How To Break Into The Residential Real Estate Owned Market

Published on Sep 20, 2009

by David Fletcher
This is the story of how .(JavaScript must be enabled to view this email address), a Realtor with Keller Williams Realty At The Parks, in Orlando, FL, went from one agent selling retail real estate to directing a staff of two assistants, a buyer’s agent, two contractors, a driver-photographer and a bookkeeper listing and selling bank-owned real estate.

His team carries 60 to 70 properties a month.

Dan will be the first to tell you that if he can do it, you can do it. This attitude is exactly how he felt as he watched other agents start selling REO’s, as he struggled with short sales.

“The only advantage one agent has over another agent in any changing market is speed, that agents ability to adopt to that market and change their business systems, according to Dan.

“In the last three years, I have gone from selling retail listings, to short sales, to bank owned properties, and I am willing to take whatever the market is willing to give me,” Dan said.

It takes commitment, passion and a willingness to work extremely hard to change the business model necessary to adjust to changing markets.

“I will do it faster, because most agents will work 6 hours a day. I will work 18. By the end of the month, they have worked about 120 hours, I have worked 300. I will continue this until my business model and system have been fully changed to reflect the market.

There have been three dramatic changes in the market, according to Dan.

“Two years ago it was a sellers market. Then it changed to a buyers market, now a banker’s market. It will remain a banker’s controlled market for a significant amount of time.”

To get into the real estate owned business, Dan had to “shrug off” the naysayers claiming that REO’s were difficult if not impossible. In addition, he was too late plus they wanted experienced agents. He had none.

He started researching banks and how they found agents. He found that it was connections and relationships, two things he lacked.

Then he discovered that one lender was accepting recommended, not just referred agents. He went to a bank representative he knew and asked for a recommendation. The rep was not aware of the program, but made the recommendation.

“I submitted all the paperwork and did all the leg work.” That’s how I got in.

Not really. That was only part of it. He got in because he refused to listen to the negative feedback. He listened only to own intentions.

“The problems are not outside in the market place. They are in the agent’s mind.”

His buyers agent, Delmarie Martinez, new to the REO business, had been working as a successful on-site agent selling condominiums in the $250,000 range. Now the prices are much lower, which means commissions are a lot less per sale.

“I am not worried about the amount of the check. I like the fact I had six closings my first two months and the future looks extremely bright. At the end of the year I will have forgotten how hard I worked as I look at my total earnings.

“Dan taught me a valuable lesson recently. I went to him complaining about having too many leads, and he reminded me there was no such thing. What I needed to do, he said, was keep improving as a qualifier.

I am learning lessons that will serve me well in the days ahead no matter what the market is.

“It was a big change at first, but lender reo’s are a great business, and growing bigger every day,” she said.

There are several lessons in this story. One’s we can all use. One that occurred to me is this: Many of can do it. It is more a matter of the will, than ability.

Published: September 21, 2009

This article is reprinted with permission from Realty Times, www.realtytimes.com.