BPO training is very important for real estate professionals who are serious about jump starting their BPO REO business. There are many types of BPO training available for real estate professionals.
BPO or broker price opinion is an opinion of value of real estate that is determined by a real estate professional typically for banks, lenders, investors or anyone who needs to know the current value of real estate. The BPO or broker price opinion process involves the BPO agent visiting and taking photos of the real estate, then completing an online report including neighborhood information, information on the subject property, 3 comparable properties that are for sale and 3 comparable properties that have sold within the past 3-6 months.
The Advantage of BPO Training
Many BPO professionals guard their knowledge and secrets so that not just anyone can begin completing BPO orders. Quality BPO training will teach you how to do all of the tasks mentioned above and also include the insider tips, tricks and secrets to completing BPO orders faster.
Real estate professionals who build a BPO REO business can earn anywhere from $500 – $3,000 per week just from their BPO business alone. It is recommended that if a real estate professional wants to build a BPO REO business that they invest in BPO training first because without good BPO training a real estate professional could invest a lot of time and money into building a BPO business and receive very little, if any returns.
Investing In BPO Training
Before investing in BPO training you should do some research into the training and check the reviews and success stories. You should first complete research on the creator of the training ensuring that the creator was and is currently still in the business to ensure that you are receiving not only good information, but current information as well.
A broker price opinion or BPO is a broker or agent’s opinion of the value of a piece of real estate. Broker price opinion orders are requested by banks, lenders, investors and anyone who needs to know the value of a particular real estate property.
What Is Broker Price Opinion?
Typically broker price opinion orders are placed in quantity; for example, when a particular bank has group of mortgages that are defaulting and they need to determine the value of each of the houses. This could be for any number of reasons, like if they were going to sell a group of defaulting mortgages to one of their subsidiary companies. The BPOs would be ordered on all of the properties to determine the value of each of the homes individually as well as the price of the entire package of homes. There are many other reasons that broker price opinion orders are required, such as refinances, short sales, and foreclosures.
Broker Price Opinion Density
It is reported that there will be 8 million foreclosures in the next 4-5 years and there is a reported 650 billion dollars in shadow inventory in the United States. In case you’re not familiar with shadow inventory, shadow inventory is property that is distressed but has not yet been foreclosed on; for example, houses on which the homeowners have not made a payment in 6-36 months and the lender has not foreclosed yet.
Broker Price Opinion Income
The broker price opinion industry will be a 2 billion dollar industry over the next 4-5 years. Real estate professionals can build a six figure income by building a BPO business, not to mention the incredible doors this opens to listing the foreclosed properties, which is another incredible stream of income.
If you are a real estate professional interested in claiming your stake in the 2 billion dollars that will be paid to real estate professionals nationwide over the next 4-5 years, the best training to get help you begin taking advantage of the broker price opinion industry is available at the BPO REO Academy.
Robb Krzyston explains professional development and REO training and why they are a great investment in yourself. Learn how REO training can help you acquire more REO listings and achieve more success as an REO listing agent.
Broker Price Opinion companies, or BPO companies, are companies that are hired by banks, lenders and investors to determine the value of real estate. A BPO or broker price opinion is completed by a real estate agent or broker and is his or her opinion of value of real estate. Broker price opinion companies coordinate this process and serve as a liaison between the broker price opinion agent and the ordering institution.
The Need For Broker Price Opinion Companies
There are a lot of BPO Companies in today’s market due to all of the distressed properties. These companies receive large groups of orders from banks, lenders and investors needing to know the current market value of these properties. Banks lenders and investors order BPOs rather than appraisals because they are cheaper. A typical appraisal is around $350 and a BPO agent or broker receives $40-$75. Banks, lenders and investors do still order appraisals; however, not until needed. As an example, if a homeowner was selling their house as a short sale, the bank would typically order 4-5 BPOs during the process, which could span 2-5 years. Because the market is still declining it does not make sense to order an appraisal; however, they still need to know the value of the property, after receiving an offer they will order an appraisal to verify current market value.
How Broker Price Opinion Companies Work
The broker price opinion companies have networks of real estate professionals that they pay to take photos and complete online reports about the properties. Once these orders are complete the broker price opinion companies will review and return them to the bank, lender or investor (whoever ordered them).
Broker price opinion companies make a spread between what the banks pay them and what they pay the real estate professionals. These companies usually charge between $120 -$200 per order and pay the real estate professionals $40 -$90 per order.
