • The contract to close tasks
  • And after closing tasks

• Contacts
  • Important vendors for your trash outs, lawn care, pool care, etc.
  • Repair Vendors
  • Utility companies
  • Asset managers

• Logins/technology information
  • User names and logins for your MLS
  • User names and logins for all of the asset companies you work with
  • What systems are in place for backing up your critical data?
  • How often do you backup?

It does take time to document the process but I found that it helps to make my thoughts clearer. Also I can always change the process since the REO industry is changing so much. But I feel comfortable having a system in place.

Also with a clear system in place you can easily handle 10-12 REO listings a month without being stressed out!

To your business success!

Roxanne Tidmore

First of all I let the agent know that I am an REO Transaction Coordinator.  Even though I interact with many asset managers because of the nature of my work, I do not usually refer random agents to asset managers.

Asset managers are very busy and they prefer that agents follow the procedures to apply.  That tells the asset manager that you follow directions. Also by putting in your application, your contact information will be in the system. When an opening comes up that fits your criteria, you will be contacted.

As an REO Transaction Coordinator, I do assist agents in applying for the hundreds of asset management companies.  The more asset management companies you apply to, the more apt you are to receive business.  It takes time and effort and continuous follow up to asset management companies to receive responses.

But there are several ways of networking successfully with asset managers.  Networking is about building relationships.  Asset managers are busy so they do not appreciate it when random agents continue to contact them for listings. But they do appreciate the networking opportunities. This is a good way to build a business relationship with an asset manager.  A REO Transaction Coordinator can help you begin this type of networking.

And once you have a good foundation you can continue to build your own network of asset managers.

My next topic will cover things you can do to make the asset manager’s job easier – which in turn will grant you more listings!

To your business success!

Roxanne Tidmore

This is an indication to the asset manager that you put the effort and work in to try to find comps within the mile range, but it was not possible. Asset managers understand that and that is why they would like you to add comments as to why you chose the comps that you chose.

Also be sure to use tools to check your distances.   Many REO/BPO clients have sophisticated software that analyzes each BPO and checks for mistakes.  If your distances are incorrect your BPO will be rejected, your score will decline and you will receive fewer assignments.

Use one of the tools below to make sure your distances are accurate, your BPO scores will increase and you will receive more assignments.

If your clients specifies the driving distance between your comps use Google Maps http://maps.google.com/.

If your client wants the straight line distance use this website http://www.gpsvisualizer.com/calculators.

To your continued success!

1. More time to be out in the field getting more listings

• If you are bogged down with doing BPO’s and do not have enough time for other tasks, why not outsource the BPO’s to a real estate virtual assistant who specializes in REO Transaction Coordination?

2. The bank may be more likely give you listings, which is really what you want! $$!! For BPO’s you know that the banks need them done:

• On Time
• Accurately

All you have to provide to your real estate virtual assistant is:

1. MLS Log in information
2. Bank Portal Log in information
3. Subject Photos
4. Specific Criteria to use while searching for comps (such as square footage, lot square footage, number of rooms, property age, etc.)

So if you are considering ways in which to move your REO business forward, this is one step you can take.  YOU will experience less stress, more time and eventually more listings.