James,
It appears several of us are looking for help in breaking into this market. I am just beginning but would welcome any help from any source.
John Sweeney

Hello James,
I would like more information. I just decided to take the SRF designation course. Foreclosures are a big part of our market here in the Poconos. I don't see many people specializing in it though. Short sales are another area I don't think agents here want to deal with...

Getting REO business for BPO's and Listings does require some work on the part of the agent. But it's not that difficult!

For the last six years, one of my niches has been REO properties - residential SFR's and multi-family. When I started, my broker would pass along the REO BPO's and Listings. As I learned more about the industry and its requirements, I located the source of my broker's leads.

Turned out that I could advertise myself on those sites, and work directly with the REO asset management companies!

A couple of suggestions: 
Make sure you have a fantastic Broker Price Opinion - you need to follow industry parameters for square footage ranges, bracketing your comps, and more. Most important is providing lots of detail.

Your REO clients don't know the local market, so you need to give them much more information than you might for someone who knows the area. Especially when you can't locate comparable properties within their required proximities, or must use older data than required.

Note: completing a BPO is much more detailed than a simple CMA, and may require more time. If your BPO is light on data, you may not get a second chance to impress your REO client.

Make good use of REO-specific sites - you want to get your name, contact info, and a very short bio out there. You should include who you are, how long you've been in real estate, what states you're licensed in, what your turn-around time is, and how long you've worked with REO properties. 

Provide some info on whether you understand CFK (Cash for Keys), rekey, local eviction processes, etc. Also, what you do to market an REO property. (Just sticking a sign in the yard and placing on the MLS is NOT what the REO client company is looking for.) 

REO clients are looking for someone to pull out all the stops to get a property quickly on the market, and to market that property fully and completely. It's not expensive - there are many inexpensive or free ways to marekt a property.

Additionally, you want to let the REO clients (and potential clients!) what zip codes you cover. Some want to know the towns, too - but you already have this information saved on your computer,right?

Here are a couple of sites to jump start your REO business:
REO Network http://www.reonetwork.com - personally, I think this is the best site to market from. It's where I started six years ago.
Nicole Ocean's Free List www.nicoleocean.com/freelist.htm

A few suggestions for your BPO's:  

Create a spreadsheet template that contains all of the information that your REO clients are likely to ask for. As you update and improve the spreadsheet, save it with a new version number. For example, AL_AutoBPOForm_V13_6.xlsx. Over the last six years, I've had about 28 or 29 versions of my BPO spreadsheet. Once I figured out how to get the MLS system to do most of the heavy lifting, I changed the name and version numbers. That example BPO form name? That's the current version I am using for my main MLS system.

Create a export file for Active and Sold comps, for your MLS system. This way, you can export just the data and photo's you need. This is the data which will automatically populate your spreadsheet. (No more copy and paste from the MLS to your spreadsheet!)

If you work different counties or states, you'll want a different version of your spreadsheet for that county/state's MLS. I belong to three MLS's in two states - and none of them display the same search parameters. I have at least three different file export's for active, sold, and land - for each MLS.

You can have a separate worksheet inside your BPO spreadsheet to automatically determine the acreage of a particular property - triangles and rectangles. (Multi-angled properties would still need to be broken down into triangles and rectangles first.); one to create a printed report for your clients - this is especially useful with listing clients (not just REO's); and charts/graphs.

If you have any questions, feel free to contact me.

Im see alot of mis direction on bpo's you have to find reputable co and ones that give you reo's,you wont get it in a bx.keep pressin on

I am interested in learning more about this offer, I have been working some Reo's for my company but it is always better to get the listings on your own, more profit for the agent.
Please help

I'm game. I have the drive, will and determination to learn more! I've closed short sale listings and beefing up my REO approach. I'm in Edison, NJ.

James,

I have been doing BPOs & CMAs for a lender for a while but so far I have not been assigned an REO. I have been very successful with short sales and I can say that my commission has never been reduced by any lender. Part of my success might be attributed to the fact that in top of being a Broker I have been in the legal field, as a Paralegal, for almost 30 years,  which gives me an advantage in the research and negotiation with lenders. I am located in Southern California, Orange County area. I am interested in your REO offer and if you have any questions related to Short Sales let me know, I will share with you my knowledge and skills related to it. My e-mail is edutkus@aol.com

How have you avoided having your commissions cut while working with short sales?

Holland Michigan Real Estate | West Michigan Foreclosures | Holland Michigan Home Values

James,

I'm would like to break into the REO/Foreclosure market. I have completed short sales and am doing BPO's for 3rd party companys, but I am not familiar with the REO listing side. In my market, a resort market at Destin, Fl 60% of our listings are either short sales or REO's. People who got stuck in the flipping frenzy and are now way upside down. I hope to hear from you soon, my email is: Art@ArtWilliamson.com Thanks in advance!