REO is still around. Why? Because bad things still happen to good people.
People pass away. People lose their jobs. People spend their money unwisely. And in steps the REO agent.
Anytime a home goes back to the bank, the banks needs a local agent to sell that home. The agent is the eyes and ears on the ground.
In this episode Mike offers the listener many tips for breaking into the REO industry. Two of the most important are:
- Join a default industry networking group
- Use LinkedIn to find asset managers
Problems with REO
One of the problems with REO is that you need to travel to trainings and conferences. Asset managers don’t have the time to spend in order to train you. Attending these conferences can be a big dollar and time investment up front.
In addition, REO is highly specialized. Asset managers expect you to know what each bank requires.
Finally, REO can be a transient business. Asset managers move from bank to bank. And their new bank may already have enough agents in your market.
REO Asset Managers
The asset manager is the point person for the client. The client can be a bank, and investment group, or an outsourcer.
Our guest today is asset manager Shelly Chapuis. Shelly is a 20-year veteran of the default industry. She currently works for NRT REOExperts where she manages 150 assets. But she has managed as many as 400 at one time.
During this interview you will learn many things about breaking into the REO industry. But two of the most important are that agents need to have a passion for the business and be willing to learn bank requirements and deadlines.
But what if you’re new to REO. Can you still break in? Of course. Shelly recommends that you first get mentored by a current REO agent, then attend conferences to meet asset managers.
The REO Conference
There are many ways to meet asset managers. But conferences can be very powerful. Conferences allow you to meet managers face-to-face.
Meeting face-to-face is important in any real estate business. Introduce yourself. Tell them the territory you are currently working. What your experience is. Give them a card. Have a simple, nice, conversation.
Follow up in a couple weeks with a phone call or email. And then stay in contact.
Don’t oversell yourself. If you don’t have a ton of experience, don’t exaggerate. Honesty is crucial. You and your asset manager are a team.
Also Mentioned In This Episode