preREO - First Mortgage Secured by Vacant Property
As an investor in a couple of Jorge Newberry’s note funds, I came across one of his newer ventures: preREO.
I’ve heard him speak briefly about this on a podcast or two and am signed up to attend a webinar with them later this week.
The gist of it, the way I currently understand it, is they’re “partnering” with local investors who want to buy/partner on the first mortgages, go through the appointment process (through their sister company law firm) to be able to repair and rent out the property as it’s going through the foreclosure process.
The play is that rather than having to wait until the foreclosure process is completed, the investor can rent out the property (and earn a return - after rehabbing it, of course) during the process. Investor pays $2K program fee and 25% of the note acquisition price (they finance the remaining 75% via a participation agreement - at 12%). Supposedly, after signing participation agreement (I haven’t seen the documents yet), you can pay it off next day and essentially just pay 100% of the first mortgage acquisition price.
These are non-performing mortgages and the homes are vacant and in preforeclosure.
This doesn’t fit my typical passive, turnkey investment model, but I am considering taking on a local property as a “fun” project. The problem, other than this going against my philosophy of keeping everything passive, is I don’t think I’ll be able to get into the property to walk the inside prior to purchase and have no clue what I’m getting into. Sounds like a pretty easy way to get in over my head fast, but at the same time, it seems like an opportunity to pick up a property WAY under market value and there theoretically should still be plenty of meat on the bone.
Anyone familiar with this approach? Thoughts?
Has anyone who invested in non performing notes at Prereo actually been paid after selling the property? I sold a property on June 2nd and still have not received any funds. My account manager has basically gone silent. It’s concerning as I have a lot of money tied up in this. @Jorge Newbery
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Les Armour:
Has anyone who invested in non performing notes at Prereo actually been paid after selling the property? I sold a property on June 2nd and still have not received any funds. My account manager has basically gone silent. It’s concerning as I have a lot of money tied up in this. @Jorge Newbery
I believe they are having a conference call today about this site. Regarding not being paid, have you contacted them?
Quote from @Chris Seveney:
Quote from @Les Armour:
Has anyone who invested in non performing notes at Prereo actually been paid after selling the property? I sold a property on June 2nd and still have not received any funds. My account manager has basically gone silent. It’s concerning as I have a lot of money tied up in this. @Jorge Newbery
I believe they are having a conference call today about this site. Regarding not being paid, have you contacted them?
No i have not seen this. If you have information please send it over!
Quote from @Chris Seveney:
Quote from @Les Armour:
Has anyone who invested in non performing notes at Prereo actually been paid after selling the property? I sold a property on June 2nd and still have not received any funds. My account manager has basically gone silent. It’s concerning as I have a lot of money tied up in this. @Jorge Newbery
I believe they are having a conference call today about this site. Regarding not being paid, have you contacted them?
And yes, I have contacted several people including emailing Jorge and have not heard anything back regarding a date.
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Les Armour:
Quote from @Chris Seveney:
Quote from @Les Armour:
Has anyone who invested in non performing notes at Prereo actually been paid after selling the property? I sold a property on June 2nd and still have not received any funds. My account manager has basically gone silent. It’s concerning as I have a lot of money tied up in this. @Jorge Newbery
I believe they are having a conference call today about this site. Regarding not being paid, have you contacted them?
No i have not seen this. If you have information please send it over!
https://us06web.zoom.us/meetin...
- Quality Technician in a CNC Machine Shop
- Rapid City, MI
- 33
- Votes |
- 152
- Posts
I have been trying to get a note "deal" on Pre-REO for about a year. Gave up for a couple months as I have been swamped with life. Came back this morning and my log-in no longer works.....hmmmm. Anyone know if they changed the webpage recently?
Melody
@Melody Everett-Neddo Yes, they changed the website. This is the current link I log into: https://bidonhomes.com/notes/l...
- Quality Technician in a CNC Machine Shop
- Rapid City, MI
- 33
- Votes |
- 152
- Posts
Quote from @Adam Walter:Thanks. Actually the last time I opened it it automatically forwarded me to the new web page and until that happened I hadn't realized that was what had happened. I apologize for not coming back here to update my own comment thank you for clarifying this though because someone reading this later might get help from this so thank you again.
@Melody Everett-Neddo Yes, they changed the website. This is the current link I log into: https://bidonhomes.com/notes/l...
Anybody having luck getting a solid answer about the previous note funds?
Quote from @Kevin Coggins:
Anybody having luck getting a solid answer about the previous note funds?
I purchased a PreREO deal from them about 4-5 months ago. There were a few hiccups which were resolved quickly and communication has been good overall. My foreclosure sale date is the end of March 2023 and I will not anticipate getting paid from the sale for another 5-6 months. I am in Ohio and purchase properties at foreclosure sales and am familiar with the process. Sometimes it can take a while.
None, nobody answers the phone, returns calls or emails @Jorge Newbery
working with PreREO is awful. The process was long and no one got back to you. Now I'm hit with a very expensive legal bill on top of it all. Nothing as it was explained. Avoid using the platform.
@Jorge Newbery Can you comment on this?
After multiple phone calls and emails, I delivered the following email regarding my PreREO note purchase:
Hi Karen,
Any update on this? I am growing very frustrated. The court received the funds 5 months ago, the sheriff mailed the check to the attorney's office in October 2023. The check has been cashed and it's still not settled with me. I am being charged $225 a month in interest on my loan to AHP. I'm feeling that I am being milked and preparing to get my attorney involved if we don't settle this soon.