Real estate professionals can make an incredible income from completing BPO orders. When a real estate professional properly builds a BPO business, he or she can receive anywhere from 10-100 orders per week, which in many cases can in turn produce six figure income. It is reported that there will be 8 million foreclosures over the next 4-5 years that will be around 32 million BPO’s. As you can see this is a very lucrative industry and will be for the next 4-5 years. If you are a real estate professional and are interested in building a BPO business, you can find the industry’s best BPO training at the BPO REO Academy.
Whether you are a real estate professional currently completing broker price opinion orders or still looking into becoming a BPO agent, it is important to have a clear understanding of what BPO companies are and how they work. This video addresses the question “What are BPO companies?”
BPO companies are third-party entities that manage BPO orders and serve as an intermediaries between the banks and lenders who order BPOs and the real estate professionals who complete them. In case you aren’t familiar, BPO, or Broker Price Opinion, orders are requests by banks or lenders for a licensed real estate professional to give his/her opinion of value of a property.
How BPO Companies Work
There are many BPO companies, also referred to servicing companies. These companies either work directly for the banks and lenders or work for the servicing companies that are handling the sale of the foreclosed properties. Typically these companies are paid by either the bank, lender or servicing company, usually $120 – $200 per order, and have a network of real estate professionals that they sub out to actually complete the BPO orders for them. The real estate professionals typically get paid $40 – $75 per order to complete them for the BPO companies.
Types of BPO Companies
There are 3 types of companies;
1. BPO companies
2. REO companies
3. BPO & REO companies
BPO companies only handle the BPOs. They are the liaison between the real estate professionals and the servicing companies. They only oversee and coordinate the completion of BPO orders.
REO companies will sometimes use BPO companies, but most of the time they have their own network of real estate professionals who complete the BPO’s for them, typically for free because they will be listing the properties.
BPO & REO companies handle everything they will order the BPOs by both the listing agent and the second opinion BPO. After completed they will assign the listing and coordinate the entire process of selling the asset.
Locating BPO Companies
If one is looking to find BPO companies, I would advise doing research first! A lot of the free lists one will find on the internet are outdated. These companies are always merging and changing names, and new companies are starting up as well. It is very important to do your research because some companies have reputations for not paying either on time or even at all. The typical time frame of a real estate professional receiving pay from these companies can be anywhere from 1-6 weeks, so nothing is more frustrating than doing the work and not receiving payment.
Many real estate professionals involved with the listing of REO property are looking for professional development and REO training. The right education and training can help you acquire more REO listings and achieve greater success, so this is a great investment in yourself.
REO, which stands for Real Estate Owned, refers to property that has already been to the foreclosure auction and now belongs to the bank or lender. Shortly after the auction the bank or lender will assign the property to a servicing company. In some cases the banks and lenders have departments in-house, but most of the time they outsource it.
The BPO REO industry is a very lucrative industry that will be very profitable for the next 3-5 years because of all the foreclosures that are coming. There are many ways for real estate professionals to profit from this business, if you are a real estate agent or broker you can profit from completing BPO’s (broker price opinion) and listing the REO properties. When you list REO properties, not only do you get the commissions from the listings, but all the buyer leads that come from those listings as well. Real estate investors can make profits from rehabbing or wholesaling these listings.
Picking The Right REO Training
There are many REO training courses out there. If you are interested in REO training, you should do your research because most of the time established REO agents will not share their information and while some of the larger companies provide certification, they often don’t actually help you get the REO listings.
REO Training vs. REO Certification
Don’t confuse REO training with REO certification. There are a lot of REO training courses that will help you get started, which I recommend you pursue before attempting to get certification. Certifications all cost money and some even require experience, so you will want to making money and gaining experience first before going through the certification process. Start with the training first to start your BPO REO business, then after you get some experience, you can invest in certifications.
If you are interested in becoming an REO agent you should focus on building a BPO business first because before you can start getting listings. The servicing companies prefer you have experience. If you build the BPO business first, not only are you gaining the experience needed, but you are earning a great income as well. Getting into the REO business does take some work – that’s why I recommend that you build a BPO business first, once those relationships are built, they can be leveraged to get the REO Listings. Investing in REO training is a great idea if you are interested in jump starting your career in the BPO REO business.
If you’re a real estate professional looking to get into the REO industry, it’s important to learn how to get REO listings. This article will teach you the fundamentals of how to get started as an REO professional and list REO properties from banks.
