Archive for May, 2009
If you're not a big bank direct broker yet (and I say "yet" because you should be vigorously pursuing them as a client) then it is good practice to start doing BPOs as if you were doing them for a big bank AM. Here's what I mean.....All too often REO brokers (especially inexperienced ones) are too quick to simply "list" a few repair items and then guesstimate their costs on their BPOs. Since with many (obviously not ALL) companies this is acceptable, it becomes a common practice.
OK so "floating" costs for REOs can be REALLY expensive, but it is a necessary evil and you need to be able to handle your responsibilities or you need to get out before you are FORCED out! I know far too many brokers who wait until contract time before they get their utilities up and running on their properties, rather than activating them at the time of listing, as most clients require.Sounds like a slick "cost avoidance" move that's healthy for your biz cash flow huh?...WRONG! Here's what happens:
