Transcript Slide 1-1: Blank

2. Opportunities for Real
Estate Professionals
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Asset Managers Want
What You Have
Access to the MLS and comparable sales data
On-the-ground local knowledge
Contacts with interested buyers
Sales and marketing ability
Know-how and availability for property
showing
Network of local contacts
People skills
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Viewpoints
Asset Managers
Brokers & Agents
REO = generates
expense and no income
Maximize results,
minimize time on market
Not sales oriented , not
a real estate licensee
Can’t know the details
of every property
REO = inventory—a way
to make money
Sales-oriented staff
Link between asset
managers and buyers
Local expert—the asset
manager’s eyes and ears
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REO “Facts of Life”
Accept that you’ll get your hands dirty
Confidence
Detail and deadline oriented
A different way of doing business
Empathy
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A Few More Facts
Licensing
Insurance
 E&O, personal liability, workmen’s comp
Capital
 Advance payments for utilities, repairs
 About $5,000, or $1,500 per property
Broker Support
 Sales team, back office
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Facts About Compensation
Asset management company sets
percentages and split
Percentage or flat fee, whichever is greater
Buyer’s rep often gets largest portion
Listing agent may be required to give back
Asset manager—volume justifies the listing
agent’s lower commission percentage
No leeway for negotiation
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Adapt Your Core Skills
 Regulatory knowledge
 Product knowledge
 Market knowledge
 Financing, credits,
incentives
 Image
 Networking
 Client & customer
Service
 Negotiations
 Management systems
 Representations and
disclosure
 Communications
 Marketing properties
 Community
involvement
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Practitioner Perspective
“Asset managers are
looking for someone
who's prepared and able
to sell their assets. What
can you do for them?”
Tyler Smith
Folsom, California
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Don’t try to go it
alone
Don’t make yourself
a target
Safety
First
REALTOR® Safety
www.realtor.org/
about_nar/safety.
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Breaking Into the REO Business
Asset managers need:
 To know their listing agents better than the
properties
 Develop a “go-to” network of agents
Agents can focus on companies that do
most of the REO business in the market
area
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REOs Are Hot!
So Is the Competition!
Talk to agents, trusted colleagues
Shadow an REO agent (offer $)
Work as an assistant
Network in noncompeting territories
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Use your
prospecting skills
Do the research
Talk to:
 Loan officers at your own
bank
 Foreclosure attorneys
 Auctioneers
Prospecting for
Contacts
Do the follow-up
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Professional Résumé
Oriented toward the REO business
Prompts you to pull together
information required for registration
When an asset manager asks for more
information—you’ll be prepared
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Beginning with BPOs
Establish your credibility
 If offered a fee for a BPO, you probably
won’t get the listing
Performance, reliability, and results
produce a stream of business
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Complete “BPOs: The Agent’s Role in the
Valuation Process” (1-day class)
NAR member
$199 One-time application fee
Licensed for at least 2-1/2 years
E&O coverage: $250,000 per incident,
$500,000 aggregate
Go to http://bpor.org
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 Five Star
www.TheFiveStar.com
 REOMAC
www.reomac.com
 REO Expo, Housing Wire
www.reoexpo2012.com
REO
Conferences
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Registrations
Major asset management companies
Fannie Mae, Freddie Mac, HUD
Fill out the application and attach a
résumé
Some no longer accept registrations
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Can be expensive
Ask a trusted
colleague
“Is the investment
worthwhile?”
Referral Networks
and Directories
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Web-Enabled Workflow
 Assign listings and
tasks
 Communicate
instructions
 Monitor progress
 Register as a vendor
and download the
application
 Equator
 Dispo Solutions
 RES.net, Accelerated
Management Platform
 Safeguard Properties
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Practitioner Perspective
“This opportunity isn't going to
Christian Walsh
Santa Ana, California
be here forever…get a
jumpstart by joining a
company already established
in REOs…leverage REO
business to create traditional
business.”
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