REOs Offering Presentation

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REOs Offering Presentation

  1. 1. Welcome to The REOs business offer by
  2. 2. Disclaimers • Neither Fahad Karamat nor his partners, affiliates, or team members provide legal or tax advice. • Any documents provided in this presentation are examples only. Always seek professional advice with respect to any document used in a real estate transaction. • Always consult a real estate attorney for legal advice on your real estate deals.
  3. 3. Today Making money in REOs • Foreclosure terms • Bulk REO challenges and opportunities • Buying the REOs • Listing the REOs • Qualifying Buyers • Selling the REOs • Collecting the income • Maximizing reward/Minimizing risk
  4. 4. Foreclosure Terms • Foreclosure is a process that gives a lender or other lien holder the right to sell or repossess a property after the owner has failed to comply with an agreement between the parties whereby the property was pledged as a guarantee.
  5. 5. Foreclosure Terms (REO) • REO means Real Estate Owned (by the bank) • It is a term that refers to the real estate that the bank had to repossess from a borrower who defaulted on the terms of a loan owed to the bank and secured by a real property. • The bank goes through a foreclosure process and ends up taking over the property from the borrower to recover their loan loss. (It becomes an REO in the Non performing Assets Dpt.)
  6. 6. Foreclosure Terms (Land Contract) • It is a contract agreement between a seller and a buyer whereby the seller finances the sale price by carrying a note and retaining legal title of property and buyer qualifies easier and faster by making timely payments till pay off with interest to get legal title of ownership
  7. 7. Foreclosure Terms • Deed and title: A deed is a the document that proves ownership. The title is the manner for which you want to own the property. On the deed of ownership you may hold title as a single and sole owner, or as a LLC etc.
  8. 8. REO challenges Thousands of REOs are available: • Banks want to sell you a minimum of 100 homes (in bulk) to give you the best price • Banks want to see proof of funds (no financing) • Banks want to make sure you have experience • Banks sells them to you “as is where is”
  9. 9. REO Challenges • You, the investor must deal with each property individually no matter the location (they are spread out nationwide) to fix it up first then either: a) Sell it at retail price (realtors commission) or b) Rent it at market value for a long term upside (takes long time)
  10. 10. REO challenges • Must pay all cash (several millions for bulk) • Must pay any property taxes still owed • Must pay any water liens still owed • Must get and pay for property insurance • Must place a combo lock box (get photos) • Must place a For Sale sign outside property • Must take calls and qualify buyers • Must send contract and execute the sale
  11. 11. The REOs reality • Too much work and risk for long term profits • Must have an office and/or a great team to coordinate various functions per property (Purchasing-rehabbing- qualifying buyers or renters- doing legal paper work- title and deed transfers- handling the income- processing expenses- managing risks) • Must have over $2,000,000 in CASH AND show EXPERIENCE for bank to consider selling a minimum bulk purchase of 100 homes
  12. 12. REO opportunity We have hundreds of REOs available: • With us you can buy 10 properties at a time • Your price will be apx $20,000 each and they resell at apx. $35,000 or more (some sell as high as $75,000) • You get a full turn key opportunity by having an expert support service team that handles your deals from A to Z • The support service package is offered to you at no additional charge and it includes a guarantee
  13. 13. REO Opportunity • Your $20,000 investment per property includes the following fees, services and guarantees: • The property taxes if any are owed • The water liens if any are owed • Support gets you property insurance (you pay) • They place a combo lock box (and get photos) • They place a For Sale sign outside • They take the calls and qualify buyers • They send the contract after you select buyer(s)
  14. 14. REO opportunity • They sell the homes on a land contract within 90 days or less (contract included) • They turn over contract to a national service company to collect and deposit in your bank account the PITI payments (fee) • We guarantee an exchange of properties in the unlikely event any of your properties are found burned down (1% statistically) within less than 10 business days
  15. 15. REO opportunity • Some homes may need rehab but this is not a problem because when home is sold on a land contract based on Support teams surveys for apx. $500 down and low monthly payments of apx. $375 (less than local rent) buyers accept property in as is where is condition and stick to payment schedule to realize their dream of ownership and build equity. • If they default on the payments of a land contract they are evicted and not foreclosed on
  16. 16. REO Opportunities • Title is assured to be clear and insured when reselling to end buyer (s) • Deed may take apx. 90-180 days but you do not transfer it to buyers until they paid on time for 12 months on the land contract • Assistance in case of default. Support can coordinate with legal office for less than $700 fee. You may resell at higher price!
  17. 17. Seven Steps to Profitable REOs 1. You buy a batch of 10 properties plus 2. Let the support service division handle your listing and qualify the buyers for you 3. Respond promptly to any calls and emails from support to qualify and select a Buyer from the list they send to you 4. Read and sign all documents of sale sent to you
  18. 18. Seven Steps to Profitable REOs 1. Give your bank info to the loan servicing company to deposit money into your bank account 2. Enjoy income for a year or longer then contact buyers and ask them to get a new loan to cash you out based on their good history of paying on time 3. You may decide to discount the note and sell it at a discount anytime once you have history of payments, we can help you with that.
  19. 19. Our Objective To sell as many properties in the next 24 months and help 4 different parties: 1) The investors who need cash flow and a chance to participate in the profitable REOs but on a smaller scale. They prefer the low risk, high cash flow of these properties with a turn key service opportunity but have been too busy and confused to find a successful, low risk business model 2) The end buyers who need a chance to own a home and take advantage of the low prices but cannot due to low credit scores . They much prefer to own instead of rent to rebuild their credit and get a chance to build equity
  20. 20. Our Objective 3) The banks who got greedy and ended up foreclosing and holding non performing assets nationwide 4) The training companies that have been offering one educational program after another without presenting the actual real estate opportunity and creating cash flow for their investors
  21. 21. Review • Buy 10 properties in batches @ $200K • The support team will assist you to list and sell as well as get the positive cash flow • You can keep the income or sell the note at a discount • You have support and guarantees on the lowest price ever offered in REOs
  22. 22. • Our affiliates pay all back taxes and liens if any • List the properties and qualify buyers • Do all the legal paper work • Your property is resold on a land contract within 90 days • Your returns are usually around 20+% and they are secured against your RE • Offer guarantees and deliver results • For more info e-mail: REO@FinHRC.com

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