Transcript Syndication Training

Welcome to the
The REOs
business model
offered by
www.minibulkREOs.com
Cherif Medawar, Founder
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Investor
Educator
Author
RE Syndicator
President of ICRE
Disclaimers
• Neither Cherif Medawar nor his partners or team
members provide legal or tax advice.
• 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.
Today
Making money in REOs
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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
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.
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 if property is not bid up and sold in a public
auction it ends up going back to the bank as an
REO in the Non performing Assets Department.
Foreclosure Terms
(Land Contract)
• It is written note agreement to sell a
property on an installment payment plan
whereby the buyer agrees to pay the
principle, interest, tax and insurance to the
seller over a period of time allowing him to
qualify easier and faster without appraisal
or stringent credit requirements.
• Seller retains legal Deed/legal title of
property until either enough payments are
made or note is fully paid off before
transferring deed/title over to buyer.
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. Terms are often
used interchangeably,
• On the deed of ownership you may
hold title as a single and sole owner, or
as an LLC etc.
REO challenges
Thousands of REOs are available:
• Banks want to sell you Hundreds of
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”
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)
REO challenges
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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
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 $5 to $10 Mil in cash and show
experience for bank to consider selling a
minimum bulk purchase of 100 plus homes
REO opportunity
Minibulkreos.com has hundreds of REOs:
• You can buy 10 properties or less at a time
• Your price will be $20,000 each- value at apx.
$30,000 + (some sell as high as $75,000)
• You get a full turn key solution with an
expert team of support that resells your
property within 90 days on a land contract
for a cash flow of apx. 20% plus hassle free
• The support service package is offered at no
additional charge and it includes a guarantee
REO Opportunity
• Here is what your $20,000 investment per
property includes in terms of 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 finalize sales contract seal the deal
REO opportunity
• They sell each home 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 is
found burned down (1% statistically) within
less than 10 business days
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.
$300+ (less than local rent), Buyers accept
property in “as is where is” condition and stick to
a payment schedule to realize their dream of
ownership and building equity.
• If they default on the payments of a land contract
they are evicted and not foreclosed on
REO Opportunities
• Title is assured to be clear and insured
when reselling to end buyer (s)
• Deed may take apx. 120 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!
Seven Steps to Profitable REOs
1. You buy a minibulk of 10 properties plus
2. Let the support service handle your
listing and qualify the buyers for you
3. Respond promptly to calls and emails
from support to qualify and select a
Buyer for each of your properties
4. Read and sign promptly all documents
of sale sent to you
Seven Steps to Profitable REOs
5. Give your bank info to the loan servicing co. to
deposit money into your bank account
6. 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
7. You may decide to discount the note and sell it
at a discount anytime once you have history of
payments (use the website for free)
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 needs a chance to own a home
and take advantage of the low prices but cannot
due to his low credit score . They much prefer to
own instead of rent to rebuild their credit and get a
chance to build equity
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
Review
• Buy 10 properties in minibulk @ $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 on our website
• You have support and guarantees on a
the lowest price ever offered in REOs
www.MiniBulkREOs.com
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We pay all back taxes and liens if any
We list the properties and qualify buyers
We 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
• We offer guarantees and deliver results
• For more info please go to website…