L.J. Jennings Visits Preview Properties.com

L.J. Jennings, a REO specialist (Oakland's King of REOs) from California visited Preview Properties.com on Tuesday, November 4. He shared background on foreclosure activity in the U.S., then shared tips for managing and marketing an effective REO business. He also spent some time going over a BPO and offering suggestions on that process. We will be posting the Powerpoints and the audio file to our agent-only website for those of you who couldn't attend and those that did to reference later.

Some of his tips today:

• Team up with agents inside or outside of your office.
• Don't put the lockbox on the home too quickly prior to listing. Then the appraiser will contact you and you can share info on how you arrived at BPO price.
• Submit your BPOs 2 days before deadline. You have to be better than the competition. Exceed asset manager's wildest expectations, allowing them to get the home on the market quicker.
• Asset managers have two primary goals - to the get property sold for the most money in the least amount of time.
• Send an e-mail to the asset manager when you get the listing to ask who the closing agent is, allowing you to review title issues ASAP.
• Take city code enforcement to lunch.
• Carry an emergency kit in your vehicle when visiting your REO listings. The kit should include batteries, light bulbs, broom/dustpan, plunger, ladder, trashbags, gloves.
• Knock on neighborhood doors after acquiring listing. Give neighbors your card and ask that they contact you if they notice anything is not right with the property. Add these people to your prospect list.
• Send text messages to your prospects.
• 5 Foot rule - contacts enter L.J.'s database.
• If you receive floor calls on a property that is unavailable, don't tell the caller it is unavailable. Create a buyer out of them. Always have a "B" plan.
• Call your asset managers once a month to touch base with them, suggested between 3rd and 7th of month. E-mail once a month too.
• Asset managers distribute listings based on how many people on your team. So make sure that number is accurate. If you increase the people on your team, be sure to notify the asset manager and ask for more business.
• Revitalize communities - an objective of Fannie Mae and Freddie Mac - make sure you communicate your interest in this to asset managers.
• You are a property manager for free.
• Join national organizations: NAREB, NAHREP, AREAA, NAR.
• Know the local eviction ordinances.
• Register your investment buyers as a bulk sale buyer with mortgage companies to get hot sheets.
• Host a community event to "know your note" - familiarize homeowners with their mortgage notes. Invite mayor, congressional members. Partner with non-profit organization.
• Establish referral program with schools, churches or non-profits. Donate $$ for every referral received as a result of program. Help build a library or a computer lab or ---.
• Best comps are within 1 mile, within 10 years of age, within 80 to 120% of square footage of subject property.
• You are in the property disposition business.