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REO Boom: How to Manage, List, and Cash in on Bank-Owned Properties: An Insiders' Guide for Real Estate Agents

Book Description

Imagine having a proven how-to manual for cashing in on the next big wave to hit the real estate industry. That next wave is REOs—real estate owned, or bank-owned, properties that have been repossessed through foreclosure—and REO Boom is that guide. Aram and Tim know REOs. They have over 7 years of REO experience, have closed more than 2,000 REO transactions, and have consistently earned over $5 million a year in commission income. Now, they want to show you how to take advantage of the coming REO waves and make millions. In REO Boom, the Shahs present a comprehensive guide to making bank from the REO market, preparing you to break into the REO market and presenting a proven formula for success that’s indispensable for even REO-savvy agents. REO Boom includes: • A proven 90-day action plan for getting started • Insider secrets on what asset managers are really looking for • Step-by-step guides that walk you through the entire REO process • Tricks for completing a perfect BPO to guarantee you listings PLUS: Learn how to fund your business by using other vendors’ money, and get the Ultimate REO Bank List FREE. The secrets in this book have helped thousands of real estate agents across the country break into and perfect the bank-owned listing game. Are you ready to cash in on the REO boom?

Table of Contents

  1. Cover
  2. Copyright
  3. Contents
  4. Acknowledgments
  5. Introduction
  6. [Part One]: Launching Your Reo Business
    1. Chapter 1: Inside the REO Game
      1. A History Lesson from the RTC
      2. Big Picture on REOs
      3. The Real Estate Entrepreneurial Timing
      4. Change is Good. Change is REOs
      5. NINJA—No Income, No Job/Assets
      6. The REO Game
      7. The Six Steps of the REO Cycle
      8. The Five Biggest REO Benefits
      9. Three Biggest REO Myths
    2. Chapter 2: Getting in with Asset Managers
      1. The Million-Dollar REO Contract
      2. The Master Listing Agreement (MLA)
      3. Asset Managers Exposed
      4. Asset Managers Profiled
      5. Direct versus Outsourcer Accounts
      6. The Five Biggest Direct Account Benefits
      7. How to Land Your First Bank Contract
      8. The REO FARM™ Play: Talk About the Farm
      9. Tricks of the Trade
      10. How to Multiply Your Business
      11. The Asset Manager Visit
      12. Five Hot Tips from Seasoned REO Agents
    3. Chapter 3: Setting up a Lean REO Machine
      1. Building Your Dream Team
      2. The REO Footprint
      3. REO Customers
      4. REO Bootstrap Model
      5. REO Plus Model
      6. Assembly Line Standardization
      7. How to Start on a Shoe-String Budget
      8. A Word to Brokers
      9. Leveraging Other Vendors’ Money (OVM)
      10. Using Technology—Folders, Rules, and Forwards
  7. [Part Two]: Managing Your Reo Atm
    1. Chapter 4: Receiving Your First Assignment
      1. Occupancy Check Reports (OCRs)
      2. The Three Occupant Option Posting Rules
      3. Be Prepared at All Times
      4. Performing the Initial Interior Inspection
      5. Managing Cash for Keys
      6. Attending Evictions
      7. How to Get into Condos and Gain Cooperation from HOAs
      8. Checking Certificates of Title
      9. Obtaining Estoppels
      10. Managing Utilities
      11. Agent Sign-Off Sheets
    2. Chapter 5: Conducting the Perfect BPO
      1. The Perfect Broker Price Opinion (BPO)
      2. Your BPO Pictures
      3. BPO Section 1: Client and General Info
      4. BPO Section 2: General Market Conditions
      5. BPO Section 3: Your Subject Property
      6. BPO Section 4: Your Competition
      7. BPO Section 5: Your Repair Strategy
      8. BPO Section 6: Your Market Pricing Strategy
      9. BPO Section 7: Final Comments
      10. Putting It All Together
    3. Chapter 6: Managing Repairs and Inspections
      1. As-Is versus Repaired
      2. The Bid Scope and Repair Process
      3. Submitting Completed Bid Packages
      4. Contractor Management
      5. Appliance Ordering
      6. Sample Repair Costs
      7. Managing and Inspecting Contractor Timelines
      8. Dealing with Repair Change Orders
      9. Performing Weekly Property Inspections
  8. [Part Three]: Making Reo Cash Withdrawals
    1. Chapter 7: Mastering Listings and Marketing
      1. The Magnet Marketing Plan
      2. The Twenty-Point Interior Checklist
      3. The Ten-Point Exterior Checklist
      4. The Top Ten Staging Checklist Items
      5. Price
      6. Promotion
      7. Placement
      8. The Six Biggest Marketing and Listing Expectations from Banks
    2. Chapter 8: The Art of Offers
      1. Offer Expectations
      2. The Offer Package
      3. Reviewing Offers
      4. Submitting the Clean Copy
      5. The Multiple Offer Monster (MOM)
      6. The Five Offer Statuses
      7. Three Shady Offer Tactics
      8. The Five Biggest Rookie Offer Mistakes
      9. The Dreaded Performance Review
    3. Chapter 9: Closings: The Finish Line!
      1. Closing Your First Deal
      2. The Two REO Closing Rules
      3. The Closing Cycle
      4. Choosing a Title Company
      5. Ten Steps to Close in Thirty Days
      6. Post-Closing Procedures
      7. Code Compliance Management
      8. When Your Listing Goes to Auction
      9. Submitting Reimbursements
      10. Managing Title Companies
      11. Managing Selling Agents
  9. [Part Four]: Milking The Reo Game
    1. Chapter 10: Double/Triple/Quadruple Dipping!
      1. The Six Hidden Income Streams
      2. Stealing Properties at Auctions
      3. Auctions versus Listings
      4. The Three Exit Strategies
      5. How About Title Referrals?
    2. Chapter 11: Blueprint to a Million in Twenty-Four Months
      1. The Million-Dollar REO Blueprint
      2. Putting It All on Autopilot
      3. Leveraging VIP Leaders
      4. Measuring Your Performance
      5. The Eight Success Measurement Tools
      6. Agent’s Scorecard: Making the Bank’s “A” List
      7. Showing Off: Total Gross Sales Volume
      8. Managing Cash Flow
      9. Trimming the Fat
      10. 90-Day Action Plan
    3. Chapter 12: Printing Money!
      1. Building Your Mojo
      2. You’re Burning Why?
      3. Avoiding Burnout
      4. Managing Success
      5. Final Thoughts
  10. Appendix A: Your REO Resources
  11. Appendix B: REO Bank List
  12. Appendix C: Buyer Information Sheet
  13. Appendix D: Sample HUD-1
  14. Appendix E: Reimbursement Checklist
  15. Appendix F: The Multiple Offer Monster (MOM) Email
  16. Appendix G: Clean Copy Instructions
  17. Appendix H: Sample Listing Letter
  18. Appendix I: Monthly Marketing Report (MMR) Template
  19. Appendix J: Closing Checklist
  20. Appendix K: Sample BPO Form
  21. Appendix L: 90-day Action Plan
  22. Appendix M: Market Adjustments and Repair Costs
  23. Appendix N: Agent Sign-Off Sheet
  24. Appendix O: Sample Résumé
  25. Appendix P: Sample OCR Report
  26. Appendix Q: Condominium Estoppel Sheet
  27. Appendix R: Sample Bid Scope of Work
  28. Appendix S: BPO Photo Checklist
  29. Reo Brothers™ Glossary
  30. Index
  31. About the Authors