You all right so it's it's 11 o'clock guys for Mike from Maine, nine on the west and 12 on the. So, I'm gonna.
For your component how to be able to drive our businesses, those type of opportunities. So so with that we've got different things that we're going to cover today. A lot of a lot of this has to do with your own market and knowing our market and knowing all the tools that are available. And Steve had some great insight with regards to what's going on in his market and understanding how to be able to identify the decision makers. So Steve, you want elaborate on that?
So what I've been doing is I was telling all like, I feel like I get really analytical with it, and I kind of just go spiral with just who gets what properties where properties are going, what things are happening. So I kind of been tracking everything. How many properties are on the foreclosure list, how many actually on the foreclosure auction and how many come out to default in actual reo? And I feel like those numbers are really important because a lot of people are like, oh, there's no foreclosures in my market. Well, you're wrong. Or they're, oh, they don't get any my market. They are getting there in every market. They're there. What's happening is 60 to 70% 50% aren't even making it to the auction, that of those 50% 70% National the national average right and I was like, about 70 to 75% are only making it to REO that are passing over the auction. So knowing those numbers, month over month, like I track it month over month, so I know how things are trending so like Justin and and I kind of we work a lot of counties and we work Atlanta as well. So like I kind of have our numbers are like broad, right? What if you look at the numbers of what actually come out between all the counties and Atlanta counties. They're very consistent. What actually comes from the auction out it's, it's give or take. It's was six months ago 14% Now it's at about anywhere from 26 to 27%. And then this last month, it was like 34% So it's definitely trending up from what actually
so when those percentages is that the percentage actually get to the MLS.
Those are actual gets the MLS those are what are actually going to agents for our true reo. Right as compared to what is going for from the auction. So from the auction to there, you're getting about 23% or 26 to 27% was the running average but last month a jump to the 30s consistently average across all those counties. So like in Houston, we weren't Houston in Dallas, because I tracked Dallas too because I'm biased up there for flips. So between all those counties, which is 10 and then Atlanta has got like a million counties because like every sections a county, all those the average is pretty much the same. Maybe a few percent, like a percent percent and a half here and there but it's very consistent. You
know, attacking DFW Houston and the Atlanta
Boston I actually do Boston and San Antonio as well.
Got it okay, and you'll see a rise in the numbers that get to auction from the reduced number that actually get past auction.
Yeah, because you have the number that are going to foreclosure right they're supposed to go the auction that never make it to the auction they get pulled for some reason. And then that number which actually goes to depot reo, right so that's what I'm tracking is all three of these.
And I will say I stopped tracking it in my in DFW because you know, the perception is there isn't any and comparative to what they used to be there isn't but what I did was I ran as I'm running searches at any one time in the three major counties that I covered about a big area in DFW there were there's over there's nearly 50 Reo listings right now in my market. Yes, that's that's worth chasing,
I think well, so then the other the other. The other thing too is where everybody's like, Oh, well there's you know, there's nothing in my market. There's nothing more than Well, you know, people aren't realizing you're competing, not with agents anymore. You're competing with all these young wholesalers. And you're competing with realtors for properties because the wholesalers, those kids are picking up a TON TON of properties before they even hit the auction block. They didn't come to most people in nurturing those people for months. So they're trying to get it before he even hits the auction block. So a lot of those you're just losing because people aren't running those avenues as well because they're just waiting till it hits reo, right.
So if we're competing with wholesalers, how do we circumvent them or create that opportunity for us? If this the owner of that Reo is going to wholesale it, how can we change that?
Well, you know, they're doing what you should be doing right? They're doing the calls to, you know, expireds terminates foreclosures, they're doing the marketing to them, to basically they're doing everything agents should be doing to begin with. So if you ask Paul, if he does, he's the same way. He's tracking the same things and he's basically just trying to get them before.
Wholesalers are buying them, right. They're not selling. They're not.
They're not even buying it. They're just all they're doing is telling you hey, I want to put your property under contract for $100,000. They turn to an investor and say hey, I'll sell my contract to you for 150 and an additional 50, grand, interesting and then call the banks themselves, they negotiate the short sale themselves, because they get all the paperwork. They're doing everything an agent would do. But so they're just jumping ahead of you. So that's where just you're losing 50 cents right off the bat that are going to foreclosure right off the bat. So those are a bunch of properties that people don't even waste your time.
