So why are you hearing about the record numbers of foreclosures every month, but the flow hitting the market sometimes stalls to a halt? On this call, you will learn about one of the big hold-ups that delays the release of REO properties. Not to worry. This is part of the typical ebb and flow of foreclosure inventory, as banks look for solutions to improve their books. The properties ALWAYS make it to the market eventually! Join the forum discussion on this post

Read the article here.

In a nutshell, it's quite simple, and frankly, very good news for those of us in the REO business, selling foreclosures for banks. Watch this video and you'll see that we are merely in the eye of the REO storm, as it appears that the Shadow Inventory bubble is preparing to burst and provide us with opportunities to sell REO homes like never before. So, if you are a new REO agent, NOW is the time to get started with building your REO client relationships. If you're an established REO broker, Now is an even BETTER time to start strengthening your relationships with your REO asset managers.

Now that we're hopefully in agreement here, that YOU aren't the kind to sit around and do nothing, let's talk about making things happen. First of all, I have given you my FREE E-Book and you also have my Uncensored REO Secrets System to show you several "get off your butt" actions that you NEED to be taking, in order to make real headway in REO. I have also given you the opportunity to get your hands on my REO Black Book to give you a place to start. Notice that I said "START". You need to be using your Black Book to get to STEP 1-registering with banks. It is a VITAL step and a necessary step, but it cannot be where you stop and wait. Back to the car race analogy for a second. Imagine right now, being in that driver's seat, waiting for the light to go green, and then when it does, you fail to hit the gas. Where would you go? NO WHERE! It is s plainly obvious, yet this is exactly what many agents do. They sign up to race and they never leave the starting line. Look, REO requires ACTION and it requires keeping your MOMENTUM going. This means that you have to stay in action. You need to be registering with clients (to be on their "potential" agent list), then you need to be using ALL of the strategies in the e-book and the UREOS system (to build relationships that put you out in front of the thousands of "potential" agents who do NOTHING except "register and wait"), and then you need to do all of those things OVER and over AGAIN (to secure your "acceptance").

Then, as you start seeing success in landing clients and building inventory, you need to be using the techniques that you have learned, to deliver huge VALUE to your Asset Managers, so that you become a PREFERRED agent. You might be surprised at just how easy it is to do. Remember, the world of real estate isn't exactly populated with brain surgeons and over-achievers. By virtue of you putting forth the effort to participate in REO Rockstars and to invest in Uncensored REO Secrets, you are ALREADY half way down the track while most others are asleep at the wheel.

Point here is: Understand that "registering" is merely the first step in a "process" that you'll need to follow in order to get ahead and really kick butt in REO. If it were as easy as just raising your hand and saying "here I am", everyone would be a rock star. You didn't think it was THAT easy....did you?

Ok, here's what I, and a few of my most trusted colleagues, both brokers and other REO industry "insiders" have been observing:

In late fall 2009, , many REO firms experienced a loss of overall REO inventory assignments, as banks pulled much of that inventory "in house" for their own highly-skilled Asset Managers to handle.

I have spoken personally and frequently with many of the higher-ups at these firms and I have kept a watchful eye on their inventory levels, for the last 5-6 months. Generally, there was an across the board decline at first For some it was drastic. For others, marginal. A small few actually saw inventories rise. But in general, the trend was certainly a lowering of REO assignments. It did not look great for the AM firms. In fact, even from the broker standpoint, we weren't really seeing any change in our levels from direct bank clients. For months, we all sat wondering "where the heck are all of these properties going?" BUT, we have begun to see some changes brewing...

Since February, EVERY ONE of my broker friends and colleagues (each a top REO broker in his/her marketplace) has seen a significant INCREASE, in the number of assignments they are receiving from banks directly. The numbers are NOT small. They are in most cases., a DOUBLING or better in terms of sheer numbers. Believe me, as brokers who rely on selling foreclosures for a living, this has been one HUGE collective "WHEW" across the industry. We have all geared up for a very big Spring. It is also extremely exciting when these inventories from direct clients rise, as it presents us with an opportunity to work n higher volume with these banbks directly. This is a VERY GOOD thing, as personally, I find it such a tremendous learning opportunity for me and for my staff. Believe me when I tell you that the banks have some SUPER SHARP Asset Managers in their employ. They are simply some of the finest in the industry. I don't care how smooth, sharp and "perfect" you or I might think that our teams are, there is ALWAYS a lot to be learned from these guys. So I for one am always grateful at the opportunity. It's like high-level training for FREE-can't beat that with a stick! If you get the chance to sample a little learning from direct bank reps, GOBBLE it up as fast as you can friend. Stuff yourself like it's Thanksgiving and you haven't had a meal for days! It is absolutely delicious and unlike a big juicy Turkey, it definitely won't put your team to sleep! More like chugging a six pack of Red Bull!

