REO Team Building, Delegation

and the Glue that Holds it all Together

Part #2

What should your team structure look like?

Some basic rules should help1 team member per 20-25 Assets (overall)

1 runner per 80 Assets (Low level of fee BPO’s)1 runner per 300 Fee BPO’s per month

1 Transaction Coordinator per 50 Closing Files (including fall outs)1 BPO/MSR per 150 assets (not including fees)

1 Glue Person per 500 assets (High Level)1 repair coordinator per 300 assets1 utility coordinator per 600 assets

1 receptionist per 300 assets1 accounting per 250 assets

1 offer coordinator per 200 offers per month (including incompletes)1 data/marketing coordinator per 300 assets1 cash for keys coordinator per 600 assets

1 HR person per 1,000 assets1 buyer agent per 10-20 assets

1 sales manager per 50 buyer agents

Hiring your first BPO/Data Entry assistant

Post an ad in Craig’s list with only email address

Data Entry PositionWAGE: 10/hr, no health insurance

HOURS: Business hours 9a-5p, Full time position, Mon-Fri

JOB DETAILS: Data entry for Real Estate Foreclosure office. Most of work will focus around entering in property info, analyze data, evaluating properties, etc. Employee will have opportunity to grow and learn many aspects of the Real Estate evaluation process. Dress is business casual.

REQUIREMENTS: Strong work ethic and positive attitude. Applicant must be able to meet deadlines, be very computer savvy, all work involves computer. Must type at least 60 words per minute (you will be tested). Please DO NOT apply unless you are a very strong computer user.

LOCATION: Cheyenne & Rainbow

INSTRUCTIONS: Email back with “Data Entry Position” as the subject and attach your resume as a word document. If you do not have resume, write a brief paragraph explaining your experience/qualifications.

Hiring your first BPO/Data Entry assistant

What to pay?

$10 per hour full time (better choice)Should be able to handle 12-15 reports per day (BPO

and MMR’s)That is $6-$7 per report

Or

Pay per report if cash flow is tight or for part time

Don’t pay more than $10 per report on averageMaybe $15 per BPO and $5 per MMR.

(not including photos)

Pre-Screening Process

Slow economy=Hundreds of Applicants

Sort through resumes and eliminate all that have:

•Poor Language Skills, Grammar, Spelling•Live more than 20 minutes away•Job Hoppers•Overqualified (much higher paying jobs prior)

Pre-Screening Process

All that remain get a second set of questions via e-mail:

Email Response

Thank you for applying for the Data Entry position. You are being considered for the position. You may have answered some of these questions in a previous email – Please email us back the answers to the following:

Name:Do you type without looking? (yes or no)Words per minute you type:(visit typingtest.com to get your answer)Major Cross Streets of residence:Do you have reliable transportation? (yes or no)Do you smoke? (yes or no)How many hours per week do you use the computer?What programs are you familiar with?Do you have previous data entry experience?Do you have BPO experience? (if you do not know what BPO is, then answer is no)What is the reason why you left your last 2 jobs?You may also attach your resume if you have one. Please attach it as a word document.

Final Pre-Screening

Once you get the 2nd set of questions back, invite 6-8 in for interviews via email

Email Response - Interview

Thank you for answering those preliminary questions. We are looking to hire for this position ASAP. We are interested in having you come to the office to fill out an application and to have an on-the-spot interview.

Please come to the office as soon as possible Mon-Fri between 10:00am – 5:00pm (you may come in today too). Make sure to schedule at least 1 hr for application and interview. When you come into the office, ask the receptionist for an application.

OFFICE LOCATIONAmerican RealtyNE Corner of Main & Commerce (entrance is off of Commerce)123 Anywhere St. #ELas Vegas, NV 89108

Email me with any questions, see you soon!

Interview Paperwork

We have found on average we interview 7 to find 1 gem after the

screening process.

When they come in, immediately have them fill out DISC personality

test and job application.

Looking for High C or S

Interview Process

Give them a computer skills test• www.typingtest.com at least 80 words a minute and 95%

accuracy• Ask them to copy and paste• Ask them to create a folder and save a Word Doc file on the C:

drive• Ask them to download a photo of a house from the internet and

place it in a word document• Ask them to center the photo on the page and put a label on it• Ask them to create a simple data table in excel• If they struggle or are slow to figure out these items you may

want to pass them by

Interview Process

Followed by general interview questions:• Try to get a feel for stability

• Ask about their goals• Where would they like to be in 1 or 2 years?• What are there thoughts on office culture?

• Do they have bad after hour habits?• Are they clean cut?

• Will they have an absentee problem?• What are you most proud about yourself?• What are you least proud about yourself?

• What made you leave other jobs?• Ask how their other companies treated them?

• How did they deal with stress at work?

Some of these you can’t ask directly but you can draw them out in conversation sometimes and they will clue you in.

Interview Process

Take them around and introduce to team:You want to narrow down to 2 or 3 top applicants

and then ask your team what they thought of them.

Sometimes they observe things you may have missed while they were filling out their

paperwork.

If possible, observe their vehicle to see how they care for it as they drive away. Crazy bumper

stickers or crazy personalized plates might be a bad sign as well.

Training Process

If you have purchased the BPO course from Default School, it is a great tool.

www.defaultschool.com

Advanced Evaluations Course is $249

Have them watch that at least 2 times.

Next have them sit next to you and watch you do BPO’s and MMR’s for about 3-5 days depending on how fast

they learn. Let them occasionally work on your computer to allow them to get a feel for the software.

