Episode 48 – How to get involved in the REO listing market

If You List You Last Podcast

• SUMMARY: Host: Bob Mangold, "The Listing Coach."
• Podcast: Episode 48 of the If You List, You’ll Last podcast.
• Focus: Getting involved in the REO (Real Estate Owned) listing market.
• Interviewees: Jerry Stapp and Robert White, both experts in the REO space, sharing insights about the process.

Introduction and Key Points:

• REO Overview: The podcast skips the mortgage market update and focuses on REO listings.
• Expert Insights: Jerry Stapp and Robert White have extensive REO experience, discussing the good, the bad, and the ugly of the REO market.
• Lead Generation Tip: A simple strategy for using HUD-owned homes for lead generation is shared at the end.

Introduction to Experts:

• Jerry: Managed brokers for one of the largest REO lenders with over 20 years of REO experience.
• Robert: Started in real estate in 1986, specializing in REO from an early stage, currently working with over 44 banks.

REO Market Realities:

• REO Myths: Not all REO brokers make huge profits; it’s hard work.
• Foreclosure Market: Foreclosure "floodgates" are not expected like 2008, but some areas may see higher activity than others.
• Consistent Waves: Foreclosures will likely come in waves rather than a tsunami.

Getting into the REO Space:

• Building Relationships: REO is relationship-based, requiring time and effort to build connections.
• Starting Steps:
  • Learn how to evaluate properties (BPOs, cash for keys).
  • Create a marketing strategy that showcases your experience and capabilities.
  • Apply to portals like ResNet, Equator, and Pyramid for BPOs and REO listings.

BPO (Broker Price Opinion) Importance:

• BPOs as a Key Entry Point: BPOs are critical for breaking into the REO space and demonstrating your competence to asset managers.
• Doing it Right: High-quality BPOs build your credibility with asset managers.

Logistics and Challenges in REO:

• Vendor Relationships: Strong relationships with vendors are necessary for managing REO properties.
• Receipts and Reimbursements: Always collect receipts and submit them on time to ensure reimbursement.

REO Listing Process:

• Step-by-Step:
  • Accept the listing and check property occupancy.
  • Report occupancy status quickly (within 24 hours) and handle BPO tasks accordingly.
  • Follow the REO task list strictly to maintain a high score with asset managers.

REO Compensation:

• Typical Fees: Expect 1% to 2.5% per side (listing and buying agent), with some fees going to asset management companies.
• BPO Pay: BPOs typically pay $50-$75, but the real value lies in the opportunity to build relationships.

Additional Lead Generation Tips:

• Use Bank-Owned Properties: Advertise REO listings as "bank-owned" to generate buyer leads.
• HUD Homes and Open Houses: Leverage HUD properties to hold open houses, promoting them with signs and advertising to attract leads.

Preparing for the REO Market:

• Marketing Materials: Create a professional resume and marketing plan that

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