Category: REO Rockstar Videos
It is quite common to find discoloration caused by water intrusion in abandoned foreclosure listings. Depending on the price and condition of the property, your client may choose to repair and replace or simply find a more cost-effective solution for getting the home free of potential safety hazards and ready for market. In this video, I’ll show you how we creatively handled the situation in a property that had some discoloration in the basement. I should mention that I hear myself using the word “mold” in this video. I am incorrectly saying using this term. The drywall had discoloration and I am NOT a mold expert and could not identify it as discoloration of the drywall. Furthermore, you’ll notice that I mention that it is less than 100 contiguous feet, which is the standard by which many companies determine whether or not full “remediation” is necessary. In this case, it was not. Take a look at the end result of our “fix”. Also be sure to notice that I check to see if the source of the problem is fixed as well. In this case it was not and I had to report it to my REO Asset Manager and my contractor had to return and get it corrected. “Band Aids” don’t work. Double check every time! Hey, a repair like this on a bank owned property isn’t always a pretty process but it gets the job done safely and properly!
OK, so you may think it’s perfectly fine to allow your agents or field service reps to inspect the work of vendors before you sign off on the repair work. Well, I’m here to tell you that you are dead WRONG! Listen, I can assure you that no matter how hard your staff works, NOBODY is going to be as careful as YOU. Watch this video to see how even the simplest of repair jobs cannot be left to inspection by ANYONE other than yourself. I had already sent one of my agents out to verify this work and he reported that everything was fine-and he was incorrect. Hey, having a team is great and it certainly creates leverage. Just make sure that you never become lazy. Take on the important roles yourself even though they may require a little legwork. Laziness is the quickest way out the REO business.
Performing and eviction on one of your REO properties may seem like a daunting task but it’s really quite easy. As the broker, your role is primarily to coordinate the arrival of a crew of guys to assist in carrying the furniture and any other belongings to the curb and to assure that things such as the re-key and securing of the property take place. Once the crew is finished with their job, you simply photograph the property, install the sign and lockbox and you’re on your way. Watch this video to see how simple the process really is.
Once you’ve assembled the right team you will reap the rewards of having true leverage. I’ll let the video speak for itself!
I have never been a fan of people who teach “shortcuts”. You know, some people like to paint the “dream” of getting rich in real estate by making things sound effortless and too good to be true. Well, I’m telling you first hand that it’s the HARD WORK and attentiveness that you put into your REO business that will quickly propel you into the upper spectrum of income earners in the business. I know so many people who think it’s “o.k” to periodically skip inspections on their vacant properties once they have determined that no one is living in the home and there’s no personal property remaining. They think that it’s not going to matter whether vandalism is reported 7 days after it’s discovered or 14 or even 30 days later. I mean, “no one is going to know the difference right?” WRONG! You should always, 1000% of the time, visit your properties as directed by your client. Watch this video and think about what would have happened if I waited for the smoke to clear before reporting this? You think my client might have thought I wasn’t on top of my homes if I didn’t report THIS for a month? You judge…
Most REO clients require that you revisit your properties at least once every month to inspect the home for new damage or changes and to certify that it is secured from unauthorized entry. After inspection, you’ll submit what is commonly called an “MMR” (Monthly Marketing Report), also known as an “MSR” (Monthly Status Report)-just a little industry lingo you’ll need to know. 
In this video I’ll take you with me as I check on one of my properties and show you what the banks want you to be looking for. WARNING!: If you are offended by profanity and obscene graffiti then don’t watch this! (and you probably WON’T want to do REO….’cause you’ll need to get VERY used to it). C’mon inside and let me show you why it’s not always a good thing to be a “KING”-ha!
No matter how “cute” a little house is or how “safe” a neighborhood may appear to be-NEVER assume that ANY REO is secure from vandals and squatters. Come with me as I walk you through one of my properties that we had recently secured and I’ll show you how to spot the tell tale signs that someone has been coming and going……we’ll start in the dark and dingy basement where NO REO agent wants to go! Funny story about dark basement: Recently a buddy of mine and fellow REO agent was taking pictures in a dark basement WITHOUT his flashlight. He was walking room to room and just snapping pics, relying on the flash to guide him along. Man did he get a surprise! After sticking his camera in a totally black room and snapping a quick shot, he looked at the preview screen and saw….a FACE! Haha! I don’t think he’s EVER moved so fast to get out of a house! Moral of the story: NEVER be too careful and ALWAYS bring your flashlight! He would have been at a HUGE disadvantage had that squatter decided to act violently.
OK, sometimes you get an REO that you really don’t even want to bother with. But it’s part of the foreclosure game-you take the good, bad, ugly and the POS! A bank will certainly appreciate your ability to help them manage and dispose of their worst problem properties….especially those that no one else wants. It’s important that you remember that EVERY REO deserves equal treatment-regardless of how much you may despise the house (hey look-none of us our psychics. Sometimes it’s the most run down house that sells the quickest. NEVER “curb qualify” a property). So let’s take a look at this beauty of a listing and I’ll show you some of the things that MUST be repaired no matter how rotten a property is.
If you REALLY want to be the guy who stands out as THE broker to use in the minds of your clients then GO THE EXTRA MILE! Rarely do I see agents getting off their butts and doing proper checks on their properties at the times they need to. For me, a rainstorm presents the PERFECT opportunity to see just how solid your homes are. Watch this video and I’ll show you the kind of things you will discover if you’re smart about the times that you inspect…things that you would NOT find at less opportune times. Take note of the signs of previous water issues that I point out. This is how I know exactly WHICH houses I should be visiting after a good old fashioned downpour. Your AMs will LOVE you for identifying these issues BEFORE they come up as “deal killers” later!
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