As I posted before, I recently spent 5 days in Dallas at the 5 Star Default Conference learning and meeting with lenders and agents from around the US. There was a full day of 30 minute sessions where agents could find out directly from the lender/servicer what they wanted and expected from an agent. Some were vague and some were very specific.
Here are the TOP 8 we heard over and over:
•1. Be Techno savvy. Everything is web based. Laptops with Go Anywhere Internet and PDA's a plus. Must have a digital camera.
•2. Teams are preferred. If you have a team, you will likely get more deal flow. If you are out in the field, have someone that can answer admin questions when the asset manager calls the office
•3. Be able to advance funds. One lender said up to $3500 per project. One said up to $10,000 per project. WOW !!!
•4. Have a contractor network and be able to GC a minor rehab (about 50% of lenders said this)
•5. Have property tracking software
•6. Have accounting software (huge deal for some lenders)
•7. Have good insurance
•8. A request for a 24 hour turnaround means 24 hours even if that puts you to work on Sunday of a holiday weekend.
One of the servicers we talked to said that he actually comes out and audits the agents that do volume for him. He wants to see their operation in action and review their systems.
I went into the conference hoping to find a vendor that had REO specific tracking software as some of the programs I reviewed had too much stuff that didn't apply or needed to be changed to work for us. I found one and will be trying it out. I will post the results of my test drive once it is completed. Give a call or shoot an email if you want info on it. Right now I am not comfortable openly recommending the program.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
Brandon - This info is from meeting with the lenders over a few days.
Justin - We used to go with Pearl for just E/O. Now I have comprehensive coverage on all of my business units and it costs about $10,000 for the year for the whole thing. Our agents pay $30 a month for EO coverage on our policy.
Hi Rich. Sounds like the 5 Star was a good time ... wish I could have made it. Please do send me the info on the software as I've been looking for something as well.
- James
Rich,
How much is the amount of liability needed per transaction? How involved is the Broker supposed to be in the whole process (I am an agent)? I hope you don't mind me asking this questions but you seem to know so much, kind of like the magic 8 ball. Thanks in advance for your answer.
This is great advice. If you want to get into to doing REO where do you start? Who do you contact? I have a team, systems, digital camera, accounting software and time is not an issue. If you have advice on who to get going I would appreciate it.
I am in Texas!
Sherri Elliott
REALTOR CRS,GRI
As an REO agent, here is the top 10 list of requirements I feel are necessary to handle bank-owned properties:
1. PATIENCE!
2. Ability to process detailed reports over and over again.
3. Cash flow to wait for reimbursement up to 6 months.
4. Good sense of humor
5-10. PATIENCE!
(It's been a hard week and it's only Wednesday!)