Training ProcessNext, you need to sit with them and watch and train as they

complete the BPO’s or MMR’s.

Sometimes, you may want to start with the BPO’s for just one company you work with. They can specialize on

handling only those.

Then gradually you can add more to their list of clients. Keep watching them until they get through with mostly no errors, then you can just review them once they are

complete before they get submitted.

Eventually, you will see quality work consistently to where you will feel comfortable allowing them to submit them

without review, assuming they are licensed at this point.

Acquiring Multiple Accounts

Going Big Time

The way to succeed as fast as possible is to leverage off of multiple accounts under your

team.

Non-Compete and Referral Agreement

Very important to establish this before you start applying under anyone else’s name

Bank Name Referral Agreement:REO Agent will be providing Agent Name with a Bank Name REO account. Agent Name understands and agrees that this

account is being acquired through the help of REO Agent which will benefit both parties. Agent Name will be trained by REO Agent on the Bank Name REO process and be given full access to the advanced systems, training videos, and custom computer programs created by REO Agent to facilitate the REO process. The listings from Bank Name assigned to Agent Name will be under a 70-30% split between Agent Name & REO Agent (Agent Name receiving 70%). If Agent is not in compliance with the split he agrees to pay REO Agent a $5,000 penalty per Bank Name listing that closes. This agreement applies on all of the Bank Name REO listings assigned to him for the next 500 closings as a result of Bank Name assigned listings.

A non compete could be worded like:Covenant Not to Compete: I agree not to directly or indirectly, as a principal, agent, broker, employee, consultant, director,

or owner of equity interest or in any other capacity, become engaged in the real estate or REO business using in part, or in whole, the Craig Proctor Marketing System as outlined and documented as the Quantum Leap System, Seminars, Coaching or REO Program or use any of the vendors connected with this program including but not limited to Consulnet, Automated Marketing Solutions, BXL Printers, etc for a period of no less than 5 years from the termination of this contract in any part of Clark County Nevada. This provision shall be enforceable by injunctive or other equitable relief. In the event any provision shall be held invalid or unenforceable, the remainder of this paragraph shall continue in full force and effect as if such invalid or unenforceable provision were not contained herein. In the event of such finding of invalidity or unenforceability of any such provision shall be predicated upon the length of the term of any covenant herein or the area covered thereby, such provision shall not be deemed invalid or unenforceable, but shall be deemed modified to the maximum area and/or the maximum term as any court of competent jurisdiction shall deem reasonable. If I decide to compete using any of the above I agree that for purposes of liquidated damages the knowledge and use of these systems as introduced to me by REO Agent will have an established value of $50,000

Choose the Right PersonalityIt is very important not to use High D or I types when getting

more accounts. They will want to go independent.

Get other accounts with staff that have S or C personalities.

They need to be licensed of course!

Pay them a base salary of around $30-$40K

Plus a bonus of 10% of GCI from their accounts

They do not perform any extra duties other than take a few phone calls every so often. Even then, most AM’s will

leave a message and as long as you get a quick response back to them, they don’t mind.

Duplicating YourselfIt is very important to use a High D type with a bit of C, but

not higher than you when getting a business partner.

If you don’t have a strong partner, you will be always enslaved to the business. No one will be able to step in

for you if you want to vacation or get sick.

It is best to limit the compensation to 20-25% of net earnings for this partner, but that is plenty to have them vested.

You should not need more than 2 partners like this, and make sure that the total pay to these two does not

exceed 40% of net and you keep 60%.

This person should be willing to work even harder than you in order to have this opportunity.

Multiple Accounts=Multiple Locations

It is best to have more than one brokerage name and location when applying for multiple accounts.

• You may be able to use a home address• You can use a virtual suite

• You can use branch office locations• Location needs to be able to get mail

and deliveries and not a PO Box

Critical Components

Must have a different address• Banks and Outsourcers don’t like more than 1 at any

location

A Different Name Helps• It can be a slightly different. Bank will still cash the check

Coldwell Banker EastColdwell Banker WestColdwell Banker Inc.Coldwell Banker REO Division

A Different Tax ID#Set up “S” corp. under each persons nameObtain tax ID# for each person

All for one, and one for All

When you apply for one bank or outsourcer, make sure you

document the process well so you can repeat it for all of your people.

Be sure to stagger the applications so they don’t all come at once.

Being the Glue to hold it Together

Bonus:

Without Going out of your Mind!

Don’t lose the Entrepreneur

You must allocate at least 25% of your time working “on” the business and 75% working “in” the business.

If you add a high level partner, the delegation should allow you to

increase this to 50%

Delegation Vs. Abdication

Delegate: To intrust to the care or management of another; to transfer; to assign;

to commit.

Abdicate: To give up; quit; vacate; relinquish; forsake; abandon; resign; renounce; desert

Delegating takes time, thought and follow up, but the results are lasting.

Abdication takes no time, thought or follow up, but the results are disastrous.

Things to Delegate

• Running• Photos• Routine reports BPO’s, MMR’s• Submitting offers• Cash for keys• Reimbursements• MLS/Compliance• Babysitting closings

Things to Work onNetworking and Business Building

• Building business contacts• Networking with other REO agents• Oversee application process• Going to conferences

Systemizing• Revisiting departments to make sure they are

running smooth• Perfecting a system and then delegating it

Auditing• Set up checks and balances for accountability• Watch reimbursements closely and your

expense account• Quality control spot checks

Managing• HR issues• Problem solving (upset asset managers or

agents)• Fire, Hire, Consult and Train