REO NICHE GROWS

Rising foreclosure rates are prompting more sales associates to enter the real estate owned (REO) niche as a way to remain profitable during the housing slump. Not only are real estate associates getting in on the action, but the niche has also attracted title lawyers, cleaning specialists, appraisers and technology firms that offer property-tracking tools to lenders. Real estate practitioners and others hoping to secure business from lenders may consider listing themselves on the REO Hotshots Web site for $999 per year, experts suggest. However, there are many challenges working with REOs. According to National REO Brokers Association President Michael Krein: “It takes a certain type of person to clean a crack house. It takes a severe Type A personality. … They understand that you have to follow rules and do what you’re told.” Associates also need money to get started, and are responsible for cleaning the properties, making repairs, paying homeowner’s association dues, maintaining the home and covering the utility bills.

Source: Washington Post, Dina ElBoghdady (12/28/07)
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