Another interesting trend that we have been watching, is the INCREASE in the assignments going back out to Asset Management firms since the start of the year. Not only are they receiving more properties in general but we also have knowledge of many AM firms actually getting states assigned BACK to then AND picking up states that they have not previously been assigned.

Ladies and gentlemen, these are VERY VERY VERY good signs for the REO business. If you don't have any REO training then you need to get some. You are welcome to join me on REO Rockstars training calls, for 3 full months, absolutely for FREE, just by investing in my Uncensored REO Secrets System. I enjoy sharing, teaching and helping to make the REO business as clean, solid and prosperous as possible for both brokers and for our clients. Selling REO bears a lot of responsibility. The more good brokers we have, the better for all of us. Whether you learn from me or elsewhere-LEARN! Selling bank owned homes is going to be a large part of the real estate business for many years to come and now is a very good time to launch yourself to the next level in your career, by adding an REO sales division to your arsenal.

So, the signs are all there for a big REO boom this year-unlike anything we've seen before. And while we all hate to see anyone lose their home, as brokers we have a rare opportunity, call it a responsibility, to assist people in getting into good homes, without putting them at risk, while helping to maintain "value" in our communities. You see, REO is not a "bad" business at all. It is not "dirty" or a way to "dump" houses. It is a gift that I am grateful for every day. It is a rare chance to help clients and to positively impact the lives of occupants, in a very direct way, that most will never be fortunate enough to get.

Keep your focus on your principles and work very hard towards keeping them at their highest level every day. You will be rewarded for your GOOD work.

To your success!

To begin learning the Secrets inside the Uncensored REO Secrets System and REO Rockstars coaching, watch the video below or visit our subscribe page.

You know, there always seems to be this "buzz" in the air that somehow REO brokers make it IMPOSSIBLE for "outside" brokers to get offers accepted on good homes. Many brokers, who write offer after offer, only to have them constantly rejected, believe that the listing agents just scoop up the best stuff before ever giving anyone else a chance. But are REO brokers so full of luck that they always have a nest of ready and willing buyers waiting to swarm in on the sweet stuff like a cloud of hungry bees? Not likely. So how does the hot stuff seem to disappear from the market as quickly as it materialized? Well, from an insider's standpoint, I'll tell you...

You see, many buyers, investors and their selling brokers know how to create their own "luck". They work very hard to not only know what a good deal is the minute that they see it, so that they can pounce quickly. But more importantly, they work very hard to know HOW and WHERE to get a look at the hot new properties, before other buyers ever see them. This way, they almost always get the properties they seek, and even better, they avoid costly bidding wars, leaving the "slower" agents to battle it out and bid each other up on the "second choice" properties. So how do they do this? Like I said-HARD WORK! Every day these "smarter than the average agent" folks are on the phones calling REO listing brokers, like myself, and asking if we have properties in our "pre-listing" inventories, that would be a fit for their buyer(s). They're asking to be put on the "list" of agents and foreclosure buyers, who want to be notified, the second we get an authorized list price from the bank. The are constantly checking in with us to see if we are about ready to list the desired properties, so that they can have their buyer (or themselves) ready and waiting to make their move when we call. Of course we can't give them any information until we have a signed listing agreement, but they do ASK. They watch our websites to be sure that they are the first to catch our newly listed properties. They also watch CLIENT websites like trained bloodhounds hunting their prey, always following the scent of that perfect opportunity and going in for the kill when it shows up. THIS is a VERY good way to get a jump on properties folks. MANY MANY MANY times, clients will place homes on their websites, with the names and phone numbers of the intended listing brokers, even BEFORE the listing broker knows the property is coming. Can you think of a better way to ensure that YOU get the first shot at a house, than actually informing a listing broker about his upcoming property and then telling him that you will sell or buy it the minute he gets it?! I can't! Heck, I'd love you for it! Not only did you make my day but you'll also be making me look like a hero to my client. Trust me, you and I will be BEST of friends and I will ALWAYS remember to look out for you when I see something good coming down the pipeline. There are so many different things that you can do to get an edge over your competitors when you are selling REO properties. I'm not going to give them all to you here. I'll share more on REO Rockstars calls. For now, just do a little thinking. It's really easy to stay a step ahead of your competitors when you put your mind to it.

So you see, the rantings of disgruntled agents and buyers who say it's "impossible" to get an offer accepted on an REO or a bank owned home are really just silly, crybaby excuses and "woe is me" sobs for not doing their own due diligence. In fact, I'll go ahead and say it, even knowing that I'll take some blastings from folks who still don't "get it"-You should be ASHAMED at yourself for taking the LAZY way out. Remember what I said about LUCK? If I may borrow a quote from Donald Trump here (who incidentally took it from Gary Player): "The harder you WORK, the more LUCK you create". So, if you REALLY want to be the guy who is always able to get REO offers accepted, then start thinking outside the box and figure out how YOU can put yourself in the right places at the right time. It's EASY to be amongst the mediocre majority. Being a winner takes smarts and HARD WORK!

