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I noticed that one local agency in my market gets all the homes that are taken back by the bank(s). How does this one agency get all the listings? How can I work my way into handling the sales (by listing) the properties taken back by banks?
First, the question you have to ask yourself is.......... Do you really REALLY want to handle REO properties ? It can take quite a bit of capital to do.
Here are things you may have to do if you want to be an REO agent.
1. Repairs, utilities , and any other carrying costs will be billed to the agent/broker handling the case , this could constitue just utilities, or it could be $10,000 repairs.
2. Eviction of current tennats/owners and the like , this can be messy at times.
3. Wait for payments of said items.......Some banks will re-emburse you within 45 days, some within 30 of the expenses you have. Some banks will only do so after the deal has closed, i think the average is 45 days to be paid back. You MUST Be careful on the company's requirements for doing REO repairs, some require contractors, some don't, and they're very firm on thier policy....Don't take enough pictures of the $2,500 gravel driveway you paid for, and you don't get paid! (This happned to a agent on a deal 3 months ago, She did all the work, company was upset she didn't take enough pictures of the $2,500 gravel job, and gave me the listing).
Now , if you want REO properties, you'll have to contact the AMs of the various banks, I did this by going through the county records of sherrif sales, found the lenders who owned the properties, and contacted them, for one bank (One I was VERY happy with) It took from May of 06 till march of 07 to get in their system.
You must carefully weigh the outcomes, and remember........Some banks only pay $500,1%,2%, or 2.5% to the selling agent.
It's the bank's policy.........Something you have to do to get the listings.
I'm not saying EVERY bank does it , but it seems to be the high volume ones do it frequently.
As for evictions, you're the one 90% of the time that has to find out occupancy status, and place the C4k notice, vacancy notice if it's empty and immediately order the oppropiate service. As a agent on any property, it's our duty to work with owners/tennants, it's the same with REOs. Think of it like being a property manager and RE agent at the same time.
Is there an easy way to get in with the larger banks? I currently work with couple Asset Managers but Im looking for ways to expend my REO business. I am licensed in MD and DC