So these mystical words have been whispered and rumored about for more than a year now, yet very few seem to understand their true meaning. Is “Shadow Inventory” some sort of hidden surplus of unwanted homes lurking in the deepest corners of the REO world ready to swoop in and cast a heavy dark cloud over the real estate market? Will it instantly suck home prices across the nation into the bowels of no-equity hell? Much like the “Double Rainbow” guy, agents everywhere are asking “What does it mean”?

In a nutshell, it’s quite simple. And frankly, very good news for those of us in the REO business, selling foreclosures for banks. Watch this video and you’ll see that we are merely in the eye of the REO storm, as it appears that the Shadow Inventory bubble is preparing to burst and provide us with opportunities to sell REO homes like never before. So, if you are a new REO agent, NOW is the time to get started with building your REO client relationships. If you’re an established REO broker, Now is an even BETTER time to start strengthening your relationships with your REO asset managers.

When you go to REO conferences, do you “work” them strategically and make real REO client connections, or do you wind up feeling like a tiny fish in the feeding frenzy of REO agents harassing Asset Managers?

Most agents go about REO conference networking totally WRONG. Worse yet, they waste money on plane tickets and hotel rooms, hoping to get REO listings from Asset Managers, who ultimately end up seeing them as annoying pests, instead of competent REO agents and that they would like to work with. If you learn to approach tactically and you use this “REO connections multiplier”, you’ll wind up getting more bank foreclosure listings to sell every time. It works like a charm without fail. Learn it an CRUSH IT at conferences!

Watch this video and see EXACTLY how you can get more REO listings from banks, by using this simple but masterful strategy over and over again.

P.S. If you have never been to an REO conference, get your butt to REO Expo, The Five Star Default Conference, or REOMAC . There are several of these each year and they are great places to get REO training, foreclosure training, make some great new REO contacts and get REO assignments!

Add a little “Tiger Blood” to your marketing efforts and watch your REO listing inventory soar….Duh-WINNING!

Even though selling foreclosures for banks may seem like a typical “stuffy” B2B type of business, don’t forget that Asset Managers are people too. If you want to learn how to get REO assignments from banks, you’ll need to learn the marketing tricks that top REO brokers use to stay “top of mind” with Asset Managers. The least practiced, but one of the most effective ways to get their attention is with current events marketing. It’s easy, fun and REO Asset Managers eat it up! Being an REO agent selling bank foreclosures does NOT have to be boring!

Watch this video and learn how to CRUSH IT with your REO marketing.

As a broker who sells almost 500 REO properties every year, I never cease to be amazed at how “just plain lazy” the average real estate agent can be, about REALLY developing their business. For almost 18 years, I dedicated my entire career to “crushing” my competitors in the traditional real estate market, ultimately rising to the rank of #1 Team Agent in N. Atlanta, GA for RE/MAX and #36 Internationally, before leaving to start my own firm. I can remember the fears and doubts that ran through my head, when I first started out as an agent at the age of 22. I thought to myself; “who in their RIGHT mind is going to list their home with a young punk rookie? These older guys and girls, who personified the “typical” Realtor, cruising the town like sharks in their Mercedes and BMWs, seeking out their prey, will surely just laugh me right out of the business.” Boy was I dead WRONG!

I had grown up selling newspapers door to door as a kid. I had done tele-marketing and held numerous other sales jobs, and I learned at a pretty young age, that “selling” isn’t just about a one-time, “wham bam thank you Ma’am” approach (well, sometimes my charm and slick talk did make that happen). Instead, it was ALWAYS about continuing the sales efforts beyond the first rejection or “maybe”. So, as I got into traditional real estate sales, I kept my strategy of being persistent in mind and I started with the old FSBO approach. I called every number in the paper and collected numbers from signs and called them all every day, religiously. Yep, I got TONS of hangups and angry phone slams. But I also got a lot of “call me later” answers, which I ruthlessly did. Pretty soon, my follow-ups started paying off. Within 3 or 4 months, my name started to appear at the top of the office listing board. Here I was, having no clue what I was doing, a wet behind the ears newbie, and I was out-listing the top pros in the office. How could that be? Well, I’m sure that you’ve surmised by now that it was my daily and CONTINUOUS efforts. I was truly blown away at how easy it was to eventually become a massive top producer, beating out people with 10 and 20 times more experience than me. Reminds me of a quote I hear Donald Trump repeat now and then. I can’t remember the original author for certain, however I believe it may be the famous golfer, Gary Player. It goes like this; “The harder I work, the luckier I get”. Makes total sense right? Of COURSE it does!

