REO BROTHERS™
Glossary
In order to master the REO game, you must first master the nomenclature. Below are the 138 most important concepts and terms for you to grasp. They will help you talk to any asset manager and grow your business exponentially.
You can also download this free REO BROTHERS™ glossary at www.reoboom.com.
6 steps of the REO cycle: The steps that make up the entire REO cycle: Occupancy Check Reports, BPO Ordering, Repair Bids, Listing and Marketing Updates, Offers and Extensions, and Closings and Reimbursements. The faster a listing agent masters the 6 steps, the more REO properties they will receive.
90/10 REO rule: A rule describing the initial phase of getting into the REO market. During the first ninety days after a listing agent’s first assignment, long working hours are required in order to manage the REO cycle. After the first ten closings, a listing agent has earned enough cash to recruit a dream team to set up the REO Bootstrap Model.
Account manager role: A person hired full time to work with the business development personnel to manage each new bank contract. They are referred to as the “executioner” and also awarded residual income, usually a quarter of one percent (.25 percent) of the listing commission on every REO that closes.
Accounting clerk: A member of a listing agent’s dream team who submits all expenses incurred on an REO to the bank for reimbursement, as well as collects and deposits commission checks. This is the first key personnel a listing agent needs to hire.
Active listing: A property that is currently “active” on the multiple listing service (MLS). Listings should remain “active” until an offer is fully accepted. Once an offer is fully accepted, the listing status on MLS changes from “active” to “pending sale.”
Adjustment: An addition or subtraction in value assessed on a closed comparable sale or competitive listing in order to ensure the comparable sale or competitive listing’s value matches the value of the subject property.
Aged Inventory Percentage (AIP): The seventh success measurement tool, a ratio calculated by dividing aged listings (listings over ninety days) by active listings. The smaller the ratio the better; a good goal is to keep your AIP under 10 percent.
Agent’s scorecard: A report card given by banks to listing agents, usually quarterly, with a peer rating of A (the best) through F (the worst). Unlike the eight success measurement tools, which are an internal measure, the agent scorecard serves as an external measure, as it compares a listing agent to their competition.
Application: An application filled out by a real estate agent who is interested in becoming a bank’s REO listing agent or interested in becoming a listing agent for an outsourcer.
Appraisal: A valuation of real property ordered by a bank. Most of the time, the valuation is done by a state certified appraiser, who will go to the property and conduct an in-depth valuation based on extensive research. The main difference between an appraisal and a broker’s price opinion (BPO) is that the appraisal is more in-depth, values the subject using different methods, and is conducted by a licensed appraiser. Both valuation methods are an opinion of value. An appraisal is usually ordered prior to a bank determining the listing price for an REO, and many times is used to ensure the BPO is not undervalued. An appraisal may also be ordered by the lender to ensure the lender is meeting their internal loan to value guidelines.
Asset manager: A representative of an asset management corporation or outsourcer who makes decisions on who to assign REO properties to. An asset manager is a listing agent’s boss. The term may be used interchangeably with sales reps.
ATM: A term used for an REO listing, reflecting the ease with which a listing agent can make money from it.
Automation: The process of putting the REO business on autopilot by bringing on business developers and an account manager, as well as implementing technology.
Bank fifteen-day rule: A rule that some banks implement to restrict investors from purchasing an REO during the first fifteen days of an active listing. The rule is intended to give first-time homeowners a fair chance to purchase a subject property before investors become eligible.
Bank platform: The web-based software that a bank uses internally to manage their REO assets.
Bank three-day rule: A rule that states that a bank will not consider any offers until the subject property has been listed for three full days. This rule is intended to give buyers a fair chance to purchase the property.
Bank: A financial institution that either manages real estate–owned properties itself or chooses outsourcer asset management companies to manage their real estate–owned properties. Banks are also referred to as direct accounts.
Bid scope: The scope of work to be bid on by a contractor. The bid scope is prepared by the listing agent, who will detail all the repairs that are needed for the property. The bid scope does not contain any prices or dollar amounts; it only contains the repairs that the listing agent is requesting a bid on.
Bid summary: A document completed by the listing agent that summarizes the cost of all repairs bid on by the contractor(s) and that recommends which repairs and which contractor the bank should approve.
Bonus: Monetary compensation given to asset managers or sales representatives who exceed closing goals.
Bootstrapping: The process of growing a business from the current cash on hand versus seeking debt or equity financing.
Broker’s price opinion (BPO): An opinion of value made by the listing agent prior to an REO being listed for sale. The BPO also contains information on repairs, marketing strategy, and recommendations made by the broker to ensure the successful disposition of a real estate–owned asset.
Business development role: A person hired full time to develop additional bank contracts, including both direct and outsourcer accounts. They are referred to as a “closer” and awarded with residual income, usually a quarter of one percent (.25 percent) of the listing commission on every REO that closes.
Buyer bonus fees: The third hidden stream of income that allows a listing agent to make up to $34,000 per direct bank contract by having their buyer pay an additional commission fee on the HUD-1. Buyers agree to this request by signing a special clause or addendum to the state or local promulgated contract.
Buyer network: The network of buyers that a real estate agent has. Usually, the buyer network is a positive element that will add value to a listing agent’s resume. A larger buyer network corresponds to larger demand and more sales—the bigger the network, the better.
Buyer’s title company: The company chosen by the buyer and selling agent to insure the title.
Cash flow: The bank roll in a listing agent’s bank account. It’s more important than profit.
Cash for keys: The process in which cash is paid by the listing agent to the occupant in exchange for the occupant giving the keys to the listing agent. The occupant agrees to move out and leave the property in “broom swept” condition.
Clean copy: A new contract drafted by the listing agent after an offer is accepted, which includes all the final negotiated terms and is sent to the selling agent for buyer’s signature. The clean copy must be pristine (no cross-outs, no marks) and must have every required field initialed and signed by the respective parties. Once the clean copy is obtained, it is then forwarded to the sales representative or asset manager to be fully executed.
Clear to close: The official point after which a closing can occur within twenty-four to forty-eight hours. A “clear to close” is issued by the lender after all financing conditions have been met.
Closed comparable sale: A comparable property sale used to help determine the fair market value of a subject property. Properties that have sold in the past six months, are closest in proximity to the subject, and require the fewest adjustments are typically the best closed comparable sales candidates for a listing agent’s BPO.
Closing checklist: A checklist used by the closing coordinator to keep track of the closing progress.
Closing coordinator: A member of the listing agent’s dream team who facilitates closing. The closing coordinator’s main goal is to ensure that closing occurs on or preferably before the contracted closing date. The closing coordinator works with the buyer’s title company, seller’s title company, lender, selling agent, and listing agent to facilitate the exchange of communication.
Closing costs: The costs, outside of the purchase price, for which the buyer is responsible. In some cases, buyers negotiate for the seller to make a contribution toward the closings costs, to reduce the amount of cash the buyer needs to bring to close.
Closing ratio percentage (CRP): The first success measurement tool, a ratio calculated by dividing actual closed transactions by transactions scheduled to close. Seventy percent or greater is ideal.
Co-broker: The person who helps the listing agent find a buyer for a property. Also referred to as the selling agent.
Code violation: A violation assessed by the local municipality, the homeowner’s association (HOA), or other governing bodies. The violation can be issued for a variety of reasons. To remediate the violation, the current owner of record must make repairs, pay the fines, or have the buyer assume responsibility for the violation by having them sign a hold harmless agreement (HHA).
Cold lead: A buyer who has just started the home-buying process. Usually, their timeframe is in excess of one year to purchase, they have not been pre-approved for a loan, and they are looking for a guide or coach to hold their hand through the home-buying process.
