Introduction

THERE HAS NEVER been a better time to get into the real estate business. Or maybe we should say, back into the business. Like many other types of agents in the marketplace, a lot of real estate professionals have lost their zest, zeal, and “oomph” and have decided to focus their interests elsewhere. Some are on the fence, and some are giving it one last shot.

Well, we’re here to tell you real estate is far from over. The real money is now, and what you are about to discover in this book will guide you step-by-step through how to become successful in the new and improved real estate business, real estate bank-owned properties (REOs).

The old days of aggressive prospecting and marketing campaigns with high fixed costs are over. Look around you. Depending on what city you are in, foreclosures, or the REO boom, as we like to say, are all around you.

Some proponents or “experts” say that to make a million dollars in the real estate business, you need to budget approximately 10 percent of your gross commission income (GCI) toward lead generating activities (i.e., marketing and advertising). Who has over $100,000 in this market? While this model might have worked in an “up market,” it definitely will face resistance in a “down market” such as the one we are facing today.

Why? Although the game might remain the same, the players have changed. No longer can you list your neighbor’s house, because the equity in that home is wiped out or upside down. The pot of gold has shifted from the consumer back to the bank. Thus, the key to success in the real estate world is shifting your focus and energy to the direct source: banks! This requires landing a bank contract and then properly managing the contract to create a pipeline of income by selling bank-owned properties (REOs).

Imagine earning a million dollars without doing print ads, newspaper ads, magnets, calendars, radio, car signs, etc. No more aggressive marketing and prospecting campaigns.

What we will show you in this book is how to convert REOs into your own personal ATM, all on a “shoe-string” budget. It’s simple. It’s a science. But it’s not rocket science. All you will need to follow the system is tenacity and discipline.

Real estate is cyclical, and so the secret formula for success is timing. What separates the top 10 percent of successful agents from the bottom 90 percent is the ability to get in and out of a market at the right time. Remember the housing and condo craze? Practically anyone could have listed a customer’s home between 2000 and 2005 and subsequently have sold it for that same customer, making a double dip of commission within a six-month period. Those days are gone. The good news is, something better is here, but the window of opportunity is short. The time to get in is now.

This book is designed for two groups of agents. The first is the real estate agent, team, or broker who is not in REOs but wants to get in. They are tired of attempting “short sales,” new construction, or rentals. If you fall into that category, we will show you how to break in the REO game and land a bank contract. You will learn how to build a team, set up systems, and use other vendors’ money (OVM) in the interim to bankroll your operations. As an added bonus, we have provided a free detailed asset management list of the various direct banks and outsourcers in the marketplace for you to apply to (see Appendix B).

The second group is those who have dabbled with broker price options (BPOs) or may have been lucky enough to have been assigned an REO property or two through an outsourcer or asset management company but who want to grow their business. If you’re a member of this category, we will teach you how to grow and build an automated cash flowing business by obtaining “direct” bank contracts so you can earn over a million dollars within twenty-four months. We will provide you with an REO blueprint: a step-by-step, easy guide to follow.

You will also learn how to implement the “REO Plus Model” to perfect everything from initial occupancy check reports (OCRs), to the BPO, to managing evictions, to issuing your bid-scopes, to inputting listings, to performing monthly marketing reports (MMRs), to managing multiple offers, to managing closings, to the most tedious of it all—reimbursements.

As you will see later, dealing with banks is tricky. Once you are in, you have an unlimited opportunity to create wealth—unless you do not perform. Some banks will not give you a second chance. They do not have the time or patience for error, as they expect to work with only the best.

Finally, this book serves as an added bonus for consumers, both home buyers and investors, who are looking to purchase their own REO property. We will uncover the inside secrets on how things work from a real estate agent’s perspective. For example, you will learn why your offer never gets accepted or why a home listing shows “pending sale” the same day it comes out on the market. By the end of this book, you will learn exactly who to contact to purchase your dream home or investment property.

Are you ready to cash in on the REO boom? If so, the material you are about to read will take your real estate business to the next level. No matter where you are in your real estate career, we challenge you to finish this book within thirty days and implement the system by putting bank-owned properties on your priority list.

The work here is a collection of almost a decade of real estate experience, tried and tested in some of the most depressed real estate markets across the country. Our vision—although the voice you’ll hear throughout the book is Arams’s—is to share this easy step-by-step manual with all the real estate entrepreneurs in the country who step up to adversity and know how to spearhead change with action.

If that sounds like you, turn the page now—let’s gets started.

FREE $295 VALUE REO BONUS PACK