And what do you think the attraction for these banks and asset management companies is to offload them to these wholesalers? Are they taking them on mass or on bulk at it?
What what what's the reason not to if they don't have to do to the foreclosure process, the eviction process, all the other stuff? It's just like doing a short sale is no difference, or they're just getting it before forecloses. There's their thing is if they can, every every note holder if they can get a deal done right now and the numbers work, everything aligns, why would I take Why wouldn't I take that as compared to going through this whole process, spending a ton of money and a lot of risk and potentially selling it for what I would when I have, you know when they say to the hand that you have right there so you might as well take it so that's one way like I we've been we've our staff, right? We came back and I was telling Paul, like you know, all you like always told me you got to make sure you're bang and expecting this and that every single day. So that's what we're doing now. Like we're calling, you know, calling marketing all that stuff to the pre foreclosures call on the prior debtors calling. There's like skip tracing information getting what we need to get so we can get that portion beforehand especially because you ever wait he ships with the banks already. There's some of the banks I call up like state bridge. I'm like, Hey, we've got this deal. I've already know a lot of the upper management they're like, oh, talk to him. They'll get it taken care of. Don't worry about it, you know, and you can get stuff pushed through a lot faster, or they'll stop the foreclosure because you already have you'll get so like that helps. Then the other thing is I'm like really, really anal. A guy who tends what I literally research every single agent, what properties they get every single week. Every week I look at what you get and breakdown where they're getting it from, who they're getting it from and how they're getting. How
are you how are you determining what they've got? You're looking in the MLS,
I'm looking at tax records, MLS deeds, everything was like it's all public data, you can figure out who has the note. It's all public data. Paul actually taught me a better trick. And he'll he'll tell you how to find that trick is the bad one I have. And so I just like pull the data and go that right because then you can find out based on the deed who's what the address of the servicer is, and then you start seeing serves, usually find the servicer and you kind of trickle down you start finding stuff.
What do you think? Sorry to interrupt you, would you be willing to give a sort of written roadmap or something
every county is different, that's a problem. Trying to the east when trying to find the find the day if you can find the deed because sometimes you'll find it in tax records depending on your systems you have, like I have some systems where it'll pull that data for me but then some in some counties you can't but if you can find the deed it's it's usually on the foreclosure deed and all the documents somewhere you can find the information and who services it I just Paul had a way better way and he he'll explain that in a second. Which when I found that I was like, Man, I never thought that
you're tracking the deed and then you're what that
finding out who it is right? So you find out who that servicer is and kind of go that route, you know and find it. So the reason is because I'm trying to figure out where people get properties, what new asset management companies might be popping up, who owns the notes, just kind of everything right? So when doing that the other day, I have a big, big competitor. And a lot of you guys probably know him. His name is Michael Riester. And I used to work with him back in the day and he all of a sudden he'll usually averages one to two properties a month that's usually about works at one company, maybe two companies, and all of a sudden he puts up 27 listings one seven listing and so I start digging and digging and digging and digging and my wife literally walks in the room and goes those are the properties you just sold to a hedge fund. And I go Wait, what and she goes, those are all the addresses that you sold six months ago to a hedge fund. And I was like and I literally I'm like three hours digging into all this to try and figure out where these boundaries are going. He walks up and knows exactly what they are. Like, Oh, those are sure. Yeah, those are all cap ones who sold them. And so resi cap and I call the people I know there and they're like, Oh yeah, we're gonna buy these again nationwide. What do you use and they're like oh, we're using an outsource company. And they're I think they're used ResNet as well. Yeah. And then where are you find your where their funding agencies like I think they're just choosing random people. There's nothing specific or if someone they have a relationship with so then I started reaching out to the other funds I worked with, and because they're not marked as foreclosures which is weird. I found another, more companies that are doing the same thing. So if you start to like flow stuff, you're literally gonna find other people that are doing default properties. But they may not be deep. They might not be foreclosures. It's just the disposition of an asset. So come to find out like some of these companies, like one company said, they're unloading, like probably 1500 to 2500, just this year, nationwide. Another company said they're probably going to own like, get rid of 5000 this year. Another one says they're just going to be determining when their rents are out and they're gonna start getting rid of them. So that was
the sociis Catch funds and investors and so deep intuitional right. In your opinion, Stephen, would you say it's worth paying the subscription for ResNet right now?