Competitive listing: A comparable property that is “active” on the market and available for sale. Competitive listings are used to help determine the fair market value of a property.
Condo approval: The approval required for a borrower/purchaser prior to closing. Approval varies and usually requires the borrower/purchaser to fill out an application. In some cases, the application is reviewed by a board of directors who then determine whether to approve or reject the applicant.
Counteroffer: The part of the offer process in which an offer is initially presented by or on behalf of a buyer and then countered by the other party. An initial offer can have many counteroffers before finally being accepted. Counteroffers are usually prevalent when the buyer makes an offer substantially below the list price.
Cover your assets (CYA): The recommendation that a listing agent err on the side of caution when making decisions and always keep in mind the question, “What will happen if …”
Date-stamped photo: A photo that has a date imprinted on the actual photo. Typically, a date-stamped photo is required with an occupant options letter.
Days on market (DOM): The second success measurement tool, which is the difference in time between the date the property is “active” on the MLS to the date the bank accepted the offer and the property is considered “accepted” or “pending sale.” The less the DOM the better.
Days to close (DTC): The third success measurement tool, the difference between the time the property is “accepted” and the time the property is “closed.” The lower the better, as it measures the ability to retain buyers (e.g., prevent buyers from backing out).
Direct account: An actual bank that has a real estate–owned department and serves as a direct channel of REO distribution for listing agents. They are the golden goose of contracts, as three direct accounts can yield over a $1,000,000 net within twenty-four months for a listing agent. A listing agent who has a direct account works with a sales rep versus an asset manager. They differ from non-direct accounts, which are also known as outsourcers.
Director: The party responsible for initiating new directives and supervising sales managers in a bank’s real estate–owned department.
Double Ds (DDs): Delayed delivery emails used to follow up with parties in order to meet timelines. DDs are used especially when replying to emails that indicate a task should be completed by a certain date. The email is a follow up to that task, scheduled to be delivered on a future date.
Earnest money deposit (EMD): A deposit made by the purchaser to show good faith. The EMD is usually non-refundable after the inspection or financing period.
EESA: The Emergency Economic Stabilization Act of 2008, which oversees TARP and is modeled on the Resolution Trust Company.
Estoppel: A condominium association or HOA document, requested by the listing agent or buyer’s title company, that typically specifies the pay-off required to bring the past-due amounts current.
Executed contract: The legally binding contract, signed by both the buyer and bank, that states the price and terms of an REO transaction.
Extension: A change in the terms of the executed contract that extends the closing date, financing contingency date, or inspection period. Extensions typically require a sales amendment.
Fall through: The term for a sale that is not completed due to the bank or buyer backing out of the contract. Fall throughs typically occur during the inspection period or when a buyer is unable to secure financing. As soon as a property falls through, the property status is changed from “pending sale” to “active” in the MLS.
Field inspector: A member of a listing agent’s dream team who is in charge of conducting weekly property inspections to ensure that all properties are in satisfactory condition.
Final sales clean: The final cleaning process after all repairs are completed, to ensure property is presentable and ready to be marketed.
Financing contingency period: The amount of time that the purchaser has to obtain a loan commitment. If the buyer is unable to obtain a loan commitment by the financing period deadline and the transaction does not close, their EMD may become non-refundable.
FIRREA: The Financial Institutions Reforms, Recovery, and Enforcement Act of 1989. This act guided the Resolution Trust Corporation to adhere to a very important rule: maximize the return from the sale and disposition of troubled assets.
First-time homebuyer (FHB): A purchaser who has not previously purchased a home and who wants to live in the home as their primary residence.
