Pursuing REO listings can be a wild-goose chase, or it can be a financially rewarding method to broaden your portfolio and grow your business. This post covers the fundamentals so you'll know how to get REO listings properly.
What Are REO Listings?
REO (" Real Estate Owned") listings are residential or commercial properties that were foreclosed on by a bank or a loan provider and have actually not been offered at a foreclosure auction. Instead, the loan provider now owns these residential or commercial properties, and they want to sell them to recover the cash they lent for the residential or commercial property.
It is essential to observe the distinction in between foreclosures and REO listings.
Foreclosures: The homeowner defaulted on their payments, but the bank does not own the residential or commercial property (yet).
REO Listings: The residential or commercial property has gone through the procedure, and the lender, bank, or federal government agency now owns the residential or commercial property.
Both situations present fantastic methods to generate property leads since they involve highly encouraged, "distressed" sellers who would love to work with a representative like you! (Learn other methods to find inspired sellers.)
How To Get REO Listings: A Quick Overview
These are the four techniques we'll cover in this article:
1. List yourself on REO directories.
2. Deal with government firms.
3. Offer BPO services to asset managers.
4. Work straight with banks.
How To Get a List of REO Properties (totally free!)
One option is to be proactive and take foreclosures before they technically become REO listings. To find foreclosures in your area, take a look at listing services like Auction.com or Foreclosures.com.
Otherwise, here's how to get REO listings:
- Look for bank-owned homes directly on bank websites and make an offer. You can attempt the huge banks such as Wells Fargo, Bank of America, or US Bank. But you're most likely to be successful if you pursue regional banks, lending institutions, and smaller sized credit unions in your area.
- Search for listings on REO property management business sites such as HomePath.FannieMae.com.
- Have a look at government agency websites like HUD.gov.
- Visit your local county's site. (Google search" [your county] reo homes," [your county] residential or commercial property search," or" [your county] foreclosures for sale," for example.).
- Lastly, you might even find REO listings on Craigslist or within your regional newspaper's classified advertisements.
Now, let's get more particular and dive into the four best methods for getting REO listing leads.
Strategy # 1: List & Advertise on REO Directories
Listing yourself and promoting your services on REO directories can be a reliable method to connect with banks, lending institutions, and property management business looking for real estate agents with knowledge in dealing with REO residential or commercial properties.
For example, you could join the REO Network.
The drawback to this method is-you're not really "discovering" leads. You're putting yourself in a position to be discovered by leads. Simply put, you need to rely on luck.
Is a network or directory site going to be your best source of REO seller leads? Probably not. But it's not hard or lengthy, and it might extremely well be a "passive" way for you to get REO listings.
Strategy # 2: Deal With Government Agencies To Get REO Listings
Sometimes, a bank owns a foreclosed residential or commercial property. (We'll cover that in Strategy # 4 listed below.) But other times, it's a government agency. So as you're searching for methods to get more REO listings make sure to check out ...
- The Department of Housing and Urban Development (HUD), which obtains unsettled Federal Housing Administration (FHA) mortgages (Note: a Single Family Acquired Asset Management System [SAMS] certification is required.). - Veterans Affairs (VA) REO residential or commercial properties for sale.
Fannie Mae.
Freddie Mac
Pro Tip: Consider acquiring particular credentials and certifications, such as NAR's Short Sales and Foreclosure Resource certification, to strengthen your own self-confidence and increase the likelihood that potential clients will see you as a trustworthy professional.
Strategy # 3: Offer "Broker Price Opinion" (BPO) Services
A BPO is a professional quote of a residential or commercial property's worth. Don't believe of it as a formal appraisal. It's more similar to a comparative market analysis (CMA). Learn more about how to craft a strong real estate CMA.
BPOs are often used by banks, mortgage loan providers, and asset management companies to figure out the existing market value of a residential or commercial property, particularly when they are involved in deals like refinancing, brief sales, or foreclosures.
So the method here is to connect to the decision-makers at the banks, lending institutions, and asset management companies (not their administrative assistants!) and provide to provide a BPO as a form of genuine estate networking.
If you can establish relationships with those who deal with REO listings every day, you set yourself as much as become a go-to agent for your location who can manage the sales procedure on their behalf. (As a side-benefit, naturally, you'll receive settlement for your services.)
Strategy # 4: How To Get REO Listings from Banks
Step 1: Learn Who You Can Talk with
Create a list of banks and possession management companies in your target market who frequently offer REO listings. Do your finest to get all of the contact details for each.
Again, attempt to determine who the decision-makers are so you can speak straight to them rather of their assistant. Your success at this moment will depend on how well you can develop a relationship with those who remain in a position to pass REO listings on to you.
Step 2: Make Connections
Go through your list and ...
- Submit your application (if applicable). - Reach out to them with a call.
- Follow up within the week (and any weeks that may follow) with an additional phone call and an email. Be persistent. Showcase your know-how, and make it clear why you're the very best genuine estate agent who can assist them move REO residential or commercial properties.
Step 3: Prepare
Meanwhile, as you're constructing relationships, prepare for the moment when you make your pitch to take on an REO listing.
Conduct research. Familiarize yourself with the local housing market (specifically any data associated with foreclosures and REO listings). Also, learn more about who they are, what exactly their business does and means, and about how many foreclosures they usually work with throughout any given month.
Prepare a scripted discussion. A well-crafted script will assist you sound more like yourself, mention all of your essential talking points, and strategically direct the discussion. As part of your presentation, be sure to consist of ...
- Your special selling proposition (what sets your property brand from the rest). - Exactly how your service can benefit them.
- How you prepare to offer REO listings (and how that differs from what your rivals and they're present go-to agent are doing)
Step 4: Ask
Once you're positive that you have actually established some degree of rapport with the asset supervisor, bank agent, or whoever it may be you're dealing with, it's time to make your pitch. Ask if you can schedule 15 to thirty minutes to go over your presentation and describe your method to selling REO listings.
If they state yes, blow them away with an amazing impression! This is a crucial chance that might help your business grow for years to come.
If they're not thinking about working with you today, you may select to continue promoting the relationship or just proceed to another potential company where you may be a much better fit.
Submit a Remark Cancel reply
Your e-mail address will not be released. Required fields are significant *
Comment *
Name *
Email *
Website
Δ
This website utilizes Akismet to decrease spam. Learn how your remark data is processed.