Getting Started – BPOs

This was a 3-part blog post, I have combined all 3 posts into one page here. I give you the basics about how to sign up and get started with BPO companies.

For the most part, getting started is very easy. Most agents are pleasantly surprised with the ease of the process. As an example, an agent friend of mine got signed up with one company and started receiving emails for BPO assignments THAT SAME DAY! She was very excited.

This is certainly not the case with all BPO companies, but the possibility is there. You can find BPO companies by doing a simple Google search. I typed in “bpo companies” and found some links that should help. Another search term you should try is “asset management companies” (AMC).

Also, I have a list of companies I can send you via email, just leave me a comment below and I’ll send it to you.

Once you have found a few BPO companies that you’d like to sign up with, you will need to get a copy of their application. Sometimes it’s available to download on the BPO company’s website, other times you’ll need to call or email the company for this information. Either way, you’ll need to fill out their application and send it back to them along with a copy of your real estate license and proof of your E&O Insurance. Also, they will need you to fill out a W9 for tax purposes. (Need a blank W9? Just go to http://www.irs.gov/pub/irs-pdf/fw9.pdf and download one for free).

If your real estate agency requires you to fill out their company name on the BPO application, instead of your personal name, that means the agency will likely split your earnings with you. You will be paid by your broker.

If you fill out the W9 with your personal information, the BPO company will cut the check directly to you. Check with your agency to find out which way they want you to fill this out. Some agencies don’t care, others do.

You can sign up for as many BPO companies as you like. The more you sign up for, the more BPO opportunities you will receive. I am not aware of any BPO companies that require a fee to sign up, they should all be free (REOs, that’s a different story!).

Remember, some BPO companies may have a lot of BPO work in your area, and some companies may have NO BPO work in your area. It depends on which lenders/clients the BPO services – for example, if a BPO company has a contract with a regional bank in the Midwest, and you are in Florida, it is possible that the bulk of their BPO work will be in the Midwest. You’ll need to sign up with as many BPO companies as you can to give yourself the best chance at receiving BPO work.

Depending on the company, there’s different ways you’ll be notified of a new BPO order. Some companies send out an automated email to all agents within a certain radius of the property. Some companies require you to log in to their website to check for new orders. Other companies physically call around and ask agents to accept their orders. And some companies just “drop” the order into your queue, assuming you’ll complete it. In most cases, the BPOs are “first-come, first-served”. Each company has a different process, so you’ll have to be flexible and learn the process for each BPO Company to give yourself the most chances at new orders.

Also, each company has a certain process to actually ACCEPT the BPO order. Most BPO Companies have an actual website where you’ll need to log in and accept the order. Again, each company has a different process which you’ll have to learn once you sign up with them.

Ok – so now you have accepted a new BPO order, what’s next? You’ll want to read over the order instructions carefully to be sure you know what the BPO Company requires of you to complete the BPO order. Don’t just rush out and take your pictures, make sure you understand what’s needed on the order. Do they need photos of the “for sale” sign out front? Do they need photos of the major mechanicals? Do they even NEED photos? (see Retro BPOs)… If it’s an interior BPO, how do you get inside? Who’s your contact person?

Once you know exactly what’s needed, double-check the due date to be sure you complete the BPO within the required timeframe. If it’s a rush, make sure you give yourself enough time to submit the order early and (if needed) have corrections made.

Now, look up the location on a map. I like Google maps because in urban areas, it gives you a Street View map, which shows you what the house looks like, along with the ability to look around the neighborhood. A GPS navigation system is very helpful in this business as well.

Now drive out to the property and take the required photos. Make sure you take all the photos you need, or else you will need to make another trip out to the property once a reviewer/auditor looks at your order. If it’s an exterior BPO, you’ll only need to take a few photos and you won’t need to go inside. If it’s an interior BPO, you’ll need to go inside the property to take some photos, according to the original order instructions you received.

While at the property, you’ll get a sense of what type of neighborhood the property is in, and also the condition of the property itself. Make sure you take pictures of any major damage you see. Also, if you’re new, it’s not a bad idea to take a notepad with you and jot down notes about the property. This will help you formulate your comments when you’re filling out the BPO form later.