Five offer statuses: The five statuses displayed internally in many bank platforms, indicating the status on a homebuyer’s offer. An offer can be pending, verbally accepted, accepted, awaiting approval, or rejected. A pending offer means an offer has been submitted to a bank but an asset manager has not yet reviewed the offer. Verbally accepted means an offer is accepted but is contingent upon management for final approval. Accepted means the bank has chosen the winning offer and the status of the REO can be changed from “active” to “pending sale” in the MLS. Awaiting approval means a special signature from higher management is still needed to accept the offer. Finally, rejected means all negotiations between buyers and the bank have ceased.
Foreclosing attorney: An attorney used by a bank to initiate and complete the foreclosure process. Typically, this attorney may also represent the bank as their title agent on the sale of the real estate–owned property to the purchaser.
Gross commission income (GCI): The income a real estate agent makes directly from the bank before any fixed costs or variable costs are taken out.
Gross execution percentage (GEP): The fifth success measurement tool, calculated by dividing the sales price of an REO by its list price. A ratio above 95 percent is good.
Highest and best (H&B) offer: The highest offer that a buyer is willing to make after presenting their original offer and being given an opportunity to increase their initial offer. This situation most often arises when there is more than one offer for a subject property; after the original offers are made, each buyer is given a chance to present their highest and best offer.
Hold Harmless Agreement (HHA): An agreement where the buyer assumes responsibility for violations and holds other parties (seller, title, listing agent, selling agent) harmless by acknowledging the violations and agreeing to be responsible for correcting them. In some cases, buyers will sign a HHA in exchange for the seller providing an additional seller contribution or in exchange for the seller reducing the purchase price.
Home warranty fee: The fourth hidden stream of income, which allows a listing agent to make a nominal referral of up to $6,500 a year by obtaining a home warranty license and signing a marketing service agreement.
Hot auction property: A property purchased at an auction where the buying pool is limited by requirements such as payment being accepted in cash only or the buyer being forced to assume responsibility of occupancy. Usually these properties sell for approximately 50 percent less than their previously assessed value.
Hot lead: A buyer who is willing, able, and ready to purchase, has been on the market for more than four months, has seen over twenty listings, has made at least five offers on homes, needs to buy by a certain date, has friends or relatives living in the specific area, does not have a deal-breaking attorney, and has proof of funds to purchase in cash or cover the down payment.
Incentive: Something used to spur demand for a real estate–owned property. Incentives usually take the form of the bank providing closing cost assistance to the buyer or a bonus to the selling agent.
In-house buyer: A buyer who elects to have the listing agent represent them in the purchase of the REO transaction rather than a cooperating broker or selling agent.
Initial occupancy check: An initial inspection that is conducted to determine if a property is vacant or occupied.
In-network contractor: A contractor who has a relationship with a bank in which they are limited in what they can charge banks on repairs. Banks agree to use a selected number of in-network contractors and require listing agents to use these in-network contractors when possible.
Lis pendens: Written notice that a lawsuit is pending on a particular property; Latin for “lawsuit pending.” A lis pendens is most likely to be issued several months or years before the actual foreclosure sale occurs.
List price reduction (LPR): A drop in price on a currently active REO. A typical list price reduction ranges from 5 to 10 percent of the previous list price and often occurs every thirty days, after a monthly marketing report is submitted.
Listing commission: A commission paid to a listing agent for the sale of a bank’s real estate–owned property, usually paid as a percentage of the sales price.
Listing package: The package sent to an asset manager by the listing agent within twenty-four hours of listing a property; the package includes a listing letter with the listing agent’s signature, a copy of the MLS listing, and copies of the pictures that the listing agent has placed on the MLS.
Loan commitment: A formal, written notification from a lender stating that a borrower’s loan has been conditionally approved and specifying the conditions under which the lender agrees to make the loan.
Magnet marketing plan: A marketing plan that incorporates the four Ps of REOs (product, price, promotion, placement) and that is intended to successfully get the REO listing under contract within twenty-one days of the initial listing date.
Market pricing strategy: A strategy for maximizing sales proceeds without letting the subject property be priced out of the market. Market pricing strategy is a section found in the BPO, in which a listing agent will recommend an “as-is” market value and a “repaired” market value.
