Haha again! I've pulled this article out of my archives for you to see the eerily frightening similarities that have come back from the grave to stare us dead int he eyes again in today's market. It is truly shocking that we run right back into the same dark caverns that killed our spirits in the last crash....
-Cash out refis skyrocketing
-Low doc land low down payment loans
-Buying at the top of the market
-"Forgetting about resetting LIBORs and HELOCS
...geeez...we are in trouble...the Zombies are coming again. Get the survival gear out and sleep with one eye open...
Hello again REO Rockstars! As many of you know, I have been a regular road warrior lately, going cross country for weeks at a time to get knee-deep in the trenches with the big shots of the REO world. Accept my apology for the delay in new posts, but trust me, you won't think I owe you anything-nada-when you soak in all of the knowledge that I've gained to share with all of you in the next few months. In case you haven't noticed, things are changing quite a bit in our industry. Banks are telling us of MONSTROUS foreclosure numbers that are looming like giant storm clouds ready to crash down on just about every major city in the country. While many people have been listening to the b.s. being spewed out by the media that "times are getting better", I'm here to tell you that we're merely in the eye of the foreclosure storm-and a TERRIFYING storm it's gonna be.....that is, except for us REO guys! OK so how in the world are these banks gonna handle all of this volume when many already can't answer a stinking offer in less than 2 weeks to save their lives? The answer: THEY AREN'T! I have been face to face in many out of state meetings now over these last few months of tiresome traveling and I am telling you that I have heard right from the mouths of the powers that be that they have no clue what to do. It is not that they don't have the knowledge of how to handle a file. It's simply that they don't have the capacity to handle the throughput that's backed up. I honestly had a VP of a very large bank tell me and some colleagues that if we had a short sale in progress with them that "we might as well just forget it." How freaking crazy is THAT?! So why am I telling you this? Because frankly, I know that I can make you filthy stinking profitable over the next 10 months of this year if I can just get you to listen to me and to focus on the things I teach you this year. I am going to totally lay out a master plan for you to follow....all you need to do is pay attention. I cannot possibly put it all in a blog post (hear me now-NO "begging" emails or whining...you know I'll only think you're a short-fused pinhead who's not able to stay focused long enough to learn. This stuff ain't easy and it sure doesn't come over night partner!). I will however give you a few of the hot points that you BETTER be covering internally ion your business RIGHT NOW. First, get your "Pre-Marketing" systems/specialist in streamlined order and in hyper-efficiency mode. You need to have a system for getting occupied properties vacant and vacant properties valued and to market FAST! These banks are pushing to get the title work done and assignments dished out as quickly as their little fingers can type. You WILL be noticed (as a HERO) when you get these things ready to go and noticed (as a LOSER) when you can't handle this critical step. Be SURE you are seen a the "Go To Guy" when your client is in a crunch! Second, get sharp on your BPOs and MMR's! This market is changing almost daily now. Your boilerplate garbage comments like "due to increased pressure on prices" just won't fly with any AM that's worth their salt. Get property specific guys. I've said this a zillion times. Try out "the subjects proximity to a town home complex known for prostitution severely creates a negative impact on pricing. " (lol! a funny example but you get the point. Think SPECIFICS not GENERALITIES....mention a rundown neighboring house, waste recycling plants, abandoned lot 3 doors down...things that give the AM a true picture of what he is dealing with).And one more; Consider having a "point person" for communicating with AMs. I know a lot of you are one-man or one-woman shows so you've got this licked, but let me tell you...I know a LOT of ultra-mega agents who THINK they are communicating the way the AMs want but in reality they are PISSING these guys off! I personally have a "right hand" in my business who is THE point of contact for EVERY AM on EVERYTHING. Now it may sound like a daunting position when you think of working for a guy who does the high volume of business that I do, but I'll show you exactly how it's easily done by creating the RIGHT leverage for her (I'll share this on a Rockstars call VERY soon). Bottom line: You BETTER start looking and fine tuning now. If you did good volume last year then prepare for 50% more this year. "Future proof" the heck out of your business or get swallowed up. Hey, I'm thinking about moving into other markets and I have had several AMs ask me to do so. Don't be the one who creates a "weak spot". I'll swoop in and bury ya! (of course,, I expect NONE of my Rockstars to be vulnerable...all you gotta do is LISTEN!).....
