OK, Beachfunk, tell us what ya know!

REDC has formed a subsidiary called REDC Default Solutions. Jason Allnutt, President, was an executive at FNMA. Matt Slonaker, SVP, an executive at EMC/Chase. If you read press releases on this expansion it all sounds pretty mundane -- along the lines of REDC is expanding into asset management and loss-mitigation, etc...

What is not being reported and understood is that this new entity's primary revenue source and its primary focus is opening retail real estate brokerages, dba Red Crown Realty, in the major REO states (like CA where I operate).

REDC is slowly attempting to corner the REO retail market in the same unethical manner (imho) as they have in the auction market...I don't think it is any secret how blatantly REDC exploits REALTORS...and Red Crown Realty is following suit -- paying desperate agents less than 1% listing commissions...and literally raping them on additional transaction fees.

This is HUGELY important to ALL of you as listing agents! REDC management, having served as executives in the largest institutions in our industry, are able to use their inside knowledge and personal friendships at Fannie Mae, EMC, GMAC, etc...to eliminate you. It has already happened to many of you with Fannie Mae and it is just the beginning.

No matter how long you have had a working relationship with an REO client -- you will not be able to compete with the inside knowledge and personal friendships the REDC management has...and I openly question this relationship. It just wreaks of potential corruption!

Bump. Great post and topic. Thanks for this info

Ocwen, all over again?!

Can't beat'em just join'em!! Jason & Matt are making a killing but they will be millionaires. I heard you beachfunk!!!

They've been sending more and more of our listings to auction (what a bunch of incapable people those are). I'm a direct agent, and I remember back in November when we got a flood of listings after Fannie started pulling their listings from asset-management middlemen.

This post is not good for me if this is true. I'm probably higher up on the food chain than those with indirect listings, but I can't compete with executive friendships.

Also, I did a little bit of research. Sure enough, a Red Crown Realty office popped up in my local MLS. The address is a residential house that is local, but the number is in an area code about 5 hours away (the same area code listed on their corporate website for their Florida branch).

And also, correct me if I'm wrong, but you can't run a real estate office out of a residential home in Florida? Is that what I recall from my RE Class days forever ago? I vaguely remember that it's possible, but not worth it.

beach,

can you hook me up with some of those sources where you found that information?

Red Crown Realty is now a member of our MLS as well, no listings yet. Office address is their corporate office in Irvine. It appears that 3 of the agents listed just joined the MLS as well.

Only FL, NV, AZ & CA on their website

REDC is nothing but trouble.

Had a listing reassigned to us from an outsourcer back in November. A few days letter, we got the e-mail saying the property was going to go to January's auction.

That happened and all, and we get the fully executed contract this weekend. Still has the outsourcer's contact information as the "Managing (aka Listing) Agent."

Guess who isn't getting a commission and is rather upset?

Was the servicer ALS?
Did you do the required open houses etc?
I may be in the same boat..I cant get a response on the outcome of my listing which supposedly sold in January also.

Outsourcer was Green River Capital, and yes we did the required open houses (all 3)

Update:

Contacted the REDC contacted listed for that particular property and explained the situation. Got an email that was CC'd to another individual with the text "Gold Team please assist." That was this morning, and I haven't heard another peep.

I had a good laugh out of it though. It might have been sadness converted to humor though as I watched commission slip way. I went around the office all day saying "Delta Squad strike" in mockery of the e-mail I received.

I'm pretty sure I can figure out what their internal definition is for "Gold Team."

Ahem

Actually, you might not want to laugh at them. Goofy name aside, I've had several properties go to auction and they've always made sure things are handled properly. If you're due the commission, they'll get it to you.

Hey, I contacted REDC today and was told that the ALS team "Blue" would follow up and they actually did. The statement that I got was that the property is pending the seller's approval, which seems reasonable as the auction was 1/29/10. Maybe we will see a commision!

Nah, I have faith. But thanks for reinforcing it!

[quote=RecoveringREAgnt]Can't beat'em just join'em!! Jason & Matt are making a killing but they will be millionaires. I heard you beachfunk!!! [/quote]

I received a copy of their "compensation" plan after inquiring on a job posting a few months ago. It read like a Stephen King novel it was so horrifying -- at least in CA. I figured based on their pending sales in the MLS an agent would be lucky to make $1,000 per listing -- and then they make agents pay fees on top of that. I don't know -- maybe they are wonderful now...I was just more interested in their affiliation with REDC. They haven't beat me yet - so I'll keep chugging away with the thought that they will simply screw themselves by screwing their agents and I will get all of their reassignments :rockon:

I just remembered that back in the day, Standard Oil graded their gasoline by what we know now as regular was Red Crown, and high test was Gold Crown.