So what does this have to do with REO sales? Well, just like most other agents, my traditional business was all but CRUSHED when this tidal wave of REO properties came crashing down on this market. My sales dropped by over 70% almost overnight and I was bleeding money. For the first time in almost 18 years, I was scared. But even worse-I was LOST. I knew NOTHING about REO at all excep that I knew that I had to get “in” as quickly as possible. I had a family to feed and that was that. So, I set out to learn what to do. The short version of the story is that I spent a lot of time and money learning and then I started putting things into ACTION, much like my good old days as a rookie traditional broker. Here I was at square one again and I knew if I would just “DO”, and keep “DOING”, that I would easily surpass others who were competing against me for the bank business. And I was RIGHT. In less than 2 years, I built a massive REO machine that quite literally renders most of my competition completely irrelevant-many of whom have been in the business for more than 15 or 20 years.

Yes, it is very hard to imagine that there would be just as much laziness from agents working for banks as there was for traditional real estate agents, but there surely is. I see it first hand every day. As an example, as part of my business growth, I spent (and do spend) a lot of time traveling to meet clients to establish new relationships and to further strengthen existing ones. And one thing that I hear ALL to frequently from the mouths of Asset Mangers, is their surprise that NO ONE else ever visits. What?! NO ONE? Yep. I hear it all the time. And I think to myself “who says there’s no such thing as a free lunch”? I mean, I spend $25 bucks on a lunch date with a client and he send me tons of properties because I am able to spend that short time showing him that I am a good agent. So do the math. $25 for a bunch of commissions. Heck, it’s not a free lunch for me. It’s a lunch that keeps paying ME!

So does that mean you HAVE to travel to get REO listings or to get an REO business off the ground? No. But it should demonstrate that you need to put in a litlle effort every day to make your business grow. Whether you are a new REO agent who has never sold a bank owned home. Or if you are a big REO broker already. You NEED to stay in action. REO is very much about “what have you done for me today”. Time is the great eraser. Stay in front of your clients and keep seeking out others and you will win. I am telling you with 1000% certainty, that you can COUNT on the laziness of others. Once you start seeing success, you will completely understand.

To avid going into a complete dissection of my business and to just give you a couple of things to work on, if you truly want to be a success in REO, here are just a few “DOs and DON’Ts” to keep you on track. Master these simple things and you’ll ALREADY be on the way to beating 99% of your peers:

DON’T:

1. Hide behind email.
2. Try to get into EVERY client at first.
3. Spend your whole life doing BPOs and hoping to get listings.

DO:

1. CALL and WRITE and VISIT (optional) clients in ADDITION to emails.
2. Get a good list of REO clients with their agent registration information.
3. Identify the clients who have the MOST inventory in your market and go ONLY after them at first.
4. SHARE client contacts and referrals with other agents (even competing ones)…Yes, you CAN do this even on day 1 of your REO career.
5. Ask your best loan officers for introductions to their REO departments.
6. Send marketing pieces to clients every month and during “Special Events” (ie: Super Bowl, Valentines Day,etc.)
7. Ask new clients to refer you to other clients RIGHT AWAY. (Remember, clients always love you the most during the “Honeymoon” period”).
8. Look up a few conventions an GO. Don’t go there acting like a beggar for business. Go there to shake some hands and then FOLLOW UP later.
…More “DOs” found right here.

