Your First REO Listing - Reimbursement of Your Expenses

Getting reimbursed for your out of pocket expenses isreimbursement the following month for expenses this
important when handling REO listings. Your expensesmonth.
can mount up to thousands of dollars per month,Having an accounting system for reimbursement is
depending on the volume of listings you take.important. Some use accounting software, QuickBooks
Expenses you can expect to cover are re-keyingis such a program. Personally, I'm horrible at accounting
doors, repairing broken windows, electrical bills, janitorial,and I've noticed most agents aren't good book
minor city violations and trash outs, which are the mostkeepers. They're more about moving forward to the
common. At times you will have to cover cash fornext deal, than the details. That's usually why we have
keys agreements and repairs which are usually asome sort of transaction coordinator. Learning how to
higher expense. Getting reimbursed for all theseuse QuickBooks wasn't for me either. For us its been
expenses is critical to your business cash flow.great help to have someone do this for us. The cost
Lenders don't give you much room for error when itof having that support has more than covered its
comes to reimbursement of your expenses. Being thatexpense. Tracking each expense for each property is
you're doing them the favor of managing the propertya job in itself. We don't miss a reimbursement this way
for just the fee of selling it, is something I've neverand as I mentioned before, they add up. Others use
understood. Regardless, that is the way the businessthe envelope system for each property, with two
runs. You're more of a property manager now, paid asenvelopes per property, paid expenses and submitted
an agent.for reimbursement.
You'll usually get written instructions on how and whenA final suggestion is to look for talent at your local
to submit for reimbursement with your assignmentcollege or university. You can usually find students with
instructions. Not all lenders follow the same guidelines.the skills required for the job at a fraction of the price
Pay close attention to each lenders process. Not doingof an accountant. Its a win-win situation. You get the
so can leave you without reimbursement for thattask done by a qualified person and they get work
month and you are not allowed to collectexperience.