To Your Success!

First of all, you need to get REGISTERED with as many banks, asset management companies and financial institutions, that handle REO properties, as possible. You can download a FREE REO Registration List here at REO Rockstars.com as part of your membership-No catches or gimmicks. Just some darn good, hardcore REO selling information.

Next, you need to start building relationships with specific Asset Managers, who handle properties on your state. How do you do this? There are many ways.....You can pick up the phone and CALL (Yeah...remember that old fashioned thing called a TELEPHONE that we used to use, before we learned how to hide behind email?). There are a few little "tricks" that you can use to always get to the right person, with ZERO resistance (even at Fannie Mae). I''ll discuss those in more detail, on one of the next REO Rockstars calls (Yep...another FREE REO coaching call that can make you boatloads of money). You can get a recommendation from another broker or asset manager (This is ALSO very easy if you know how to speak the language. There are a few "trick" phrases, that when uttered, can get your competitors and clients to eagerly jump in and help you out (Again, another topic for another call). But even not knowing the exact words, you can still ASK for help. Or maybe you just pick your butt up and fly out to actually meet the Asset Managers IN PERSON. Bottom line is, you can't be LAZY...Most brokers are. Most starve because of it.

Lastly, you should create a unique marketing piece and get it in the hands of the Asset Managers. Look, many REO broker "wanna-bees" come from the traditional side of real estate, where they had to do MARKETING to get business. So why do they think that they can just ABANDON marketing, when they want to get into the business of selling REO? YOU don't...DO YOU? (Incidentally, I will be posting some solid Marketing Samples, from my own bag of tricks, for REO Rockstars subscribers in the coming weeks.)

As I preach all the time to agents and brokers that I coach, creating and maintaining MOMENTUM is the key to being a wildly successful REO broker selling bank owned properties. Taking the passive approach is the way most choose to go, because it's easy and a hell of a lot less uncomfortable. Frankly, it's virtual suicide in his business. Might as well curl up in a dark corner and die, if you don't have the gumption to MAKE things happen for you today. Look around you at the carnage of washed up brokers, who just let this market swallow them up, instead of shifting into high gear with forward moving strategies.

THE DEADLY SIN THAT WILL PUT YOUR REO BUSINESS TO REST: Being a PEST!
Yep, being a pain in the a** will get you on the DNU list so quick, that you'll disappear before you're even a blip on the radar. There is a way to tactfully follow-up and position yourself as an eager and competent broker, who will move right to the front of the line for new assignments, and then there is a way to be looked at like a nagging mosquito, who the AM just wants to swat away. Be careful and use good sense. I'll help you more with this as we move further into hot season.

To your success!

Mike Costigan

Does this mean an END to REO is coming? Does it mean that we are going to see the REO world shrink drastically-NO WAY FOLKS! Here's the raw truth....Banks simply do not have the capacity to process "shorts" at the moment. Nor do they have any real evidence that shows them as a long term solution. Much like the big "loan mod" craze (HAMP) that proved to be an outright failure, short sales come with a myriad of circumstances and anomalies, that will NOT allow them to be some sort of "one shoe fits all" fix for today's housing bust. Just not possible. Frankly, it's a big mess out there and there just ain't no easy way across the river of debt bubba!

But TRY they will. And their efforts will (and already have) disrupt the ebb and flow of REO inventories. All year, we've been riding the wave of inventory to new heights, then seeing it crash to record lows. Will they ultimately find a big, world changing solution?-doubtful. But they will find little patches and band-aids for their ailments. Most will peel off and expose the old wounds after a few months of wear and tear. But these little speed bumps will surely impact inventories along the way. We as REO brokers simply must hike up our boot straps and do the best with what we've got. We must continue to build our relationships with asset mangers and banks. We must do SUPERIOR jobs, so that when levels get low, we are the brokers who get those REO listings. And we MUST strive to improve the overall climate of the REO world ourselves, within our own businesses. In my own personal REO business, our internal policy (which, incidentally is much like that of the biggest banks, of putting occupants into good homes, without great expense after the sale, and selling at the highest reasonable prices, not only serves my community well, but it is good for the buyer and the client. THESE PRINCIPLES will always keep me in business, regardless of market shifts...No question about it.

Don't stress about inventory fluctuation folks. Have an extra cup of coffee and carve out extra time each day to work on "momentum" strategies when things slow down. ALWAYS think about how you can build for tomorrow. DO NOT flip out about today's lows. It kills your spirit. This is a 12-month business every year. Ride the waves and do a consistently excellent job. It all comes full circle in the end.

