But as foreclosure activity slows, has the REO boom ended?
According to Florida Realtors Aram and Tim Shah, authors of “REO Boom: How to Manage, List, and Cash in on Bank-Owned Properties,” (BenBella Books, 2011) we still have a long way to go.
“REOs will last until late 2017, approximately a time and a half longer than RTC,” the Shah brothers predict, referring to the last surge in bank-owned REO activity in the late 1980s, when the savings and loan banks went belly up and Congress created Resolution Trust Corporation to clean up the foreclosure mess.
In “REO Boom,” the Shah brothers, who are Realtors with Florida Capital Realty in Doral, Fla., provide a step-by-step guide on how to become a successful REO listing agent. The book describes how to land a bank contract, build a team, set up systems to manage REO listings, conduct broker price opinions (BPO), manage evictions, repairs, inspections and perform monthly marketing reports. It reveals the insider secrets of how the bank-owned real estate market operates.
“REO Boom” is one of the best how-to REO guides available. In the appendix, the book is filled with checklists, sample BPO forms, REO bank lists, asset manager website lists, and other helpful resources.
But the book, however, has a few flaws. It lacks an index. Additionally, many of the REO examples cited in the book are bank-owned condominiums in Florida, a judicial foreclosure state where foreclosures are handled by judges through the courts. And the Shah brothers use a lot of industry acronyms without telling readers what they stand for. The book would have benefited with a glossary of terms.
Despite these blemishes, “REO Boom” is a valuable contribution to the distressed real estate industry. For Realtors, the many checklists and the extensive REO bank list in the appendix makes this book worth the $20 price tag.
Many have claimed that the REO boom is over and the housing market is moving into a new short sale phase. Regardless, the Shah brothers are cashing in now on foreclosures the REO boom and Realtors who want do the same should consider read this timely book.
“The industry is changing,” write the Shah brothers, who have built one of the largest bank-owned brokerages in the United States. “Banks are opening their doors to new REO agents. When I started I knew no one. I didn’t have large amounts of capital, connections, or a big franchise name behind me for support. Most importantly, the demand wasn’t close to what it is today for REO. There is such a large supply of REO properties that banks are desperate for talent. Banks are looking for you.”
Indeed, the REO game isn’t over, and it’s changing every day. “REO Boom” is a powerful blueprint to help new agents get involved in this important sector of the real estate landscape. Buy this book and ride the REO boom all the way to the bank.
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