Marketable condition: The condition that a property must be in to match the average condition of the closed sales that were used to value the property.
Marketing description: A robust description limited to 510 characters and placed in the “agents’ remarks” section of the MLS. The goal is to capture’s a buyer’s attention like a magnet and have them envision living in the home.
Marketing photo: Photos taken after the subject property has been cleaned, repaired, and staged. The purpose of marketing photos is to attract agents and prospective homebuyers to the property.
Master listing agreement (MLA): A document that contains various bank policies, rules, and regulations that listing agents agree to have understood and be in compliance with.
Million-Dollar REO Blueprint: A process model that can earn an REO agent over $1,000,000 net within twenty-four months. The model involves achieving three direct bank contracts that yield a listing agent nine new BPO assignments a week, always maintaining ninety active listings on the MLS, always containing three hundred properties in inventory, and achieving a 35 percent in-house buyer ratio.
Minimum lender required repairs: The bare-minimum repairs to a property that a lender requires be completed in order for the lender to offer financing.
MOB: Motivation over business, and the last step in the REO FARM play.
Mojo: The momentum that is built in the REO business by choosing to take action, continuously seeking education (via books, audio, and seminars) and mentors, making mistakes and learning from them, and utilizing faith to fight fears.
Monthly marketing report (MMR): A report completed every thirty days for properties that are still active on the market. It details any new competitive listings or comparable sales, feedback from agents and buyers, number of showing requests, market trends in pricing/valuation, and whether a list price reduction is recommended. The goal of an MMR is to obtain a list price reduction to sell the active REO. MMRs are used to keep asset managers abreast of general market trends and new sales that affect active properties.
Moratorium: The recent period of time during which foreclosures were “frozen” due to questionable practices by bank foreclosing attorneys.
Mortgage referral fee: The second hidden stream of income, which allows a listing agent to make up to $68,000 per direct bank contract by obtaining a mortgage loan originator license or partnering with someone who does. A typical referral fee is 50 percent of the mortgage loan originator’s gross commission.
Multiple offer monster (MOM): A situation in which more than one offer is received for an REO listing and a multiple offer process must be followed. Such a situation can become a monster if the process is not adhered to carefully.
Net profit: Gross commission income (GCI) less operating costs. Net profit should equal 35 percent or more per direct bank contract.
NINJA loan: A loan that was designed for borrowers with no income, no job, or no assets; also called a liar loan.
Occupant options letter: The letter posted on the front door of a property informing occupants that the property has been foreclosed on. The letter also provides several options to motivate the occupant to cooperate with the bank, such as offering the occupant cash for keys.
Occupancy check report (OCR): A report that is filled out by the listing agent after checking a property for occupancy. The occupancy check report details the occupancy status of the property and provides detailed information on any occupants.
Offer package: The documents that a selling agent and buyer are required to sign in order to formally present an offer to purchase a listing. The offer package is easy, available, and simple; it typically contains the state or local promulgated contract, bank adden-dums and disclosures, any owner occupied certifications, a copy of the earnest money deposit (EMD), and an optional borrower pre-qualification letter and proof of funds (POF) if the buyer is paying all in cash.
Offer: A notification to the listing agent made by the selling agent/buyer stating that the buyer is offering to purchase the real estate–owned property based on the price and terms written on the offer.
Old-school method: The old way of doing business as a real estate agent, in which you spend large amounts of cash (e.g., 10 percent of the GCI) on lead-generating activities such as marketing and advertising.
Other vendors’ money (OVM): A method of financing an REO business where the listing agent’s vendors finance or “front” certain operating expenses (usually up to 120 days) until a listing agent gets reimbursed from the bank. It is a critical component of the REO bootstrap model.
Outsourcer: An asset management company that serves as a channel of distribution of REOs for a bank and is typically paid on a flat fee basis. Outsourcers assign properties to listing agents via asset managers, and are non-direct accounts for listing agents.
