have you ever seen these local real estate agents or brokers in your market
listing all the foreclosures in your area and you're like how do they do that
well stay tuned hey what's up guys this is Steve with Steven best real estate
broker as well as real estate investor my passion is to help other real estate
agents real estate brokers as well as real estate investors make a lot of
money in this business and ultimately achieve financial freedom so what is an
REO an REO stands for real estate owned meaning the bank took that property back
from a borrower because of a default now it's considered a foreclosure and or a bank
asset now once a bank takes the property back through foreclosure they're gonna
want to get it off their books as quickly as possible because they're not
in the business to hold property they're in the business to lend money so when
they get these properties back their goal is to get it off the books as fast
as possible and they're gonna have to hire a real estate agent in order to do
this so if this is gonna be your target market you're gonna want to do three
things initially or you're gonna want to build your professional resume it's
gonna include your bio it's going to include your sales information and it's
also going to include your financial capability second thing you want to do
is gather all the information and contact information for large banks
asset management companies as well as small banks that you're going to be
contacting the third thing you're gonna need to do is apply it to all them so
you're gonna send in your resume via hard mail email and then follow up with
a phone call now this is where 95% of your competition is gonna stop they're
gonna send in their applications and they're just gonna sit back and wait and
they're gonna wait and they're gonna wait but not you you're gonna be the
other 5% the 5% that's gonna be aggressive you're gonna be on the phones
with asset managers and/or bank managers trying to get their assets how are we
gonna do this we're gonna make weekly calls you or somebody of your staff is
gonna call once a week into these asset management companies or asset
managers and just get in front of these people
again this is extremely important in order to start listing REO properties
the person that's going to be more aggressive and attentive toward these
asset management companies went into our bank managers or asset managers are
gonna actually get the listings now you may be thinking it's the same real
estate agents that are in my local market they're getting all the
foreclosure listings yeah that may be true however they're not necessarily
doing a great job I mean you can probably see in your local MLS they
probably have crap pictures not necessarily a good write-up and overall
their response and their communication with other real estate agents is
terrible I know you've probably experienced this if you had the buy-side
on any of these foreclosures so you're gonna come in you're going to provide
better service than these guys you're reaching out to these asset managers
you're gonna have to come in with a hook you're gonna have to come in and ask
what can you do to help them right now you're gonna want to ask them if they
need any valuations done on any of their properties meaning a BPO brokers price
opinion I'm actually gonna do it a whole video on this as well we're gonna go
into detail actually how you can make anywhere from $40 to $100 doing broker
price opinion you're gonna ask these asset managers if you can go in and do a
valuation for them even for free all you're trying to do is get a foot in the
door with these people to show them your capabilities your service and so forth
now as time progresses you should be starting to build some rapport if you're
calling these people every week many times they're gonna lead you to
voicemail you can leave a quick voicemail but you know they're human
beings on the other side you can joke around with them have fun with them
start to learn more about their personal life if possible going to want to
befriend the asset managers and when you start to build such rapport just say you
know what I know you have your main three guys in our market that you're
using how about we do this how about you just give me one opportunity I'm not
asking you for dozens of foreclosures or dozens of bank assets to list I'm just
asking you for one try me out I'll make a promise to you with this one
if you give me the opportunity that I will outperform all your other guys and
there's no commitment that you have to provide to me even if I do how does that
sound and then you just wait and wait and don't talk now that's how I got my
first asset management company they the name of that company was called Brighton
I think since then they either merged with another company or got bought out
and that was our first entry into listing back assets and it worked now
that is just one asset management company now that you got that one
secured you don't stop there's plenty of them out there again I'm gonna
provide you guys a link below it's gonna have a handful of asset management
companies you can click on apply and then get on the phones guys you don't
have to stop after you get one asset management company under your belt or
even a small bank or whatever the case is you can build off of it there's a ton
of banks out there that need good real estate agents and if you can provide
those services if you can provide excellent services you stand a great
chance but you have to be persistent you have to stay in front of these people
you have to call weekly the next thing is you got to make sure that you have a
team in place that's gonna consist of multiple parties asset managers are very
demanding you're gonna have to go out and do what's the initial inspection now
