Good Price?? 2006 H2 Lux. Pack

[pdxrealtor]

Originally Posted by MVR 155

Well luckily I have been doing this a while (15 years), besides doing RE sales I also have an appraisal business along with playing with investment properties.... being a bit diversified in these times has definately been a big help..... I just recently took advantage of the downturn and scooped up a great deal on a forclosure property waaaaaay under market value that Im rehabbing to put back on the market.... doing a first rate rehab (gutted the bath with all new drywall, tub and tile, real hardwood, new doors and trim, paint, custom kitchen cabinets, granite counters and stainless appliances) and I will be able to throw it back on the market cheaper than the competition with a way superior product so it should sell fairly quickly.... Ive actually got a handful of people interested when its finished.

Anyone in this business who has weathered this storm is here to stay..... one good thing is this whole downturn has purged alot of the morons out, getting a R.E. license is easy, keeping one and making money with it over a long period is a whole different story... I cant believe some of the people I dealt with back when things were just rocking (2004-2006 at the peak).... I dont know how they made it from their bed to their car.... morons!! but in those times you didnt have to know $hit to make money..... those people are all long gone now, selling listings and representing buyers is not what it used to be.

I tell you... I have been blessed. I was at a broker open house and walked down to talk with a FSBO that was hanging around outside. Happened to be that FSBO was a guy who buys at auction and flips, very very good guy and it's a family biz, he does it very ethically. We talked for a while and I offered my services. 3 months later I get a call, that was end of year 2008... I've been listing and selling his properties ever since.

Between that and the REO work I'm doing 2009 has been the rebound year for me... 2008 was pretty rough... but the work I did in 08 is paying off this year in terms of REO listings. I've actually done very light BPO work since 2004.

This entire year I've done 4 non-investor non-reo deals... it's a tough tough environment in the residential re-sale world... and buyers??? I used to be about half and half buyer/seller... this year I've helped 3 buyers get into a home and one of them was a listing that bought from me as well.

I've been doing this since the boom... 2004 was my first year, but I sold 16 homes my first year also... always been a natural. Not a super heavy hitter natural but never wanted to be the superstar.

I am really liking the REO work and the investment re-sale. A lot less emotions involved.

I am taking prop. mngment classes in prep for more REO business as even after this wave passes I would like to stay in the REO line of work. I can then also manage a few properties if duty calls.....

I own my own brokerage so the sky is the limit for me...

Our membership here is dropping daily as well.
to making it in this crazy economy. I learn something new every day before this debacle hit... now I learn twice as much every day!!

I thought about diversifying with appraisal work but in OREGON you have to jump through a lot of hoops to get your appraisal license... lots of supervised hours, which would take away from my other daily routines.

WIth the REO work I think I could get a part time job as an accountant....LOL

Good luck on your flip!!

[mikejr]

I'll chime in with my fellow Realtors. I've been specializing in REO work since before it was cool. This year was best year on record for gross commissions. Our units were down a bit from last year, but we are selling more high end REO properties. So we've been insulated from the downturn for the most part. Nationally REO inventories are down despite what the media is telling you. Everyone is saying this winter the REO inventories will open back up again to normal levels. From what I see and in talking with my clients from all over the nation, REO inventories are down 40% to 50% from normal. Once Obama's band aids fall off, all hell will break loose.

We've got an entire staff devoted to REO work, like you said you need to be a CPA to keep up with the billing etc. Its not for everyone but if you can get the systems in place and the staff to handle the work, you can do quite well.

[pdxrealtor]

Originally Posted by mikejr

I'll chime in with my fellow Realtors. I've been specializing in REO work since before it was cool. This year was best year on record for gross commissions. Our units were down a bit from last year, but we are selling more high end REO properties. So we've been insulated from the downturn for the most part. Nationally REO inventories are down despite what the media is telling you. Everyone is saying this winter the REO inventories will open back up again to normal levels. From what I see and in talking with my clients from all over the nation, REO inventories are down 40% to 50% from normal. Once Obama's band aids fall off, all hell will break loose.

We've got an entire staff devoted to REO work, like you said you need to be a CPA to keep up with the billing etc. Its not for everyone but if you can get the systems in place and the staff to handle the work, you can do quite well.

Congrats on your success! It's the people like you who have been in the game since before the boom who I have real respect for. You were here before and will be here after... most of you anyway.

Like I said, I've been doing BPOs, small small quantity, since 04 when I first started selling RE.

Now that I'm getting REO listings I'm really liking them. If I can manage to keep them coming and make a living between REO and my close clients I'll continue to focus on REO.

Def. has it's down falls.... but so does res. re-sale in any kind of market... just my experience so far..... I'm only a 6 year, almost 7 year, guy.... I have a lot to learn!

One of the first RE/Max offices I worked out had a REO star and that was in 2004... she was top RE/Max agent with over 85 properties sold in 08!!!

