Quote:
Originally Posted by TheSquealer
Because they are sitting on a huge inventory of foreclosed homes that in many areas of the nation continues to grow. My GF (a broker) mistakenly accepted a dozen foreclosed homes from BofA to list. I went with her to a few of them. In most cases they were totally trashed by the owners on their way out - taking appliances, light fixtures, knocking holes in the walls everywhere etc. This is why they have a program called "cash fr keys" where they authorize agents and brokers to give the owners of the foreclosed property 2-3k to turn over they keys and leave without trashing the place.
That said, they are cunts to deal with and something she almost instantly came to regret when she accepted to properties to list. They pay the mon commission allowed ny state law... But whatever if youre not doing anyhtjing other than listing it. They require the agent/broker to connect the utilities at their own expense which remains connected until the property sells. They require the agent/brokers to pay a lot of repair expenses upfront to be reimbursed later. The list goes on and on. She has to end up financing BofA, interest free, with her own money for the 6-12 months it takes to finally bitch and complain enough to get reimbursed and last time I asked her, she had a few grand tied up in each, can't get reimbursed. On some she cant get reimbursed because the asset manager at BofA for those properties either moved, quit or was fired and no one at BofA knows who to talk to. Many of the homes are in the 120k-150k or so range and I think they were paying only something like a 2.5% comission (I want to say 2%).
Anyway, when you see it all from the other side and see how a huge bank is trying manage 1000's and 1000's of foreclosed properties and how terrible they are at it combined with how much damage previous owners do to a property in addition to the fact the value may be falling daily anyway in many areas, it's pretty easy to understand why they would bend over backwards to avoid foreclosing on more properties
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As a former REO agent exclusively, she should get out if she doesn't have $50k to float those dozen listings. REO agents are used to having to do that, but someone not prepared can easily find themselves over their heads.
Having said that, if the cash is there, you can easily manage 70-80 REO listings with an assistant and the money and hassle becomes worth it after you have a system and good contractors in place.
A bank won't think twice about a $12k repair bid and expect you to front them. If you submit your expenses right you'll get it back in 30-45 days typically and if your asset manager likes you and it's a considerable outlay, they can get it expedited.
The secret to REO is to make the asset manager like you. My biggest client admitted to having a crush on me. People fuck at conventions for listings. It's a lot like adult.
Oh and then in six months when they change everything internally you get to start all over again.
It's really fun when the new asset manager doesn't like you or has another favorite and you wake up to a dozen reassigns.
The worst is the asset manager that uses the agents to cover their asses to the VPs and then fires you when you try to show them you did what you were supposed to.
Oh the stories I could tell...