To your success!

Mike Costigan

What people really need to understand about real estate is that there isn't necessarily any rhyme or reason as to the way the market behaves-especially these days. There are so many different factors that influence swings one way or another and it's so easy to get caught up in them. My advice to REO buyers is to always keep your peripheral vision wide. Look around you, beside you, in front of you and behind you. Take a good hard gander at EXACTLY what's happening in your area. Are homes selling? Are the prices lower today than the last 90 days? Have the prices risen? Do the local businesses have lines outside of them or are they eerily quiet like an old ghost town saloon with a row of empty bar stools? In other words, don't pay attention to hype, media and especially politics. Just focus a wide vision on your narrow market. Pay attention to the factors that matter and make an informed decision on any purchase. Each deal stands alone, each town stands alone and each BUYER stands alone. If you can be disciplined, you can ALWAYS win in the real estate game.

So you see, the question; "What's the deal with all the multiple offers?" is really silly and irrelevant. The question ought to be; "Is it smart for ME to buy THIS property right now, based on the IMPORTANT and RELEVANT factors ". NEVER pay attention to "frenzies" that represent the habits of others who may not be so diligent in considering their moves. Walk tall and THINK for yourself.

1. If we have 14 Billion dollars left over from TARP, why don't we invest in entrepreneurs? You know, those thousands of small business owners who CREATE the vast majority of jobs in this country. Without going into a rant on economics, let me just say that you need to "get" that our economy is fueled by our own ability to service debt. Without jobs-not gonna happen for long, and recovery will be next to impossible. If you need more convincing see Peter Schiff. He "gets" it.

2. Just how in the world is the FHA going to handle a huge potential loss if this market does NOT recover the way that some wild-eyed optimists seem to think? Listen, those of you who have been REO brokers for any length of time KNOW that we need the FHA in order to cintinue to sell bank owned homes. Those of you who are new to or are just getting into the REO business, you will soon discover just how badly we do need them. Sure, the program calls for a 2.25% minimum equity safety net for the FHA funds, but looking at recent years, this percentage drop could occur almost overnight. Scares the pants off me personally.

3. The qualifications include some pretty tough provisions, including "full doc" requirements (which leaves all no doc and stated doc borrowers out), as well as a requirement that the borrower be current on their mortgage. Seems to me that these are the "strongest" home owners in the marketplace, who are not in default, who are no real threat to the market. ie: they are EMPLOYED or have resources to pay. I have a very "capitalist" view on things, meaning that I would say "leave well enough alone". The market will swing upwards and downwards. Sometimes with GREAT severity. Welcome to Capitalism my friends. Always worked before. Do we REALLY want to keep messing with it?

I'll let you formulate your own opinions on this new program. Regardless of your take on it, please stay informed on what is going on around you. Ignorance is not bliss guys. It can have grave consequences.

If you've been selling bank foreclosures as an REO broker for any length of time, you've undoubtedly run into a "proposal" that smelled "fishy", didn't seem right, or just kinda made you go "hhhhmmmmmm".... It seems that around every corner there's a guy or girl trying to make a quick buck from everyone-problem is, it's not always LEGALLY. To be right up front and honest with you, this kind of b.s. gets my blood boiling, to the point where I'd like nothing more than to ram my fist down someone's throat, every time I hear such an offer. Wow...that sounded harsh! haha...actually, I'm not a violent guy, and I would never do such a thing, but I sure want you to have a vivid mental picture about how strongly I feel about running a "clean" business, rather than a sleazy one. Let me give you an actual example of the kind of thing I am talking about here, in case you've yet to come across this sort of impropriety:

Just last week, I get a call from a person who apparently "used to be an Asset Manager" at a large firm. He says to me "hey, I have a business proposition for you." OK so he's got my ear. I am tuned in, ready to pounce on a great opportunity like a Tiger who's spotted a lame deer in an open field. My mouth begins to water. I can almost taste the extra cash...."I have a friend who in charge of distributing the REO properties for XXX Company and they have a lot of inventory for GA" he tells me. Now, I'm drooling! "He says that you can have them ALL". GREAT! I say, thinking that he probably has heard of me or someone has referred him to me, as a broker who is super competent, and with a reputation for getting the job done. I'm anxious to speak to this guy about a solid business partnership, so I pull over to the side of the road to be able to pay closer attention. Then he hits me with "all he wants is for you to pay him 10% under the table for every deal you do". WHAT! Seriously, this fool must be kidding! He actually wants me to illegally pay him for sending me properties.

