2. Opportunities for Real Estate Professionals Page 20

Asset Managers Want What You Have Access to the MLS and comparable sales data On-the-ground local knowledge Contacts with interested buyers Sales and marketing ability Know-how and availability for property showing Network of local contacts People skills Page 20

Viewpoints Asset Managers REO = generates expense and no income Maximize results, minimize time on market Not sales oriented, not a real estate licensee Can’t know the details of every property Brokers & Agents REO = inventory—a way to make money Sales-oriented staff Link between asset managers and buyers Local expert—the asset manager’s eyes and ears Page 21

REO “Facts of Life” Accept that you’ll get your hands dirty Confidence Detail and deadline oriented A different way of doing business Empathy Page 21

A Few More Facts Licensing Insurance  E&O, personal liability, workmen’s comp Capital  Advance payments for utilities, repairs  About $5,000, or $1,500 per property Broker Support  Sales team, back office Page 23

Facts About Compensation Asset management company sets percentages and split Percentage or flat fee, whichever is greater Buyer’s rep often gets largest portion Listing agent may be required to give back Asset manager—volume justifies the listing agent’s lower commission percentage No leeway for negotiation Page 23

Adapt Your Core Skills Regulatory knowledge Product knowledge Market knowledge Financing, credits, incentives Image Networking Client & customer Service Negotiations Management systems Representations and disclosure Communications Marketing properties Community involvement Page 24-25

Practitioner Perspective Tyler Smith Folsom, California “Asset managers are looking for someone who's prepared and able to sell their assets. What can you do for them?” Page 26

Safety First Don’t try to go it alone Don’t make yourself a target REALTOR ® Safety about_nar/safety. Page 27

Breaking Into the REO Business Asset managers need:  To know their listing agents better than the properties  Develop a “go-to” network of agents Agents can focus on companies that do most of the REO business in the market area Page 27

REOs Are Hot! So Is the Competition! Talk to agents, trusted colleagues Shadow an REO agent (offer $) Work as an assistant Network in noncompeting territories Page 28

Prospecting for Contacts Use your prospecting skills Do the research Talk to:  Loan officers at your own bank  Foreclosure attorneys  Auctioneers Do the follow-up Page 28

Professional Résumé Oriented toward the REO business Prompts you to pull together information required for registration When an asset manager asks for more information—you’ll be prepared Page 29

Beginning with BPOs Establish your credibility If offered a fee for a BPO, you probably won’t get the listing Performance, reliability, and results produce a stream of business Page 32

Complete “BPOs: The Agent’s Role in the Valuation Process” (1-day class) NAR member $199 One-time application fee Licensed for at least 2-1/2 years E&O coverage: $250,000 per incident, $500,000 aggregate Go to Page 32

REO Conferences Five Star REOMAC REO Expo, Housing Wire Page 33

Registrations Major asset management companies Fannie Mae, Freddie Mac, HUD Fill out the application and attach a résumé Some no longer accept registrations Page 34

Referral Networks and Directories Can be expensive Ask a trusted colleague “Is the investment worthwhile?” Page 34

Web-Enabled Workflow Assign listings and tasks Communicate instructions Monitor progress Register as a vendor and download the application Equator Dispo Solutions RES.net, Accelerated Management Platform Safeguard Properties Page 34

Practitioner Perspective Christian Walsh Santa Ana, California “ This opportunity isn't going to be here forever…get a jumpstart by joining a company already established in REOs…leverage REO business to create traditional business.” Page 36