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Originally Posted by pdxrealtor
WOW... that's a lot of props a year! Sounds like my story to date (minus the volume!!) as I am a first year brokerage owner and second year REO prop. lister and this is the end of my sixth year.
I might be the next you!!!!!  LOL... I come from a blue collar factory job, and am barely into my thirties so I don't really have the need/desire to make 300+ homes worth of money every year. I'm so happy to just be blessed with the opportunity to be in such a cool profession......
Every market is different also... the cheapest REO prop. I sold was for 109k I believe... most are at least 175k and I just closed one for just over 700k.
I've moved away from all but a couple BPO mills. I still do them when I have down time for the exact reason you mention above.
I have a lot of friends/acquaintances I use for my work and a lot of them will bill me 30 days out. That helps if you're broke like I was last year.
I hear that a lot.. the cash flow issue.
Man, we found some male sex toys in one of the most recent homes we trashed out laying amongst moldy food and the worst stench I've smelled to date.
I figure if it's for me I'll stick with the leftovers or companies that the vets don't want to work with and learn and build from there.
I just find the entire process very interesting. The worst part is kicking the old occupants out of their old homes... that sucks for me but it is what it is. 90% of mine have been hispanic... have you noticed that trend in your large volume?? |
Our average sale price has hovered around $60K since I started doing REO work. We've sold $1K properties up to $900K. Its sort of comical, but I dont do any sales work trying to find new business. It finds us based upon our reputation for quality work.
Evictions are tough situations for everyone involved. We dont have a large hispanic population here in Western PA.
Like my father always says....make it while you can...it might not be there tomorrow. Being a brokerage owner, you have to make sure you have a cushion for the bad times. How many agents do you have? We've got 15 which is just right for the level of stress that I am wanting to deal with at this point in my life. I am 44.
Just make sure if you are using friends as your vendors that they have insurance and provide you with certificates of insurance. If they arent insured and something goes wrong you are left holding the bag. Also, if you dont get insurance certs from them, then you can end up paying insurance on the money you pay out to them for w/c insurance.
It is a cool profession for sure. The sky is the limit and it all depends on what your goals and aspirations are. The business can consume you if you allow it to. I work pretty much 7 days a week and with the blackberry am always "on call" so to speak. Work hard and work smart and the rewards are there for the taking.
You are young so start building up that retirement now and you can retire early if you choose. I sound like father time here dont I???....