How Asset Management Companies Work

(Real Estate Owned) REO refers to properties that have been foreclosed by a bank. If a property is not sold at a foreclosure sale, the bank may contract an REO asset management company in order to sell the home at market value to a real estate investor.

Banks are wary of having REO properties on their books for long since unsold homes add to risk management for lending institutions. The goal for banks is to put REO properties back on the market as quickly as possible after the foreclosure process has ended. In order to accomplish this, qualified real estate sales professionals are required to sell properties quickly and at a good price.

REO asset management companies also manage the maintenance and cleanout of foreclosed properties. Services provided include trash disposal, landscaping, field inspections, repairs, winterizing, and monthly inspection reports.

Selling REO Properties

When looking for a qualified real estate professional, asset management companies will check to see if the agent is listed on their management software. These platforms feature the agent’s experience and credentials.

They also have built in scorecards that track agent performance and their past successes. It is essential that an agent be responsive to the needs of an asset manager. This means they must maintain open lines of communication and adhere to an asset manager’s compliance system.

After an REO property is assigned to an agent, the sales process is overseen by the asset management company. Proactive agents are usually the most successful. They will contact all utility companies, as well as city and county offices to ensure the home is free and clear of any outstanding liens. Since REO properties often have numerous liens and code violations, agents must resolve these debts before the property goes under contract.

The process for becoming an asset management agent is as follows:

  • Complete a brokerage training course to obtain a broker’s license. Courses will instruct agents on how to determine a broker price opinion, which assesses the property’s market value and serves as a source of marketing for potential investors.
  • Network with area banks and lending companies to offer REO services and demonstrate the skills needed to sell foreclosed property quickly.
  • Set and maintain lower fees by researching the fees of local asset management companies in the area to ensure a competitive advantage over other REO agents.
  • Use multiple listing service software that lists available real estate and identifies foreclosed homes.

Major Asset Management Companies

The following is a list of the top asset management companies in the United States:

  • Altisource – National REO asset management company.
  • Archon Group – National REO asset management company.
  • Bankers Asset Management – National REO asset management services.
  • Derrick REO Services – REO asset management company that specializes in REO management, property preservation, broker price opinions, and housing foreclosures in Pennsylvania.
  • Executive Asset Management – REO asset management services in the southeastern states.
  • Field Asset Services – REO asset management services.
  • Green River Capital – REO asset management company based in Utah.
  • Keystone Asset Management – National REO asset management that specializes in foreclosure liquidation.
  • Midland Loan Services (PNC Bank) – National REO asset management services.
  • NPR Capital Asset Management – National REO asset management company.
  • Orix Asset Management Group – National commercial REO asset management company.
  • Precision Asset Management – National REO asset management company.
  • REO Nationwide – National REO asset management company.
  • Specialized Asset Management – National REO asset marketing and management company that provides services to mortgage lenders, servicers, and investors.
  • Trax Financial – REO asset management company that specializes in property preservation, REO and loss share, bank equity recapitalization, and residential and commercial loan servicing.
  • TREO – National REO asset management and marketing network.
  • TriMont Real Estate Advisors – National REO asset management company.

How Asset Management Companies Work

(Real Estate Owned) REO refers to properties that have been foreclosed by a bank. If a property is not sold at a foreclosure sale, the bank may contract an REO asset management company in order to sell the home at market value to a real estate investor.

Banks are wary of having REO properties on their books for long since unsold homes add to risk management for lending institutions. The goal for banks is to put REO properties back on the market as quickly as possible after the foreclosure process has ended. In order to accomplish this, qualified real estate sales professionals are required to sell properties quickly and at a good price.

REO asset management companies also manage the maintenance and cleanout of foreclosed properties. Services provided include trash disposal, landscaping, field inspections, repairs, winterizing, and monthly inspection reports.

Selling REO Properties

When looking for a qualified real estate professional, asset management companies will check to see if the agent is listed on their management software. These platforms feature the agent’s experience and credentials.

They also have built in scorecards that track agent performance and their past successes. It is essential that an agent be responsive to the needs of an asset manager. This means they must maintain open lines of communication and adhere to an asset manager’s compliance system.

After an REO property is assigned to an agent, the sales process is overseen by the asset management company. Proactive agents are usually the most successful. They will contact all utility companies, as well as city and county offices to ensure the home is free and clear of any outstanding liens. Since REO properties often have numerous liens and code violations, agents must resolve these debts before the property goes under contract.

The process for becoming an asset management agent is as follows:

  • Complete a brokerage training course to obtain a broker’s license. Courses will instruct agents on how to determine a broker price opinion, which assesses the property’s market value and serves as a source of marketing for potential investors.
  • Network with area banks and lending companies to offer REO services and demonstrate the skills needed to sell foreclosed property quickly.
  • Set and maintain lower fees by researching the fees of local asset management companies in the area to ensure a competitive advantage over other REO agents.
  • Use multiple listing service software that lists available real estate and identifies foreclosed homes.

Major Asset Management Companies

The following is a list of the top asset management companies in the United States:

  • Altisource – National REO asset management company.
  • Archon Group – National REO asset management company.
  • Bankers Asset Management – National REO asset management services.
  • Derrick REO Services – REO asset management company that specializes in REO management, property preservation, broker price opinions, and housing foreclosures in Pennsylvania.
  • Executive Asset Management – REO asset management services in the southeastern states.
  • Field Asset Services – REO asset management services.
  • Green River Capital – REO asset management company based in Utah.
  • Keystone Asset Management – National REO asset management that specializes in foreclosure liquidation.
  • Midland Loan Services (PNC Bank) – National REO asset management services.
  • NPR Capital Asset Management – National REO asset management company.
  • Orix Asset Management Group – National commercial REO asset management company.
  • Precision Asset Management – National REO asset management company.
  • REO Nationwide – National REO asset management company.
  • Specialized Asset Management – National REO asset marketing and management company that provides services to mortgage lenders, servicers, and investors.
  • Trax Financial – REO asset management company that specializes in property preservation, REO and loss share, bank equity recapitalization, and residential and commercial loan servicing.
  • TREO – National REO asset management and marketing network.
  • TriMont Real Estate Advisors – National REO asset management company.
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