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The Ins and Outs of Selling REO Notes

GDNI 94 | Selling REO Notes


Selling REO notes is becoming more and more noticed these days as a lot of people start to get involved. Chris Seveney flies solo in this episode to talk about what the REO investing industry looks like. He shares the mistakes he made from his own deals and explains the lessons he learned along the way. Chris also discusses the importance of putting in the work to find a good realtor as it can spell the difference between a smooth transaction and a nightmare of a deal. Learn the key lessons you need to know when selling an REO property to prepare yourself in all fronts and start raking in profits.

Listen to the podcast here:

The Ins and Outs of Selling REO Notes

I am flying solo. Gail is unable to join us. I’m going to be talking about selling and REO. What we’re talking about is as a note investor, if notes go nonperforming, there are opportunities where you may have to foreclose on an asset, do Cash for Keys, a deed in lieu, many different forfeitures if it’s a land contract and many different things. We’re going to talk about what happens when you get that back and some of the strategies and lessons learned that I have had and also of people who are on have some lessons learned. We’d be happy to bring you on as well to share some of those stories and talk about the process. Honestly, it’s a process, to be blunt, that sucks. I’m going to be honest with you. The properties are pretty dilapidated and they’re not fun to deal with.

The first thing I want to talk about are a few events that we have going on. First, the Cashflow Expo, which is an online webinar with about 24 or 25 different note investors. I was asked to be a guest on that and provide a one-hour session regarding a topic. I chose a topic that many people don’t talk about, which is how to deal and talk with borrowers. Most of us, when we learned from this business, we learned how to bid and how to buy assets. The moment you bid until it gets boarded and dealing the management side of it, there’s not a lot out there that talks about it and deals with it. I spent a good hour talking about that and some of the strategies and lessons learned that I have and things that I’ve been implementing.

We’ve got Tony Sottile from Sottile & Barile coming on. We’re going to do a follow-up to bankruptcy. That one is going to be a deeper dive into PACER and what to look for when you’re in PACER. When you’re selling an REO property, what do you do? What are the first steps that you should be taking when you get an REO property back? The first thing that I recommend is call your preservation company and you can do this. The timing of this varies if there’s a foreclosure sale and you’re going to get it back. You can have somebody check a few days before the foreclosure sale and so forth, but call them. What you want to do is confirm the occupancy. If it’s vacant, you want to get that property secured.

Another thing that’s important is to turn off the utilities or turn on certain utilities. For me, I like to have the power on because a lot of properties may have a sump pump in them. If there’s no power on, how do you think that sump pump is going to work? Another strategy you need to be thinking about is, what’s your exit strategy and are you going to be using a realtor? I recommend this be done ahead of time. When you get a property back, it’s not something that happens instantaneously. It’s typically a long drawn out process so you’ve got plenty of time. The last is, and this fluctuates for me, are you going to sell it as it is or renovate it? It may change over time. You may not be able to sell it as it is. You may be looking to renovate it if it’s not selling for the price, but you should have an idea upfront on what your initial strategy is going to be.

The preservation company and the realtor are two key point people in this. When you secure a property, and this is from Safeguard, you get to select what it is you want them to do. Typically, I’ll do initial secure the lock, the lockbox, the winterization and check and confirm the property condition. If it’s vacant, I usually will have them register it as well from that standpoint. You can see all the things. You can have them transfer utilities, get estimates from them, and have them cut the grass. Depending on the time of year, you want to make sure one of the things you do is take care of anything that may be a nuisance lien. Once the county catches when this thing is vacant, they find ways, especially for out of town, out of state investors of racking up fees and going after out of state property owners on vacant properties.

GDNI 94 | Selling REO Notes
Selling REO Notes: The first thing you need to do when you get an REO property back is to call your preservation company.