Pending sale: A listing that currently has an offer accepted and is scheduled to close in the future. The listing on the MLS changes from “active” to “pending sale” once an offer for a listing has been fully accepted.
Price accuracy percentage (PAP): The sixth success measurement tool, calculated by dividing the listing agent’s BPO value by the listing price issued by the bank. The closer the BPO value is to the list price, the more accurate the listing agent is. A ratio of 90 percent or greater is desired.
Product puke: When a listing agent tells an asset manager or sales rep all their company benefits and why the asset manager or sales rep should hire them in a very short amount of time (e.g., five minutes). This usually backfires and turns off the asset manager or sales rep.
Property preservation goldmine: The sixth hidden stream of income, which allows a listing agent to in-source the ten property preservation needs and make a 50 percent return on services such as landscaping packages, pressure cleaning driveways, carpet cleaning, HVAC inspections, securing homes, changing locks, securing sliding doors, initial and periodic pool cleaning, and removing damaged material from homes.
QR (quick response) code: A coded image used to help market properties. Typically, a QR code will be scanned by agents to retrieve data on their smartphones regarding a subject property. Often, the code will lead to a website that contains more information on a listing, including detailed property features, financing options, incentives, and any restrictions.
Reach-Around Method: A method of creating a relationship with an asset manager by receiving a referral or a letter of recommendation from a competing listing agent or in-network contractor that the asset manager currently uses.
Real estate arbitrage: The fifth hidden stream of income, in which a listing agent purchases their own property in inventory that is aged or at auction with cash and utilizes the three exit strategies to profit from the purchase: hold-to-rent (via housing vouchers), fix-to-flip (to FHA buyers), or lease-to-own (with at least 5 percent of the purchase price as an option payment).
REO analyst: A member of a listing agent’s dream team who performs the BPO, prepares repair bids, and manages contractors who are conducting repairs on the property.
REO Bootstrap Model: The business model typically followed by agents who have less than thirty active listings. The model emphasizes minimizing fixed costs and using cash on hand, without borrowing or raising additional money, to fund the business.
REO BROTHERS™: Aram Shah & Tim Shah, the authors of Reo Boom and two of the most successful REO listing agents in the United States.
REO closing rules: Rules implemented to close an REO transaction before the scheduled closing date. The two REO closing rules are 1) set the contracted closing date thirty to forty-five days in the future and 2) close as early as possible, within fifteen to thirty days.
REO FARM Play: An acronym coined by the REO BROTHERS™, which stands for Family, Assocation, Recreation, and Motivation (Over Business). It describes a method of communicating with asset managers and sales reps, as an alternative to product puking on them, in order to gain their business.
REO footprint: A term for the group of parties involved in selling REOs: banks, listing agents, and customers. A listing agent acts as the intermediary between banks and customers and provides value to both by creating a large network of homebuyers and investors.
REO ID: An identification tag used for a real estate–owned property. Each property is accompanied by a unique REO identification tag, typically consisting of numbers and letters.
REO Lunch Method: A method of creating a relationship with a sales rep or asset manager through offering them something they cannot refuse, such as a free second opinion BPO for a property given to a competing listing agent.
REO mafia: A myth in the REO industry that depicts a group of select REO agents who hoard bank contracts.
REO Plus Model: A business model used by listing agents who have more than thirty active listings, in which tasks are standardized and compartmentalized by staff function.
REO: A bank’s real estate–owned property; also referred to by a listing agent as a deal, cash, or ATM.
Repair bid package: A single combined PDF document that contains the bid summary, bid scope(s), and any additional repairs recommended by a contractor outside of the bid scope.
Repair change order: A form submitted to a listing agent by a contractor detailing changes to their initial repair bid on a property in which the contractor typically is requesting more money to complete repairs.
