How Does an REO Broker Survive Inventory “Swings”?

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.