I’ll ask people in the chatbox too if you’ve run into this if you would agree or disagree with that, but I find that they like to do that a lot. The other thing is, make sure you get lots of photos of the properties. Safeguard sometimes goes overboard where I may have 400 photos and it’s like, “Are you serious?” The challenge is sometimes there are so many of them close up. It’s not a shot of the room. It’s a shot of every little water stain on the ceiling. It’s like, “Can I get a picture of the whole ceiling to get an idea of how bad it maybe?” Also, some things that you can set up with your preservation company, for example, if there’s a broken window. There’s a set budget where you may have them re-glazed or you may have them board something up.

Those are the things that you have those conversations with because those can add to nuisance liens. Also, people see a property that is vacant could be a squatter’s haven. The way I go through with this process is, once I get it taken back or even beforehand, if it is vacant, I’ll send them out there to a check and see if it’s vacant. If it is vacant, I will have them winterize it. I won’t have them take anything out of the property because there still could be personal property in there. At times, I have them change the lockbox and the lock or not. It depends on the status after foreclosure and you confirm somebody’s not there, then absolutely. You’ve also got to be careful that you don’t lock somebody out of property or foreclose. They may still have some rights from that.

The reason I want to talk about the preservation side is, you’ve got to remember that this is the most important thing is this asset. There is no borrower anymore so there’s no working the borrower. You’re working this property. You want to make sure that you put in a condition that’s the best for you to try and get rid of this. The other component to this that I want to talk about is, this can be a ping pong battle, using a realtor versus trying to sell it on your own. I put together a summary of the differences between them. With the realtors, I recommend you find one early.

The way I found realtors, there are a few websites out there that you can try and find the names of some REO agents. If you got some more rural properties, you’re not going to find people in those databases so I’ll usually check Facebook groups and see the local REIA Facebook group or find a meetup group in that area and join it and reach out and say, “I’ve got a property I’m looking to move. Are there any agents in the area, specifically REOs? Also, are there any investors in the area that are looking for a property? I’ve got one market property.” You’re doing two birds with one stone.

The other way I find them is through Zillow. The way I’ll do it through Zillow is to avoid getting all those phone calls from this guy, Alex or whoever it is from Zillow, who puts you in connection with an agent and they’ll text you 47 times a day. If you click on the property nearby and it shows all the agents at the bottom, you can click on the agent’s name and you scroll down. A lot of times, it may have a link to their website or Facebook page. What I’ll usually do is I don’t go to a website. I don’t know why agents don’t put their emails readily. I don’t know if it’s something they can’t do it or whatnot. Is anyone else finding it impossible to find a realtor’s email address? I don’t know if it’s me or if it’s something that they’re not supposed to do or whatnot. I find it almost impossible to get an email address from a realtor. You think that people want to reach out to you. It’s how people reach out to you. I’ll go to their Facebook page and send something on Messenger.

I make sure to ask, “Do you have any experience with real properties?” Also, see if they work with investors and get their experience. If there’s somebody that only sells $400,000 properties, that’s not the person for you. A few things that I’ve started to do, and we’ll talk about the reasons why when I do some case studies on this, is I look to negotiate the commissions based on price drops. We’ll talk about that on case studies. If people have REOs coming down the pipeline, this segment that’s coming up probably is not going to give you a lot of enthusiasm.

It’s always better to work with an agent that will be honest with you upfront. Click To Tweet

They go and visit the property and ask if a home inspection is required because they may say, “There’s this and there’s that.” A lot of times, they’re not fully honest with you in regard to the condition, “It’s in rough shape.” What’s in rough shape? What can we do? Is it the plumbing or the mechanical? What is it because it’s going to generate who you’re selling to? Are you only selling to people who can’t buy a regular home? Are you only selling to investors? Who is your crowd? Let them know if you’re going to provide owner financing terms and if they’ve done owner financing deals. A lot of times you may list it for $50,000 and they’re like, “I’ve got somebody at owner financing who will buy it for $40,000 at 6%.” Ask them because on owner finance deals, the price point might be a few thousand dollars higher. Make sure you stipulate those terms ahead of time. That’s if you’re going to realtor route.