Now, you may think "well of course ANY broker would immediately tell him to go pound salt and hang up the phone" but WOULD they? Don't be so sure...I can tell you that I have either seen first hand, or know from credible colleagues, of people who have slipped over to the dark side of the bank owned homes business, throwing all integrity right out the window like a discarded candy bar wrapper. Seems they find the temptation of the sweet and easy reward inside, to be so irresistible, that they are willing to litter the landscape of a good business with trashy practices. Ultimately, it takes two parties to allow this to happen-an unscrupulous broker and a shady Asset Manager. Unfortunately, all too often, these birds of a feather seems to find a way to get together. But trust me when I tell you this: Word gets around. And it gets around FAST! I've said many times that the REO business is a very "small" business in terms of who knows who. If a guy is with a well known company, or even a smaller one, their competitors have their eyes on them CONSTANTLY. And the minute a scent of bad behavior hits the air, the competitors will pounce on them like trained bloodhounds. To think that people don't jump at the chance to bring their opposition down in ANY business is just plain foolish. Wow, the more I write about this, the more I feel my temperature rise. Running a "clean" business is something that I am extremely passionate about. If you think that you somehow must bow to these criminal lowlifes in order to become and REO broker or to ultimately succeed as one then I say this...LOOK AT MY BUSINESS FOR EXAMPLE. For that matter, l can show you so many examples of super clean, ultra-efficient, highly-profitable, competition crushing businesses that my good friends and colleagues run...all without the slightest infestation of greed, bribery and bs!

On a deeper level, think about how this crap affects others:
1. Banks unwittingly use lower classes of brokers and ultimately may sell homes lower than necessary, because the LOSER is chosen by his willingness to "pay to play" rather than on his merit.
2. Lower selling prices mean greater losses to banks, which means more money out of my pockets and YOURS to fund bailouts.
3. Neighborhoods continue to decline in value at greater rates than necessary.
4. As housing prices drop, more people are unable to sell their homes and more people are forced into foreclosure.
5. YOU and I are cheated out of the chance to do more business because it's getting underhandedly diverted to chumps.

These are just a few of the hundreds of ways that this stuff affects you and me personally and how it effects our economy, our clients and our country as a whole. These are TOUGH times for sure and making a living sure isn't easy. But who ever said it was?! REAL entrepreneurs know that the reward from pushing for that 1% additional growth in your business every time the sun rises is sure as hell a lot more rewarding than paying off these gangsters for "protection". Gimme a break folks. This stuff ALWAYS ends badly. The short term income boost is never worth it. I can tell you the story of a guy I know personally who decided to "pad" invoices and ended up in the federal pen for 18 months (and hey, he is actually a "nice" guy...the business was just too costly for him to run without "padding" he thought.) Temptation woooed him and ultimately got him! Picture HIS Christmas morning, surrounded by concrete and bars, sitting in a plastic chair while he talks to his family on the other side of a plexiglass window on a telephone. No hugs and kisses this year.....Worth it? I think not. On a grander scale, a VERY large company recently shut down it's REO department after it discovered it was infected with corruption. Yeah, a WHOLE department shut down, locked the doors and chained them shut! Happens more than you'd like to think.

So, what do you do when you're approached with a "proposal"? Hate to say it, but it's been my experience that simply turning your head and walking away is best. As much as you might like to take action, whether it's giving the guy a serious piece of your mind or trying to get him fired, you are best to disassociate yourself and move on to greener and CLEANER pastures. There's a sea of GOOD business out there for you to feed on. The REO world is way too small. Word gets around quickly. Probably not wise to have your name in ANY way mentioned when people talk about corruption......Rotten stinking GARBAGE I tell ya'...and like any other business. You live and die by your integrity folks. If you don't have any, you better hike up your boot straps and go hunt some down. The bell will be tolling for you soon without it!

Rant over.

1. My team gets a BPO order (or we have a house that is vacant and we must provide a BPO in a specified time frame)

2. My Field Services Manager creates a "Field Report" sheet and hands it off to a field representative for completion, along with a daunting heap of other tasks to be completed the same day. I also follow-up with my own inspections.

3. The field rep hits the streets, on a 8-10 hour "road trip", rushing to get to all of his properties before the sun goes down.

4. The field rep turns his "Field Reports" in to the Field Services manager the following morning.

5. The Field Services Mgr. uploads the "Field Reports" and all associated photos, etc. for each property, on to our sever.

6. My Valuation Mgr. begins working on the BPOs.

So do you see a flaw in the process? An obviously kink in the system? a BIG time gap that's sucking the productivity right out of my business? Think about it...it's REALLY obvious. With this system I was totally bleeding out. I still can't believe I was able to survive...

