Real Estate Success Magazine's Article on Thomas Blanchard
Real Estate Success Magazine

December If Thomas Edison was correct - and who are we to argue? -genius is One percent inspiration, Ninety Nine percent perspiration. Thomas Blanchard, Broker/Owner of 1st Realty Group-REO Asset Services, makes no claim of genius, but he embodies Edison's contention. In 2003, at the beginning of the Las Vegas real estate boom, when Realtors® couldn't turn around without making a commission check, Blanchard had the foresight to begin planning for the eventual market slackening. Instead of tarot cards and tea leaves, Blanchard conducted painstaking research into the local real estate scene.

"I searched through as much raw data as I could find to get an accurate picture, not one that was filtered through someone else's agenda," Blanchard said. "I wanted a view of my specific niche. That work paid off, as I was able to see where the market was and more importantly, where it was headed."

Turns out, that ability to foresee the future was the easy part, the 1 percent. That's when the hard work began. "I started REO Asset Services in 2002, specifically to handle REO [real estate owned] properties for banks, which at that time were quickly dwindling. In fact, by 2004, they were virtually nonexistent," Blanchard remembered. "When I first started trying to get into the REO business back in 1994, it took me about a year and a half of faxing every single week the latest sales statistics for foreclosures, notices of default, recessions and the re-sale market data, before I got my first break." Since then of course, overinflated home values, and "creative" financing have caught up with many hopeful homeowners, leaving many unable to make payments or sell their homes as missed mortgage payments keep mounting up.

According to the RealtyTrac website, which tracks such matters, foreclosures in 2007 will rise more than 60 percent nationally over 2006 numbers. "Over the last few years, it was real easy for appraisers to overvalue properties. They were so busy, they wanted to keep their clients happy and with values rising so rapidly, they had to forward project what houses would be worth 30-60 days down the line," Blanchard explained. "Now, we're feeling the backlash as appraisers are overly cautious as the market pulls back and causes the property values to depreciate."

Blanchard, a widely recognized expert on REO (look for his column in this issue), speaks Nationally on marketing and business relationships at real estate seminars and is widely quoted in local media stories.

Today, 1St Realty Group-REO Asset Services values approximately $150,000,000.00 worth of properties each month for his clients, and currently has over $32,000,000.00 worth of property in the pipeline. Blanchard said that they have over $9,500,000.00 in Sales through the first Quarter of 2007 alone.

"Business is really picking up," Blanchard said. "This year has outpaced my wildest dreams. I'm a little taken back that we weren't fully ramped up to handle the amount of inventory that has come in. We were expecting twins and had septuplets. We're just now catching up. The market definitely is growing," Blanchard said. "Financial institutions have seen their REO portfolios swell enormously. Because these institutions are not in the real estate business and because these properties do not provide cash flow, they are drains on banks' bottom lines," he explained.

"1st Realty Group-REO Asset Services specialized REO marketing plans mean maximum exposure through magazines, newspaper, Internet and more, as well as specialist agents to streamline coordination with private buyers and institutional investors.

We are committed to providing accurate and professional representation to our Corporate clients in the disposition of their REO properties. Our expertise in this area helps them dispose of these properties quickly, reducing the negatives on their books. At the same time, we provide a valuable service to the community and the local economy by providing reasonably priced homes to more buyers."

Blanchard has built his company into a one stop shop that provides banks, asset management companies, financial institutions and other corporate clients fast, accurate sales and outstanding customer support.

Blanchard has a division which works with families in financial distress to help them sell their properties before foreclosure becomes the last resort. It also assists local investors in finding foreclosed properties available to purchase.

Blanchard, whose career aspirations focused on law enforcement and emergency health care while growing up in Southern California, drifted into real estate after receiving his California license in 1981. Though he was an award-winning Realtor® from his first year in the business, his heart still was set on a public service career. He came to Nevada as a Constable and Paramedic in Laughlin, and after a stint at the Nevada Test Site, landed in Las Vegas in the mid-1990s for another shot at real estate. He worked for a succession of franchises, and when his last broker went bankrupt, he started his own company.

"I started 1st Realty Group-REO Asset Services specifically to service the REO Industry in the Las Vegas Valley without the constraints and issues of franchise real estate. There were good things and bad things in every franchise I worked with," Blanchard said. "I incorporated the best aspects of each and adapted them to my own skills and philosophies when I opened this office. Without the "franchise" restrictions, we can provide all the necessary services and technology to do whatever it takes to get the most money possible for our REO clients. My goal is to make our clients job easier and have them look good to their clients."

These relationships with institutional owners pay dividends for 1st Realty Group - REO Asset Services' buying clients as well, "Because the local foreclosure market is booming, there has been a commensurate increase in the competition among buyers looking for real estate bargains in the Las Vegas area," Blanchard said.

"Our systems are designed to provide buyers flexibility and affordability while establishing a foundation and security to realize the most out of their real estate dollar in today's volatile residential market. Due to our strong working relationships with lending institutions and asset management companies, many of them contract us to actively list and sell their foreclosures. This gives our buying clients an extra edge that most real estate companies can't offer - a direct point of contact with the seller's representative that can prove invaluable when you want a deal done quickly and hassle-free."

With his company's REO inventory expected to double by the end of the summer, and with institutional investors taking money off the sidelines to reinvest in this market, Blanchard is looking to expand. "Up to this point, we haven't openly recruited any agents. Everybody here came through personal contact. They were either someone I have trained or is a friend of an agent I know personally. Everyone has been hand-picked," Blanchard said. But now, it's such a huge market that I'm forced to bring in new people. But I still have to be selective.

This niche isn't for everyone. It's an acquired taste. Our properties aren't always pristine. I don't use home stagers; but I do have people who go in and remove trash and vacuum the carpets." Expansion also will allow Blanchard to take on more of a managerial role, with fewer hands-on tasks.

From the beginning, Blanchard said, he has been chief cook and bottle washer for the business, filling such diverse roles as public relations director, chief financial officer, information technician and copy machine repairman. By delegating, he also hopes to spend more time with his wife, Krista, and 4-year-old son, Ethan. "The only way to take the company where I want it to go is to delegate," Blanchard explained. "But we always will be small enough to be manageable, and we always will deliver the personalized service our clients need and deserve."

Still, reality dictates that 1st Realty Group-REO Asset Services embrace more agents. Blanchard said "I hope buyers agents will consider a relationship with our company. I try to meet with the Agents and their new clients so I can ensure the clients expectations are realistic while explaining what our company can do for them as we help guide them through the foreclosure purchasing process.

There are a lot of potential pitfalls in REO - even more than in traditional real estate," Blanchard said. "Our job is to negotiate through those potential hurdles and make the process as painless as possible." He said agents looking to get involved in this niche should consider affiliating with his company, which already has in place the processes to make the provision of services more effective and efficient.

The fact that the company is established and already has nurtured relationships that will pay dividends is nothing but a plus. "This business is all about who knows you," Blanchard said. "Even with all the research, networking and hard work I did to get business, my first break came, to a large extent, because I attended the same college as an asset manager who was seeking a partner in Nevada.

All things being equal, who are you going to give your business to - the person who you have something in common with, who you know, or a person off the street? I have the relationships and the reputation of making my asset manager partners look good. For that reason, I know I'll be around for a long, long time."

For information on how 1st Realty Group-REO Asset Services can assist your Real Estate purchase, sales or career needs, visit www.LasVegasBankOwned.com or call 456-REPO (7376) to set an appointment for a confidential consultation with Thomas Blanchard.