I honestly I think it's always worth having all of them anytime, because you never know what company is going to jump a jump a system where you never know what new company is going to pop up to just like get in, you know, like, I mean, like, for example, like everyone knows Brian Martin moves to a loan company. Right. So like, I feel like why isn't Brian Martin when he built out Dakota? keep hustling source. Another company. He's probably going to build in House Cup like REO company, I would assume. I don't know. But I would assume that because he already knows it already makes sense. Why is he gonna pay someone else to do it? So why would he not as a new company, use one random said you don't know what system but facial to have accelerated or want to accelerate. I've had it for years. I've never gotten one property but you never know. I know companies that are moving
to join Excel accelerace I
think the minimum 75 And the most expensive ones like 300
a year. Oh, that's all and you so you have resonate? You've accelerace
Everything, every system, everything. What's happening, or is it REO Central and I don't think anybody uses that before Fannie Mae and like some some random people
into chat that the platforms that you have and or send out an email of what you recommend.
I recommend any of them I feel like you have to have them all
right, right. But we may not be aware of them. I mean, the obvious one Yeah.
I'm just saying like, I feel like everyone needs to be on everything. I feel like everybody's gonna have a different view because they don't have clients on it, but I feel like it's also just the cost of business, right? So just because I don't get any clients off accelerates doesn't necessarily mean that, you know, they get rid of like, I know, like, let's just say they get rid of somebody and will, in my market that they use will my face is there and they may choose me because I do have experience over anybody else. Right? So I just go into one of the things that's cost the business,
you're staying in front of them. So you're tracking the date, you're finding out who the client is, you're reaching out to them, you're on all the platforms, so you're covering all your bases. What else are you doing?
So the one thing I've been starting to do, and I would say the only way you really should do this is if you already have the people it's kind of dicey and it kind of gets like to look like you're going around people. But I have a lot of relationships in the banking industry. With the no buyers and stuff like that, and it's honestly me going to a lot of these Ironmen conferences and speaking at them. But finding the companies that are that are own the notes and the other reached out to one I was like, hey, you know, trying to grow my business. Honestly, just using thought was I was just using a typical students fear script saying, Hey, I'm trying to, you know, do we're trying to do 500 properties this year. Well, I literally just can't do that. Nothing different. And he was like, yeah, what can I do to try to get with and I was like, I was I mean, I'm just trying to grow my business like, well, who aren't? So he calls me and we have this conversation. I was like, Oh, I'm not working with them. He goes, Well, here are all the companies all our notes are with let me let me see what I can do. And all of a sudden, literally within minutes, he's emailing every asset man because we want to use him want to see, let me confirm that he's in your market in your network and we want to use at
this the same scenario in this industry and in many years. It's all about relationships of
correct but I went to their clients I didn't go to the asset management. I went above to the actual people with the notes and that's been super successful boring right now. Just this week I I literally got in with like seven different know companies, and they reached out to their clients. But it's all through relationships I already had. I haven't reached out to anybody that I don't know on that because I feel like he kind of can be construed if they don't know you well, and they turned to a client and asked him and your clients like Hey, I only want to use this guy because he asked me to say that because they don't know you can make you look bad, man bit political, but I let them do it on their own completely because they want to do that and they want to help and that's their decision. I never asked them to do it ever.
That's awesome. But that's a very rare occurrence and you've got a unique situation where you have a background have a lot of relationships you've fostered
but the only way I really got that was literally going to those Ironman events. I honestly I never I had some before but majority of the big ones have been going to the Ironman notables and just literally meet new people and just getting to know them and building an actual relationships and even as he Hey, how do I find notes and then teach me things. And that was really all was
realized from going to Ironmen last year. I mean I Altisource all the top people at Altisource were there I got in front of them. They know me now. I mean obviously it pays off to go to these things right. But
for example on that, like literally I met I met Michael Joris or whatever. And Travis the from Altisource and I was talking to Michael about something and I was like yeah, you know, I really have been trying to get get him without the source but you know how hard that is? And he was like, okay, you know, no problem. He texted me like literally five minutes later it goes Hey, Steven. Travis is about to call you I was like Travis Alright, cool. He calls me Travis like we got you set up already took care of it all. He goes, let me see how many properties we can get you we have someone in your market that we use for our own assets. But I'm gonna see if I can get you something. And I was like,
we have one member in the group that did a BPO for Orange. And that that led to the BP REO listing for multi source. So Altisource use orange grid for their BPO so if you want to sign up with them, go do that. But I think you're you're you're really aggressive and you're doing great with this. I think Paul's slightly different
has a different approach. And it's honestly when I heard is it's amazing. I would say get a notebook out because I literally like hold up Paul, let me write this down. Because it was impressive. He he basically
trumped it on top.
