Quote:
Originally Posted by epitome
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...
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She refused to take anymore properties from them just because of how much of a pain in the ass it is to deal with them and the fact that you have to front your own money for a tiny commission and then beg and beg and beg to get reimbursed for all the upfront cost they insist get paid by the one listing the property.
It's fine to say that you need to front XX,XXX etc etc. But my point was more that for a successful broker or agent, its not worth dealing with them because of how they operate as a business. BofA contacts her all the time to valuate properties (whatever that is called - where they pay $300.00-$500.00 for an opinion/report on a properties value) and she agreed to accept those foreclosed homes and quickly realized what a mistake it was. If someone has an inventory of 10,000,000.00 + of commercial and residential property as she does, its not necessary to deal with their BS and unprofessional behavior.
And btw... no one with $50,000.00 cash lying around should be lending it to BofA interest free to pay expenses associated with selling the property and then have to beg and beg and beg and beg to get reimbursed? Thats a little crazy.
For an agent or broker to be listing properties like this, they pretty much have to be struggling, given the retarded demands of the bank in terms of time, effort and money upfront, the lower commission and the problem of not being able to get your money back in a timely manner.