Let’s look at the other end of the spectrum, for sale by owner route. For me, it’s challenging. There are several reasons why. Places you can put it on. You get a lot of non-qualified borrowers, especially on the Facebook Marketplace and others when they see owner financing and even if you put 10% down, they’re like, “I’ve got $500.” The time spent responding to people is honestly frustrating. Next bonus, how people can gain access. You do not want to put your own lockbox and give random people the codes. Trust me, you don’t want to do that because I have and it doesn’t work out. That is another component. To me, it’s worth paying a realtor. If it’s 6% on $30,000, that’s $1,800.

If the property is junk, this may be a better option to sell to an investor so maybe not using a realtor and using these components possibly could be but you go back to number two, how are you getting these so-called investor’s access? The time I did try to do this, all appliances and copper go out the place. You’ve got to be careful. You can also start with for sale by owner and get an agent and you can market the deal to other investors while it’s still listed with an agent. I’ve had properties where I listed with an agent, but I’m still trying to market it as well to try and get rid of this thing.

Those are some of the differences between a realtor and for sale by owner. I’m going to tell you, I lean towards a realtor and you’re going to hear my case studies and be, “Why are you using a realtor?” Some people might look to use a property manager or some random person and let people in and out of the property. That’s an option as well, to be honest. I want to talk about some case studies that I have. The first is what I call the Flint Fubar. This was a property that I foreclosed in the water mecca in Flint, Michigan. The property was vacant. The property wasn’t in bad shape and needed about $3,000 to get rent ready. I listed it through a national REO company and it was one of the worst mistakes I’ve ever made.

They had an agent who was not from the area, useless. They provide a weekly report and I’d laugh because it was the same report every single week, “Two people visited. Price too high.” When I told them that, “This was listed at $20,000 property and they’re telling me to come back.” They said, “We think it’s worth $7,000 or $8,000.” I’m like, “I know it’s worth more than that but how about we cancel a contract?” “We’ll cancel the contract but you have to pay the $2,000 fee.” I’m like, “Keep it at $20,000. I’m not going to drop the price. The agent can keep going by.”

Every week they go by and I put the same report to show them so I’d ask the question, “How tall is the grass? Was the grass cut this week?” They’re like, “We’ll get back to you on that.” I knew when the grass was getting cut because I was having my preservation company go for it but they would never answer the question. The reality was, this agent was doing absolutely nothing. I told them, “You’re not going to cancel, we’ll both wait six months.”

GDNI 94 | Selling REO Notes
Selling REO Notes: Never put your own lockbox on a property and give random people the codes.


I had it sold to another investor, which waited until the contractor canceled and I turned around and sold it to them. It ended up not being a bad deal. It wasn’t a grand slam by any means. I could have turned it into a rental but at the time, the REO company pissed me off so much that I wanted to get rid of this property. I could have kept it probably and get $500 something a month in rent. I’d gotten a rent ready for the investor who ended up buying it because he was going to do it and I said, “I’m sitting here and waiting until it cancels. Why don’t I do it and we worked it out as part of the sale price?”

The other one was the renovation that never happened. This is the one where I had the copper stolen out of the property. This was the one that I talked about where I’m like, “I’m going to go on my first renovation of the property.” At first, I was going to renovate it and I had a local guy managing it. I put the new roof on the place, had two agents go by and say, “It’s probably worth about $25,000 as is and about $70,000 renovated.” I started getting bids and at that point in time, the agent was also a property manager. I turned it over to them and they started getting bids. This was in Fort Wayne. If you’re trying to find a contractor in Fort Wayne, good luck. I know Dan is on here as well and Dan can probably attest to that. You cannot find anybody who’s decent and anyone that’s decent is busy. We started getting bids to come in around $30,000. I was like, “It’s $25,000 as is. If it’s $55,000, is it worth spending $30,000 and maybe pocket a few thousand?”