Repair inspection: An inspection conducted by a listing agent to verify that the selected contractor is completing or has completed all repairs satisfactorily. In general, at least two inspections must be completed—one during repairs, and one after the contractor tells the listing agent the repairs are complete.
Repair strategy: A component of the BPO that specifies identified repairs for the subject property. Each repair must have an independent photo captioning the required repair and an estimated cost associated with it. In addition, the repair strategy must include a grand total for all repairs. Repair strategy is based on the most likely buyer: homeowner or investor. Finally, repair strategy should pinpoint which repairs the bank should complete to market the property “as-repaired” or else suggest that the bank market the property “as-is” by not recommending any repairs.
Resources ratio (RR): The fourth success measurement tool that compares the number of days the property is on the market (DOM) over the number of days it takes to close an REO (DTC). It measures how efficient a listing agent is managing their resources. The ratio should not be greater than 2.
RTC: The Resolution Trust Corporation, a federal agency (now dissolved) enacted by Congress to remedy the savings and loans crisis. It was created by FIRREA and made a lot of people millionaires between 1989 and 1995. History repeats itself and now presents another opportunity to cash in on the new REO boom.
Run-off ratio (ROR): The eighth success measurement tool, calculated by dividing the number of listed properties plus the number of properties that are under contract by the number of closed transactions in any time period. This ratio should be close to 100 percent; more closings equals more awarded properties.
Sales manager: A bank employee who supervises a bank’s real estate–owned sales representatives but who doesn’t make the day-to-day decisions that sales reps do.
Sales representative (sales rep): A bank employee who is responsible for the successful disposition of REOs. Sales representatives are a listing agent’s boss, and interchangeable with asset manager, as they both provide a listing agent with assignments.
Second opinion BPO: A second BPO that is completed by a different listing agent than the one who completed the initial BPO. This is typically ordered by a bank or asset manager if an initial BPO was completed poorly or if a listing agent is unable to successfully sell a property after a given amount of time (usually ninety days).
Selling agent: The agent who is representing the buyer in a real estate transaction; also known as the buyer’s agent. The selling agent usually leaves the majority of the work to the listing agent after their buyer’s offer is accepted and the property is under contract.
Selling commission (SC): The first hidden stream of income, which allows the listing agent to earn the selling half of the commission in addition to the listing half by focusing on finding an in-house customer.
TARP: The Troubled Asset Relief Program, created by Congress under the EESA, which allows the U.S. Department of the Treasury to purchase or insure up to $700 billion (“bailout money”) of distressed assets to remedy the current foreclosure crisis. EESA/TARP was modeled after FIRREA/RTC and will create the next real estate millionaires.
Tenant occupied listing: A listing that requires a listing agent to market the subject property for sale while the property is tenant-occupied. Most often, these listings will occur when tenants are on a month-to-month lease. When a property is occupied, appointments will be required for showings. Usually less than 10 percent of REO listings are tenant occupied.
Transaction coordinator: A member of a listing agent’s dream team who enters listings into the MLS and handles all offers, counteroffers, and cooperating agent communications.
Unique value proposition: A differential advantage that one property has over another, such as the way it is marketed.
VIP leader: A leader who possesses vision, influence, and passion. VIP leaders are necessary to achieve exponential growth in the REO business.
Warm lead: A buyer who has proof of funds to purchase a home or cover a down payment, has a bona-fide pre-approval letter reflecting credit-worthiness, wants to buy (versus needs to buy), provides a timeline to purchase in excess of six months, and is price sensitive.
Weekly inspection: An inspection completed on a weekly basis by or on behalf of a listing agent to ensure that a property is in satisfactory condition. Any change to the condition or occupancy of the property needs to be noted and updated on the bank platform used by the sales representative or asset manager and the listing agent.
Your burning why: What drives a listing agent to succeed. It’s the reason why a listing agent wakes up every morning. It’s a listing agent’s purpose and mission in life, beyond just money.