Welcome to this week's newsletter, highlighting key developments in AI, economics, and corporate performance. As we enter Q4, these trends could shape investment strategies and business decisions. Explore REOs and learn how to leverage them as an extended sales channel to grow your business. Take a look at a possible investment for your portfolion. Lot's to cover, so let's dive in!
AI Integration Surge
Businesses are rapidly scaling generative AI beyond experimental pilots, embedding it into core operations for competitive edges like efficiency and innovation. Global private investment in generative AI hit $33.9 billion in 2025, up 18.7% from 2024, per Stanford's AI Index Report. Adoption rates have surged: McKinsey reports organizational AI use at 78% in 2024 (up from 20% in 2017), with generative AI jumping from 33% to widespread integration. Deloitte notes accelerating trends in 2025, focusing on agentic AI for autonomous systems, though challenges like data scaling and organizational silos persist. PwC's survey (PricewaterhouseCoopers) shows 88% of executives planning AI budget increases, signaling strategic gains in productivity and decision-making.
AS A REALTOR: Here are 2 top ways for you to use AI for your business
1) Chatbots for 24/7 Client Engagement: Implement AI chatbots (e.g., Structurely or ManyChat) on your website and social media to answer client queries, schedule showings, and qualify leads instantly, improving response times and capturing 20-40% more leads.
2) Personalized Client Outreach: Use AI tools like CRM platforms with predictive analytics (e.g., HubSpot or Zoho) to identify high-potential leads, automate tailored email campaigns, and predict client preferences based on behavior, boosting conversion rates by up to 30%.
Don’t follow the bus… Get ahead of it. AI is here to stay, so make it your new best friend!
Economic Indicators
U.S. GDP data and inflation trends point to robust Q3 growth, potentially reaching 4%. The Atlanta Fed's GDPNow (real-time economic forecasting model developed by the Federal Reserve Bank of Atlanta) model estimates 3.9% real GDP growth for Q3 2025 (up from 3.3% prior), driven by strong consumer spending and income. Fortune highlights an "even hotter" economy, with projections hitting 4% amid resilient demand. Inflation remains stable: The Philadelphia Fed's survey forecasts annual CPI at 2.31% over 2025-2034, while short-term CPI (Consumer Price Index) holds at 2.8% for 2025. CBO (Congressional Budget Office - a nonpartisan U.S. federal agency that provides economic and budgetary analysis to Congress) notes upward pressure from tariffs but overall moderation. Watch for BEA's (Bureau of Economic Analysis, a U.S. government agency under the Department of Commerce that produces economic statistics, including GDP, personal income, and trade data) final Q3 GDP release, which could influence Fed policy and signal sustained expansion without recession risks.
Corporate Earnings Season
Q3 2025 earnings reports kick off this week, poised to sway stock markets amid high valuations and volatility concerns. FactSet estimates 7.7% year-over-year earnings growth for the S&P 500, with positive revisions extending to Q4. Bloomberg warns of a cooling rally as October turbulence looms, driven by stretched equities. Key reports from tech giants and banks could test forecasts: Russell Investments anticipates 14% revenue and 29% earnings growth for early reporters, with 84% beating expectations so far. J.P. Morgan projects 5-7% growth through year-end, noting better-than-feared results often lift markets. Investors should monitor for impacts on indices, especially with AI and economic tailwinds in play.
Summary of REO Trends, Locations, and Opportunities for Realtors
As of September 27, 2025, Real Estate Owned (REO) properties in the U.S. are on an upward trend, with completed foreclosures up 41% year-over-year (YoY) in August and overall filings rising 18% YoY, marking six consecutive months of increases. This surge, driven by high mortgage rates (~6.2%), rising insurance and property taxes, and localized unemployment, is expected to continue modestly over the next 8-12 months (October 2025 - September 2026), with a projected 10-15% YoY increase in the short term (Q4 2025 - Q1 2026) and potential stabilization by mid-2026 if rates ease to 5.9-6.5%. Despite this, foreclosure rates remain below pre-pandemic peaks, supported by strong homeowner equity and mitigation options.
Key Locations
- High-Volume States: Texas (3,600 foreclosure starts in July, Houston with 95 REOs), Florida (2,891 starts, Orlando/Jacksonville hotspots), California (2,830 starts, Los Angeles with 77 REOs), Illinois (1,177 starts, Chicago with 139 REOs), and Ohio (1,029 starts, Cleveland active).
- High-Rate Metros: Nevada (Las Vegas, 1 in 1,817 units), South Carolina (Columbia, 1 in 1,347 units), Florida (Lakeland, 1 in 1,212 units), Illinois rural counties (1 in 857 units quarterly), and Indiana (Indianapolis, 1 in 1,934 units).
