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Pursuing REO listings can be a wild-goose chase, or it can be a profitable way to expand your portfolio and grow your organization. This short article covers the basics so you’ll understand how to get REO listings properly.

What Are REO Listings?

REO (” Real Estate Owned”) listings are residential or commercial properties that were foreclosed on by a bank or a lending institution and have not been cost a foreclosure auction. Instead, the lender now owns these residential or commercial properties, and they desire to sell them to recover the cash they lent for the residential or commercial property.

It is essential to discover the difference in between foreclosures and REO listings.

Foreclosures: The on their payments, but the bank does not own the residential or commercial property (yet). REO Listings: The residential or commercial property has gone through the foreclosure process, and the lending institution, bank, or government company now owns the residential or commercial property.

Both circumstances present excellent ways to generate realty leads due to the fact that they involve extremely encouraged, “distressed” sellers who would enjoy to hire a representative like you! (Learn other methods to find determined sellers.)

How To Get REO Listings: A Quick Overview

These are the four methods we’ll cover in this short article:

1. List yourself on REO directories.

1. Work with federal government agencies.
2. Offer BPO services to asset supervisors.
3. Work straight with banks.
   
   How To Get a List of REO Properties (free of charge!)
   
   One option is to be proactive and nab foreclosures before they technically become REO listings. To discover foreclosures in your location, examine out listing services like Auction.com or Foreclosures.com.
   
   Otherwise, here’s how to get REO listings:
   
   - Look for bank-owned homes directly on bank sites and make a deal. You can attempt the big banks such as Wells Fargo, Bank of America, or US Bank. But you’re more likely to be effective if you pursue regional banks, lenders, and smaller cooperative credit union in your location.
4. Look for listings on REO asset management company sites such as HomePath.FannieMae.com.
5. Have a look at government company sites like HUD.gov.
6. Visit your regional county’s website. (Google search” [your county] reo homes,” [your county] residential or commercial property search,” or” [your county] foreclosures for sale,” for example.).
7. Lastly, you might even discover REO listings on Craigslist or within your regional newspaper’s classified advertisements.
   
   Now, let’s get more specific and dive into the 4 best strategies for getting REO listing leads.
   
   Strategy # 1: List & Advertise on REO Directories
   
   Listing yourself and advertising your services on REO directory sites can be an effective method to connect with banks, lenders, and property management business searching for realty representatives with expertise in dealing with REO residential or commercial properties.
   
   For instance, you might sign up with the REO Network.
   
   The disadvantage to this strategy is-you’re not really “finding” leads. You’re putting yourself in a position to be found by leads. In other words, you need to depend on luck.
   
   Is a network or directory site going to be your finest source of REO seller leads? Probably not. But it’s not tough or lengthy, and it might extremely well be a “passive” method for you to get REO listings.
   
   Strategy # 2: Work With Government Agencies To Get REO Listings
   
   Sometimes, a bank owns a foreclosed residential or commercial property. (We’ll cover that in Strategy # 4 listed below.) But other times, it’s a government agency. So as you’re trying to find methods to get more REO listings be sure to check out …
   
   - The Department of Housing and Urban Development (HUD), which obtains overdue Federal Housing Administration (FHA) mortgages (Note: a Single Family Acquired Asset Management System [SAMS] accreditation is required.).
8. Veterans Affairs (VA) REO residential or commercial properties for sale. Fannie Mae. Freddie Mac
   
   Pro Tip: Consider getting specific qualifications and accreditations, such as NAR’s Short Sales and Foreclosure Resource certification, to bolster your own self-confidence and increase the probability that potential customers will see you as a trustworthy professional.
   
   Strategy # 3: Offer “Broker Price Opinion” (BPO) Services
   
   A BPO is a professional estimate of a residential or commercial property’s worth. Don’t consider it as an official appraisal. It’s more similar to a comparative market analysis (CMA). Discover more about how to craft a strong real estate CMA.
   
   BPOs are typically utilized by banks, mortgage lending institutions, and property management business to figure out the existing market worth of a residential or commercial property, particularly when they are involved in deals like refinancing, brief sales, or foreclosures.
   
   So the strategy here is to connect to the decision-makers at the banks, lenders, and asset management companies (not their administrative assistants!) and provide to offer a BPO as a kind of real estate networking.
   
   If you can establish relationships with those who deal with REO listings every day, you set yourself up to end up being a go-to representative for your area who can deal with the sales procedure on their behalf. (As a side-benefit, obviously, you’ll get compensation for your services.)
   
   Strategy # 4: How To Get REO Listings from Banks
   
   Step 1: Discover Who You Can Talk To
   
   Create a list of banks and possession management business in your target market who routinely sell REO listings. Do your best to get all of the contact details for each.
   
   Again, attempt to identify who the decision-makers are so you can speak directly to them instead of their assistant. Your success at this moment will depend on how well you can establish a relationship with those who remain in a position to pass REO listings on to you.
   
   Step 2: Make Connections
   
   Go through your list and …
   
   - Submit your application (if suitable).
9. Connect to them with a telephone call.
10. Follow up within the week (and any weeks that may follow) with an extra telephone call and an e-mail. Be persistent. Showcase your expertise, and make it clear why you’re the best property agent who can help them move REO residential or commercial properties.
    
    Step 3: Prepare
    
    Meanwhile, as you’re constructing relationships, get ready for the minute when you make your pitch to handle an REO listing.
    
    Conduct research study. Familiarize yourself with the regional housing market (specifically any data related to foreclosures and REO listings). Also, be familiar with who they are, what precisely their business does and represents, and about the number of foreclosures they typically deal with throughout any provided month.
    
    Prepare a scripted discussion. A well-crafted script will help you sound more like yourself, point out all of your essential talking points, and tactically direct the conversation. As part of your discussion, make certain to consist of …
    
    - Your unique selling proposal (what sets your property brand name from the rest).
11. Exactly how your service can benefit them.
12. How you prepare to sell REO listings (and how that differs from what your competitors and they’re existing go-to agent are doing)
    
    Step 4: Ask
    
    Once you’re confident that you have actually developed some degree of connection with the asset manager, bank agent, or whoever it might be you’re dealing with, it’s time to make your pitch. Ask if you can schedule 15 to 30 minutes to discuss your presentation and detail your approach to offering REO listings.
    
    If they say yes, blow them away with a remarkable first impression! This is an important chance that might help your company grow for many years to come.
    
    If they’re not thinking about dealing with you right now, you may pick to continue promoting the relationship or simply move on to another prospective organization where you might be a much better fit.
    
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