Hello! This is my first post in this area. I have the utmost respect for those that have posted and provided real and valuable information. Thank you in advance for helping people like myself. Before I proceed, I am not an expert nor do I profess to be. I have developed a lot of contacts in several areas of finance (mostly commodities) and construction over the last 10 years. I partnered up with a former banker from Chicago and pooled our contacts together.
Over the last year, I have approached or been introduced to approximately 20 small to medium sized banking institutions (mostly in the mid-west) trying to build a relationship. It has been an amazing learning experience and worth the effort. Not all of these banks were receptive but there are 5 that have given me some rope. This is one of the deals that I am working on from a small savings bank in the suburbs of Chicago.
REO's Multi-family & SFR: Total Portfolio Multi-family/Commercial is $3.6M and $1.9M for the SFR.
7 properties in total
1) 3 story brick with 7 units
2)3 story masonry with 7 units
3) 3 story masonry with 6 units
4) 1 store + 3 apartments
5) 25 units, verifying # of stories
6) 3 story masonry with 52 units
7) 1 Single family in Highland Park, IL
NPN's (same bank): Total Portfolio of $5.34M
8 properties in total
1) 1 property $550K in vacant land
2) 5 SFR
3) 1 Condo
4) 1 2-flat
One of our contacts approached us and asked us to find a buyer for their portfolio of homes, commercial properties, and vacant land that they bought through tax liens. Their portfolio is approximately $2.54 M.
I have located a potential buyer for the multi-family and $2.54M. I am meeting with them on Wednesday. They are looking for properties in Chicago to convert to Section 8 housing.
I want to offer more valuable services than just finding properties. I have read other posts that state: " What value do you add for your fee?" Brokers and internet scammers believe that just putting two people together is enough to request thousands if not millions of dollars in fees. I work for my money and want to add value. In return, I would like for the client to return and/or refer us to another investor. Title, insurance, buyer side representation, escrow, and valuation where listed on a previous post.
My question is with valuation. What methods do the members of this group use to value REO's and NPN's? Correct me if I am wrong.
1) BPO's and AVM's for REO's. Can you guide me to the service providers?
2) NPN Valuation? Service providers?
3) Other methods?
4) Is there software that I can buy or lease so I can do it myself?
If it was only one commercial property and information was given, I could use Argus DCF along with CoStar to analyze a property. But how do you do this if you got your hands on a portfolio of REO's and NPN's for 50-200 properties with only " x" amount of days for Due Diligence?
I appreciate your help! Thanks again!!!