Once you get more experience performing BPOs, you’ll learn ways to become more efficient.

Now that you have accepted the order and gathered info/taken your pictures, it’s time to input you data into the BPO form. Several years ago, the form itself was a paper form, you literally had to print out the form on paper, fill out the form by hand (or typewriter) and add the photos manually.

Now, everything is electronic. It would seem to be easier, but there’s still many different websites & platforms to learn. Some companies still have you fill out a blank pdf form (see sample Freddie Mac form here).

Other companies have their own online software, where you input your data and your bpo is automatically created by their software.

Whichever method you have to use, here’s the basics you’ll need to know. Most companies need 3 comparable sales and 3 competitive listings, along with your pictures of the subject property. General guidelines you’ll want to follow (these vary by BPO Company):

All comps should be within 1 mile if urban, 3 miles if suburban, 5 miles if rural. (again, this varies throughout the industry)
All comps should be roughly the same age as the subject property
All comps should be the same style of home, if possible
All comps should be within 20-25% of the gross living area (GLA) of the subject property
For sold comps, you should go back a maximum of 6 months (this varies)

So when you jump into your MLS system, you should plug in these criteria and/or others you may have been told to use by the BPO Company. This will give you a get a list of properties you can use for your comps. Now every market is different, so it’s hard to put a general guideline on which comps to choose, but usually, you’ll want to use the properties that are MOST SIMILAR to the subject property. An exact model match is ideal. Generally, you should try to stay close to the subject’s age, square footage, and bedroom count. If you get stuck, especially for your first few orders, it’s a good idea to call your BPO Company and ask to speak to an auditor/reviewer, to go over your concerns. Who better to help you than the person who will be reviewing your work?

Now that you have your data, it’s simply a matter of inputting your data into the online form. I say “simply” but there’s so many different forms/websites, there’s nothing really simple about it. They all have their different nuances and quirks. Unfortunately, that’s all part of the learning curve but once you are used to the different online forms, you’ll get faster & faster.

Thank you so much for checking out my blog! If you would like these blog posts delivered directly to your email inbox, please click here: Subscribe via email.

By Rob H. March 26, 2010

273 Comments to “Getting Started – BPOs”

By RobH, July 11, 2011 @ 10:57 pm

J. KKIMUHU, I just sent the list, thanks for reading!
By Christine, July 18, 2011 @ 7:42 pm

Hi, great article. I am excited to get into the BPO field, hopefully, I can be REO agent soon. I closed a lot of transaction of short sale this year, just one REO but I am on the buyer side. Please send me some listings of BPO companies and AMC. Thanks.
By RobH, July 19, 2011 @ 9:21 pm

Christine, your list is coming now – sounds like you are on the right track!
By Brad White, July 20, 2011 @ 8:18 pm

Great post, thanks for the tips. I do have a quick question though about BPO for REO and regular homes. I have a neighborhood of homes all about the same, 5 different models were built so there is a lot of similarity. The REO I have is listed at $125,000, there is duplicate home on the same street listed as a reguilar sale for $205,000.
Should the higher priced home be used as a comparable, when nothing can be done to it to adjust the price to match the subject property? BTW, neither home is selling, indicating they both may be overpriced.
When you get a chance, I would also like a copy of your BPO lists Thanks!
By Janice, July 23, 2011 @ 3:07 pm

Just started reading your blog today – good information on BPO’s – I’ve been thinking it might be a good way to supliment my income during the slow months. Please send me the list.
By Taj, July 24, 2011 @ 9:22 pm

Great article. I would like a copy of the list. Thanks in advance.
By Matt Reynolds, July 27, 2011 @ 3:13 pm

Will you please send me your BPO company list, I am looking to expand my career.
Thanks
Matt
By Steve DiClemente, August 4, 2011 @ 12:59 pm

I have been doing BPO’s With DataQuick Lending Solutions for the past year. Have completed over 150 for this company. I’m looking to expand my opportunity. Could you please email the BPO list to me. Thanks for you time.

