Pursuing REO listings can be a waste of time, or it can be a financially rewarding method to expand your portfolio and grow your organization. This post covers the fundamentals so you'll know how to get REO listings the right method.

What Are REO Listings?

REO (" Real Estate Owned") listings are residential or commercial properties that were foreclosed on by a bank or a lender and have actually not been offered at a foreclosure auction. Instead, the loan provider now owns these residential or commercial properties, and they desire to offer them to recover the cash they lent for the residential or commercial property.

It is necessary to discover the distinction between foreclosures and REO listings.

Foreclosures: The homeowner defaulted 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 federal government firm now owns the residential or commercial property.

Both circumstances present terrific ways to produce real estate leads since they include highly inspired, "distressed" sellers who would enjoy to work with a representative like you! (Learn other ways to discover inspired sellers.)

How To Get REO Listings: A Quick Overview

These are the 4 strategies we'll cover in this post:

1. List yourself on REO directory sites.

1. Deal with government companies.
2. Offer BPO services to property supervisors.
3. Work directly with banks.
   
   How To Get a List of REO Properties (for Free!)
   
   One alternative is to be proactive and take foreclosures before they technically end up being 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:
   
   - Search for bank-owned homes straight on bank sites and make an offer. You can attempt the huge banks such as Wells Fargo, Bank of America, or US Bank. But you're more likely to be successful if you pursue regional banks, lending institutions, and smaller sized cooperative credit union in your .
4. Look for listings on REO asset management business websites such as HomePath.FannieMae.com.
5. Take a look at government firm sites like HUD.gov.
6. Visit your local 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 may even discover REO listings on Craigslist or within your local paper's categorized ads.
   
   Now, let's get more particular and dive into the four best methods for getting REO listing leads.
   
   Strategy # 1: List & Advertise on REO Directories
   
   Listing yourself and promoting your services on REO directories can be a reliable way to link with banks, loan providers, and asset management business trying to find genuine estate representatives with proficiency in dealing with REO residential or commercial properties.
   
   For instance, you could join the REO Network.
   
   The disadvantage to this technique is-you're not really "finding" leads. You're putting yourself in a position to be discovered by leads. To put it simply, you need to count on luck.
   
   Is a network or directory site going to be your best source of REO seller leads? Probably not. But it's not tough or lengthy, and it might effectively be a "passive" method for you to get REO listings.
   
   Strategy # 2: Work With Government Agencies To Get REO Listings
   
   In some cases, 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 firm. So as you're trying to find ways to get more REO listings make sure to explore ...
   
   - The Department of Housing and Urban Development (HUD), which acquires unsettled Federal Housing Administration (FHA) mortgages (Note: a Single Family Acquired Asset Management System [SAMS] certification is needed.).
8. Veterans Affairs (VA) REO residential or commercial properties for sale. Fannie Mae. Freddie Mac
   
   Pro Tip: Consider getting particular qualifications and accreditations, such as NAR's Short Sales and Foreclosure Resource certification, to strengthen your own self-confidence and increase the possibility that prospective customers will see you as a trustworthy expert.
   
   Strategy # 3: Offer "Broker Price Opinion" (BPO) Services
   
   A BPO is an expert price quote of a residential or commercial property's value. Don't consider it as an official appraisal. It's more comparable to a comparative market analysis (CMA). Discover more about how to craft a strong genuine estate CMA.
   
   BPOs are typically used by banks, mortgage lenders, and asset management business to figure out the current market value of a residential or commercial property, particularly when they are included in transactions like refinancing, brief sales, or foreclosures.
   
   So the technique here is to connect to the decision-makers at the banks, loan providers, and property management companies (not their administrative assistants!) and offer to supply a BPO as a form of genuine estate networking.
   
   If you can establish 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, of course, 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 asset management business in your target market who routinely offer REO listings. Do your finest to get all of the contact information for each.
   
   Again, try to recognize who the decision-makers are so you can speak straight 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 appropriate).
9. Reach out to them with a call.
10. Follow up within the week (and any weeks that might follow) with an additional call and an email. Be relentless. Showcase your proficiency, and make it clear why you're the finest realty agent who can help them move REO residential or commercial properties.
    
    Step 3: Prepare
    
    Meanwhile, as you're constructing relationships, get ready for the moment when you make your pitch to handle an REO listing.
    
    Conduct research. Familiarize yourself with the regional housing market (particularly any data associated with foreclosures and REO listings). Also, be familiar with who they are, what exactly their business does and stands for, and about how lots of foreclosures they usually work with throughout any offered month.
    
    Prepare a scripted discussion. A well-crafted script will assist you sound more like yourself, point out all of your key talking points, and tactically direct the discussion. As part of your discussion, be sure to include ...
    
    - Your special selling proposition (what sets your realty brand name from the rest).
11. Exactly how your service can benefit them.
12. How you plan to offer REO listings (and how that differs from what your rivals and they're current go-to representative are doing)
    
    Step 4: Ask
    
    Once you're confident that you've established some degree of relationship with the possession supervisor, 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 thirty minutes to discuss your discussion and describe your technique to selling REO listings.
    
    If they say yes, blow them away with an incredible impression! This is an essential opportunity that could help your organization grow for years to come.
    
    If they're not interested in working with you right now, you may pick to continue promoting the relationship or merely carry on to another potential organization where you might be a better fit.
    
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