BPO Companies are third-party entities that manage BPO orders and serve as an intermediary between the banks and lenders who order BPOs and the real estate professionals who complete them. In case you aren’t familiar, BPO, or Broker Price Opinion, orders are requests by banks or lenders for a licensed real estate professional to give his/her opinion of the value of a property.
There are many BPO companies, also referred to service companies. These companies either work directly for the banks and lenders or work for the servicing companies that are handling the sale of the foreclosed properties.
Typically, these companies are paid by either the bank, lender or servicing company, usually $120 – $200 per order, and have a network of real estate professionals that they sub out to complete the BPO orders for them. The real estate professionals typically get paid $40 – $75 per order to complete them for the BPO companies.
There are 3 types of companies:
- BPO companies. BPO companies only handle the BPOs. They are the liaison between the real estate professionals and the servicing companies. They only oversee and coordinate the completion of BPO orders.
- REO companies. REO companies will sometimes use BPO companies, but most of the time they have their own network of real estate professionals who complete the BPO’s for them, typically for free because they will be listing the properties.
- BPO & REO companies. BPO & REO companies handle everything they will order the BPOs by both the listing agent and the second opinion BPO. After completed they will assign the listing and coordinate the entire process of selling the asset.
If one is looking to find BPO companies, I would advise doing research first! A lot of the free lists one will find on the internet are outdated. These companies are always merging and changing names, and new companies are starting up as well. It is very important to do your research because some companies have reputations for not paying either on time or even at all.
The typical time frame of a real estate professional receiving pay from these companies can be anywhere from 1-6 weeks, so nothing is more frustrating than doing the work and not receiving payment. You should research, if you are a licensed professional and interested in building a BPO REO business, there are many training courses that can help you avoid making costly errors.
If you are interested in learning more information about the BPO AND THE Same Industry, you can visit some training facilities in your area.