That's a way better way
that you're leveraging your relationships, but you're smart and you're also digging deep and you're creating those relationships, but it's good to know the different ways and ways of doing it. And is there anything else that you would say? Oh, can you provide some of this in an email format or the platforms that you're on or a sort of roadmap?
I'll tell you this, do me a favor and shoot me an email that asked me because if I get off this I have to go to a meeting. I know I'm gonna forget. But yes,
I know. I'll send it to you and let you know what I think might be helpful. Is there is there anything else that you
can literally this transition? Because once you I gave you the basis of what I did, and then after he told me what he did, I was like man, adding that time just makes us
Yeah, well, thank you. Thank you, Steven, and I'll email you and try to get that sort of roadmap from you. And we'll go from there. Paul, what do you think you can add to that?
Oh, good morning, everyone. So it kill you. So back back to your 50 properties that you have in your market because what you can do in your market everybody can do somebody in their office be able to duplicate that and so websites free although if the fish aren't biting sardines why you can go fishing sardines, right right being a waiter if no one's going to be there. And that's a hard place to build a no to be although by being able to understand that you have to be have a minimum relationship there. So if you know who's in your market, if you know, the 50 properties that are in your market right now, Kelly that are active. If you were to take one of those, and I think in Texas they have sued us, right? Yes. Okay. And so with that then so what I do what I do here locally, California is that they have the notice of sale that those a default. So has information and although the default has a four minute that that's called a an affidavit, and then that declaration form that comes from the servicer has somebody that signs off on it usually is somebody said this before that it's usually the lowest person on the totem pole and vice president that sign that form, although sometimes it's a real degree. And so from that, continue up on that form, then go to LinkedIn, and then make the transition to LinkedIn then reach out to them that way that question the assignment. And so we're going to pick up three properties that weighed in last three months, by being on all that because ice block is starting to happen with regards to that transition.
Can I ask you a question? Cool when you reach out to these people through LinkedIn, what's your approach?
Hi, Kelly. This is old booty here in Northern California. I saw that you had a property went to sale yesterday. And I'm just wondering if you need to get a value on it, or has anybody checked the property? And I've had guys say, Yeah, can you go buy it? Can you go buy it for me? That's like, yeah, we'd love to rekey it for you. Although firstly, keep up. Sorry. Forgot if it's occupied, because we won't be kicking somebody to the curb. They may have some tenants rights. Oh, yeah, you're right. So they have no idea what what they're doing. Right. Guys, I love the sea Hogan. I'll send it over to my team. So he sent over to his team as a luxury party. And they said that they've actually sent it back to me, but he's actually the one that's overseeing that property. So what I found is that a lot of people don't know that that that that declaration page is there that says who the servicer is now, that page will only be right about 50% of the time serving called Fe if he says oh no got moved to SharePoint. And then SharePoint says he got moved to Lakeview they live uses gets moved to the VRM then and VRM has the assignment you will know that he's getting the assignment is sometimes that'll happen. Although at the end of the day, you know, the point of contact is to be able reach out to be able to have that dialogue.
And I think it's a good point that a lot of that during the day when there was a ton of it. I've kind of gone off and done other stuff and these people that holding this inventory now they're desperate to find understand how to dispose of Oreo and have the same requirements.
Kill us was question before, right. What was fillers? Somebody that doesn't have any experience? Well, if my hair's on fire, and I can only put my hit my head in an appeal of urine, right but no fire out. absolving that although it's not the best, right. So all they're doing is they're going to Zillow, and they're saying, Okay, who sold the home in that zip code. They know that area and so then we're gonna have pulled that agent they've got no experience like like we do, although they don't even know that you're just in that area. So they're just looking for a quick solution because they have so many properties that are coming out them when they're when they're when they're wholesaling like that.
It's literally a numbers game. Today. It doesn't really make a difference.
So being able to be able to have a LinkedIn tool,
being able to understand your your local rules and what that operates. So if you have Super Tuesday, if there is an affidavit or declaration page, which eat with each property that's filed, because it's filed under God in California, I don't know what that looks like in your area. You need to figure that out. If you wanted to end up using that as a tool to be able to to to generate those opportunities. So the resources understand who your competition is, I get a feed each day. New defaults that come on the market for sale. Why? Because the Stevens Point aligned no further than that to VRM we picked up 10 properties from VRM in the last three months and so with that, you know they have specific information MOS that they have to go to VRM to be able to submit an offer so people know who I'm getting my assignments from. There's other opportunities like that we can end up knowing who they are. I want to know who that competition is and what they're doing.
So let me ask you for I know every like you saying you're checking it, call it that declaration. How might that might apply to the foreclosure list. Super Tuesday when the list comes out.
Yeah, what is the process of somebody stops making their payment in Texas with the first thing that's filed publicly? It's a notice of default. Right? Because essentially you're in default and now 90 days from there the sale is going to happen. So they they have literally I'm not sure if every state they have their to filing a declaration
every every state you have to file it. It might be different timeframes, and one things happen, but it always has to be filed. The servers are always asked to do it. Where do I learn
that? Where do you find that declaration? Is it all public? It's all
public record. So the tools I use in California we have property radar, three there's other vehicles throughout the throughout the whole United States. Adam, Richard was company me, although we use property radar and then first American, we have a relationship with our title company, first American as a great tool to use to be able to get right in and pull as many records as they want. And so on each property that goes into that, that's coming up for trustee sale, or that has been sold yesterday. I'll go in today and I'll pull up at first American, the N OD and then on that n od I'll end up seeing who signed off on it. And then I'll end up then seeing if I've worked with them before. If I have all in making that contact and if we haven't, then I'll see if there's somebody that we can make make them through
this is awesome.
That's only rabbit my hat. It's paying off the only firm
on Notice the default do you go find the person on there. Do you go any further on LinkedIn?
Any further
so if it says Sam Smith, Assistant, Vice President of service link, or whatever it should do, is there anything besides just going to LinkedIn and you do to get a contact with them? Well I've given them a recommendation. Just like that would also be a connection. Yeah, that's so weird. To call them that, like call the office and said Hey
Sam Smith. Yeah, that's a word. So you know, we go into an asset management company and asked for a team Jordan and finance team just got let go last week. Oh, no, you know, Rick does what is what is the actual conditions? I can't believe that go Oh, yeah. Well, Mary Louise Henry. Well, oh, was Mary Lou here. Oh, yeah. Let's go see Mary Lou. You know, so we're back in there, you know, talking with Mary Lou. So it's the same.
Do you think it's beneficial that you knew their actual name when you when or when you contacted them?
Right? No. So you're right to do so. Okay. So with that? So if I'm cold lake and I'm asking for somebody and they don't ask for somebody, though. They'll go through the Rolodex and say Oh, you look for the with the partner they say oh yeah, their loss mitigation or to be in a position, which you call calling for a person and then once you get here's the interesting thing, right. So once you get in to give you a phone number for a person are you reaching extension 916 level 291210. Now I'm inside their poetry. I just call the next one number up and down that and I get wrong numbers all the time that way, but yeah.
So you're saying based on the fact that once you know an extension, and how many numbers are the extension, you add or subtract numbers every time and you will eventually get someone that can forward you to who you need to talk to? Correct?
Yeah, eventually, you know, they'll say Oh, you missed out you got the wrong person, especially to get the bean counters. You get the other person that has more of a outgoing personality that they'll they're going they're willing to help you.
And if you get someone on the call, is it pretty much the same as your sort of script with LinkedIn?
Yes, I mean, it's being able to say I saw that you guys had a property my area that come that they came up trustee sale, you need somebody to be able to check before you do a BPO other to become a broker inside your network, who's appointed contacted vendor management.
Hunting down these these properties at source before they assign them out? That's awesome.
Oh, yeah, that's the idea. Sometimes, you know, they've already got somebody working on although to know who the decision maker is, is really important.
