The REO Agent

Today, the person that has the inventory calls the shots and the infamous REO agent has the inventory everyone wants. There are currently more investors with the willingness and ability to buy but not enough deals. More and more of the “investment deals” that are circulating are beginning to show smaller and smaller margins. If you have the ability to establish a strong long lasting relationship with a REO agent your success as an investor can become more stable.

The number one thing you have to remember about an REO agent is that they are not the final decision makers. They answer to asset management companies who answer to someone else and so on. The REO agent that you establish a relationship with can be your cheerleader. That agent can work for you in convincing the asset company that accepting your offer is in the seller’s best interest. This is accomplished by performing on all of your contracts, or at least on the majority of them. Creating a track record with REO agents is very important. Once a track record is created you will be the first person that comes to that agent’s mind when the next HOT deal becomes available. How awesome would it be if that agent called you and gave you a heads up that they had a slam dunk deal in the pipeline and you contracted it before it hit the market? This happens!

How is this accomplished? By submitting tons and tons of offers until you get an accepted offer. While doing this you want to have some sort of verbal communication with the agent to begin nurturing that relationship. This takes time but the payoff is huge. Once you have that accepted offer you make sure that it is the smoothest closing that REO agent has ever experienced. If you are not represented let that REO agent represent you and collect both sides of the commission. You just became that agent’s BFF. Please do not think one deal will get it done. This is a rinse and repeat process. The only thing that changes at some point is that the agent will begin to call you instead of you calling the agent. This begins to happen once that agent realizes that contracting a property with you is “money in the bank.” Remember that just like any other relationship you will have to continuously work on it as it grows. As in dating there are many other prospects, in this case investors, waiting to court your REO agent so make sure you give them a reason to stick around. It is easier to maintain a relationship with an REO agent than it is to create a new one.

Keep in mind that the investment world is small and getting smaller with technology. Remember that REO agents, active investors, wholesalers, retail agents, etc. in a city all know each other or of each other and do talk. If you become know as a closer word will spread. On the other hand, if you do not perform on your contracts that word will spread just as fast if not faster. Make sure each situation and contract is a win-win and closes/funds to keep that pipeline full.