I remember the lighted globes with painted red of gold crowns on top of the pumps.

Nothing to do with the thread - just musing.

Gawd - You're older than I thought you were.

Probably - My dad was in the business so I was around that stuff early in life, but still, I do remember it.

My dad also got his money worth out of his investments, so we porbably had those pumps long after Standard Oil wanted him to replace them. He always owned his equipment, so he kept them until he built a new place in the early 60s.

GRC and REDC sisters and founded by the same dude

Not overly important, but, not sisters, and not founded by the same dude (though the dude in question did work for REDC before starting up GRC).

Source- http://www.smconferences.com/MS09/speaker-christopher-west.html

They WERE sisters! They arent anymore
"On November 13th 2008, REDC completed the sale of a 50% interest in the company to Trident IV, L.P., a private equity fund managed by Stone Point Capital, LLC. This historic event marks the first time a financial institution has taken a significant stake in a real estate auction company"

Got email from them today------

Red Crown Realty (affiliate of international real estate company, REDC) is hiring experienced brokers and agents (existing team a plus) with a proven track record of performance in Northern California's REO marketplace.

Broker/Agent Qualifications: Specific REO Qualifications:
- Broker/Sales license in good standing

- Strong time management & communication skills

- Computer literate & constant internet access

- Detail oriented, organized & professional
- Able to mulitask while managing a large portfolio

- REO listing & transactional experience

- Managed REOs from trustee's sale to recording

- Equator & Res.Net experience a plus


This unique opportunity allows brokers and agents to combine their talents with Red Crown Realty & REDC's powerful lead generation to turn large volumes of
houses into homes!

If you are interested in pursuing an opportunity to work with some of the largest asset management outsourcers and lending institutions, email your resume to:

xxxxxx

Good luck to you....it was a serious decrease in pay for us. Ask a lot of questions. We didn't get many answers and the ones they provided were sketchy. We passed and that was about 6-8 months ago. Maybe things have changed but since they are still looking for agents, I doubt it.

So - I just got a listing from these folks - it is through Equator - property is owned by BOA - second one this week that BOA has farmed out??? Why are they farming listings out and then using their own agents (BOA listing agents) through different AMCs? Have one that flipped to LPS. My head hurts .....

After my interview with the local Red Crown broker, it's my understanding that Red Crown lost an account, but is apparently picking up a Bank of America account.

They said a lot of BofA listings were assigned, then taken away and that, currently, BofA is training Red Crown on how to handle the assets. After that training period, BofA will be feeding more listings to Red Crown as more and more Red Crown brokerages are 'trained' to handle the assets. This also (might) include lender initiated short sales.

I thought you had already settled on an AM position down there ?

Or was that a different Jax ?

BOA outsources to several asset management companies; they may be giving RED CROWN a group of assets to manage. Could be temporary, limited to a section of the country or a lasting REO source. Seems like quite a gamble to tie yourself up with a brokerage like this...can you still manage your own REO that you generate as well?

I did and still am in the AM position, but since the local Red Crown office only has 2 agents, they're looking to expand their territory, so using my address will give them that expanded coverage. They don't expect a lot of listings in the short term, which is fine by me, because I can still work full time and manage a few listings. I informed them of everything about my current employment and they were fine with it all and said that what they need would be an easy match to my schedule and has the potential to grow into a decent book of business.

As far as the BofA listings are concerned, Red Crown only operates in Florida, California, Arizona and Nevada. Like you said, possible to manage the assets in a section of the country. I was just stating what I was told.

I have a full time position as an asset manager at a newer and smaller asset management company (only 1 client at the moment) and manage around 150 assets throughout the southeast. I don't have any personal REO listings (and I wouldn't even think about going with Red Crown if I had any substantial amount of my own volume), so this is a way for me to poke into the REO game a little bit with a larger company and ride coattails. If everything goes how it appears that it will go, I'll be able to build a decent REO resume for myself. Given the corporate butt-buddy nature which REDC and Red Crown were founded upon, it makes sense to me that for someone wanting to get into the REO game, corporate sponsorship seems like a good thing.

The commission structure isn't spectacular by any means, but $X > $0 at the moment in my career (as far as REO listings are concerned). Again, I'm stand-offish about the whole thing, and it's more of an experimental thing without much expectations, and it wouldn't take much effort to walk away from it all.

And if something bad happens, I can always report it here and save others from the same path. So it all seems like a win-win to me

You say that Red Crown is fine with it all, but what about your current employer?

I work on salary and they're fine with it too.