We kept going back and forth. Prior to getting this agent, I had it listed to get some contractors as well as some fixing flippers in there to determine which way I was going to go. That’s when the appliances and copper got stolen. I had a contractor lined up for $26,000 and he bailed on me. After that, I was like, “You’ve got to be kidding me.” The agent had listed it at 25,000. The bids and everything was coming in $10,000 or $12,000. Take note, they said it was worth $25,000 sold. It ended up selling at about $12,500 at the end of the day. It was 50% of the price the agent told me it was worth. Keep track of that because you’re going to see a theme coming down the pipeline.

Let’s talk about my Wisconsin deal. This was Cash for Keys deal that didn’t have to give the cash because they didn’t clean the place out so I ended up having to get the place cleaned out. The agent that had access to property helped me get it cleaned out. The agent the entire time even before I took this thing, said, “Nothing in this neighborhood sells for less than $35,000. This one, I’ve been inside. It’s not in bad shape. It needs some work but this is a $40,000 property.” He was pounding his chest talking about how great he was and so forth and so on. The interesting thing with this property was I bought this property cheap.

I paid under $5,000 for the CFD and the reason why was there was $12,000 in taxes owed. I was going to play the game. Do I keep the property, let it go to tax sale and collect the overage or do I pay the taxes and turn around and sell it? I’m thinking when he’s telling me it’s worth about $40,000. If it wasn’t a tax sale, it probably would not sell for that. It would sell for a lot less. They’d probably pay the taxes and I might make a few bucks, but if I pay the taxes on it I have a chance for a higher return. I paid the taxes on it and so forth.

We’re down to $31,000 as the list price and the agent got an offer at $25,000. He’s like, “We got a great offer of $25,000. I absolutely think you should take this. This is the best offer and this is probably in line with what the house is worth.” He texts me that. I pick up the phone and call him, I said, “You’re telling me after three months we keep lowering the price that it’s worth $25,000 when you told me it was originally worth $40,000. That’s a big discount. Are you going to discount your commissions by that much?” He’s like, “I’m not making anything.” I’m like, “Should you be making anything? You had access to the property and you’ve been inside the property. Isn’t it your job to get an idea of what it is? I can tell you the market has not dropped that much in that area.” He’s like, “The neighborhood isn’t as great.”

In the process of REO, once you think you get through one hurdle, there's another one that's coming. Click To Tweet

I’m like, “You told me about this neighborhood. You’ve known about this neighborhood and still told me it was $40,000. Your exact words were, ‘Nothing set typically sells for less than $40,000 unless it is a complete junk and it will sell in $30,000.’” This one is still in the market. The $25,000 I countered it and the person accepted it. At this point in time, I got another month left with this agent to be like, “See you later after this one.” If I turned around and sold it for $25,000 I’d rather sell it to an agent that was honest and upfront with me. As you can see, that’s pretty much almost another 50% discount. This one is about 40%.

Let’s talk about another one I got in Minnesota. This was another Cash for Keys deal. This one was in a little more rural area. The agent went out to the property, looked at it and said, “It needs a good amount of work.” I said, “I want to price this thing so it’s sold in 30 days. I don’t want to deal with this thing for more than 30 days.” He says, “We’re going to list it at $40,000.” I said, “Are you confident I’d be getting an offer somewhere near that if it’s $40,000 within 30 days?” He said, “Absolutely.” I said, “We can have a clause that after 90 days, I can cancel the contract.” It was a three-month contract on this one.

I was getting a little smarter but not that much. On this one, he told me how it’s valued. This is a $35,000 or $40,000 property. It didn’t have many showings. We had one showing and they said it’s too much and was priced too high. I texted him, I’m like, “What do you think we should do?” He goes, “The property is overpriced. We need to drop the price.” I picked up the phone and called him. I said, “What was our initial conversation about listing the property? Did I not tell you I want this thing sold in 30 days and I wanted it priced at that point?” He said, “Yes, but this is what I thought.” I said, “What you thought was well off. What do we need to drop and sell this thing?” He goes, “$25,000 to $30,000.” I said, “You go in the span of 45 days from $40,000 down to 25,000.”

