I can't find any info on what is needed to start an asset management company. Anyone know if this requires anything special like licensing, etc? I know you'd most likely have to be bonded, which is no problem. Any ideas? Comments? Seems like these companies get an awful lot of my money for very little actual work.

If you do decide to start an asset mgmt co keep this in mind: If you want the best agents doing their best work you should
1) Reimburse expenses promptly;
2) Don't bug them with BS paperwork;
3) Don't rip them off on the referral fee;
4) Use only experienced BPO/REO agents for the price opinions;
5) LISTEN to what the agent tells you regarding price/property condition/market conditions.

If you can cover all of that, sign me up!!

me too!!

If every company used only experienced bpo agents, how would any of us ever have gotten started.

One way is to work under another agent who does this type of work and have that person be your mentor. Many of the new agents entering this field are very unsure of how to provide a good value of a property based on the clients requirements, and every client wants things differently. So serving under an established agent is a way to become knowledgeable in this field.

Is there any software used to complete bpo's faster and how long should it take to complete a basic bpo.

Mentoring....that's how I learned and got started.

Mentor? Did you say Mentor? (lol) I'm glad you had someone willing to take you under their wings. But being real... where I'm from, this business is so competitive, that you often find yourself in a competitive situation with your own broker, because they don't see "the big picture" (maybe if I take a little time to train the new agents, they'll go out, and close more deals, and I'll make more money too!) So, if this is the situation, (as I'm sure some of you will back me on this,) who's left serve as mentors? Your co-agents? I don't think so. My experience in this for business in regards to training has been, to research it, and perhaps a class or two. Sadly, I have yet to find someone willing to mentor me in this business.

I do appreciate this board, it has served as a powerful information tool in my business.

From your statement it is evident that you have not taken any business classes.

You will require relationships with lenders, servicers, and other outsourcers.

You will require an in-depth knowledge of their processes and be able to adjust to their business rules.

You will need to have an on staff accountant to handle the reimbursements, employees, brokers and clients.

You will require at least one programmer to handle your infrastructure and db schemas to build out the system.

You will need not only the bandwidth to handle the project but access by clients and brokers alike.

You will need to adjust your attitude towards running an AM company as being easy money.

You will need to be prepared for the client to switch vendors with or without cause and notice. (there is, no loyalty).

More over you will need to be willing to give up your life to the industry to supply, protect, and secure your broker base. You will not be doing the work for yourself but for your network of over 10,000 agents and brokers that are at variant levels of expertise.

Be prepared to walk a mile in the other person’s shoes. I am a licensed broker in several states, programmer, and own one of those AM companies and to say they are pumping your pockets is outrageous. Imagine carrying 700 listings and the expenses that go with them.

This more than answers your question and hope opens your eyes to a broader perspective. I can tell you I know of many brokers who took you position and tried to build such a company without being business smart and one client. Short lived and poor results. I am always looking for business partners with serious skills.

REO Broker-

Your response is offensive. You have no idea whatsoever what my qualifications are. You don't have any clue what I have or don't have, education, experience, or otherwise.

As for carrying 700 listings and "the expenses that go with them". Well, if one can't afford to be in the business, they shouldn't be in it. Besides that, most of the asset companies that I have spoken with have told me outright that they do not pay reimbursements themselves, they only forward them to agents or vendors once the banks/owners have sent them the money.

Also....how, exactly, did you arrive at the conclusion that I have "not taken any business classes", am "without business skills" and need my "attitude adjusted"??

It's easy how he came to his conclusions OH... just look at you there with your Hollywood sunglasses... obviously a dumb kid!

You picked up the offensive part of his post, and you're right. But I think it's not a bad outline of the darkside of such a venture.

Not that you should let it clip your wings, but it did seem like some good food for thought...put in a condescending way.

:p

Thanks, I needed the smile.

As far as expenses, I had an agent in SC tell me that all the other REO agents in that part of her town, took blank checks, made them out to a vendor, photocopied and faxed it to the AM for reimbursement for trash-outs, never actually paid the vendor, and actually had a family member do the trash-outs under an assumed name of course...she said it was common practice for agents to do that....isn't that unethical, much less perhaps fraud?

I don't know about the actual running of a company, but since you're an agent, I hope you can devise a better form than most have now! Leave lots of room for comments (more than 250 characters). One of my pet peeves...
It seems to me that the reimbursements are paid by the bank to the asset companies, who then pass it to the agent. But when it comes time for BPO payments, a good company needs to be able to pay those themselves, or you have agents bashing you here because it takes 60-90+ days to get paid, and you lose your good agents. So you will definately need some deep pockets for that!

Don't forget 6) Offer no less than 6% commission splits and/or minimum commissions.

A few asset management companies offer no mimimum commission and their excuse is "you get the good with the bad." Well, agents in our neck of the woods won't bother showing a house if they know they are not getting at least $1k out of it. And then they wonder why it isn't selling....SN Servicing is a good example of this as well as Primary Mortgage Services.