REOs and Notes available 14 posts by 7 users

Posted: 06/14/2008 at 07:16AM

REOs:
$5M BPO with a $2M takedown. That's 40 cents on the dollar. They are located in 3 midwestern states. The average bpo is about $25,000. 180 properties.

Notes:
I have access to a huge inventory of notes that can be split up and tailored to your needs. There are 380 notes available. The average ltv is 80% and the payor's have high fico scores. These loans were originated in the last year. The collateral is mostly SFR and concentrated in western states and Florida. Other states are available.

PRINCIPALS, Please call me or email me for more information. I am an intermediary. Relationships are everything- do not waste my time or my associate's time. You will need to sign an NC/ND and a Master Fee Agreement. Also you need to be able to produce an open LOI and POF from a top 25 bank.

With these documents, you will be put in direct contact with the bank so that you can your due diligence.

Regards,

Stephen James
The Foresight Group, Inc.
(o) 404-587-2467
(f) 404-530-6251

Posted: 06/14/2008 at 01:38PM

Flipper, Here's what Joshua Dorkin had to say about you:

" James was one of the moderators on BiggerPockets and has been a long-standing member of the community. He is very knowledgeable about real estate and is a great person to turn to for advice. Always willing to help out a newbie, James can be counted on to step up and share what he knows when someone needs something. With working experience in many different areas of real estate, James is a great resource.(Josh Dorkin-Founder-Bigger Pockets)

Given the above, how would you prefer that I advertise notes and bulk REO offerings? You don't seem to like the previous post. Do you not like brokers? I disclosed that. Do you know anyone who may be interested in the assets I described? Yourself perhaps? The procedures are just to be sure that people are serious.

I introduced myself in the new members section.

This is supposed to be a place where we can all learn and have bigger pockets right? Instruct me, Master Yoda. As sarcastic as that sounds, I am serious.

Or is this just another place where we have counterproductive flame wars?

You're the senior man here, you decide.

Posted: 06/14/2008 at 02:07PM

This is not the place for flame wars. PERIOD. I'm not sure what was posted to make you ask that, Stephen, but it appears that the post has since been edited.

My guess is that James was commenting with skepticism about your post because we've had a LOT of nonsense here on the Bulk forum. That said, there is no reason why we can't all have a productive discussion.

Lets please move forward with that discussion, everyone.

Thanks,
Josh

Posted: 06/14/2008 at 02:58PM

Joshua,
The comment about flame wars was directed at the tone of flipper's last post. I deemed it unnecessarily negative. I understand the cynicism, but I don't appreciate it because it has nothing to do with me or my track record.

MOVING ON,

Tim,

The REOs are not notes. They are " real estate owned" properties that the bank has foreclosed on. These particular properties are low property value properties in midwestern states. Hence, 180 properties for $2MM. Cheap, huh? The bank employs an agent(s) to do a Broker Price Opinion. This particular bank has then said we will sell all of them for a percentage of the total value as defined by the BPOs. You see REOs all the time when you drive through the neighborhood and see vacant houses with an agent's sign in the yard. However, they can be sold in bulk and that is what is happening here.

The BPO (total value per the agent) on the properties is $5M. The bank will sell the total portfolio for $2M. Get it?
[b]
As for the notes[/b]: These are performing notes. That detail is important. Thank you, Tim. People with 700 credit scores don't have a habit of making one mortgage payment . Yes, they are first position notes. Very few people want second liens (notes) because the first lien must be satisfied before the second mortgage lien holder gets paid (in the event of foreclosure).

As for the Master Fee Agreement (commission agreement), you present the deal, sometimes you facilitate the deal and answer questions. Finding qualified and interested buyers takes work. However, many times a buyer will just sign the noncompete docs and have you bow out so that they can do their due diligence. My partners and I typically charge around 2% of the takedown (buy) price, but that's sometimes negotiable. As with any consulting business, you leverage your knowledge and relationships to make money.

Please feel free to ask more questions, Tim. Let me know if I missed something.

Thank you, Tim and Joshua. Let's live possibility and positivity people. That's the way to make great things happen

Posted: 06/14/2008 at 08:03PM

Another reminder from everyone . . . keep it positive, please.

Thanks, Josh

Posted: 06/19/2008 at 01:37PM

Reading the above posts, was fun

Now !! as far as my experience, brokers will exist, and some will waste your time and others won't. Personally I instantly become cautious when asked for a MFA upfront. NCND is resonable. My reason for that is, that a MFA locks in the fees being paid by the buyer.

Question 1: How can one expect a buyer to agree on fees for buying a product he has yet to EVEN confirm is REAL or worthy of buying?

Fact 1: One of the most important and DIFFICULT parts of an REO transaction is the negotiation on price between what the bank/selling entity will accept and what the buyer is ACTUALLY willing to pay AFTER due diligence. the first thing that comes to the table at that point WILL BE FEES.....

Interesting Point 1 : When you begin a conversation asking for and NCND /MFA you begin from a perspective of NO TRUST ! If i can not trust who i do business with.....WHY DO BUSINESS with them. Someone shared that point with me when i first came to this forum and it has proven to become a GREAT piece of insight.

You want to sell me or my buyers something, show me what i'm buying FIRST....... even if that means to a neutral 3rd party ( Well known title/escrow) but don't ask me to drop my pants in the BLIND.

Just my little 2 cents.......... hope it helps.

Posted: 06/19/2008 at 03:37PM

Thanks !.......... I AM :dance: