BiggerPockets

5 fatal mistakes from new Reo Agents

The biggest mistakes are actually pretty common among new comers and even among the experienced. Read these and start implementing these right away. I learned the hard way over these years and so have many others. You don't have to make the same mistakes if you implement these into your routine.

1. "I don't want to do BPO's"-

-This I hear all the time. I just don't know of any successful real estate agent or team breaking into REO's without completing BPO's first. This is how you're able to prove to the asset managers that you are really working to put quality work out there. If you don't want to the orders yourself then you can build a model that is functional without you. This we will discuss later how you can set your BPO's to run without you. Yes, you really can set up a successful (profitable) BPO company without putting in long hours.



2. Poor Quality work-

Passion must be visible in your work that you do at all times. Take time to really get into the values and comps of the area you're researching. Take time to complete great notes and comments about each order so that one can easily read your report and get a great rundown of the subject property. You would be amazed of some of the horribly poor comments being turned into these asset managers. You should be exact and precise and really give them valuable information.



3. Late Orders-

This is a very big mistake of the whole equation and should given much attention. This alone will make you look very reliable and demonstrate that you can handle bigger projects (REO listings). Turn in your orders early and keep those lines of communication open at all times. Let your asset manager know of any delays or problems that you are having. Leave them a quick email if you're unable to phone them. One or two orders late won't hurt you. It's the next few that will permanently damage your rating.



4. Taking on too many orders-

This can happen when you have already proven your ability to handle multiple orders. Your asset manager will ask you to handle some X amount of orders and you will take the orders. Then something happens and you're unable to complete the orders on time and you really will damage your reputation. Instead, you need to be 100% sure that you can handle your workload and prepare with back up plans. Always be evaluating your "orders due" compared to the new orders you're planning on excepting.



5. Giving Up-

This is honestly a business just like any other. If this was easy then you would not even be reading this. The fact that REO listings and BPO's seem to be overwhelming means that there is more out there for you and I. Work hard and continue to always educate yourself. If you set your business up correctly in the beginning and give your true 100%, then you're on the way to become a true authority in this growing niche. Stick through the growing pains and your results will be quickly noticed!



Good luck and I will post some more info soon.



Remember that it's not just what you do.... it's also what "you don't do"



Thomas Moore
REODB Inc.