Look, there are so many things that you can do. The point is to not spend all of your time “learning”. Spend it “DOING”. Then DO, DO, DO all the time. It is so simple. Knowledge is NOT power until you put it in motion. So if you are serious about making a real career out of REO or simply using it as a safety net until the market rebounds then get off your duff and “DO”!

To YOUR success!

Claim your copy of my FREE E-Book, “The Top 8 Ways to Make REAL Money in REO-REALLY FAST”.
Just click here now. (there’s no catches and no cost-just a ton of useful “insider” information)

According to a recent report by LPS (Lenders Processing Services), the nation has seen an increase in the number of foreclosures, for the fifth consecutive month. To put that in perspective for you, the number is now 2.2 million mortgages in default, or just over 9% of all home loans in the United States, in some sort of default. Pretty astonishing numbers, from any perspective. It really comes as no surprise, however, as many of us REO brokers and REO agents, over at REORockstars, have been having intense discussions about the coming effects of the apparent “bottleneck” of foreclosure properties, that have been jammed up for some time now. This jam-up is seemingly due to a number of factors, most recently, the foreclosure stoppages initiated by some of the nations biggest banks, as they re-visited improperly “rubber stamped” filings. It all had to show up in the market at some point, and it appears that the floodgates are starting to give way, however slowly, right now. So, what does that mean for aspiring real estate agents, who want to learn how to sell REO homes? Well, it means that you better learn your stuff fast and gear up for a “trial by fire”, so to speak. Talk about the potential of being thrown to the dogs! This year will likely be the tidal wave of all tidal waves in the default industry. With the recent LPS reports and the number of homes in serious default, that haven’t even been classified as “foreclosures” yet, the perfect storm is fast approaching. It is critical that REO agents get the proper REO training they need, in order to not only handle REO assignments, but to also handle a large VOLUME of them. In GA, a recent report showed that more than 7 out of every 10 homes sales, were REO properties. And this report was published PRIOR to these recent foreclosure findings by LPS. Banks are going to NEED more qualified REO agents, to handle this massive inventory. Seek out some good REO training, and be sure that you position yourself as the ONLY choice, the “go to” REO EXPERT, for banks in your market. Learning to handle REO properties, like a pro, could be VERY good for your financial position this year.

Well, I have officially “registered” to play in my first Amateur Hockey League (AAHL). At 42 years old (as of Dec. 24th!), I really have no clue what I am thinking here. It seems as I get older, the more I want to test myself, push myself and put myself in a perfect position to break every bone in my body. Last year, it was (and still is to a lesser degree) Krav Maga, and now it’s Ice Hockey. I have to say though, that if you have ever watched hockey on TV or been to a game, you already know that it is the BEST sport in the world to watch, hands down, and I am totally addicted, and there’s no way that a true hockey fan could blame me. And if you think it looks easy-think again! It is also the HARDEST sport on the planet (something that those darn Canadians finally came up with that was worth while-haha!…no cracks from you North of the Border folks..my Dad is from Ontario, so I have SOME kind of right to talk trash right?). It truly amazes me at the skill, that some of the younger players, like my 5 year old little boy, have, from starting so early. I sure wish I had hit the ice when I was a kid. It definitely would have made life a heck of a lot easier (and my risk of serious injury less) right now! Needless to say, I am VERY excited. I’m not the best skater, but I have one hell of a slapshot and I plan to score TONS of goals! So, do you think my dream of being the oldest player to enter the NHL is REALLY unrealistic? …(“ladies and gentleman…at left wing, Mike Costigan”…the crowd roars wildly!)… My wife thinks I’m nuts-haha! But as always, I like to THINK BIG (you’d be proud Mr. Trump!). So, keep your fingers crossed for me and get out here and SUPPORT your NHL teams! The Atlanta Thrashers are playing their best hockey in franchise history and we still are having trouble filling just over $18,000 seats-even with 4.5 million people here! Pony up for some tix and a good time folks. You’ll NEVER forget your first Hockey game-NEVER!