Steve
By Lina, August 6, 2011 @ 11:58 pm

Hi Rob, it was nice to read your blogs. I’ve done a few BPOs for Evaluation but their payment delays are frustrating. I would like to receive your list. Also, do you recommend BPO classes, certification and membership? I’ve looked into NABPOP, does it help to get more business?
Also, what type of system are those agents using to finish so many BPOs in a day/week?
By Eric K, August 16, 2011 @ 2:23 am

Thank you for the informational article! I am a newly licensed agent and would really like to get started with some bpo assignments. Please send me the list of bpo and amc companies that you have. Thanks again!
By andrew H, August 16, 2011 @ 2:53 pm

Hey Rob,

I’m a new agent trying to learn my market and i’m thinking that doing BPOs would be a good way for me to break in (and hopefully make a bit of cash too). I posted on one of your older blog posts, but thought it might be better to post here as well. Really great site, it seems very helpful to those who don’t know much about doing BPOs, and this is an awesome guide. Please send me a list of BPO companies, as I can’t wait to break in and make good BPOs, following your guides :]

THANKS!
- andrew
By LUZ EYTALIS, August 17, 2011 @ 1:31 pm

hello there. Thanks for the information, very helpful. Can you email me that list? Thanks!
By crispian fordham, August 27, 2011 @ 2:39 pm

HI. can you send me a list of bpo companies
thanks
crispian
By Nancy, August 29, 2011 @ 11:11 am

Can I also have the list for the BPO companies?

Thanks a lot!
By Reynald Desarmes, September 2, 2011 @ 8:15 pm

Please send me your list.

Thank you
By Vickie Hall, September 12, 2011 @ 10:51 am

Rob, Love your web page. Can you please send me a list of BPO companies. Thanks Vicke
By RobH, September 13, 2011 @ 10:11 pm

That’s a tough one Brad, but I would say that the listings are mainly a “support” of the value and the actual “solds” are the meat of the value. So I would contact the BPO company’s review department and get their opinion how you should handle this situation. Your thought about them not selling because they’re overpriced seems right on. Check your email, you should have the list.
By RobH, September 13, 2011 @ 10:23 pm

Hi Lina – I do think some of the classes and certifications are helpful. In fact, some BPO companies require you to have gone through these courses/classes before receiving BPO work and especially REO listings. So it sometimes is necessary. I don’t have an opinion either way on NABPOP, but like any other organization it gives you a chance to network. As for the system, I think a lot of agents create templates (wording templates) and folders on their computers to help get through the orders faster…some agents use automated software as well, which have some good & bad points. Your list is coming, thanks for reading!
By RobH, September 13, 2011 @ 10:43 pm

Thanks for reading Andrew, I just sent your list!
By angel caso, October 7, 2011 @ 7:04 pm

i am going thru your site and honestly with your permission i would like to model my site similar to yours and i will be doing a site in spanish as i am hispanic american from miami beach and in my mrkt there is 60% hispanics doing our work. so again thanks for all the good info as i am going page by page soaking up your style and ideas and well again with your permission i would like to do something similar but not the same but with the same thyme of helping not ripping off!! i have several ebooks on bpo/reo and will be publishing them within the next 2 weeks and they will be free to any agent that requests it!! i would like to do something with you as i have found you to be one of the leading none rip off agents giving back and not taking and that is what i want to do!!!

peace and love my brother and keep up the good work as the universe will reward you 10 fold !!
angel caso
miami beach
305 794-0241
swflangel@yahoo.com
By angel caso, October 7, 2011 @ 7:06 pm

ps
send my the list as i would like to have my team go thru it next week and sign up with the companies that i have missed over the last several years!!!
thanks again………..
call me when you have a little time to compare notes and speak to a fellow experienced agent and a fellow agent like you that wants to help our profession not rip it off !!!
angel caso
miami beach
305 794-0241
By RobH, January 23, 2012 @ 6:34 pm

Angel, you are definitely free to model your blog after mine, I used a wordpress theme called Tandil because I liked the look of it…glad to see you are one of the “good guys”…post a link to your blog once it’s up, I’d love to check it out!

-Rob
By RobH, January 23, 2012 @ 6:35 pm

Will do Angel – you should have your list in just a bit, just now catching up on past comments!