REO stands for “Real Estate Owned,” which is a term that is given to real estate that has already been foreclosed on. The bank has regained possession of the property and is looking to dispose of the asset or sell the property. After the bank takes possession of the property back after the foreclosure sale they will select a real estate agent or broker to oversee preparing the property for sale and the selling process of the property. A real estate professional who knows how to get REO listings can then use their knowledge of this process to be the one who earns the listing from the bank.
How To Get REO Listings – Process Overview
Let’s overview the process before getting into how to get REO listings.
Once the property has been assigned to real estate agent and broker they will coordinate and oversee preparation of the property for sale, which includes:
- Getting the Appraiser who is ordered by the bank access to the property
- Getting the second BPO agent access to the property
- Rekeying the property and installation of a lockbox
- The trash out, which includes removal of all trash from the property and cleaning of the interior.
- Cleaning the yard and arranging the monthly maintenance of the yard.
- Any maintenance the bank or lender would want performed.
- If there is a pool, Installing a cage over the pool for safety.
After these tasks are complete the bank or lender will compare the two BPOs and appraisal to determine the price at which they will instruct the agent or broker to list the property. In some cases the agent or broker will be initially responsible for these expenses and will be reimbursed in 30-60 days.
OK, now for the good stuff: how to get REO listings!
I recommend that you build a BPO, or Broker Price Opinion, business before pursuing REO listings because getting into the REO business can be challenging – especially if the agent or broker has no experience in the BPO REO industry. Building a BPO Broker Price Opinion business first is important because the agent or broker will be making money and gaining experience at the same time. The companies that order BPOs sometimes handle REO listings as well, so by building a good reputation with the BPO companies by competing your orders on time and completing orders properly, you will avoid having REO listings kicked back for corrections. In other words the key to “how to get REO listings” is through completing BPOs (Broker Price Opinions).
How To Get REO Listings from Fannie May and Freddie Mac
Real estate agents and brokers can apply to be an REO agent for Fannie Mae and Freddy Mac, however; I would not recommend doing that until the agent or broker has gained some experience with how to get REO listings. The most important thing to remember is that you must ALWAYS be on time and accurate with all tasks to both BPO and REO companies.
Once the agent or broker has experience and a good reputation with the BPO companies they can leverage their good relationship and understanding of how to get REO listings to not only use as a referral but get the contact information for the REO Asset Management Company who is handling the listings for the banks and lenders. The agent or broker can also contact the REO asset managers to solicit listings, but I must advise you to proceed with caution with this method because the REO asset managers are overworked and underpaid, so you must use the “Law of Reciprocity” approach to have a chance.
For more information and training on how to get REO listings, visit the BPO REO Academy
If you find yourself wanting to join the group of savvy real estate professionals who are making money from Broker Price Opinion orders – or BPOs – you’re probably asking yourself how to get BPOs because you want a piece of the action for yourself!
Why You Need To Know How To Get BPOs
Banks and mortgage lenders will commonly hire a BPO agent to conduct a Broker Price Opinion – a process that helps them quickly and affordably determine the value of a property. It is much faster and more affordable than hiring a licensed appraiser, and also
offers a great additional stream of income for real estate agents and brokers. A BPO can be conducted by any real estate agent or broker willing to learn and complete the process. If you aren’t familiar with how BPOs work, you can learn more at BPO Training Academy.
But, to simplify why you would want to get BPOs, it means money for you! Banks will pay you to give your opinion of a property’s value – a process you probably do already on a regular basis!
How To Get BPOs And Make Money Completing BPO Orders
In order to become a BPO agent, you will first need to sign up with a bank or lender. Once you are approved, the lender will begin sending you BPO orders to fulfill. Then, as long as you complete the BPOs successfully and within the required time frame,
the lender will send more orders for you to complete – and, of course, pay you for completing them! The orders you will receive will vary in complexity – some BPO orders only require you to photograph the exterior of the home, while others will require you to enter and photograph the interior as well. You will also generally be paid more the higher the complexity of the order, and some of these may be rush orders which typically pay more as well.
Once you are familiar and comfortable with the process of how to get BPOs, you can sign up with as many banks and lenders and complete as many BPO orders as you’d like. Being a BPO Agent will provide an outstanding way for you as a real estate agent or broker to add a consistent additional stream of income to your real estate business!
You can also jump start your success, learn the insider secrets of how to get BPOs and make the most of your new BPO business by investing in BPO training.
As you can see, the Broker Price Opinion industry has a lot to offer real estate agents and brokers, and you can now begin taking advantage of it yourself now that you know how to get BPOs!
Watch this video to learn about REO Asset Management Companies and how they affect you as a BPO or broker price opinion agent.