OK here it is (for those of you "slower" types) In our "system" above, we are waiting a FULL day before we even START working on the BPO! Many of my clients give me only 48-72 hours to get a BPO done. So, right out of the gate I've wasted a MINIMUM of 33% of my time. You're sure not gonna win any horse races with THAT kind of start! Kinda reminds me of the good old days in real estate, 19 years ago, when we had to lug around a heavy "telephone directory" sized book full of real estate listings and black and white pictures. We had DOS based, painfully slow MLS systems and cell phones with 10 pound batteries in a bag! It was just plain hard to be get anything done fast. You literally had to cart around so much crap that you felt like you were "living" out of the trunk of your car (which incidentally was ALWAYS filled with paper files....FORGET trying to load up any luggage and escape for a deserved weekend vacation...no time and NO ROOM!) Point is...we have technology today. Get out of the dark ages and EMBRACE IT! Otherwise, you'll be left in the dust. Business moves pretty fast. It's VITAL that you keep up.

So here's what I did to fix this and to IMMEDIATELY bump my efficiency by more than 33%:

With the help of my developer, Brent Guest, owner of BHG Digital, we simply created "online" field reports. I then gave my field representatives each their own portable "netbook" computers. With these tools, they simply log-in to my website right from the house they are inspecting, while they are out in the field. They proceed to complete their field reports on-line and then... "voila"-my Field Services Mgr. receives the information instantly via email in a nice, easy to read PDF format, and she uploads the information and pictures right to the server. Having the information delivered in "real time" eliminates the need for us to wait an extra day, to receive the information from our field reps, and we are now able to deliver our BPOs EARLY (which, by the way, is what Asset Managers REALLY want. A BIG point scorer) . A cool thing about these forms, is that you can install them on your field reps' computers, or you can do like I do, and integrate them into a secure password protected area of you website, so that they can be accessed from any computer with internet access, and also so that you are never at risk of them being deleted or inadvertently modified. They are VERY easy to use either way.

Like many little "tweaks" you can make in your business, to make it run more efficiently, this one really CAN make you a lot more money. While you might know that most Asset Management companies have "scoring" systems that grade you based on your ability to complete REO tasks in a timely manner, do you also realize that many of them negatively ding your score for being "on time" vs. "early"? My REO Rockstars do! By using tools like these online forms, I always make sure that my team delivers EARLY every time and my AMs reward me with huge volumes of assignments every month. Now THAT's what I call using leverage to bring more cash straight to your bottom line!

View Sample Forms Here -

• Initial Occupancy Field Report SAMPLE
• Monthly Inspection Report SAMPLE
• Repair Sheet SAMPLE
• Work Order SAMPLE

Want to get your own copy of the POWERFUL EFFICIENCY BOOSTING Online Field Report Forms, and AUTOMATICALLY make more money by working at high speed WITHOUT extra-effort? Click Here for a special arrangement I have made with Brent and BHG Digital, to let him distribute them to other REO brokers. (yeah yeah......YOU'RE WELCOME

Here's Wade's take on this one:
**************************************************

A real estate investor submitted the following hard money loan deal for consideration:

* Residential single family house, 3 bedroom, 2 bathroom, built in 2003, bank owned foreclosure (REO)
* After repaired value (ARV) = $65,000
* Estimated repairs = $5,000
* The real estate investor intends to offer $40,000

I don’t have to run the numbers to tell that this deal is too thin and that the real estate investor should offer a lot less on this REO property.

A quick check of the recent comparable sales (comps) in the MLS indicated that his estimated ARV (future market value) of $65,000 was a valid number. There are houses currently listed for sale in the $110k-$120k range, but the only properties that have sold in the past 6 months were foreclosures which brings the ARV down.

I assumed that it would take the real estate investor 6 months to turn the property around from the time he purchased the property, completed the renovations, found a buyer, and got the deal closed.

Estimated Sales Price

$65,000

Purchase Price

-$40,000

Rehab Costs

-$5,000

Loan Origination Fee

-$4,000

Closing Costs (buy)

-$1,500

Holding Costs (interest $42k @ 15%, $525 month x 6 m)

-$3,150

Holding Costs (taxes @ $1,700/yr, $142/m x 6 m)

-$852

Holding Costs (utilities, maintenance, yard, $50/m x 6 m)

-$300

RE Commission (sell, est 6%)

-$3,900

Closing Costs (sell, est)

-$2,500

Total Purchase, Rehab, Holding, Selling Costs

$61,202

Estimated Net Profit

$3,798

That’s a pretty skinny deal. The RE investor has no margin for error here and it’s a lot of time, money, and effort for very little profit and a lot of risk. Could the investor sell the house for more than $65k? Maybe, but in the absence of any recent comparable sales to justify a higher sales price, you can’t basis your analysis on the hope that you’ll get a higher sales price. Could the house sell in less than 6 months? Sure, but the average days on market (DOM) in the area is about 70 days, add in 2 to 4 weeks for the rehab, and 30 to 60 days for the buyer to get financing and you are at 4-5 months from start to finish.