- Emerging Trends: Sun Belt areas (Florida, Texas, Nevada) face amplified risks from insurance hikes, while Midwest pockets (Illinois, Indiana, Ohio) show rural-urban divides.
Opportunities for Realtors: This is niche market if you see a trend in your area make sure you get ahead of this and start to market to help clients. This could be an excellent additional sales channel to your funnel.
- Distressed Sales Expertise: Target REO properties in hotspots like Texas and Florida for investor clients, offering market analyses to capitalize on 10-20% potential distressed listings in cooling markets. SEE BELOW FOR A STEP BY STEP ON HOW TO CONTACT BANKS TO BECOME A REPRESENTATIVE FOR ANY REO’S
- Seller Support: Assist homeowners in high-risk regions (e.g., rural Illinois, Sun Belt) with pre-foreclosure options or short sales, building trust and referrals.
- Marketing Campaigns: Use targeted social media ads or open houses in REO-heavy metros, highlighting success stories to attract new clients.
- Network Expansion: Partner with local banks or investors to gain early REO access, positioning yourself as a go-to agent in this niche.
Steps to Contact Banks or Lenders for REO Properties in Any State
- Identify the REO Custodian: Research properties in your state using public records from the county recorder’s office or platforms like RealtyTrac to determine the owning bank (e.g., Wells Fargo, Bank of America, or local credit unions), focusing on high-activity areas like Houston (TX), Orlando (FL), or Chicago (IL).Check MLS listings for REO flags, which often include the bank’s name, or review recent foreclosure auction results for ownership transfers.
- Find Contact Information: Visit the bank’s REO section online (e.g., Bank of America’s REO portal or Chase’s asset management page) for dedicated contacts or emails specific to your state’s listings. Call the bank’s customer service (e.g., 1-800 numbers) and request the REO or asset management department, providing a specific property address for precision. Connect with local title companies or real estate attorneys in your state, who may have direct lines to bank REO teams.
- Craft a Targeted Pitch: Email or call with: “I’m a realtor specializing in distressed sales in [e.g., your state/city], where REOs rose 41% YoY. I’d like to partner with you to market your REO properties to investors, capitalizing on a projected 10-20% increase in distressed listings.” Emphasize value: “My market analysis shows cooling prices in [your state/city], creating prime opportunities for your investors—let’s move this inventory efficiently.” Include a brief resume or case study of past REO sales in your area to establish expertise.
- Leverage Networking: Attend investor meetups or bank-hosted foreclosure events in your state (e.g., Cleveland, OH, or Las Vegas, NV), where you can meet REO managers directly. Partner with local mortgage brokers or investor groups in your area, requesting introductions to bank contacts handling REOs. Join REO agent networks (e.g., National REO Brokers Association) for access to bank contact lists tailored to your region.
- Follow Up and Build Relationships: Send a follow-up every 1-2 weeks (e.g., “Noting [e.g., 3,600 foreclosure starts in Texas or your state’s data] last month—ready to assist with your REO strategy”), referencing local data. Offer a free investor-focused market analysis for a specific REO property in your state to showcase your value and secure a partnership.
Additional Tips
- Target Key Banks: Focus on lenders with significant REO presence in your state (e.g., Wells Fargo in California, U.S. Bank in Florida) and customize your pitch to their local inventory.
- Use Tools: Subscribe to foreclosure listing services (e.g., Foreclosure.com) for real-time REO alerts and bank contacts in your state’s cooling markets.
- Compliance: Ensure pre-qualification on the bank’s approved vendor list via their REO portal to access listings.
By targeting banks in your state’s high-REO areas, realtors can connect with investors, provide market insights, and capitalize on the growing distressed sales trend over the next 8-12 months
Investment for you to consider for your stock portfolio:
Alphabet Inc. (NASDAQ: GOOGL) stands out as a compelling investment opportunity heading into Q4 2025, driven by its dominant position in digital advertising through Google Search and YouTube, alongside explosive growth in Google Cloud, which holds the third-largest market share in cloud infrastructure and is poised to benefit from the AI integration surge with the market expected to quadruple by 2030. With a market cap of $3.0 trillion and a current share price around $246, the company generates massive free cash flow, enabling its first-ever dividend payout while funding innovative "other bets" like Waymo's self-driving technology. Amid robust U.S. economic indicators signaling 4% Q3 GDP growth and stable inflation, Alphabet's diversified revenue streams, bolstered by AI-driven efficiencies, position it for sustained 20%+ annual earnings growth, making it an undervalued tech giant worth considering for long-term portfolios as corporate earnings season unfolds.
Get Going! So much to do to create new opportunities for you business!
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Make this week count!
You Got This!
Here’s to your continued success!
Agi Vermes Smith
Founder of Mentor Hub LLC
Mentor & Real Estate Coach
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