I read a very interesting blog post today, by a real estate agent, named Tni LeBlanc. I have to admit, that I went into reading her post about “5 Reason Why You Should Write the Offer Today“, with anticipation of hearing a lot of the same “old school”, real estate mumbo-jumbo, about how you need to hurry up and get buyers out of your car and move on to the next, or some of the other typical real estate agent BS, that your average 3-4 home-per-year-selling agent spews out, just to hear themselves talk. But Tni turns out to be VERY insightful, especially in her comment (Reason #5) about “Fridays” and REO properties. She mentions that “For an REO (foreclosure), waiting until Friday to submit an offer means that your offer probably has to withstand weekend buyer traffic and interest…”, and she is DEAD ON. Most REO Asset Managers do not work weekends, and as an REO broker, who sells HUNDREDS of REO properties every year, I can tell you first hand, that getting that offer in on Friday, will almost CERTAINLY expose your buyer to a bidding war, with offers that come in over the weekend, especially with a GREAT REO listing. It is a big point of contention, when it happens to an agent, who legitimately was the first to make an offer, and was told that they were the only offer as of Friday, only to find out, that they got bumped by an agent who brought and offer in over 48 hours later. Trust me, there’s a lot of name calling and hair pulling in the REO business, because many agents, unlike Tni, just don’t understand the REO game. REO training just isn’t something that’s been undertaken by many real estate agents, in their up and coming years. No one EVER expected this sort of foreclosure prevalence in the marketplace, yet, still today, very few agents actually seek out the REO training that they need. So, they run out aimlessly, “serving” clients, in a way, that could actually be harmful, rather than helpful. This “Friday” thing is VERY common, as buyers often give themselves the “week” to find their home, and they decide on Friday, which as Tni correctly advises, is the WORST possible thing for the agent AND the buyer. So, if you are an agent, selling REO properties, take Tni’s advice, and mine, and move FAST when you see a home that suits your buyer. Otherwise, you’re likely to be out searching and losing for a heck of a long time. On a side note: I also LOVE her Reason #3: “Your Offer May Deter Other Buyers”….Amen Tni. Amazing how psychology plays into the whole “buying” game, whether you are selling REO properties or traditional real estate listings.

There’s a short and pertinent answer to this question: Ride it out.. Yup, in a nutshell, that’s it. Look, as an REO agent, you have to realize, that we are in a time of uncertainty. Not just for brokers and agents, but for the country as a whole. Banks have so many foreclosures on their books, and with real estate being such a large portion of their lending portfolios, they just don’t know what to do. So, they turn to the government, who in turn, has NO CLUE what to do. Then, in the governments frenzy to avoid more bailouts, they’re slapping band aids on wounds that need stitches. The “programs” they put in place, are very temporary fixes. They may slow down the rate of foreclosures in the short term, but soon the pressure created from these non-performing assets, builds right back up and everything explodes again. It’s sort of like plugging a leak in a damn with a piece of bubblegum. Sure won’t be long until that little trickle turns into a waterfall and floods everything in it’s path. If you are already an REO agent, or if you are doing some REO training now, and learning how to sell REO properties, you need to always be prepared for the ups and downs. Over at REO Rockstars, I discuss the “mindset” that you need to have, if you are going to survive. We talk a lot about not only how to get REO listings and how to sell foreclosures to buyers, but also about how to MAINTAIN your momentum, even through the lean months. Check out this article I wrote some months ago, about this very same thing. Still very relevant. Not likely to change anytime soon.