At one point, I went into this guy and said, “You must be one hell of an agent.” I probably shouldn’t have said that because he’s probably doing absolutely nothing for me on this property. I don’t think he was doing anything for me anyway. We have it on the market for $30,000 and we’re being told it’s priced too high. We might have to look again at another price adjustment on it. I bet you I will come back on here and tell you that property sold for between $20,000 and $25,000. I’ve got more. Here’s my Indiana deal, which was the forfeiture. An agent had access to the property and said, “Nothing in town is listed for under $60,000 so let’s list this at $50,000.” It’s the same thing. I wanted this thing gone within 30 or 45 days. She goes, “For $50,000, we’ll definitely be getting something in the $40,000. This was back in November of 2019.

She calls me and goes, “What’s your drop-dead number so I know where to be?” I’m like, “It’s not about where you need to be. You need to tell me what the property is worth, which you’ve already blown because we’ve had to reduce the price by almost 40% on it.” I talked to the agent and she’s like, “I’ve got an interested buyer and so forth and so on.” I said, “About time.” We’ll see how that one turns out. One thing I’ll mention is all these properties were not live-in ready. They all needed some work.

Here’s my Alabama deal. This one closed so I’m excited. It was a Cash for Keys deal annoying contract. It was under agreement for the asking price, which was like the planets aligned on this one. We get the offer, get everything signed, accepted and the title company comes in. The title company was clearly not experienced with land contracts or tax liens. It got to a point where I literally wanted to shove a fork in my eye. I say that because there was a tax lien from 2015 and this was one from Home Opportunity, which many of you have bought from. They paid it off. The servicer, SN, paid off the tax lien so taxes were current. They, as part of the title review, came to me and said, “First off, who is SN Servicing? You need to get a deed from Jane Smith, who bought the tax lien back in 2015 into your entity.” The whole land contract thing had gone to the court and the court signed off on it.

GDNI 94 | Selling REO Notes
Selling REO Notes: Get properties cleaned out. Trash and everything around will devalue a property significantly.


I said, “What do you mean I need to get a deed? The taxes were sold.” He said, “Yes, the taxes are sold. The property wasn’t sold.” I’m like, “Here is the document from 2017 that’s in the Recorders Office that says the taxes were paid in full.” I told my agent, “I’m not dealing with this title company.” Thankfully, I have a good relationship with the title company that I sent it over to them and said, “Can you assist and deal with these people and explain it to them?” We finally got everything resolved. The day before the closing, the title agent calls me, and this is an asset that’s in one of my funds, and says “We’ve got a big problem.” “What’s that?” He says, “Your fund documents say that you can’t sell the property until the eighteenth month.” I said, “I don’t have it in front of me, but I can absolutely tell you that is not the case.”

I said, “Let me call you back in ten minutes.” I go and I pull up the fund documents and it’s hilarious because I’m reading these documents. The documents give me as the manager. I can buy, sell, do this and do backflips. I have the authority to buy and sell real estate. In one of the things, it says this is a two-year close-end fund and the manager will start liquidating assets around the eighteenth month. He interpreted that language as I have no right at all to sell any property before the eighteenth month. I’m like, “I don’t know how you could even interpret it that way but that’s for information so people know we’re in the fund. It’s two years and I’m not going to wait until the last day to sell everything off.” I said, “Read section ten. That clearly states that I have the authority to do all of these things on no time restrictions at all.”

He creates an affidavit for me to sign that gives me the right to sell the property. He copied my attorney on as well. My attorney sat there and he’s like, “Did I screw something up at first?” He read this affidavit and said, “If this isn’t CYA, I have no idea what it is.” They made me get a letter from SN Servicing knowing what their role was. It was completely insane. The closing was literally delayed for weeks due to this issue. When you think you get a deal to the finish line and get something sold, in comes the title company. I bring this up because this is all part of that process with the REO. Once you think you get through one hurdle, there’s another one that’s coming.

