Pursuing REO listings can be a waste of time, or it can be a lucrative way to broaden your portfolio and grow your service. This article covers the fundamentals so you'll understand how to get REO listings the best way.

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 at a foreclosure auction. Instead, the lending institution now owns these residential or commercial properties, and they desire to sell them to recuperate the money they provided for the residential or commercial property.

It is essential to see the distinction in between foreclosures and REO listings.

Foreclosures: The property owner defaulted on their payments, however the bank doesn't own the residential or commercial property (yet). REO Listings: The residential or commercial property has actually gone through the foreclosure procedure, and the lender, bank, or government company now owns the residential or commercial property.

Both circumstances present terrific methods to generate property leads due to the fact that they involve extremely motivated, "distressed" sellers who would like to hire a representative like you! (Learn other methods to find motivated sellers.)

How To Get REO Listings: A Quick Overview

These are the four strategies we'll cover in this short article:

1. List yourself on REO directories.

1. Deal with federal government agencies.
2. Offer BPO services to asset supervisors.
3. Work directly with banks.
   
   How To Get a List of REO Properties (free of charge!)
   
   One choice is to be proactive and nab foreclosures before they technically become REO listings. To discover foreclosures in your location, take a look at listing services like Auction.com or Foreclosures.com.
   
   Otherwise, here's how to get REO listings:
   
   - Search for bank-owned homes directly on bank sites and make an offer. You can attempt the big banks such as Wells Fargo, Bank of America, or US Bank. But you're most likely to be successful if you pursue local banks, lending institutions, and smaller credit unions in your area.
4. Search for listings on REO property management business websites such as HomePath.FannieMae.com.
5. Check out government agency sites like HUD.gov.
6. Visit your regional county's site. (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 find REO listings on Craigslist or within your local newspaper's classified advertisements.
   
   Now, let's get more specific and dive into the four best techniques for getting REO listing leads.
   
   Strategy # 1: List & Advertise on REO Directories
   
   Listing yourself and marketing your services on REO directories can be an efficient method to get in touch with banks, loan providers, and possession management companies searching for realty agents with competence in handling REO residential or commercial properties.
   
   For example, you might join the REO Network.
   
   The downside to this method is-you're not really "finding" leads. You're putting yourself in a position to be discovered by leads. In other words, you need to rely on luck.
   
   Is a network or directory going to be your best source of REO seller leads? Probably not. But it's not hard or lengthy, and it could really well be a "passive" method for you to get REO listings.
   
   Strategy # 2: Work With Government Agencies To Get REO Listings
   
   In many cases, a bank owns a foreclosed residential or commercial property. (We'll cover that in Strategy # 4 below.) But other times, it's a federal government agency. So as you're searching for methods to get more REO listings be sure to explore ...
   
   - The Department of Housing and Urban Development (HUD), which gets overdue Federal Housing Administration (FHA) mortgages (Note: a Single Family Acquired Asset Management System [SAMS] accreditation is needed.).
8. Veterans Affairs (VA) REO residential or commercial properties for sale. Fannie Mae. Freddie Mac
   
   Pro Tip: Consider acquiring particular qualifications and certifications, such as NAR's Short Sales and Foreclosure Resource accreditation, to strengthen your own self-confidence and increase the possibility that potential clients will see you as a trustworthy expert.
   
   Strategy # 3: Offer "Broker Price Opinion" (BPO) Services
   
   A BPO is a professional quote of a residential or commercial property's value. Don't think of it as a formal appraisal. It's more comparable to a comparative market analysis (CMA). Learn more about how to craft a strong genuine estate CMA.
   
   BPOs are frequently used by banks, mortgage loan providers, and possession management companies to figure out the present market worth of a residential or commercial property, especially when they are associated with deals like refinancing, short sales, or foreclosures.
   
   So the method here is to connect to the decision-makers at the banks, lenders, and asset management business (not their administrative assistants!) and use to supply a BPO as a type of real estate networking.
   
   If you can develop relationships with those who deal with REO listings every day, you set yourself approximately become a go-to agent for your area who can handle the sales process on their behalf. (As a side-benefit, obviously, you'll receive settlement 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 property management business in your target market who frequently offer REO listings. Do your finest to get all of the contact details for each.
   
   Again, attempt to determine who the decision-makers are so you can speak straight to them rather of their assistant. Your success at this point will depend upon how well you can establish a relationship with those who are 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. Reach out to them with a call.
10. Follow up within the week (and any weeks that may follow) with an additional call and an e-mail. Be persistent. Showcase your knowledge, and make it clear why you're the best property representative who can assist them move REO residential or commercial properties.
    
    Step 3: Prepare
    
    Meanwhile, as you're constructing relationships, prepare for the minute when you make your pitch to take on an REO listing.
    
    Conduct research. Familiarize yourself with the regional housing market (specifically any information connected to foreclosures and REO listings). Also, get to understand who they are, exactly what their business does and means, and about how many foreclosures they usually deal with throughout any offered month.
    
    Prepare a scripted discussion. A well-crafted script will help you sound more like yourself, discuss all of your crucial talking points, and strategically direct the conversation. As part of your discussion, be sure to include ...
    
    - Your distinct selling proposal (what sets your real estate brand name from the rest).
11. Exactly how your service can benefit them.
12. How you prepare to sell REO listings (and how that varies from what your competitors and they're present go-to representative are doing)
    
    Step 4: Ask
    
    Once you're positive that you have actually established some degree of relationship with the property manager, bank representative, or whoever it might be you're working with, it's time to make your pitch. Ask if you can set up 15 to 30 minutes to review your presentation and detail your approach to offering REO listings.
    
    If they state yes, blow them away with an amazing very first impression! This is an essential chance that might assist your business grow for many years to come.
    
    If they're not thinking about working with you today, you might select to continue promoting the relationship or merely carry on to another potential organization where you may be a better fit.
    
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