In the REO business, it all starts with contacts and reputation. First, you'll need an extensive list of banks in your area. Once you have that list, call each bank and ask to be on their preferred list of agents. Try all banks, not just the big ones. In fact, you might have more luck with the smaller banks at first, because the bigger banks tend to already work with a large number of agents.
Contact loan officers and asset managers you work with currently or have done business with in the past. Working with people you know is a great way to get referrals and establish a solid reputation for yourself in the industry. Once you've gained some experience and established a reputation, you may have luck with investment groups interested in bulk REO.
You'll also want to educate yourself on the process of selling REO properties, including tricks for using the internet. A great website for finding information on how to become an REO agent is www.bpoleadsystems.com. They've done research to find the best bank lists and training courses, and their website includes a description and links to their top three websites. You can find their top REO kit, which is also popular with many agents, on www.REOkit.com. The package includes a bank list, a handbook for getting started in the business, and other helpful resources.
There are a lot of courses out there at varying prices, so you should do some research, including asking others in the business, to find the best ones. If you're on a tight budget, you can start with lists as low as $5.00 on websites like www.flagentbpo.weebly.com. These cheap list probably won't be as comprehensive, but at five bucks, you aren't out much money if it doesn't work for you.
And definitely do what it takes to learn about the industry. Become an expert on REO property. Read blogs, take training courses, etc. Some REO/BPO websites worth trying are: www.REOMAC.com, www.REONetwork.com, www.DSNews.com, and www.Trulia.com. Sign up for relevant newsletters and get your name out there by adding your name to online directories like www.AssignREO.com, which connects REO agents and asset managers.
Many real estate brokers start off doing BPOs, or Broker Price Opinions, for banks and other lenders. This involves evaluating the property and providing the bank with a current market value. Lenders usually ask for a BPO when they want to avoid paying for an appraisal, there is a pending foreclosure, or they are refinancing a home loan. This will help you make connections with lenders in your area and create a name for yourself within the REO industry.
Once you start selling REO homes, price them appropriately and market them as foreclosed, REO, or bank owned properties. Take lots of photos. This is especially important with REO listings, since they are likely to need some repair. Use what worked for you in the past when selling regular real estate, but don't be afraid to try new strategies as well. This includes listing your REO properties on online bidding websites like our very own GoHoming.com, where you can upload multiple photos and relevant documentation, as well as keep an eye on the bidding activity of your property listings. Home buyers can bid online for properties and even see what others are bidding. This way, they can feel confident that they're getting a fair market price for the properties you're selling.
Becoming an REO agent isn't the quickest or easiest of careers, but if you put forth the effort and stick with it, it can be a very lucrative profession. Good luck and happy selling!
Fair Housing and Equal Opportunity