Here are my top ten lessons. Lesson number one, a realtor is a meteorologist. I don’t think I have to say any more than that. Second thing is, add language to the agreement either, “I wouldn’t go more than 90 days, reduce commission,” or something that’s letting them know, “Here’s my goal on this thing and you better understand that because if it cost me, you’re going to feel some of that pain as well.” Number three, secure the property. Keep it in good shape. You want to try and avoid squatters. I have found that the borrower or borrower’s family are most likely the people to be squatters.

I had an REO that I own or finance to somebody. It was two borrowers and one of them got divorced because she ran off with her boss or something like that. He moved out of the area so she ended up moving back in after he moved out. Thankfully, that was a squatter I didn’t have to deal with. Another big thing is, get the property cleaned out. That’s important. If you got trash and everything around, it’s going to devalue significantly. I don’t use my preservation companies a lot of times for cleanouts or for any work in general, because the pricing is so absurd. When we have Anastasia on here, I’m going to mention that to her and get a reaction from her on that. That’ll be an interesting one. Usually, I’ll find a local cleaning company.

Here’s one for you on the Indiana property. I found the cleanout guy. There was trash outside so I went to hire a guy on Craigslist. I hired a guy who hired another guy so when I had them send pictures of when everything was done, it was from the guy he hired. I paid this guy who was a scam artist and never paid the guy who did the work. Eventually, the guy who did the work called my agent and he called me. It was his truck. I saw the picture of the truck. Somebody on Craigslist found and hired him. Lo and behold, I was able to find this guy on Craigslist who did it and let’s just say that I had some fun with him. I have not done anything wrong or illegal, I’m only having some fun.

You’re better off waiting and trying harder to find a good realtor than signing immediately with a bad one. Click To Tweet

Winterize a property no matter what. I don’t care where you are, you want to turn that water off and try and keep the power on because it depends on the sump pump, you want to make sure you don’t have four feet of water in the basement. There are too many stories like that. If an agent takes a while early on to get back to you, that’s a bad sign. If you can’t find one, you’re better off waiting and trying a little harder to find a good one than signing up with a bad one.

Next is, ask an agent if they list in Facebook groups. A lot of times the challenge is, the property is so cheap that they don’t want to spend five minutes of their time. If there are realtors on here, I apologize. I know I’m stereotyping and I shouldn’t but it’s like any business. There are a lot of realtors who are lazy and put it in MLS and don’t want to do anything. I’m not saying all but there are some that are like that. Those are the ones you want to try and avoid. It’s also a good idea for you to post it in groups as well, input in your mailers or whatever it is and try and get people interested. You’ve got to be careful with Craigslist and stuff like that because that’s where sometimes squatters can see it and stuff. That’s free lunch for them.

Another option is call property managers in the area and see if they have investors as well. They may have some investors who would be interested in it. I’ve had some success with that. That seems to have worked honestly or in meetup groups. If you reach out or someone says, “I’ll pay you a commission, if you do a quick presentation on this for me and sell a property,” toss $500 or something like that. It’s another option. Number nine, if you get a code violation, call the code enforcement officer and talk to him about it. Let them know you’re not a bad guy, you’re trying to keep the property clean and keep it nice and you’re looking to get rid of it. Let them know, “I was the lender. This person is the one who destroyed the place. They weren’t tenants so I didn’t have the right to do anything.” I got a letter from a county where they were going to tow a boat from a yard. I called them up and said, “It’s a land contract so it’s not my boat. It’s personal property so please tow it. There’s nothing I can do.”

The last one, this is the one that I would bet most people do not do. Let your bookkeeper know it’s an REO. The reason I say that is from a note to an REO, it is different how you can allocate costs, especially if you end up keeping that as a rental and where you cannot do deductions. Especially if you’re going to keep it as a rental. The moment you take that, make sure you start putting some of those costs as an REO versus I forget schedules, but it’s different from an accounting perspective. I believe putting it as an REO is more beneficial for you.

