BiggerPockets

Are there any sellers who work with this protocol? Hypothetically speaking, a buyer is interested in purchasing a large package of REOs. However, there is no way they will show POF before they see a sanitized version of the inventory. There is no way the seller is going to show the inventory before the POF is furnished.

Has anyone worked around this obstacle?

Why don't you share what you learned so everyone can learn from the post?

No one is going to provide a tape of any kind with out POF information. However, what you can do is Custom Acquisition Orders, which allows a buyer/mandate to get a portfolio custom tailored to their exact criteria with out providing a POF upfront.

A lot of our buyers are liking this.

Just some general information.

PS. You might be able to get an example portfolio from a seller, but that is a big IF.

Originally posted by George Beale

No one is going to provide a tape of any kind with out POF information.

WHAT????

We NEVER give a POF to see product....

Are you guys actually buying this nonsense that you cannot see a tape without an idiotic protocol like sending personal or corporate financials before hand?

WOW!!!

I actually think almost all sellers, i.e., banks or loan servicing companies, that have actually properties they need to dump do provide those lists to their real buyers, i.e., investor groups that have cash, hedge funds that have cash, etc. They work out the set of properties and the price and close the deal.

I believe it does happen on a small scale. I've spoken with a member here who actually had a list of properties he was looking to buy. NPR did a story a while back about a couple of guys in the north east doing the same thing. They were buying just a few properties directly from some bank.

I know it happens on a large scale because I've read those stories in the business press, too. Further, that's exactly how the RTC worked.

I suspect it also happens where an investment group that actually has cash buys a group of properties from a bank or servicer and then sells them off one by one to individual investors. I've ran across at least three companies that appear to be doing exactly that. They're not just selling the property, but also selling the rehabbing and property management.

I don't believe there are mandates or intermediaries running around acting like brokers between sellers and buyer and collecting a fee.

I definitely agree with Skylar Howard & Christopher Lippincott.

In all the deals that I've worked on with my clients that ACTUALLY resulted in being legitimate and/or closed....the seller offered up what they ACTUALLY had for sale to us so we can review and make sure the assets matched our criteria. If all was well with that....we moved to price/term negotiations...offer letter...POF, etc.

EVERY other time I've pushed to get all these annoying docs drafted (BEFORE seeing what is for sale), it has NEVER worked out OR our docs were then shopped to find what the rep/seller said they had in the 1st place! (EVERY TIME)

And, I DON"T buy the "give us your NCND/LOI/POF/FPA and we have multiple banks willing & able to put a tape together in 48 hours to match EXACTLY what you are looking for". TOTAL...I have 18 "CUSTOM" orders out there (placed between 1-5 months ago) with reps that offered this awesome service, and NOT one has been able to produce ANYTHING YET...LOL)

Banks are getting bent over right now, but they WON'T let you come in and STEAL their non-performing assets based on a simple LOI. I found that there will ALWAYS be some kind of negotiation/bidding process and the banks are NOT ALWAYS dumping their REOs/Notes at rock bottom prices every day. For example, one of my sources is Morgan Stanley and they aren't shelling anything out right now due to the "Foreclosure Moratorium" status they are under right now.

When the bank scrubs their inventory and decides there is a portion they need to get rid of...they take that pool thru their normal sales marketing process to find potential Investors to purchase.

Kofi,

If you are dealing with someone that wants ALL kinds of BINDING paperwork before even telling you WHERE these assets are coming from...chances are they don't have control in the deal, they really don't have anything to show you, and/or they just too damn scared of getting cut out of their commission for referring you to someone else. Either way, you will be spinning some wheels for sure.

I'm sure all of us can go on ALL day about this one.

-Rafael

Originally posted by Joshua Dorkin

Why don't you share what you learned so everyone can learn from the post?

Simply put, you have to put two and two, the buyer and seller, together personally. Buyers want to know that there is an actual product available. And sellers want to know that there is an actual buyer capable of purchasing. A simple phone call has helped me. Some buyers, intermediaries and sellers try to do everything online without ever speaking. I don't feel this way is efficient.

Chris,

You mind if I borrow that next time someone asks me for a tape?

I'd like to tack that on to my normal response,

I do not deal with tapes I deal in relationships.

Best, Lee

I'm an old mortgage guy too. I just laugh at these newly minted seminar guys who own no real estate of their own who seem to think that they are going to make a living by brokering bank owned assets.

Originally posted by Rich Weese

I'm always waiting for an REO tape of properties to buy, and I have the ability to do the deal. ZILCH comes my way in real tapes, I'm sorry to say. Anyone on BP that has actually DONE adeal on here with someone on a REO tape deal? Thanks. Rich.

Really? Sad story Rich :cry: ... Sounds like the night of the living dead!

What are you looking for?