The only way for this deal to make sense, is for the real estate investor to acquire the property at a much lower price. As the saying goes, “you make your money when you buy, you get paid when you sell”.
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Well, I think Wade covers all the big points extremely well here. Hey, you're getting' it straight from the horses mouth so to speak! This is NOT brain surgery here. It's about applying simple common sense decision making and putting a game plan in place. Simple formula. Winners will get it. Loser won't. When you look at this guy above, I immediately think to myself "one big plumbing leak and this guy's finished". Then what happens? He defaults on the loan and Wade is stuck with it! Like I said, guys like Wade weren't born yesterday. If you're gonna buy foreclosures or sell foreclosures to investors and hope to be a true REO Rockstar, you REALLY need to be on your game. And if you're just plain bad at math...One word: C A L C U L A T O R.

RING! The stinking phone rings, and blows your concentration completely! It's an agent on the line asking you for a lock box code! You think to yourself "I have so much important work to do and I can't believe that I have to answer these kind of calls." You hang up and feel a little frustrated from being pulled unwillingly out of your focused "super accomplisher" mode, but you clear your head and dive right back in. Then RING RING RING...there it goes again. Another "lock box" call.It happens over and over again all day long as you try to work until finally you're totally flustered. Unfocused. Day blown. Kaput! I am sure that by now you really get the gist of what it is that I am trying to point out here. There are things in your business that screw it up every day almost unconsciously. And the more of these things you permit to invade your business, the more money you LOSE! Hey, do you look around enough every day to see these things happening. WOULD YOU EVEN NOTICE? Honestly? As the boss, it's sometimes easy to forget the little "nags" that seem to infiltrate your business every day. These little VAMPIRES suck the life right out of your employees and absolutely kill productivity. Well, if you're like me, you will NOT have this happening in YOUR business! In the business of selling bank owned homes,, with constant pressure on the prices of foreclosures and on commissions, and with the multitude of tasks that need to be accomplished each day, it is CRITICAL that you squash these little "time suckers" as soon as their ugly little heads pop up. You simply MUST run an extremely tight ship to stay ahead of the game. To me, the phone is a vital part of my business. And it is absolutely crucial for an Asset Manager, Buyer or an Agent to be able to get through to a live staff member very quickly when they need to. You ALWAYS want to strive to provide the highest level of service and part of giving great service is being readily available to colleagues, clients and customers (if you don't "get" this already then you need to seriously rethink ANY sales career my friend But what if you could head off some of those calls that could be easily handled "automatically" without your participation, so that you and your staff could stay totally focused on productivity. Heck, how about if these little things could be handled without you even knowing that they were done? Well,the phone thing is very simple. In my business, we have implemented an online password protected spreadsheet, that only agents can reference, to obtain current property status information and lock box codes. We simply provide the private web address and pass code for them to access the list and we avoid any distracting calls. It's a document sharing platform provided by a company called EditGrid. And here's the best part. It is FREE! On our end we simply keep the spreadsheet updated with current information and then when agents need the information, they simply view the document online and they never have to call you. Hey, it may seem silly but I find that seemingly "small" tricks like this can end up saving me a couple hours of lost productivity per employee on a weekly basis. When you annualize that number it equates to HUNDREDS of man hours. Think about that. What could you accomplish in a hundred hours? TONS! It's little things like this that allow me to continually outproduce my competitors while keeping a smaller staff. Hey, it's not brain surgery here. Smaller Staff=Less Overhead=HIGHER PROFIT! I'm no math genius but I like the answer to that equation! I'll teach you this and other tricks on REO Rockstars calls and I'll show you exactly how to get these things set up in your own business and to learn how to sell foreclosures  in the most cost-effective manner possible. Until then, take a good hard look at your business and see how many little fixes you can come up with. Look around. Ask the staff. I think you'll be surprised at how many you'll find.

There are certain tools that can just make life a heck of a lot easier if you're an REO broker.

RoboForm2GO Pro is just about the best little piece of software that I have ever purchased. It auto-fills registration forms and remembers passwords to all of your clients' on-line platforms. I cannot tell you how strongly I feel about having this little tool. It WILL be the best $49.50 you have ever spent. I prefer the RoboForm2GO Pro version. It can be loaded on to a flash drive and you can take it with you wherever you go. Get RoboForm2GO Pro version here RIGHT NOW.

