Real Estate Agent · Plano, TX · Member since 2017 · 40 posts · 9 votes
Hey all! I'm thinking very hard about becoming an REO agent in Dallas but I'm getting a tone of conflicting information on BPO'S leading to REO's in Dallas . I'm not afraid of hard work, but I wanna make sure that its going to eventually lead to something. I dont want to do a tone of BPO's and it not lead to any REO's. I've been researching this and I see its a realty for maybe 70% of agents.
Do banks already have certain agents set up that do the REO listings after you,ve done all the BPO work? Do all banks pay you to do BPO's, if so how much? When you get REO listings is there always cost involved? I here REO agents spend alot money once they get an REO listing. Can someone with extensive experience in this please clear this up for me?
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
Carnell Webb
In general, you need a broker's license to do BPOs. Yes, lenders do pay for them, but not much. Brokers with decent business won't bother with them.
In a recession or in an area with lots of foreclosures being an REO agent is good. During upswings in the market most people get out of it.
The listing agent doesn't make much money with individual homes, so they have to make it up in volume, which is why people get out when the market upswings.
You also have to pay a lot of things out of pocket until you close and can get reimbursed (boarding up houses, changing locks, turning on utilities for inspections, mowing lawns, etc.). You also only have a certain number of days to submit for reimbursement after closing or you'll have to eat the expenses.
Yes, doing BPOs "can" get you into eventually being able to list REOs, but you will take a long time (years) going that route.
Best way to get into REO listing is to close a lot of deals on the buy side.