Hello everyone

I just received my first Reo Listing, and have a few questions I am hoping someone will answer for, me, did not want to seem unprofessional and ask the company person

the company sent me to do a drive by inspections, they want a bpo and i have the listing.

the question is do i charge them for the drive by inpsections and the bpo or is that included in the listing commission?

also i need a rekey do i pay the locksmith and send in the invoice or have them send the invoice in to the company.
I know those are very general questions, but I want to do a good job, this is a State agency and i don't want to mess up. please somebody answer have to have this all done by monday morning.
Thanks in advance

Hi Mae

I am a newbie so I can't answer your questions, but congrats on getting your first REO. How long did it take doing the bpos before you finally got your first REO?

If it is your listing, you won't get paid for the bpo and inspection. It is a part of the service you do as a listing agent. Don't try to charge for it. As for expenses, rekey, lawn maintenance and such, the companies I work for expect me or my office to pay those and bill them for reimbursement, so make sure this is a reputable company so you will get your money back. My office pays for these expenses, as we do many REO properties.

This post is for KY Realtor

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I am a newbie and just wondering. You say that you pay for the rekeying, trash and like expenses out of your pocket.


1. Do you get reimbursed as the deal progresses? For e.g., this week I paid for trash and keys (out of my funds) and I submit the invoice today and the company reimburses me in 10 days.


or

2. Do you only get reimbursed if you actually sell the property?


3. Do you get reimbursed at the end of escrow?

Just thinking out loud and want to know. Thanks.

Each company may do things differently. Generally, we bill once a month for expenses. These expenses should be paid to us whether the property sells or not. If there are outstanding expenses not paid at closing, then it is taken out of seller's proceeds. You may be asked to pay for rekey, lawn maintenance, winterization, trashout, cleaning, utilities and some minor repairs. I don't pay out a penny unless I have it authorized in writing by the asset manager. Some companies want you to pay for major renovation, I draw the line at that, and won't do it. I had a company recently ask us to pay out more than $7000 for repairs and we refused, and dropped the listing. I don't like to have more than $500 out on any one listing, but that's just my rule. We have gotten stiffed before.

thank you all:


papa lou i have been doing bpo's for over a year but for only one company since last december i signed up with at least 30 diffrent companies and work consistently for 10 of them, but the listing did not come from any of those, a state agency saw my profile on reonetwork and called me. so like the people here who have done this a long time, its best to sign up everywhere.

I would like to tell all the new people that are out trying to get REO business what it is really like. The cost for re key's, trash outs, lawn service, winterization (if necessary), and utility service placed in your name not to mention any other repairs that amount to under $1000 is all the agents responsibility. I recently had a home that required an $800 trash out, $150 for re keying, utilities, lawn service and it did need a winterzation which was another $150. so I was out over $1100 without including the monthly costs of the lawn and utilities and this for just 1 property. I do not generally get reimbursed for 45-60 DAYS. So If you had an average REO property which is listed for 3 months it could get transferred and you get nothing other than your expenses back after 60 days if your lucky. I hope this opens up some eyes that this business is not all its cracked up to be. There are positives but for someone starting out the start up costs are ridiculously high so please be careful. You have to make sure that you have E&O and that it covers you to list REO properties and do BPO's.

Hi Mae,
Just curious, how you got past the guard dogs at Reonetwork without a previous reo in the last year?
Windy Keefe is usually quite insistant about that.

But, regardless congradulations on your first one and best wishes for continued success!

I have had the buyer side of several reo listings. and did the paperwork for some of the hud ones, also have a reo certification. does that get me qualified, lol

I would suggest to start you sign up with HUD, sell one or some of these,then you can say you have sold an REO listing. Everybody has this opportunity.

I have to ask an ignorant question, Mae. You say you are REO certified. What is the class you took to be certified called, and where did you take it? I've never heard of this certification, and would be interested in acquiring that one for myself. Thanks.

Yes, REONetwork is not easy to get through. Even though we have handled several REO listings way back when and even with HUD/FNMA/FreddieMac, if you havn't done one in the last year, they will not accept you. Yes, Windy is thorough. I am almost ready for REONetwork, it will only be a short time now. Congrats to mae for getting through. I havent gotten back in with HUD/FNMA/FreddieMac yet, but working on it.

well kyrealtor, i just got 2 more reolistings on friday, and I will do a good job, some people go diffrent avenues to get things done, I paid for the reo ceritification class, met good people with the right information and was persistant, and also have been mentored by a reo realtor in my office. and I say if I bring the buyer I sold it. no buyer no sale

one more thing to sign up and sale hud in my area there can be only 1 realtor per office doing the huds, I looked into getting started that way kyrealtor, it took me over a year to find the right info and this site was a godsend.
I commend the people on this site everyone is so helpful, unless u ask for a list lolllllllllll but hey the info in still here

Mae, where did you take the reo certification class? Is that class still available?

Ha! She's a stickler. My broker has done hundreds of REOs. It used to be his primary business along with HUD and VA foreclosures back in the day. However, for a few years now he's been working with investors only. Went to sign up with REONetwork- and she still refused us because we've not done any in last 12 months!