Your website should be very "buyer sticky". By that I mean that it should give buyers reasons to stay around and seek out more information. Let's face it, buyers want to see homes. They don't care about how great you are or about your silly sales pitches. I have always gotten the best results by providing a "one stop shop" for REO searchers. I found exactly ONE IDX software that can be fully customized to your own specs - IDX Broker. Do not be fooled by companies who say there's is customizable. If you can't have access to the code then you can't really customize. For example: on my site REOAtlanta.com I have been able to code in special parameters that identify potential REO properties and short sales in ways that I could NOT do with any other IDX provider. This is like GOLD to REO investors and they come back to my site over and over each day. Try IDX Broker. It's the only truly customizable IDX solution on the market today. Don't know how to custom code? No problem. Email Brent Guest of BHGDigital LLC for custom web design (he does 100% of mine-including REO Rockstars.)

For BPO information I use a service called REDLINK. They don't service a lot of states but see if they service yours and use them if you can. It's a big shortcut to information for my valuations staff.

Lastly, I have a self-designed site called UnlistedBankHomes. It is a subscription based site for investors where I list homes that are about to hit the market. We list the homes here after getting a listing agreement from the seller and IMMEDIATELY before placing them on the market (we also give information on pre-list homes but it is very limited). This information makes investors drool and keeps them locked in to you as the expert resource they seek out. I would recommend using every one of these tools if you are going to be serious about making serious money selling REOs. Check them out and get 'em!

P.S. A version of my Contract Instructions is in your Uncensored REO Secrets package and also available for download from REORockstars.com in the UREOS Bonuses section. I'll discuss this topic in greater detail on an upcoming call.

RealtyTrac is the number one provider of accurate real estate and REO statistics. This is THE best place to get data feeds, widgets and foreclosure article RSS feeds to dress up your website and make it "buyer sticky". The Foreclosure Trends subscription is the real "hook" for investors. Get it here.

Again, if you need help setting these tools up simply contact Brent Guest at BHGDigital LLC for custom web design.

You also need to set up accounts on these two platforms: Res.net allows you to register up to 100 zip codes per account. So if you are a large broker and cover more than 100 areas you will need to set up multiple accounts (I have 4). Res.net is only about $250/year for each account.

Equator (formerly REOTrans) allows you to list as many zip codes as you like and you pay a per zip code monthly fee. Equator is much more expensive than Res.net but you must be listed on BOTH. Asset managers routinely search these databases for agents located in a certain proximity of their REOs.

In addition to being on their own in house systems, many require that you use Res.net or Equator to process the sale of their properties.

To your success! Mike

Here's Tip #1 that you should have picked up already: Do what you SAY you will do. KNOW your properties like they belonged to you and not the bank. Treat 'em like children. Take care of all their special needs. They are ALL different and they all require special attention. Having your Asset Manager have to call and tell you that the police called about your vandalized house should hurt as much as a family 100 miles away calling to tell you your 3 yr old kid "wandered off" a week ago. I'm being silly but take this seriously. This is one of those BIGGIES that most brokers screw up. In my business I take the extra step of getting bids for repairs of damage BEFORE I report the damage to the AM so that I have a nice clean packed "solution" for them rather than another " problem" for them to add to their pile. Then when it comes to assignment time they know that I make their job easy and they flood me with more properties. We'll cover the other 3 Vital Practices on an upcoming call. Until then, PAY ATTENTION and BE PROACTIVE with "SOLUTIONS".....until later...

1. Being On Time Every Time. If a task is due in 24 hours and it arrives at 2:14 on Tuesday, then it is due at or before 2:14 on Wednesday, NOT 2:15. NO EXCUSES for tardiness. AMs will penalize you severely for repeatedly being late.

2. Be a Problem Solver. You are the eyes and ears for the AM. Never forget this. If you notice a property is in emergency need of attention (like a tree on the roof causing a major leak) then take care of it and THEN tell them AM. Do NOT send a frantic email at 3:00 A.M. asking the AM "what do I do". Show them that you are a hands on agent with the ability to make their job easier.

3. Never Lie. We all screw up and AMs know it. Own up to your errors and work swiftly to correct them. Trust is an all important piece to a solid relationship with your clients. By the way, this also goes for accepting assignments. Do not greedily or desperately accept any property that you cannot properly service. A property 100 miles away is going to negatively impact the level of support that you provide to your AMs. NOTHING should ever be allowed to compromise that! It is a highly respected practice in the REO business to respectfully decline listings that are far away. It is an even better practice to get to know brokers who work the ares that you do not service and to be ready to refer the broker to your AM right there on the spot. This is another way that you can show your AM that you are an agent who is always looking to make their job easier.

Refer to the basic concept of these 3 rules "making an AM's life easy" when creating processes in your business and you'll soon be heavily rewarded by your clients for your unique "partnership" approach to working with them. Believe me, very few agents ever get past "greedy" thinking and it severely hampers their businesses. I find it so funny how such simple mindset shifts can launch you right past the competition! Learn to think this way and you'll laugh all the way to the bank!