And she has no team....

[mikejr]

Originally Posted by pdxrealtor

Congrats on your success! It's the people like you who have been in the game since before the boom who I have real respect for. You were here before and will be here after... most of you anyway.

Like I said, I've been doing BPOs, small small quantity, since 04 when I first started selling RE.

Now that I'm getting REO listings I'm really liking them. If I can manage to keep them coming and make a living between REO and my close clients I'll continue to focus on REO.

Def. has it's down falls.... but so does res. re-sale in any kind of market... just my experience so far..... I'm only a 6 year, almost 7 year, guy.... I have a lot to learn!

One of the first RE/Max offices I worked out had a REO star and that was in 2004... she was top RE/Max agent with over 85 properties sold in 08!!!

And she has no team....

I've been licensed for 17 years and have been in REO for 11. Have owned my own brokerage for 10 years now. It's a niche I fell into and have exploited it. If you are going to make it in REO its all about volume. I average 300+ REO's a year....with a career sales of over 3500 properties.

BPO work if good to hone your skills.

The biggest issue most agents have with REO work is the reimbursment process. Fronting money for trash outs etc can get daunting and at times we have $100K out in reimbursements. If you can get a "system" in place for handling the properties and meeting the timelines, you can do well. Many of our clients arent looking for new agents so its difficult to break into the REO gig. Asset managers dont want to be training an agent, they want an agent that will produce.

What i like about REO work is.....the average person will buy a house once every 12 years....so you always must be looking for new business. With REO work, you establish a relationship and then they feed you the work on a recurring basis.

But its not for everyone. Getting fleas, chased by dogs, walking through human feces and god know what....well isnt for the faint of heart thats for sure.

[pdxrealtor]

Originally Posted by mikejr

I've been licensed for 17 years and have been in REO for 11. Have owned my own brokerage for 10 years now. It's a niche I fell into and have exploited it. If you are going to make it in REO its all about volume. I average 300+ REO's a year....with a career sales of over 3500 properties.

BPO work if good to hone your skills.

The biggest issue most agents have with REO work is the reimbursment process. Fronting money for trash outs etc can get daunting and at times we have $100K out in reimbursements. If you can get a "system" in place for handling the properties and meeting the timelines, you can do well. Many of our clients arent looking for new agents so its difficult to break into the REO gig. Asset managers dont want to be training an agent, they want an agent that will produce.

What i like about REO work is.....the average person will buy a house once every 12 years....so you always must be looking for new business. With REO work, you establish a relationship and then they feed you the work on a recurring basis.

But its not for everyone. Getting fleas, chased by dogs, walking through human feces and god know what....well isnt for the faint of heart thats for sure.

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??

[mikejr]

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???....

[pdxrealtor]

Originally Posted by mikejr

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???....

I have one agent... ME! The only agents I will bring on are the ones to support me should the time come I get that busy. Learning how to delegate tasks will be a job in itself.. as with any job... you train someone to do what you need and just when your done training they're gone.... I've always said stay small keep it all.... sounds like you're not too far away.

Thanks for the tip on the insurance bit. Some are, some are not. Guess if things really pick up I will have to change course on this. Thanks again for that.

I need fatherly advice sometimes!

My success has been based on quality of work whether it has been conventional re-sale or REO (hard to really tell for sure about REO as I'm so new, but I don't think I'd be being contacted again and again by new and old a like if the work was bad).

I am 32... I have made the decision no more credit for me... save to buy or don't buy at all. Buying the new Hummer in cash and then it's saving for apartment style condos that are popping up dirt cheap at the auctions.

What I like about the condos is they're cheap, monthly rent will be great retirement money and I won't have to worry about losing 40% of my retirement because Wall St. is in a down cycle...

Sounds like you've got a great thing going.... sounds like you've, and are, working hard and have earned it.

Gosh... 300 a year! WOW... I'm at 16 for this year... LOL... best year was 28! I'm only 272 away!! LOL LOL...

Alright... back to entering invoices.....

[Fastest H-Town Realtor]

Licensed since '95. Flip 5-12 homes a year. Writing the book, starting speaking engagements in '10. Hate ROEs. No money, too much paperwork. Prefer to work with investors, rehabbing and marketing. Sent back my Mortgage License. Good riddance. Love what I do more than ever. H-town referrals, I love em. Send me your contact info for referrals into your area.

[mikejr]

Originally Posted by Fastest H-Town Realtor

Licensed since '95. Flip 5-12 homes a year. Writing the book, starting speaking engagements in '10. Hate ROEs. No money, too much paperwork. Prefer to work with investors, rehabbing and marketing. Sent back my Mortgage License. Good riddance. Love what I do more than ever. H-town referrals, I love em. Send me your contact info for referrals into your area.

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