I always recommend you to bring somebody or even a security officer to this
depending on your area at least always have somebody else going with you
because this is the first inspection you don't know if anybody's gonna be there
you don't know if there's gonna be a squatter in place you don't know if the
previous owner is still living there is disgruntled and pissed off so always
bring somebody with you because you're gonna have to go ahead and inspect that
property see if anybody's living there and you're got to report back to the
asset manager I'd say 80% of the listings that we took or REO
listings that we took had a ton of trash a lot of times the sellers that
are disgruntled they don't care they're picking up they're leaving the next day
and they leave a lot of things behind furniture clothing trash all over the
place so you're gonna want to have a good team in place that's gonna be able
to come out trash that property out as quickly as possible
get a dumpster do it they need to do you know where to get this property in
better shape third person is always have a good handyman in place a lot of times
asset managers will ask you your opinion on safety or if there's anything that
you could do to make the property look a little bit better so you're gonna want
to have a good handyman that can probably go in and fix some drywall to
do a little bit of paint some asset managers don't want to spend any money
on stuff like that next person on your team you're gonna have a good cleaner I
think that all real estate shows better even if it's you know rough shape if
it's clean so make sure they have a good cleaner on staff the next person is a
general contractor who's essentially licensed to a lot to do bigger projects
for a residential real estate or even commercial real estate we've always had
a general contractor on our team big thing in Florida were pools that didn't
have fences or fences blew over Screened lanais we're blown out and
by law those have to be secured so instead of doing fences and so forth we
would actually have our general contractor build a platform over the
pool this way nobody would sneak in and drown on the property which would cause
more liability for the bank lawn and land maintenance make sure you have a good
person for this some properties you're gonna pull up to and you're gonna see
grass four feet high they're gonna have to come out with a brush hog and really
knock this stuff down they're gonna need to trim them up shrubs trees and really
just clean the property up again curb appeal is everything and you're also
gonna want to make sure that they're maintained on a weekly or monthly basis
to keep the lawn and shrubs and everything looking clean and nice and
the last person on your REO team you should have somebody that's gonna go out
and do the weekly inspections for you a lot of asset management companies as
well as banks and small banks they want weekly inspections some even want twice
a week and it can be a pain in the ass so you're gonna wanna have somebody
that's gonna go out and inspect the properties make sure there's no
break-ins they're also gonna have to take pictures date stamped pictures and
report that back to the asset management company now that's
grunt work that should not be for you that should not be your job what you
should be doing because your job should be back on step one which is going after
these asset managers and building up more inventory getting in touch with
more asset management companies and trying to get them to list with you and
last treat these properties as if there are any other kind of properties I know
you know starting the beginning of this conversation a lot of these real estate
brokers and agents they do a crap job they filter through these properties
they don't they really don't market these properties how they should granted
they're all going to be priced competitively and they should sell
fairly quickly however you guys need to treat these listings just like
any other listing so get the drone shots get the high quality photos do what
you can to stand apart and also videos put a package together an email to the
asset management company especially after your first listing and
do that routinely with every listing that you take again it's gonna set you
guys apart from your competition so again if you're starting with one
listing in an asset management company and you're providing these links and
videos and updates and you got the other guy over here they barely hear from he's
selling their real estate but they barely hear from and they're not doing
as good a job as you what do you think is gonna happen inevitably if you're
doing a fantastic job going above and beyond you're gonna start getting their
market share you may be the top dog after a couple months six months or even
a year listing all those properties in your local market so my question to you
guys is what's your experience dealing with other listing agents who are
listing REO property and as mentioned start right now there's gonna be a link
below click on it you're gonna actually be able to read some more content about
listing REO properties take a look at it at the very bottom there's gonna be a
handful of asset management companies that you can go ahead apply for I'm not
gonna say it's gonna be easy but I can tell you it's gonna be rewarding and if
you found this information valuable please subscribe hit the little bell as
well I appreciate it we're gonna have more videos coming at you
the next ones probably to be on BPOs broker price opinion so make sure you
look out for that one as well I know other local real estate agents in our
market that are making upwards of six thousand dollars a month just doing BPOs
which were essentially valuations of Bank assets so thanks again for checking
out this video until next time