Completing Broker Price Opinions is a great way to make quick cash and build your REO/foreclosure resume. It’s also always a great down-market skill to have. We’ll discuss how to get started quickly with BPOs.
How do you get started with BPOs? What do you do first? Before we get to the links that are included for you, let’s address some common mistakes. The first common mistake is to think of BPOs as a one shot deal, as fifty bucks at a time/thirty five bucks/seventy five dollars at a time. If you just did them randomly, the common mistake is to just think of them as not really worth the time to drive around. Instead, you should be thinking about doing BPOs in batches. I want to bring your attention BPO zero mass. Ideally, making five grand a month, (which for most of you can cover your basic overhead - your mortgage payment/your rent payment/your car payment and gas in your car/food on the table, etc.) will give you freedom to pursue the rest of your items in your real estate career, like creating your prelisting package, and learning the listing presentation. So how do you make five grand a month doing BPOs? Again, stop thinking about doing them one or two at a time. Many of our members are doing these and have done them for years. Even some of our coaches maintain a relatively steady BPO flow simply because they like the experience of getting out of their office and getting checks in the mail every single day.
Here's your BPO math: five BPOs a day at an average of fifty dollars each will give you two hundred fifty dollars per day, five days a week. This will give you $1,250 per week, times four weeks, and this gets you to five grand per month. Some of you have dabbled in BPOs before and the first one or two or five of them seemed to take forever and you can't possibly imagine doing five a day. There is a level of experience that you've got to gain and usually hits you right after doing twenty to twenty five BPOS. At this point, you develop efficiencies we teach you in the premier coaching. Through the BPO coaching we teach you how to do BPOs quickly and crank them out in batches. Again, five per day, five days per week, four weeks per months, gets you $5,000 per month.
The next common mistake that some of you have heard or repeated or have somehow come up with, is the notion that companies never payed well during the recession. There were two or three companies that had a lot of workouts and really didn't pay. Those companies are now defunct and if it happens again, you're going to hear about it on our weekly call together. So don't worry about that. If you're hearing that now, I can virtually guarantee it's because whatever agent told you that hasn't filled out the required and necessary forms or online format that the BPO company requires in order to bill them for your work. A lot of this is due to agent error.
The next common mistake is thinking that BPOs are somehow beneath you. We point out here that many agents, most of your colleagues and most of you listening, have done lots of CMAs virtually for free. What's wrong with getting paid for a slightly more elaborate CMA by lenders who might also send you REO business? You're basically being paid to learn how to become a great pricer which is going to affect every single thing that you do in your real estate practice going forward. This includes working with buyers, working with sellers, being competitive on listing presentations, and knowing how to write the right offer or accept the right offer, depending on what side you're on. Don't ever think that doing BPOs is beneath you somehow. Some of the smartest agents we've ever coached are excellent at cranking out BPOs and they see it for what it is – learning and earning while you learn. We've done our BPO math and talked about some common mistakes. We are committed to letting you know if there's ever a payment, or you're going to bring it to us and we'll let you know, “hey, what's up with this company?” But that's very, very rare. We’ve showed you how to cover your basic monthly overhead.
Here's what we've posted for you. Getting Started with REOs and BPOs is your first step, so start here. We also have given you a coaching call talking about the Top Ten BPO Questions; these are the top ten most common questions and help educate you so that you don't have any fear of what you're doing. This is where you start. This is what you do next to get going with your BPOs. Of course if you ever have any questions on this, you can bring them to our weekly call and we will address them or we will point you in the right direction. Now it's time to take action.
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