Those are my lessons. If I ran the numbers, it’s pretty eye-opening on where you start versus where you end up a lot of times. I would have to say the average price reduction is somewhere I’m guessing about 40% from where you start. Also, BPOs. We all get BPOs at the beginning as well. I would say most properties are 50% to 60% off of a BPO. I’ve had one property that I was shockingly surprised that was in good shape but for the most part, it’s not even close to what the BPOs are coming in at.

That’s a big thing because we have $50,000 BPO and it’s a $50,000 note, you might be paying $25,000 or $30,000 for that thing. If it’s only worth $25,000 or $30,000, you’re done. I learned my lesson. If I’m buying a few vacant properties, I pretty much am not going over $0.10 on the dollar. I will not bid more than $10,000 on a vacant property. It’s vacant, you can have it because I can tell unless they would allow for an interior inspection which means a lockbox is on it. They don’t. The vacant ones aren’t worth the time.

GDNI 94 | Selling REO Notes
Selling REO Notes: Always let your bookkeeper know if a property is an REO. How you allocate cost can be very different.


A great question from Dan. “If I’m still prone to BPOs, how far are they off?” Dan, it depends, but I’d say 90% of the time I am not. Chad, who’s on here as well, him and I do something somewhere. I send Safeguard out to the property and they’ll take 5 or 6 photos. Sometimes they may only take 1 or 2 and I yell at them. I’m trying to train them on what it is exactly I want. They’ll go out and take a bunch of photos and I use DataTree and I’ll go on and I’ll put recent sales within 1 or 2 miles. What I’ll usually do is call the property manager, not a realtor, and say, “I’ve got a property in this area. How is it for a rental? What’s the area like?” Agents are going to be careful about what they can say about the areas.

Property managers are more, “It’s not a good rental or it’s not a good rental area.” It gives you an idea. It’s mostly single-family homes. I’ll usually pull it from there. The property manager will tell you, “That’s a street with a lot of abandoned homes,” or whatever it is. I usually get more information from the property manager than a realtor, to be honest with you, but I’ll still try conversations with a realtor but I’m not paying them $150 for the BPO because they are completely so off. It’s laughable.

The times when it’s beneficial to get one is if it’s way off and the seller has got a BPO of $80,000 and you’re like, “This thing is worth $30,000.” You may have to get one at that point in time but what I’ll do then is I’ll usually take the photos I have, send it to them, have them plug it into a CMA and give me a value. That’s all that they’re doing is getting the photos and plugging it in. Usually, if they choose one of them, they’ll usually do it for nothing for you. That’s my validation but that’s a great question because I’ve been on some assets that are $150,000 and $250,000 homes. That’s a different story because those are not $30,000, $40,000, $50,000, $70,000 homes. Those are more sustained in which agents can get a better idea for. These lower-priced homes, they’re challenging. That’s what I’ve been doing with those.

If you haven’t already, go to I have put up their scope of work, contract, templates. There are 10 or 12 items I put up there for standard note investors for things you can run in your business, a business plan, a balance sheet so you can understand what a balance sheet looks like. They’re all free. I want to give them out to people. There is a performing note calculator on there as well so go on there, check it out and feel free to download it, criticize it, tell me you love it or whatever it may be.

Educating title companies. It’s interesting because you would think the title insurance is insurance. It’s pretty standard. It is farthest from that and you definitely want to, if you’re doing things, work with a title insurance company who is sophisticated with tax liens and stuff like that. I know in Indiana, Meridian Title is the go-to title company for tax liens if you’ve got property. That’s definitely one to look into if you’re in Indiana trying to resolve title issues.

Thank you all for joining us. Make sure to leave us a review on iTunes, Stitcher, Google Play or any of those stations that you listen to. We are back up and rocking and rolling with new episodes. We’ve got new episodes publishing and coming up and you’ll start reading our next episodes coming as we get closer to show 100. Thank you all.

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