So many “REO Contact Lists”, “Secret Formulas” and “Get Rich Quick Selling REO” programs out there today…Really? It’s enough to make a guy like me, who is a big REO broker and REO agent trainer, want to puke up my lunch! Does that mean that it’s too late, too tough, or just too “flooded” of a business, to get into? Hell NO? In fact, now may just be a better time than ever, to break into the REO selling and REO listing business. With recent record foreclosure reports pouring in from coast to coast, and with expectations of those numbers being busted, month after month, in the coming year, banks are going to NEED good REO agents and brokers, to help them sell foreclosure properties. But can these BS “systems”, and “home study courses”, that propose to teach you how to get REO listings, REALLY get you going “overnight”. as they claim? Is there some “”magic pill” that these so-called REO gurus know about that you don’t. Not really. In fact, not at all. You see, over at REO Rockstars, I teach my newest, freshest agents AND my top performing REO brokers that EXACT SAME THING….REO is HARD WORK. And when you stop working, when you get “comfy”, and you let your momentum slow…..YOU’RE DEAD. Yes, there ARE, most definitely, “shortcuts”, and “insider tricks”, that you can use, to get yourself up and running FAST, but they come with a LOT of plain old, “get your hands dirty”, hard working days and nights my friend. Yet, as much as I preach this, I see so many agents sucked in by the allure of some half-baked scheme, cooked up and sold to hungry REO agent Wanna-Bees, by some REO agent, who is out to make a quick buck. Why? because the “too good to be true”, is as irresistible as a hot cherry pie, until you dive in too quickly and get your tongue burned. Look, I could rant about this for hours, and people who want to learn to sell REO properties, are still going to try and take the “shortcuts”. But what you must remember is this: The Secrets Are ALL Hidden in Plain Sight! If you see something that’s working for someone else-just COPY it! It is REALLY that simple. Look around at what other huge REO brokers are doing, and do the EXACT same thing. That is precisely how I developed my own Uncensored REO Secrets System. I spent almost two years, on a rapid-fire mission, traveling all across the United States, meeting with the best minds in the REO industry. From REO Asset Managers, to top REO Agents, to everyone in between. I picked their brains and extracted knowledge like a master surgeon, took serious notes, contacted them on a daily basis, and through some Massive Action, I quickly built an REO selling business, that rips out almost 500 REO transactions every year. AND I never work weekends! Am i a genius? No (well…perhaps-ha!). Truthfully, I am just smart enough to follow my own advice (see above) Click here to read more about how to start making REAL money in REO REALLY FAST, without wasting your time and money, trying to take “shortcuts” that turn out to be DEADLY. Don’t be a fool and get sidetracked, with crap that doesn’t work, while other agents pass you by and laugh.

As a broker, who’s been on “both sides of the  fence”, so to speak, both as a purely “traditional” broker, and later, as a big REO broker, I’ve heard this question plenty of times. Even with the huge inventory of REO properties, that are on the market today, it is often hard to secure a great property for your buyers. No matter how hard you try, how “Smart” you might be or how often you watch the market like a hawk, hungry for prey, you still can have a heck of a time latching onto anything worth chasing. So why is this? Are you just having a streak of bad luck? Or are you fighting a battle that simply can’t be won? Could it be that REO listing agents are somehow “holding back” the good properties, for their own buyers? Are they “hiding” them from the rest of the market, so that they can make a quick buck, with a super easy in-house deal? Do they “feed” their investors the homes that are easy to flip, so that they can rake it in on BOTH ends, and then do it over and over again? Well, we’ve been talking about this quite a lot, on my REO training calls and in REO training articles, over at REO Rockstars. The short answer(s) are: Maybe. Not Really. Yes. and No.  Not very helpful? Well, you have to remember, that in REO, real estate, and in any other business for that matter, that there are always going to be the good, the bad and the downright ugly crowds. Some play by the rules and some just don’t. So does this mean that the “bad” REO listing agents are REALLY powerful, or even savvy enough, to be able to routinely “trick” the rest of us, or to pull “fast ones” over on their clients? Or is it perhaps the market-wise investor, who simply keeps beating you to the punch with some higher-level “know-how”? Read more about the tricks you can use, to be sure that YOU are the one who’s getting to the good stuff first, right here…